Document:

Exhibit
4.1

 

BILL
BARRETT CORPORATION

 

and

 

THE
GUARANTORS PARTY HERETO

 

to

 

DEUTSCHE
BANK TRUST COMPANY AMERICAS

 

Trustee

 

INDENTURE

 

Dated
as of July 8, 2009

 

SENIOR
DEBT SECURITIES

 

 

BILL
BARRETT CORPORATION

 

Certain
Sections of this Indenture relating to Sections 310

through 318, inclusive, of the Trust Indenture Act of 1939

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture
  Section

  
	
  Section 310(a)(1)

  	
   

  	
  609

  
	
  (a)(2)

  	
   

  	
  609

  
	
  (a)(3)

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
  608

  
	
  Section 311(a)

  	
   

  	
  613

  
	
  (b)

  	
   

  	
  613

  
	
  Section 312(a)

  	
   

  	
  701

  
	
   

  	
   

  	
  702

  
	
  (b)

  	
   

  	
  702

  
	
  (c)

  	
   

  	
  702

  
	
  Section 313(a)

  	
   

  	
  703

  
	
  (b)

  	
   

  	
  703

  
	
  (c)

  	
   

  	
  703

  
	
  (d)

  	
   

  	
  703

  
	
  Section 314(a)

  	
   

  	
  704

  
	
  (a)(4)

  	
   

  	
  101

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  102

  
	
  (c)(2)

  	
   

  	
  102

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
  102

  
	
  Section 315(a)

  	
   

  	
  601

  
	
  (b)

  	
   

  	
  602

  
	
  (c)

  	
   

  	
  601

  
	
  (d)

  	
   

  	
  601

  
	
  (e)

  	
   

  	
  514

  
	
  Section 316(a)

  	
   

  	
  101

  
	
  (a)(1)(A)

  	
   

  	
  502

  
	
   

  	
   

  	
  512

  
	
  (a)(1)(B)

  	
   

  	
  513

  
	
  (a)(2)

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
  508

  
	
  (c)

  	
   

  	
  104

  
	
  Section 317(a)(1)

  	
   

  	
  503

  
	
  (a)(2)

  	
   

  	
  504

  
	
  (b)

  	
   

  	
  1003

  
	
  Section 318(a)

  	
   

  	
  107

  

 

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

 

i

 

Table
of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 101.

  	
  Definitions

  	
  1

  
	
  Section 102.

  	
  Compliance Certificates and Opinions

  	
  9

  
	
  Section 103.

  	
  Form of Documents Delivered to Trustee

  	
  9

  
	
  Section 104.

  	
  Acts of Holders; Record Dates

  	
  10

  
	
  Section 105.

  	
  Notices, Etc., to Trustee, Company and Guarantors

  	
  12

  
	
  Section 106.

  	
  Notice to Holders; Waiver

  	
  12

  
	
  Section 107.

  	
  Conflict with Trust Indenture Act

  	
  13

  
	
  Section 108.

  	
  Effect of Headings and Table of Contents

  	
  13

  
	
  Section 109.

  	
  Successors and Assigns

  	
  13

  
	
  Section 110.

  	
  Separability Clause

  	
  13

  
	
  Section 111.

  	
  Benefits of Indenture

  	
  13

  
	
  Section 112.

  	
  Governing Law

  	
  13

  
	
  Section 113.

  	
  Legal Holidays

  	
  13

  
	
  Section 114.

  	
  No Adverse Interpretation of Other Agreements

  	
  14

  
	
  Section 115.

  	
  No Personal Liability of Directors, Officers, Employees and
  Stockholders

  	
  14

  
	
  Section 116.

  	
  Language of Notices, Etc

  	
  14

  
	
  Section 117.

  	
  Force Majeure

  	
  14

  
	
  Section 118.

  	
  Waiver of Jury Trial

  	
  14

  
	
   

  	
   

  
	
  ARTICLE II SECURITY FORMS

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 201.

  	
  Forms Generally

  	
  14

  
	
  Section 202.

  	
  Form of Face of Security

  	
  15

  
	
  Section 203.

  	
  Form of Reverse of Security

  	
  17

  
	
  Section 204.

  	
  Form of Legend for Global Securities

  	
  20

  
	
  Section 205.

  	
  Form of Trustee’s Certificate of Authentication

  	
  20

  
	
   

  	
   

  
	
  ARTICLE III THE SECURITIES

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 301.

  	
  Amount Unlimited; Issuable in Series

  	
  21

  
	
  Section 302.

  	
  Denominations

  	
  25

  
	
  Section 303.

  	
  Execution, Authentication, Delivery and Dating

  	
  25

  
	
  Section 304.

  	
  Temporary Securities

  	
  27

  
	
  Section 305.

  	
  Registration, Registration of Transfer and Exchange

  	
  27

  
	
  Section 306.

  	
  Mutilated, Destroyed, Lost and Wrongfully Taken Securities

  	
  29

  
	
  Section 307.

  	
  Payment of Interest; Interest Rights Preserved

  	
  30

  
	
  Section 308.

  	
  Persons Deemed Owners

  	
  32

  
	
  Section 309.

  	
  Cancellation

  	
  32

  
	
  Section 310.

  	
  Computation of Interest

  	
  32

  

 

i

 

	
  Section 311.

  	
  CUSIP Numbers

  	
  32

  
	
   

  	
   

  
	
  ARTICLE IV SATISFACTION AND DISCHARGE

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 401.

  	
  Satisfaction and Discharge of Indenture

  	
  32

  
	
  Section 402.

  	
  Application of Trust Money

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REMEDIES

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 501.

  	
  Events of Default

  	
  34

  
	
  Section 502.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  35

  
	
  Section 503.

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee

  	
  36

  
	
  Section 504.

  	
  Trustee May File Proofs of Claim

  	
  37

  
	
  Section 505.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  37

  
	
  Section 506.

  	
  Application of Money Collected

  	
  38

  
	
  Section 507.

  	
  Limitation on Suits

  	
  38

  
	
  Section 508.

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest and to Convert

  	
  39

  
	
  Section 509.

  	
  Restoration of Rights and Remedies

  	
  39

  
	
  Section 510.

  	
  Rights and Remedies Cumulative

  	
  39

  
	
  Section 511.

  	
  Delay or Omission Not Waiver

  	
  39

  
	
  Section 512.

  	
  Control by Holders

  	
  39

  
	
  Section 513.

  	
  Waiver of Past Defaults

  	
  40

  
	
  Section 514.

  	
  Undertaking for Costs

  	
  40

  
	
  Section 515.

  	
  Waiver of Usury, Stay or Extension Laws

  	
  40

  
	
   

  	
   

  
	
  ARTICLE VI THE TRUSTEE

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 601.

  	
  Certain Duties and Responsibilities

  	
  41

  
	
  Section 602.

  	
  Notice of Defaults

  	
  42

  
	
  Section 603.

  	
  Certain Rights of Trustee

  	
  42

  
	
  Section 604.

  	
  Not Responsible for Recitals or Issuance of Securities

  	
  43

  
	
  Section 605.

  	
  May Hold Securities

  	
  44

  
	
  Section 606.

  	
  Money Held in Trust

  	
  44

  
	
  Section 607.

  	
  Compensation and Reimbursement

  	
  44

  
	
  Section 608.

  	
  Conflicting Interests

  	
  45

  
	
  Section 609.

  	
  Corporate Trustee Required; Eligibility

  	
  45

  
	
  Section 610.

  	
  Resignation and Removal; Appointment of Successor

  	
  45

  
	
  Section 611.

  	
  Acceptance of Appointment by Successor

  	
  46

  
	
  Section 612.

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
  47

  
	
  Section 613.

  	
  Preferential Collection of Claims Against Company

  	
  48

  
	
  Section 614.

  	
  Appointment of Authenticating Agent

  	
  48

  
	
   

  	
   

  
	
  ARTICLE VII HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND
  COMPANY

  	
  49

  
	
   

  	
   

  	
   

  
	
  Section 701.

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
  49

  
	
  Section 702.

  	
  Preservation of Information; Communications to Holders

  	
  50

  
	
  Section 703.

  	
  Reports by Trustee

  	
  50

  

 

ii

 

	
  Section 704.

  	
  Reports by Company

  	
  50

  
	
   

  	
   

  
	
  ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR
  LEASE

  	
  51

  
	
   

  	
   

  	
   

  
	
  Section 801.

  	
  Company May Consolidate, Etc., Only on Certain Terms

  	
  51

  
	
  Section 802.

  	
  Successor Substituted

  	
  51

  
	
   

  	
   

  
	
  ARTICLE IX SUPPLEMENTAL INDENTURES

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 901.

  	
  Supplemental Indentures Without Consent of Holders

  	
  52

  
	
  Section 902.

  	
  Supplemental Indentures With Consent of Holders

  	
  53

  
	
  Section 903.

  	
  Execution of Supplemental Indentures

  	
  55

  
	
  Section 904.

  	
  Effect of Supplemental Indentures

  	
  55

  
	
  Section 905.

  	
  Conformity with Trust Indenture Act

  	
  55

  
	
  Section 906.

  	
  Reference in Securities to Supplemental Indentures

  	
  55

  
	
   

  	
   

  
	
  ARTICLE X COVENANTS

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 1001.

  	
  Payment of Principal, Premium and Interest

  	
  55

  
	
  Section 1002.

  	
  Maintenance of Office or Agency

  	
  56

  
	
  Section 1003.

  	
  Money for Securities Payments to Be Held in Trust

  	
  56

  
	
  Section 1004.

  	
  Corporate Existence

  	
  57

  
	
  Section 1005.

  	
  Statement by Officers as to Default

  	
  57

  
	
  Section 1006.

  	
  Waiver of Certain Covenants

  	
  58

  
	
   

  	
   

  
	
  ARTICLE XI REDEMPTION OF SECURITIES

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 1101.

  	
  Applicability of Article

  	
  58

  
	
  Section 1102.

  	
  Election to Redeem; Notice to Trustee

  	
  58

  
	
  Section 1103.

  	
  Selection by Trustee of Securities to Be Redeemed

  	
  59

  
	
  Section 1104.

  	
  Notice of Redemption

  	
  59

  
	
  Section 1105.

  	
  Deposit of Redemption Price

  	
  60

  
	
  Section 1106.

  	
  Securities Payable on Redemption Date

  	
  61

  
	
  Section 1107.

  	
  Securities Redeemed in Part

  	
  61

  
	
  Section 1108.

  	
  No Limit on Repurchases

  	
  61

  
	
   

  	
   

  
	
  ARTICLE XII SINKING FUNDS

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 1201.

  	
  Applicability of Article

  	
  61

  
	
  Section 1202.

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
  62

  
	
  Section 1203.

  	
  Redemption of Securities for Sinking Fund

  	
  62

  
	
   

  	
   

  
	
  ARTICLE XIII DEFEASANCE AND COVENANT DEFEASANCE

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 1301.

  	
  Company’s Option to Effect Defeasance or Covenant
  Defeasance

  	
  62

  
	
  Section 1302.

  	
  Defeasance and Discharge

  	
  62

  
	
  Section 1303.

  	
  Covenant Defeasance

  	
  63

  

 

iii

 

	
  Section 1304.

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  63

  
	
  Section 1305.

  	
  Deposited Money and U.S. Government Obligations to Be Held
  in Trust; Miscellaneous Provisions

  	
  65

  
	
  Section 1306.

  	
  Reinstatement

  	
  66

  
	
   

  	
   

  
	
  ARTICLE XIV GUARANTEES

  	
  66

  
	
   

  	
   

  	
   

  
	
  Section 1401.

  	
  Guarantees

  	
  66

  

 

iv

 

INDENTURE, dated as of July 8,
2009, among BILL BARRETT CORPORATION, a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company”), having its principal office at 1099 18th
Street, Suite 2300, Denver, Colorado 80202, the Guarantors (as defined
hereinafter), each having its principal office at 1099 18th Street, Suite 2300,
Denver, Colorado 80202, and Deutsche Bank Trust Company Americas, as Trustee
(herein called the “Trustee”).

 

RECITALS
OF THE COMPANY

 

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

 

Each of the Initial
Guarantors has duly authorized the execution and delivery of this Indenture to
provide for the guarantee by such Initial Guarantor of such series of
Securities as to which such guarantee has been made applicable as provided
herein.

 

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

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE
I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

Section 101.          Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

 

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

 

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

 

(3)           all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP;

 

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

 

 

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

 

(6)           when used with respect to any Security, the words “convert”,
“converted” and “conversion” are intended to refer to the right of the Holder
or the Company to convert or exchange such Security into or for securities or
other property in accordance with such terms, if any, as may hereafter be
specified for such Security as contemplated by Section 301,
and these words are not intended to refer to any right of the Holder or the
Company to exchange such Security for other Securities of the same series and
like tenor pursuant to Section 304,
305, 306,
906 or 1107
or another similar provision of this Indenture, unless the context otherwise
requires; and references herein to the terms of any Security that may be
converted mean such terms as may be specified for such Security as contemplated
in Section 301; and

 

(7)           unless the context otherwise requires, any reference to “duly
provided for” and other words of similar import with respect to any amount or
property required to be paid or delivered, as applicable, shall include,
without limitation, having made such amount or property available for payment
or delivery.

 

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

 

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

 

“Applicable
Procedures” of a Depositary means, with respect to any matter at
any time, the policies and procedures of such Depositary, if any, that are
applicable to such matter at such time.

 

“Authenticating
Agent” means, when used with respect to Securities of any
series, any Person authorized by the Trustee to act on behalf of the Trustee to
authenticate the Securities of such series.

 

“Board
of Directors” means either the board of directors of the Company
or any duly authorized committee of that board.

 

“Board
Resolution” means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee. Where any provision of this
Indenture refers to action to be taken pursuant to a Board Resolution
(including the establishment of any series of the Securities and the forms and
terms thereof), such action may be taken by any officer or employee of the
Company authorized to take such action by the Board of Directors as evidenced
by a Board Resolution.

 

2

 

“Business
Day”, when used with respect to any Place of Payment, means each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in that Place of Payment are authorized or obligated by
law or executive order to close; provided that, when used with respect to any
Security, “Business Day”
may have such other meaning, if any, as may be specified for such Security as
contemplated by Section 301.

 

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

 

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

 

“Company
Request” or “Company Order”
means a written request or order signed in the name of the Company by any two
of the following: a Chairman of the Board, a Chief Executive Officer, a
President, a Vice President, a Treasurer, an Assistant Treasurer, its Secretary
or an Assistant Secretary of the Company, or any other officer or officers of
the Company designated in writing by or pursuant to authority of the Board of
Directors and delivered to the Trustee from time to time.

 

“Corporate
Trust Office” means the designated office of the Trustee in New
York, New York  at which at any particular time
its corporate trust business shall be administered and which, at the date
hereof, is located at 60 Wall Street, MSNYC60-2710, New York, NY 10005,
Attention: Trust and Securities Services, or at such other address as the
Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee.

 

“corporation”
means a corporation, association, company (including a limited liability
company), joint-stock company, business trust or other similar entity.

 

“Covenant
Defeasance” has the meaning specified in Section 1303.

 

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

 

“Defeasance”
has the meaning specified in Section 1302.

 

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

 

“DTC”
has the meaning specified in Section 104.

 

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

 

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

 

3

 

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

 

“GAAP”
means, at any time, (i) generally accepted accounting principles set forth
in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession in the United States or (ii) if at such time
the Company is required to prepare its financial statements for reports filed
with the Commission under Section 13 or 15(d) of the Exchange Act
pursuant to standards other than those specified in clause (i) (which may
include International Financial Reporting Standards), such other standards, in
each case which are in effect at such time.

 

“Global
Security” means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 204 (or such legend as may be
specified as contemplated by Section 301
for such Securities).

 

“Guarantee”
means a guarantee of any Securities by a Guarantor as contemplated by Article XIV;
provided that the term “Guarantee,” when used with respect to any Security or
with respect to the Securities of any series, means a guarantee of such
Security or of the Securities of such series, respectively, by a Guarantor of
such Security or of the Securities of such series, respectively, as
contemplated by Article XIV.

 

“Guarantor”
means each of the Initial Guarantors and any other Person who shall have become
a Guarantor under this Indenture pursuant to Section 901 hereof, in
each case unless and until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture, at which time references to
such Guarantor shall mean such successor Person; provided that the term “Guarantor,”
when used, with respect to the Securities of any series, means the Persons who
shall from time to time be the guarantors of Securities of such series as
contemplated by Article XIV.

 

“Guarantor’s
Board of Directors” means, with respect to any Guarantor, either
the board of directors of such Guarantor or any duly authorized committee of
that board.

 

“Guarantor’s
Board Resolution” means, with respect to any Guarantor, a copy
of a resolution certified by the Secretary or an Assistant Secretary of such
Guarantor to have been duly adopted by such Guarantor’s Board of Directors and
to be in full force and effect on the date of such certification, and delivered
to the Trustee. Where any provision of this Indenture refers to action to be
taken pursuant to a Guarantor’s Board Resolution, such action may be taken by
any officer or employee of such Guarantor authorized to take such action by
such Guarantor’s Board of Directors as evidenced by a Guarantor’s Board
Resolution.

 

“Guarantor’s
Officers’ Certificate” means, with respect to any Guarantor, a
certificate signed by any two of the following: a Chairman of the Board, a
Chief Executive Officer, a President, a Vice President, a Treasurer, an
Assistant Treasurer, a Secretary or an Assistant Secretary of such Guarantor,
or any other officer or officers of such Guarantor designated in a writing by
or pursuant to authority of such Guarantor’s Board of Directors and delivered
to the Trustee from time to time.

 

4

 

“Guarantor Request” or “Guarantor
Order” means, with respect to any Guarantor, a written request
or order signed in the name of such Guarantor by any two of the following: a
Chairman of the Board, a Chief Executive Officer, a President, a Vice
President, a Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary of such Guarantor, or any other officer or officers of such Guarantor
designated in writing by or pursuant to authority of such Guarantor’s Board of
Directors and delivered to the Trustee from time to time.  In the event that Guarantor’s Requests
relating to the same matter shall be delivered by two or more Guarantors on the
same date, such requests may be combined into a single document, provided that
the requests made by each Guarantor therein shall be several and not joint
requests of each such Guarantor.

 

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

 

“Indenture”
means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this instrument
and any such supplemental indenture, respectively. The term “Indenture” shall also include the terms of any
particular series or specific Securities within a series and of any Guarantees
thereof established as contemplated by Section 301.

 

“Initial
Guarantor” or “Initial Guarantors”
means Bill Barrett CBM Corporation, a Delaware corporation, Bill Barrett CBM,
LLC, a Texas limited liability company, and Circle B Land Company LLC, a
Colorado limited liability company.

 

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

 

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

 

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

 

“Notice
of Default” means a written notice of the kind specified in Section 501(4).

 

“Officers’
Certificate” means a certificate signed by any two of the
following: a Chairman of the Board, a Chief Executive Officer, a Chief
Operating Officer, a Chief Financial Officer, a President, a Vice President, a
Treasurer, an Assistant Treasurer, a Secretary or an Assistant Secretary of the
Company, or any other officer or officers of the Company designated in a
writing by or pursuant to authority of the Board of Directors and delivered to
the Trustee from time to time.

 

“Opinion
of Counsel” means a written opinion of counsel, who may be an
employee of or counsel for the Company or a Guarantor.

 

5

 

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

 

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

 

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

 

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

 

(3)           Securities as to which Defeasance has been effected
pursuant to Section 1302;

 

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

 

(5)           Securities as to which any property deliverable upon
conversion thereof has been delivered (or such delivery has been duly provided
for), or as to which any other particular conditions have been satisfied, in
each case as may be provided for such Securities as contemplated in Section 301;

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as
of any date, (A) the principal amount of an Original Issue Discount
Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be
Outstanding shall be the amount as specified or determined as contemplated by Section 301, (C) the principal amount
of a Security denominated in one or more foreign currencies, composite
currencies or currency units which shall be deemed to be Outstanding shall be
the U.S. dollar equivalent, determined as of such date in the manner provided
as contemplated by Section 301, of the
principal amount of such Security (or, in the case of a Security described in
Clause (A) or (B) above, of the amount determined as provided in such
Clause), and (D) Securities owned by the Company, any Guarantor of the
Securities or any other obligor upon the Securities or any Affiliate of the 

 

6

 

Company or any such
Guarantor or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent, waiver or other action, only Securities which a Responsible Officer of
the Trustee actually knows to be so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Securities and that the pledgee is not the
Company or any Guarantor of such Securities or any other obligor upon the
Securities or any Affiliate of the Company or a Guarantor of the Securities or
such other obligor.

 

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

 

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

 

“Place
of Payment”, when used with respect to the Securities of any
series and subject to Section 1002,
means the place or places where the principal of and any premium and interest
on the Securities of that series are payable as specified as contemplated by Section 301.

 

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

 

“Prospectus”
means the base prospectus dated June 24, 2009 of the Company or any like
base prospectus relating to Securities to be offered hereunder of the Company
prepared from time to time hereafter and filed with the Commission pursuant to Rule 424(b) under
the Securities Act.

 

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

 

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

 

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

 

“Responsible
Officer”, when used with respect to the Trustee, means any
officer of the Trustee within the corporate trust department, including any
Managing Director, Director, Vice President, assistant secretary, assistant
treasurer, assistant cashier, trust officer, assistant trust officer or
assistant controller assigned to the Corporate Trust Office, or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer of the Trustee to
whom such matter is referred because of his knowledge of and 

 

7

 

familiarity
with the particular subject, and who shall have direct responsibility for the
administration of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

“Subsidiary”
means any Person a majority of the combined voting power of the total
outstanding ownership interests in which is, at the time of determination,
beneficially owned or held, directly or indirectly, by the Company or one or
more other Subsidiaries. For this purpose, “voting power”
means power to vote in an ordinary election of directors (or, in the case of a
Person that is not a corporation, ordinarily to appoint or approve the
appointment of Persons holding similar positions), whether at all times or only
as long as no senior class of ownership interests has such voting power by
reason of any contingency.

 

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

 

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

 

“Uniform
Commercial Code” means the Uniform Commercial Code in effect in
the State of Delaware or the State of New York, as applicable, in each case as
amended from time to time.

 

“U.S.
Government Obligation” has the meaning specified in Section 1304.

 

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

 

8

 

Section 102.          Compliance
Certificates and Opinions.  Upon any
application or request by the Company or a Guarantor to the Trustee to take any
action under any provision of this Indenture, the Company or such Guarantor, as
the case may be, shall furnish to the Trustee such certificates and opinions as
may be required under the Trust Indenture Act; provided,
however, that no such opinion shall be
required in connection with the issuance of Securities that are part of any
series as to which such an opinion has been furnished. Each such certificate or
opinion shall be given in the form of an Officers’ Certificate, if to be given
by an officer of the Company, or a Guarantor’s Officers’ Certificate, if to be
given by an officer of any Guarantor, or an Opinion of Counsel, if to be given
by counsel, and shall comply with the requirements of the Trust Indenture Act
and any other requirements set forth in this Indenture.

 

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

 

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

 

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

 

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

 

(4)           a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.

 

Section 103.          Form of
Documents Delivered to Trustee.  In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

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

 

9

 

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

 

Section 104.          Acts
of Holders; Record Dates. Any request, demand, authorization, direction,
notice, consent, waiver or other action provided or permitted by this Indenture
to be given, made or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in
person or by an agent or agents duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company and any Guarantor. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act”
of the Holders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor of the
Trustee, the Company and any Guarantor, if made in the manner provided in this
Section.

 

Without limiting the
generality of this Section, unless otherwise provided in or pursuant to this
Indenture, (i) a Holder, including a Depositary or its nominee that is a
Holder of a Global Security, may give, make or take, by an agent or agents duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted in or pursuant to this
Indenture to be given, made or taken by Holders, and a Depositary or its
nominee that is a Holder of a Global Security may duly appoint in writing as
its agent or agents members of, or participants in, such Depositary holding
interests in such Global Security in the records of such Depositary; and (ii) with
respect to any Global Security the Depositary for which is The Depository Trust
Company (“DTC”), any consent or other
action given, made or taken by an “agent
member” of DTC by electronic means in accordance with the
Automated Tender Offer Procedures system or other Applicable Procedures of, and
pursuant to authorization by, DTC shall be deemed to constitute the “Act” of the
Holder of such Global Security, and such Act shall be deemed to have been
delivered to the Company, any Guarantor and the Trustee upon the delivery by
DTC of an “agent’s message”
or other notice of such consent or other action having been so given, made or
taken in accordance with the Applicable Procedures of DTC.

 

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

 

The ownership of Securities
shall be proved by the Security Register.

 

Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu 

 

10

 

thereof
in respect of anything done, omitted or suffered to be done by the Trustee or
the Company or any Guarantor in reliance thereon, whether or not notation of
such action is made upon such Security.

 

The Company and any
Guarantor may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give, make or take
any request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders of Securities of such series, provided that neither the Company nor such
Guarantor may set a record date for, and the provisions of this paragraph shall
not apply with respect to, the giving, making or taking of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to give, make or take the relevant action, whether or not
such Holders remain Holders after such record date; provided, however,
that no such action shall be effective hereunder unless given, made or taken on
or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Securities of such series on such record date.
Nothing in this paragraph shall be construed to prevent the Company or any
Guarantor from setting a new record date for any action for which a record date
has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be canceled
and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action given, made or taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date
such action is given, made or taken. Promptly after any record date is set
pursuant to this paragraph, the Company or such Guarantor, as the case may be,
at its own expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Securities of the relevant series in the manner
set forth in Sections 105 and 106.

 

The Trustee may set any day
as a record date for the purpose of determining the Holders of Outstanding
Securities of any series entitled to join in the giving, making or taking of (i) any
Notice of Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or
(iv) any direction referred to in Section 512,
in each case with respect to Securities of such series. If any record date is
set pursuant to this paragraph, the Holders of Outstanding Securities of such
series on such record date, and no other Holders, shall be entitled to give,
make or take such notice, declaration, request or direction, whether or not
such Holders remain Holders after such record date; provided, however,
that no such action shall be effective hereunder unless given, made or taken on
or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Securities of such series on such record date.
Nothing in this paragraph shall be construed to prevent the Trustee from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be canceled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action given, made or taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is given,
made or taken. Promptly after any record date is set pursuant to this
paragraph, the Trustee, at the Company’s expense, shall cause notice of such
record date, the proposed action by Holders and the applicable Expiration Date
to be given to the Company and any 

 

11

 

Guarantor
in writing and to each Holder of Securities of the relevant series in the
manner set forth in Sections 105 and 106.

 

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

 

Without limiting the
foregoing, a Holder entitled hereunder to give, make or take any action
hereunder with regard to any particular Security may do so, in person or by an
agent duly appointed in writing, with regard to all or any part of the
principal amount of such Security.

 

Section 105.           Notices,
Etc., to Trustee, Company and Guarantors. 
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with, (1) the Trustee by any
Holder or by the Company or any Guarantor shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (which may be by
facsimile transmission) to or with the Trustee at its Corporate Trust Office,
Attention: Trust and Securities Services or (2) the Company or a Guarantor
by the Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company or such Guarantor, as the case may
be, addressed to it at the address of its principal office specified in the
first paragraph of this instrument or at any other address previously furnished
in writing to the Trustee by the Company.

 

Section 106.           Notice
to Holders; Waiver.  Where this
Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at his address as it appears in the Security Register, not later than the
latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders
is given by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the sufficiency of
such notice with respect to other Holders. Where this Indenture provides for
notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be 

 

12

 

made
with the approval of the Trustee shall constitute a sufficient notification for
every purpose hereunder.

 

Where this Indenture
provides for notice of any event to a Holder of a Global Security, such notice
shall be sufficiently given if given to the Depositary for such Security (or
its designee), pursuant to its Applicable Procedures, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed for
the giving of such notice.

 

Section 107.           Conflict
with Trust Indenture Act.  If any
provision hereof limits, qualifies or conflicts with a provision of the Trust
Indenture Act which is required under such Act to be a part of and govern this
Indenture, the latter provision shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act which
may be so modified or excluded, the latter provision shall be deemed to apply
to this Indenture as so modified or to be excluded, as the case may be.

 

Section 108.           Effect
of Headings and Table of Contents. 
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

 

Section 109.           Successors
and Assigns.  All covenants and
agreements in this Indenture by the Company and any Guarantor shall bind their
respective successors and assigns, whether so expressed or not.

 

Section 110.           Separability
Clause.  In case any provision in
this Indenture or in the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

Section 111.           Benefits
of Indenture.  Nothing in this
Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders,
any benefit or any legal or equitable right, remedy or claim under this
Indenture, except as may otherwise be provided pursuant to Section 301 with respect to any Securities
of a particular series or under this Indenture with respect to such Securities.

 

Section 112.           Governing
Law.  This Indenture, the Guarantees
and the Securities and the rights and obligations of the parties hereto and
thereto, including the interpretation, construction, validity and
enforceability thereof, shall be governed by and construed and interpreted in
accordance with the law of the State of New York.

 

Section 113.           Legal
Holidays.  In any case where any
Interest Payment Date, Redemption Date or Maturity of any Security, or any date
on which a Holder has the right to convert his Security, shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of the Securities (other than a provision of any Security
which specifically states that such provision shall apply in lieu of this
Section)) payment of interest or principal (and premium, if any), or conversion
of such Security need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with
the same force and effect as if made on the Interest Payment Date or Redemption
Date, or at the Maturity, or on such date for conversion, as the case may be.

 

13

 

Section 114.           No
Adverse Interpretation of Other Agreements. 
This Indenture may not be used to interpret any other indenture, loan or
other agreement of the Company or any Guarantor or any Subsidiaries of any
thereof or of any other Person. Any such indenture, loan or other agreement may
not be used to interpret this Indenture.

 

Section 115.           No
Personal Liability of Directors, Officers, Employees and Stockholders.  No past, present or future director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
will have any liability for any obligations of the Company or any Guarantor,
respectively, under the Securities or this Indenture or for any claim based on,
in respect of, or by reason of, such obligations or their creation. Each Holder
of Securities by accepting a Security waives and releases all such liability.
The waiver and release are part of the consideration for issuance of the
Securities. The waiver may not be effective to waive liabilities under the
federal securities laws.

 

Section 116.           Language
of Notices, Etc.  Any request,
demand, authorization, direction, notice, consent, waiver, other action or Act
provided or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country
of publication.

 

Section 117.           Force
Majeure.  Subject to Section 601,
in no event shall the Trustee be responsible or liable for any failure or delay
in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall
use reasonable efforts that are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the
circumstances.

 

Section 118.           Waiver
of Jury Trial.  EACH OF THE COMPANY,
EACH GUARANTOR AND THE TRUSTEE HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS INDENTURE.

 

ARTICLE
II

SECURITY FORMS

 

Section 201.           Forms
Generally.  The Securities of each
series shall be in substantially the form set forth in this Article, or in such
other form as shall be established by or pursuant to a Board Resolution or in
one or more indentures supplemental hereto, and, if the Securities of such
series are to be guaranteed by the 
Guarantees of any Guarantor as provided in Section 301 and
the terms of such Securities provide for the endorsement thereon or attachment
thereto of Guarantees by such Guarantor, such Guarantees to be endorsed on or
attached to such Securities shall be in substantially such form as shall be
established by or pursuant to a Guarantor’s Board Resolution of such Guarantor
or in one or more indentures supplemented hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are
required or

 

14

 

permitted
by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers
executing such Securities or Guarantees, respectively, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of
the Company and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 303
for the authentication and delivery of such Securities. If the form of any
Guarantees by any Guarantor to be endorsed on Securities of any series is
established by action taken pursuant to a Guarantor’s Board Resolution of such
Guarantor, a copy of an appropriate record of such action shall be certified by
the Secretary or an Assistant Secretary of such Guarantor and delivered to the
Trustee at or prior to the delivery of the Guarantor Order contemplated by Section 303
for the authentication and delivery of such Securities with such Guarantee
endorsed thereon.  For purposes hereof, a
Guarantee that is endorsed on, or otherwise attached to, a Security shall be
deemed “endorsed” on such Security.

 

The definitive Securities
and any Guarantees endorsed thereon shall be printed, lithographed or engraved
on steel engraved borders or may be produced in any other manner, all as
determined by the officers of the Company executing such Securities or, if
such  Guarantees by any Guarantor are
executed by such Guarantor, by the officers of such Guarantor executing such
Guarantees, respectively, as evidenced by their execution of such Securities
or, if such  Guarantees by any Guarantor
are executed by such Guarantor, by the officers of such Guarantor executing
such Guarantees, respectively.

 

Anything herein to the
contrary notwithstanding, there shall be no requirement that any Security have
endorsed thereon or attached thereto a Guarantee or a notation of a Guarantee,
but such a Guarantee or notation of a Guarantee may be endorsed thereon or
attached thereto as contemplated by this Section 201.

 

Section 202.           Form of
Face of Security.

 

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

 

BILL
BARRETT CORPORATION

 

	
                                              

  	
   

  	
   

  
	
  No.                   
  $                                  

  	
   

  	
  CUSIP
  No.
                               

  

 

BILL BARRETT CORPORATION, a corporation duly
organized and existing under the laws of the State of Delaware (herein called
the “Company”, which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to                                     ,
or registered assigns, the principal sum of                                 
Dollars on                             
[if the Security is to bear interest prior to Maturity, insert — , and to pay
interest thereon from                     
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on                     
and                     
in 

 

15

 

each year, commencing                       ,
and at the Maturity thereof, at the rate of                     %
per annum, until the principal hereof is paid or made available for payment [if
applicable, insert —, provided that any premium, and any such installment of
interest, which is overdue shall bear interest at the rate of                      %
per annum (to the extent that the payment of such interest shall be legally
enforceable), from the date such overdue amount is due until such amount is
paid or duly provided for, and such interest on any overdue amount shall be
payable on demand]. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the                  
or                  
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest so payable, but not punctually paid or
duly provided for, will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid in any other lawful manner not inconsistent with the requirements of any
securities exchange on which this Security may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in said
Indenture].

 

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

 

Payment of the principal of
(and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or agency of the Company
maintained for that purpose in New York, New York, in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts, against surrender of this Security in the
case of any payment due at the Maturity of the principal thereof or any payment
of interest becomes payable on a day other than an Interest Payment Date; provided,
however,
that if this Security is not a Global Security, (i) payment of interest on
an Interest Payment Date will be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register;
and all other payments will be made by check against surrender of this
Security; (ii) all payments by check will be made in next-day funds (i.e.,
funds that become available on the day after the check is cashed); and (iii) notwithstanding
clauses (i) and (ii) above, with respect to any payment of any amount
due on this Security, if this Security is in a denomination of at least
$1,000,000 and the Holder hereof at the time of surrender hereof or, in the
case of any payment of interest on any Interest Payment Date, the Holder
thereof on the related Regular Record Date delivers a written request to the
Paying Agent to make such payment by wire transfer at least five Business Days
before the date such payment becomes due, together with appropriate wire transfer
instructions specifying an account at a bank in New York, New York, the Company
shall make such payment by wire transfer of immediately available funds to such
account at such bank in New York City, any such wire 

 

16

 

instructions,
once properly given by a Holder as to this Security, remaining in effect as to
such Holder and this Security unless and until new instructions are given in
the manner described above and provided further,
that notwithstanding anything in the foregoing to the contrary, if this
Security is a Global Security, payment shall be made pursuant to the Applicable
Procedures of the Depositary as permitted in said Indenture.

 

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

 

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

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	
   

  	
  BILL
  BARRETT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Section 203.           Form of
Reverse of Security.  This Security
is one of a duly authorized issue of senior securities of the Company (herein
called the “Securities”), issued and to
be issued in one or more series under an Indenture, dated as of [                    ]
(herein called the “Indenture”, which term shall
have the meaning assigned to it in such instrument), among the Company, the
Guarantors and Deutsche Bank Trust Company Americas, as
Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Guarantors, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof [if applicable, insert —
limited in aggregate principal amount to $                    ].

 

This Security is the
general, unsecured, senior obligation of the Company [if applicable, insert—and
is guaranteed pursuant to a guarantee (the “Guarantee”)
by [insert name of each Guarantor] and any
other Person who shall become such in accordance with the Indenture (the “Guarantors”). The Guarantee by each Guarantor is the
general, unsecured, senior obligation of such Guarantor, subject to the release
and discharge thereof as provided in the Indenture].

 

[If applicable, insert — The
Securities of this series are subject to redemption upon not less than 30 days’
nor more than 60 days’ notice, at any time [if applicable, insert — on or after
                    ,
20    ], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [if

 

17

 

applicable,
insert — on or before                     ,
          %, and if redeemed]
during the 12-month period beginning                     
of the years indicated,

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

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

 

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

 

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

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company [if applicable,
insert—and the Guarantors] and the rights of the Holders of the Securities to
be affected under the Indenture at any time by the Company [if applicable,
insert—and the Guarantors] and the Trustee with the consent of the Holders of a
majority in principal amount (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities) of all
Securities at the time Outstanding to be affected (considered together as one
class for this purpose and such Securities to be affected potentially being
Securities of the same or different series and, with respect to any series,
potentially comprising fewer than all the Securities of such 

 

18

 

series),
except as may otherwise be provided pursuant to the Indenture for all or any
specific Securities of any series. The Indenture also contains provisions (i) permitting
the Holders of a majority in principal amount (including waivers obtained in
connection with a purchase of, or tender offer or exchange offer for,
Securities)  of the Securities at the time
Outstanding to be affected under the Indenture (considered together as one
class for this purpose and such affected Securities potentially being
Securities of the same or different series and, with respect to any particular
series, potentially comprising fewer than all the Securities of such series),
on behalf of the Holders of all Securities so affected, to waive compliance by
the Company [if applicable, insert—and the Guarantors] with certain provisions
of the Indenture and (ii) permitting the Holders of a majority in
principal amount (including waivers obtained in connection with a purchase of,
or tender offer or exchange offer for, Securities) of the Securities at the
time Outstanding of any series to be affected under the Indenture (with each
such series considered separately for this purpose), on behalf of the Holders
of all Securities of such series, to waive certain past defaults under the
Indenture with respect to such series and their consequences, in the case of
Clause (i) or (ii), except as may otherwise be provided pursuant to the
Indenture for all or any specific Securities of any series. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.

 

As provided in and subject
to the provisions of the Indenture, the Holder of this Security shall not have
the right to institute any proceeding with respect to the Indenture, or for the
appointment of a receiver or trustee, or for any other remedy thereunder,
unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Securities of this series, the
Holders of not less than 25% in principal amount of the Securities of this
series at the time Outstanding shall have made written request to the Trustee
to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee indemnity reasonably satisfactory to it, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The
foregoing shall not apply to any suit instituted by the Holder of this Security
for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed herein.

 

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

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this
Security is registrable in the Security Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company in
any place where the principal of and any premium and interest on this Security
are payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one 

 

19

 

or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The Securities of this
series are issuable only in registered form without coupons in denominations of
$1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

 

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

 

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

 

[If this Security is a
Global Security, insert — This Security is a Global Security and is subject to
the provisions of the Indenture relating to Global Securities, including the
limitations therein on transfers and exchanges of Global Securities.]

 

This Security and the
Indenture shall be governed by and construed in accordance with the law of the
State of New York.

 

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

 

Section 204.           Form of
Legend for Global Securities.  Unless
otherwise specified as contemplated by Section 301
for the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

 

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

 

Section 205.           Form of
Trustee’s Certificate of Authentication. 
The Trustee’s certificates of authentication shall be in substantially
the following form:

 

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

 

20

 

	
  Dated:

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS, AS TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

ARTICLE
III

THE SECURITIES

 

Section 301.          Amount
Unlimited; Issuable in Series.  The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.

 

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

 

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

 

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

 

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

 

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

 

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

 

(6)           the place or places where the principal of and any premium
and interest on any Securities of the series shall be payable and the manner in
which any payment may be made;

 

21

 

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

 

(8)           the obligation, if any, of the Company to redeem or
purchase any Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of the Holder thereof and the period or periods
within which, the price or prices at which and the terms and conditions upon
which any Securities of the series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;

 

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

 

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

 

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

 

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

 

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

 

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

 

22

 

 

Maturity (or, in any such case, the manner in
which such amount deemed to be the principal amount shall be determined);

 

(15)         if applicable, that the Securities of the series, in whole
or any specified part, shall not be defeasible pursuant to Section 1302 or Section 1303
or both such Sections, and, if such Securities may be defeased, in whole or in
part, pursuant to either or both such Sections, any provisions to permit a
pledge of obligations other than U.S. Government Obligations (or the
establishment of other arrangements) to satisfy the requirements of Section 1304(1) for
defeasance of such Securities and, if other than by a Board Resolution, the
manner in which any election by the Company to defease such Securities shall be
evidenced;

 

(16)         if applicable, that any Securities of the series shall be
issuable in whole or in part in the form of one or more Global Securities and,
in such case, the respective Depositaries for such Global Securities, the form
of any legend or legends which shall be borne by any such Global Security in
addition to or in lieu of that set forth in Section 204,
any addition to, elimination of or other change in the circumstances set forth
in Clause (2) of the penultimate paragraph of Section 305
in which any such Global Security may be exchanged in whole or in part for
Securities registered, and any transfer of such Global Security in whole or in
part may be registered, in the name or names of Persons other than the
Depositary for such Global Security or a nominee thereof and any other
provisions governing exchanges or transfers of any such Global Security;

 

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

 

(18)         any addition to, elimination of or other change in the
covenants set forth in Article X which
applies to Securities of the series;

 

(19)         any provisions necessary to permit or facilitate the
issuance, payment or conversion of any Securities of the series that may be
converted into securities or other property other than Securities of the same
series and of like tenor, whether in addition to, or in lieu of, any payment of
principal or other amount and whether at the option of the Company or
otherwise;

 

(20)         if applicable, that Persons other than those specified in Section 111 shall have such benefits,
rights, remedies and claims with respect to any Securities of the series or
under this Indenture with respect to such Securities, as and to the extent
provided for such Securities;

 

(21)         any change in the actions permitted or required under this
Indenture to be taken by or on behalf of the Holders of the Securities of the
series, including any such change that permits or requires any or all such
actions to be taken by or on behalf of the Holders of any specific Securities
of the series rather than or in addition to the Holders of all Securities of
the series;

 

23

 

(22)         if the Securities of the series are to be guaranteed by any
Guarantors, the names of the Guarantors of the Securities of the series (which
may, but need not, include any or all of the Initial Guarantors) and the terms
of the Guarantees of the Securities of the series, if such terms differ from
those set forth in Section 1401, and any deletions from, or
modifications or additions to, the provisions of Article XIV or any
other provisions of this Indenture in connection with the Guarantees of the
Securities of the series;

 

(23)         any provisions for subordination of any Securities of the
series to other indebtedness of the Company (including Securities of other
series); and

 

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

 

If the Securities of the
series are to be guaranteed by any Guarantor pursuant to Article XIV,
there shall be established in or pursuant to a Guarantor’s Board Resolution of
such Guarantor and, subject to Section 303, set forth, or
determined in the manner provided, in a Guarantor’s Officers’ Certificate of
such Guarantor, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of the series, the terms of the Guarantees
by such Guarantor with respect to the Securities of the series, if such terms
differ from those set forth in Section 1401.

 

All Securities of any one
series shall be substantially identical except as to denomination and except as
may otherwise be provided in or pursuant to the Board Resolution referred to
above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officers’ Certificate
referred to above or in any such indenture supplemental hereto.  All Securities of any one series need not be
issued at the same time and, unless otherwise provided pursuant to this Section 301
for any series, after issuance of Securities of such series, such series may be
reopened for issuances of additional Securities of that series.

 

The terms of any Security of
a series may differ from the terms of other Securities of the same series, if
and to the extent provided pursuant to this Section 301. The
matters referenced in any or all of Clauses (1) through (24) above may be
established and set forth or determined as aforesaid with respect to all or any
specific Securities of a series (in each case to the extent permitted by the
Trust Indenture Act).

 

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

 

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

 

24

 

Section 302.           Denominations.  The Securities of each series shall be
issuable only in registered form without coupons and only in such denominations
as shall be specified as contemplated by Section 301.
In the absence of any such specified denomination with respect to the
Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof.

 

Section 303.           Execution,
Authentication, Delivery and Dating. 
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, President or a Vice President of the Company (or any
other officer of the Company designated in writing by or pursuant to authority
of the Board of Directors and delivered to the Trustee from time to time). The
signature of any of these officers on the Securities may be manual or
facsimile.  If the terms of the
Securities of any series provide that any Guarantee by any Guarantor is to be
endorsed on or otherwise attached to, or made part of, Securities of any series,
and if the terms of such Securities provide for the execution of such Guarantee
by such Guarantor (it being understood and agreed that the terms of Securities
of any series may, but need not, provide for the execution of any Guarantee by
any Guarantor), such Guarantee shall be executed on behalf of such Guarantor by
the Chairman of the Board, President or a Vice President of such Guarantor (or
any other officer of such Guarantor designated in writing by or pursuant to
authority of the Guarantor’s Board of Directors and delivered to the Trustee
from time to time).  The signature of any
of these officers on any Guarantee may be manual or facsimile.

 

Securities and any
Guarantees by any Guarantor endorsed thereon bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the
Company or such Guarantor, as the case may be, shall bind the Company or such
Guarantor, as the case may be, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities.

 

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

 

(1)           if the form of such Securities or any Guarantee by any
Guarantor endorsed thereon has been established by or pursuant to Board
Resolution or Guarantor’s Board 

 

25

 

 

Resolution of such Guarantor, as permitted by
Section 201, that such form has been
established in conformity with the provisions of this Indenture;

 

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

 

(3)           that when such Securities with any Guarantees endorsed
thereon have been authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion
of Counsel, such Securities and such Guarantee will constitute valid and
legally binding obligations of the Company or such Guarantor, respectively,
enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles and subject to any limitation with respect to payments in currency
other than U.S. dollars.

 

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

 

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

 

Each Security shall be dated
the date of its authentication.

 

No Security, nor any Guarantee
endorsed thereon, shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security with any Guarantees endorsed thereon has been duly authenticated and
delivered hereunder. Notwithstanding the foregoing, if any Security shall have
been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309,
for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

 

Wherever herein it shall
provide for the Company to execute, and the Trustee to authenticate and
deliver, Securities of any series, if the terms of such Securities provide for
the 

 

26

 

endorsement
thereon of the Guarantees by any Guarantor, the Company shall cause such
Securities so executed by the Company and authenticated and delivered by the
Trustee to have such Guarantees endorsed thereon, and, if such terms require
such Guarantees to be executed by such Guarantor, such Guarantees to be
executed by such Guarantor.

 

Section 304.           Temporary
Securities.  Pending the preparation
of definitive Securities of any series, the Company may execute, and upon
Company Order and, if any Guarantees by a Guarantor are so to be endorsed on
such Securities, a Guarantor Order of such Guarantor, the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities or
Guarantees, respectively, may determine, as evidenced by their execution of
such Securities or Guarantees, respectively.

 

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

 

Section 305.           Registration,
Registration of Transfer and Exchange. 
The Company shall cause to be kept at each office or agency of the
Company designated as a Place of Payment pursuant to the first paragraph of Section 1002
a register (the register maintained in each such office or agency of the
Company in a Place of Payment being herein sometimes collectively referred to
as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The
Trustee is hereby appointed “Security Registrar” for the purpose of registering
Securities and transfers of Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security of a series at the office or agency of
the Company in a Place of Payment for that series, the Company and, if
applicable, the Guarantors shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount.

 

At the option of the Holder,
Securities of any series may be exchanged for other Securities of the same
series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the 

 

27

 

Trustee
shall authenticate and deliver, the Securities, which the Holder making the
exchange is entitled to receive.

 

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

 

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

 

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

 

If the Securities of any
series (or of any series and specified tenor) are to be redeemed in whole or in
part, the Company shall not be required (A) to issue, register the
transfer of or exchange any Securities of that series (or of that series and
specified tenor, as the case may be) during a period beginning at the opening
of business 15 days before the day of selection of any such Securities for
redemption under Section 1103 and ending at the close of business
on the day of such selection (or during such period as otherwise specified
pursuant to Section 301 for such Securities), or (B) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

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

 

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

 

(2)           Notwithstanding any other provision in this Indenture, and
subject to such applicable provisions, if any, as may be specified as
contemplated by Section 301, no Global
Security may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the
name of any Person other than the Depositary for such Global Security or a
nominee thereof unless (A) such Depositary has notified the Company that
it (i) is unwilling or unable to continue as Depositary for such Global
Security or (ii) has ceased to be a clearing agency registered under the
Exchange Act, or (B) the Company has executed and delivered to the Trustee
a Company Order stating that such Global Security shall be exchanged in whole
for Securities that are not Global Securities (in which case such exchange
shall promptly be effected by the Trustee). If the Company receives a notice of
the kind specified in 

 

28

 

Clause (A) above or has delivered a
Company Order of the kind specified in Clause (B) above, it may, in its
sole discretion, designate a successor Depositary for such Global Security
within 90 days after receiving such notice or delivery of such order, as the
case may be. If the Company designates a successor Depositary as aforesaid,
such Global Security shall promptly be exchanged in whole for one or more other
Global Securities registered in the name of the successor Depositary, whereupon
such designated successor shall be the Depositary for such successor Global
Security or Global Securities and the provisions of Clauses (1), (2), (3) and (4)
of this provision shall continue to apply thereto.

 

(3)           Subject to Clause (2) above and to such applicable
provisions, if any, as may be specified as contemplated by Section 301, any exchange of a Global
Security for other Securities may be made in whole or in part, and all
Securities issued in exchange for a Global Security or any portion thereof
shall be registered in such names as the Depositary for such Global Security
shall direct.

 

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

 

Every Person who takes or
holds any beneficial interest in a Global Security agrees that:

 

(1)           the Company and the Trustee may deal with the Depositary
as sole owner of the Global Security and as the authorized representative of
such Person;

 

(2)           such Person’s rights in the Global Security shall be
exercised only through the Depositary and shall be limited to those established
by law and agreement between such Person and the Depositary and/or direct and
indirect participants of the Depositary;

 

(3)           the Depositary and its participants make book-entry
transfers of beneficial ownership among, and receive and transmit distributions
of principal and interest on the Global Securities to, such Persons in
accordance with the Applicable Procedures of the Depositary; and

 

(4)           none of the Company, the Trustee nor any agent of the
Company or the Trustee will have any responsibility or liability for any aspect
of the records relating to or payments made on account of beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

 

Section 306.           Mutilated,
Destroyed, Lost and Wrongfully Taken Securities.  If (a) any mutilated Security is
surrendered to the Trustee or (b) both (i) there shall be delivered
to the Company and the Trustee (A) a claim by a Holder as to the
destruction, loss or wrongful taking of any Security of such Holder and a
request thereby for a new replacement Security of the same series, and (B) such
indemnity bond as may be required by them to save each of them and any agent of
either of them harmless and (ii) such other reasonable requirements as may
be imposed 

 

29

 

by
the Company as permitted by Section 8-405 of the Uniform Commercial Code
have been satisfied, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a “protected purchaser”
within the meaning of Section 8-405 of the Uniform Commercial Code, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such mutilated, destroyed, lost or wrongfully taken
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously Outstanding.

 

In case any such mutilated,
destroyed, lost or wrongfully taken Security has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new
Security, pay such Security.

 

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

 

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

 

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

 

Section 307.           Payment
of Interest; Interest Rights Preserved. 
Except as otherwise provided as contemplated by Section 301
with respect to any Securities of a series, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest (or, if no business is conducted by the Trustee
at its Corporate Trust Office on such date, at 5:00 P.M. New York City
time on such date).

 

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

 

(1)           The Company may elect to make payment of any Defaulted
Interest payable on any Securities of a series to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each of such Securities and the date of the 

 

30

 

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

 

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

 

Except as may otherwise be
provided in this Section 307 or as
contemplated in Section 301 with
respect to any Securities of a series, the Person to whom interest shall be
payable on any Security that first becomes payable on a day that is not an
Interest Payment Date shall be the Holder of such Security on the day such interest
is paid.

 

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

 

In the case of any Security
which is converted after any Regular Record Date and on or prior to the next
succeeding Interest Payment Date (other than any Security whose Maturity is
prior to such Interest Payment Date), interest whose Stated Maturity is on such
Interest Payment Date shall be payable on such Interest Payment Date
notwithstanding such conversion, and such interest (whether or not punctually
paid or duly provided for) shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of
business on such Regular Record Date. Except as otherwise expressly provided in
the immediately preceding sentence, in the case of any Security which is
converted, interest whose Stated Maturity is after the date of conversion of
such Security shall not be payable.

 

31

 

Notwithstanding the
foregoing, the terms of any Security that may be converted may provide that the
provisions of this paragraph do not apply, or apply with such additions,
changes or omissions as may be provided thereby, to such Security.

 

Section 308.           Persons
Deemed Owners.  Prior to due
presentment of a Security for registration of transfer, the Company, any
Guarantor and the Trustee and any agent of the Company, any Guarantor or the
Trustee may treat the Person in whose name such Security is registered as the
owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 307)
any interest on such Security and for all other purposes whatsoever, whether or
not such Security be overdue, and neither the Company, any Guarantor, the
Trustee nor any agent of the Company, any Guarantor or the Trustee shall be
affected by notice to the contrary.

 

Section 309.           Cancellation.  All Securities surrendered for payment,
redemption, registration of transfer or exchange or conversion or for credit
against any sinking fund payment shall, if surrendered to any Person other than
the Trustee, be delivered to the Trustee and shall be promptly canceled by it.
The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee (or
to any other Person for delivery to the Trustee) for cancellation any
Securities previously authenticated hereunder which the Company has not issued
and sold, and all Securities so delivered shall be promptly canceled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section, except as expressly permitted
by this Indenture. All canceled Securities held by the Trustee shall be
disposed of as directed by a Company Order; provided, however, that the Trustee shall not be required to destroy
such canceled Securities.

 

Section 310.           Computation
of Interest.  Except as otherwise
specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 311.           CUSIP
Numbers.  The Company in issuing the
Securities may use CUSIP numbers (if then generally in use) and, if so, the
Trustee shall use CUSIP numbers in notices of redemption as a convenience to
Holders; provided 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 redemption and that reliance may be placed only on
the other identification numbers printed on the Securities. Any such redemption
shall not be affected by any defect in or omission of such CUSIP numbers.

 

ARTICLE IV

SATISFACTION AND DISCHARGE

 

Section 401.           Satisfaction
and Discharge of Indenture.  This
Indenture shall upon Company Request cease to be of further effect with respect
to the Securities of any series and any Guarantees of such Securities (except
as to any surviving rights of conversion, registration of transfer or exchange
of any such Security expressly provided for herein or in the terms of such
Security), and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to such Securities, when

 

32

 

(1)           either

 

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

 

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

 

(i)            have become due and payable, or

 

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

 

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

 

and the Company, in the case
of (i), (ii) or (iii) above, has deposited or caused to be deposited with the
Trustee as trust funds in trust for such purpose money in an amount sufficient
to pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and any premium and
interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

 

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

 

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

 

Notwithstanding the
satisfaction and discharge of this Indenture with respect to Securities of any
series, the obligations of the Company to the Trustee under Section 607, the obligations of the Trustee
to any Authenticating Agent under Section 614, and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1)
of this Section with respect to such Securities, the obligations of the Company
of such series under Section 1002 and the obligations of the
Trustee under Section 402, Section 606 and the last paragraph of Section 1003 with respect to such Securities
shall survive such satisfaction and discharge.

 

33

 

Section 402.           Application
of Trust Money.  Subject to the
provisions of the last paragraph of Section 1003,
all money deposited with the Trustee pursuant to Section 401
with respect to Securities of any series shall be held in trust and applied by
it, in accordance with the provisions of such Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee. All moneys deposited
with the Trustee pursuant to Section 401
(and held by it or any Paying Agent) for the payment of Securities subsequently
converted shall be returned to the Company upon Company Request, to the extent
originally deposited by the Company. The Company may direct by a Company Order
the investment of any money deposited with the Trustee pursuant to Section 401,
without distinction between principal and income, in (1) United States
Treasury Securities with a maturity of one year or less or (2) a money
market fund that invests solely in short term United States Treasury Securities
and from time to time the Company may direct the reinvestment of all or a
portion of such money in other securities or funds meeting the criteria
specified in Clause (1) or (2) of this sentence.

 

ARTICLE V

REMEDIES

 

Section 501.           Events
of Default.

 

Except as may otherwise be
provided pursuant to Section 301 for all or any specific Securities
of any series, “Event of Default,” wherever
used herein with respect to the Securities of that series, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

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

 

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

 

(3)           default in the deposit of any sinking fund payment, when
and as due by the terms of a Security of that series and continuance of such
default for a period of 60 days; or

 

(4)           default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant or warranty a
default in whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for
the benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of

 

34

 

the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice
of Default” hereunder; or

 

(5)           the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal or
State law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs,
and the continuance of any such decree or order for relief or any such other
decree or order unstayed and in effect for a period of 90 consecutive days; or

 

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

 

(7)           if Article XIV has been made applicable with
respect to such Securities, the Guarantee of the Securities of such series by
any Guarantor shall for any reason cease to be, or shall for any reason be
asserted in writing by such Guarantor or the Company not to be, in full force
and effect and enforceable in accordance with its terms, except to the extent
contemplated or permitted by this Indenture or by the terms of the Securities
of such series established pursuant to Section 301; or

 

(8)           any other Event of Default provided with respect to
Securities of that series in accordance with Section 301.

 

Section 502.           Acceleration
of Maturity; Rescission and Annulment. 
Except as may otherwise be provided pursuant to Section 301
for all or any specific Securities of any series, if an Event of Default (other
than an Event of Default specified in Section 501(5)  or
501(6)) with respect to Securities of that
series at the time Outstanding occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount of all
the Securities of that series (or, in the case of any Security of that series
which specifies an amount to be due and payable thereon 

 

35

 

upon
acceleration of the Maturity thereof, such amount as may be specified by the
terms thereof) to be due and payable immediately, by a notice in writing to the
Company and any Guarantor of the Securities of that series (and to the Trustee
if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable. Except as may
otherwise be provided pursuant to Section 301
for all or any specific Securities of any series, if an Event of Default
specified in Section 501(5)  or
Section 501(6)  with respect to
Securities of that series at the time Outstanding occurs, the principal amount
of all the Securities of that series (or, in the case of any Security of that series
which specifies an amount to be due and payable thereon upon acceleration of
the Maturity thereof, such amount as may be specified by the terms thereof)
shall automatically, and without any declaration or other action on the part of
the Trustee or any Holder, become immediately due and payable.

 

Except as may otherwise be
provided pursuant to Section 301 for all or any specific Securities
of any series, at any time after such a declaration of acceleration with
respect to Securities of that series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal
amount of the Outstanding Securities of that series, by written notice to the
Company, any Guarantor of the Securities of that series and the Trustee, may
rescind and annul such declaration and its consequences if

 

(1)                                the Company or
any such Guarantor has paid or deposited with the Trustee a sum sufficient to
pay

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 503.           Collection
of Indebtedness and Suits for Enforcement by Trustee.  The Company covenants that if

 

36

 

(1)           default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues
for a period of 60 days, or

 

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

 

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

 

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

 

Section 504.           Trustee
May File Proofs of Claim.  In case of
any judicial proceeding relative to the Company, any Guarantor or any other
obligor upon the Securities, their property or their creditors, the Trustee
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. The Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 607.

 

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

 

Section 505.           Trustee
May Enforce Claims Without Possession of Securities.  All rights of action and claims under this
Indenture or the Securities may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in 

 

37

 

its
own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

Section 506.           Application
of Money Collected. Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
or any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

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

 

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

 

THIRD:  To the payment of the remainder, if any, to
the Company, any Guarantor or to whomsoever may be lawfully entitled to receive
the same as a court of competent jurisdiction may direct.

 

Section 507.                              Limitation on
Suits.  No Holder of any Security of
any series shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless

 

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

 

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

 

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

 

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

 

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

 

it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or 

 

38

 

preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.

 

Section 508.                              Unconditional
Right of Holders to Receive Principal, Premium and Interest and to Convert.  Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) interest on
such Security on the respective Stated Maturities expressed in such Security
(or, in the case of redemption, on the Redemption Date), and, if the terms of
such Security so provide, to convert such Security in accordance with its
terms, and to institute suit for the enforcement of any such payment and, if
applicable, any such right to convert, and such rights shall not be impaired
without the consent of such Holder.

 

Section 509.                              Restoration of
Rights and Remedies.  If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

 

Section 510.                              Rights and
Remedies Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Securities in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

Section 511.                              Delay or
Omission Not Waiver.  No delay or
omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

 

Section 512.                              Control by
Holders.  The Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series, provided that

 

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

 

39

 

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

 

(3)                                subject to the
provisions of Section 601, the Trustee
shall have the right to decline to follow any such direction if the Trustee in
good faith shall determine that the proceeding so directed would involve the
Trustee in personal liability.

 

Section 513.                              Waiver of Past
Defaults.  Except as
may otherwise be provided pursuant to Section 301 for all or any
specific Securities of any series, the Holders of not less than a majority in
principal amount (including waivers obtained in connection with a purchase of,
or tender offer or exchange offer for, Securities) of the Outstanding
Securities of any series to be affected under this Indenture may on behalf of
the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default

 

(1)           in the payment of the principal of or any premium or
interest on any Security of such series, or

 

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

 

Upon any such waiver with
respect to any series, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, with respect to
such series for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon. A waiver of any past default and its consequences given by or on
behalf of any Holder of Securities in connection with a purchase of, or tender
or exchange offer for, such Holder’s Securities will not be rendered invalid by
such purchase, tender or exchange.

 

Section 514.           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, suffered or omitted by it as Trustee, a court
may require any party litigant in such suit to file an undertaking to pay the
costs of such suit, and may assess costs, including reasonable attorneys’ fees
and expenses, against any such party litigant, in the manner and to the extent
provided in the Trust Indenture Act; provided that neither this Section nor the
Trust Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the
Company, any Guarantor or the Trustee or, if applicable, in any suit for the
enforcement of the right to convert any Security in accordance with its terms.

 

Section 515.           Waiver
of Usury, Stay or Extension Laws. 
The Company and each Guarantor covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company
and each Guarantor (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law and covenants that it will not
hinder, delay or impede the execution of any power herein 

 

40

 

granted
to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

ARTICLE VI

THE TRUSTEE

 

Section 601.                              Certain Duties
and Responsibilities.  (a) 
Except during the continuance of an Event of Default,

 

(1)           the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture and as are provided
by the Trust Indenture Act, and, except for implied covenants or obligations
under the Trust Indenture Act, no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(2)           in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to
the requirements of this Indenture.

 

(b)  In case an Event
of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

 

(c)  No provision of
this Indenture shall be construed to relieve the Trustee from liability for its
own negligent action, its own negligent failure to act, or its own willful
misconduct, except that

 

(1)           this Subsection shall not be construed to limit the effect
of the first paragraph of this Section;

 

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

 

(3)           the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding
Securities of any series, determined as provided in Section 512,
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture with respect to the Securities of such
series; and

 

(4)           no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its 

 

41

 

duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(d)  Whether or not therein
expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section.

 

Section 602.                              Notice of
Defaults.  If a
default occurs hereunder with respect to Securities of any series, the Trustee
shall give the Holders of Securities of such series notice of such default as
and to the extent provided by the Trust Indenture Act; provided, however,
that in the case of any default of the character specified in Section 501(4)  with respect to
Securities of such series, no such notice to Holders shall be given until at
least 60 days after the occurrence thereof. For the purpose of this Section,
the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

 

Section 603.                              Certain Rights
of Trustee.  Subject to
the provisions of Section 601:

 

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

 

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

 

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

 

(4)           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 in reliance thereon;

 

(5)           the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee security 

 

42

 

or indemnity reasonably satisfactory to it
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

 

(6)           the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company and, if applicable, the Guarantors,
personally or by agent or attorney at the sole cost of the Company and shall
incur no liability or additional liability of any kind by reason of such
inquiry or investigation;

 

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

 

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

 

(9)           the Trustee shall not be liable for any action taken,
suffered or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon
it by this Indenture;

 

(10)         the Trustee shall not be deemed to have notice of any
default or Event of Default unless a Responsible Officer of the Trustee 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; and

 

(11)         the rights, privileges, protections, immunities and benefits
given to the Trustee, including its rights to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder.

 

Section 604.           Not
Responsible for Recitals or Issuance of Securities.  The recitals contained herein and in the
Securities, except the Trustee’s certificates of authentication, shall be taken
as the statements of the Company, and the Trustee does not assume any
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities. The
Trustee shall not be accountable for the use or application by the Company of
Securities or the proceeds thereof.

 

43

 

Section 605.                              May Hold
Securities.  The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company or any Guarantor, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
608 and 613,
may otherwise deal with the Company or any Guarantor with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

 

Section 606.                              Money Held in
Trust.  Money held by the Trustee in
trust hereunder need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company or any Guarantor.

 

Section 607.                              Compensation
and Reimbursement.

 

The Company agrees

 

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

 

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

 

(3)           to indemnify each of the Trustee or any predecessor
Trustee and its officers, directors, agents and employees for, and to hold it
harmless against, any and all losses, liabilities, damages, claims or expenses
including taxes (other than taxes based upon, measured by or determined by the
earnings or income of the Trustee) incurred without negligence, bad faith or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses of defending itself against any claim (whether asserted by
the Company, a Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder.

 

As security for the
performance of the obligations of the Company under this Section the Trustee
shall have a lien prior to the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the payment of
principal of (and premium, if any) or interest on Securities.

 

Without limiting any rights
available to the Trustee under applicable law, when the Trustee incurs expenses
or renders services in connection with an Event of Default specified in Section 501(5)  or Section 501(6), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any
applicable Federal or State bankruptcy, insolvency or other similar law.

 

44

 

The provisions of this Section
shall survive the termination of this Indenture.

 

Section 608.           Conflicting
Interests.  If the Trustee has or
shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture. To the extent permitted by the Trust
Indenture Act, the Trustee shall not be deemed to have a conflicting interest
by virtue of being a trustee under this Indenture with respect to Securities of
more than one series.

 

Section 609.           Corporate
Trustee Required; Eligibility.  There
shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one
or more other series. Each Trustee shall be a Person that is eligible pursuant
to the Trust Indenture Act to act as such, has a combined capital and surplus
of at least $50,000,000 and has its Corporate Trust Office in the continental
United States of America. If any such Person publishes reports of condition at
least annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this Section and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee
with respect to the Securities of any series shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

 

Section 610.           Resignation
and Removal; Appointment of Successor. 
No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 611.

 

The Trustee may resign at
any time with respect to the Securities of one or more series by giving written
notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall
not have been delivered to the Trustee within 60 days after the giving of such
notice of resignation, the resigning Trustee may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

 

The Trustee may be removed
at any time with respect to the Securities of any series by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company. If the instrument of acceptance by
a successor Trustee required by Section 611
shall not have been delivered to the Trustee within 30 days after the giving of
a notice of removal pursuant to this paragraph, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction
for the appointment of a successor Trustee with respect to the Securities of
such series.

 

If at any time:

 

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

 

45

 

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

 

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

 

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

 

If the Trustee shall resign,
be removed or become incapable of acting, or if a vacancy shall occur in the
office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 611. If an instrument of acceptance
by a successor Trustee shall not have been delivered to the Trustee within 30
days after the giving of such notice of removal, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction
for the appointment of a successor Trustee with respect to the Securities of
such series. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611,
become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

 

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

 

Section 611.           Acceptance
of Appointment by Successor.  In case
of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company, any Guarantor and to the 

 

46

 

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

 

In case of the appointment
hereunder of a successor Trustee with respect to the Securities of one or more
(but not all) series, the Company, any Guarantor, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto wherein each successor
Trustee shall accept such appointment and which (1) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and
to vest in, each successor Trustee all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust
and that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates.

 

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

 

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

 

Section 612.           Merger,
Conversion, Consolidation or Succession to Business.  Any corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all the
corporate 

 

47

 

trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

 

Section 613.           Preferential
Collection of Claims Against Company. 
If and when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).

 

Section 614.           Appointment of Authenticating
Agent.  The Trustee may appoint an
Authenticating Agent or Agents with respect to any series of Securities which
shall be authorized to act on behalf of the Trustee to authenticate the
Securities of such Series issued upon original issue and upon exchange,
registration of transfer, partial conversion or partial redemption or pursuant
to Section 306, and Securities of such series so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder.  Wherever reference is made in this Indenture
to the authentication and delivery of Securities of such series by the Trustee
or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent so appointed with respect to such series and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent
so appointed with respect to such series. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority.  If such Authenticating Agent
publishes reports of condition at least annually pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

 

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

 

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and to the
Company.  The Trustee may at any time
terminate the agency of an 

 

48

 

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

 

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

 

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

 

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

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, AS
  TRUSTEE

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
    As
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
    Authorized
  Signatory

  

 

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 701.                              Company to
Furnish Trustee Names and Addresses of Holders.  The Company and any Guarantor will furnish or
cause to be furnished to the Trustee

 

(1)           semi-annually, not later than May 15 and November 15
in each year, a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Holders of Securities of each series as of the
immediately preceding May 1 or November 1 as the case may be, and

 

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

 

49

 

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

 

Section 702.           Preservation
of Information; Communications to Holders. 
The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701
and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 701 upon receipt
of a new list so furnished.

 

The rights of Holders to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges
of the Trustee, shall be as provided by the Trust Indenture Act.

 

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

 

Section 703.           Reports
by Trustee.  The Trustee shall
transmit to Holders such reports concerning the Trustee and its actions under
this Indenture as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant thereto.

 

Reports so required to be
transmitted at stated intervals of not more than 12 months shall be transmitted
no later than April 1 and shall be dated as of January 31 in each
calendar year, commencing in 2010.

 

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

 

Section 704.           Reports
by Company.  The Company and any
Guarantor shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act, if any, at the
times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the
Exchange Act need not be filed with the Trustee until the 15th day after the
same are actually filed with the Commission. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the compliance by the Company or any Guarantor with any of
their covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates or Guarantor’s Officers’ Certificates, as
the case may be).

 

50

 

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

Section 801.                              Company May Consolidate,
Etc., Only on Certain Terms.  The Company shall not consolidate with or
merge into any other Person or sell, convey, transfer or lease all or
substantially all its properties and assets to any Person, and the Company
shall not permit any Person to consolidate with or merge into the Company,
unless:

 

(1)           in case the Company shall consolidate with or merge into
another Person or sell, convey, transfer or lease all or substantially all its
properties and assets to any Person, the Person formed by such consolidation or
into which the Company is merged or the Person which acquires by sale,
conveyance or transfer, or which leases, all or substantially all the
properties and assets of the Company shall be a corporation, partnership or
trust, shall be organized and validly existing under the laws of the United
States, any state thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form reasonably satisfactory to the Trustee, the due and punctual
payment of the principal of and any premium and interest on all the Securities
and the performance or observance of every covenant of this Indenture on the
part of the Company to be performed or observed and, for each Security that by
its terms provides for conversion, shall have provided for the right to convert
such Security in accordance with its terms;

 

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

 

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

 

Section 802.           Successor
Substituted.  Upon any consolidation
of the Company with, or merger of the Company into, any other Person or any
sale, conveyance, transfer or lease of all or substantially all the properties
and assets of the Company in accordance with Section 801,
the successor Person formed by such consolidation or into which the Company is
merged or to which such sale, conveyance, transfer or lease 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
Person had been named as the Company herein, and thereafter, except in the case
of a lease, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.

 

51

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

Section 901.                              Supplemental
Indentures Without Consent of Holders.  Except as may otherwise be provided pursuant
to Section 301 for all or any specific Securities of any series,
without the consent of any Holders, the Company, when authorized by a Board
Resolution, each of the Guarantors, when authorized by a Guarantor’s Board
Resolution of such Guarantor, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

 

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

 

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

 

(3)           to add any additional Events of Default for the benefit of
the Holders of all or any Securities of any series (and if such additional
Events of Default are to be for the benefit of less than all Securities of such
series, stating that such additional Events of Default are expressly being
included solely for the benefit of such Securities within such series); or

 

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

 

(5)           to add to, change or eliminate any of the provisions of
this Indenture in respect of all or any Securities of any series or any
Guarantees thereof (and if such addition, change or elimination is to apply
with respect to less than all Securities of such series or Guarantees thereof,
stating that it is expressly being made to apply solely with respect to such
Securities within such series or Guarantees thereof), provided that any such
addition, change or elimination (A) shall neither (i) apply to any
Security of any series or Guarantee thereof created prior to the execution of
such supplemental indenture and entitled to the benefit of such provision nor (ii) modify
the rights of the Holder of any such Security with respect to such provision or
(B) shall become effective only when there is no such Security
Outstanding; or

 

(6)           to secure the Securities or any Guarantees; or

 

52

 

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

 

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

 

(9)           to add to or change any of the provisions of this
Indenture with respect to any Securities that by their terms may be converted
into securities or other property other than Securities of the same series and
of like tenor, in order to permit or facilitate the issuance, payment or
conversion of such Securities; or

 

(10)         to add any Person as an additional Guarantor under this
Indenture, to add additional Guarantees or additional Guarantors in respect of
any Outstanding Securities under this Indenture, or to evidence the release and
discharge of any Guarantor from its obligations under its Guarantees of any
Securities and its obligations under this Indenture in respect of any
Securities in accordance with the terms of this Indenture; or

 

(11)         to conform the text of this Indenture or any Securities or any
Guarantee endorsed thereon to any provision of the “Description of Debt
Securities and Guarantees” section of the Prospectus or the comparable section
in any prospectus or prospectus supplement of the Company prepared from time to
time after the date of this Indenture with respect to the offer and sale of
Securities of any series, to the extent that such provision was intended to be
a verbatim recitation of a provision of this Indenture, the Securities or such
Guarantee; or

 

(12)         to cure any ambiguity, to correct or supplement any
provision herein which may be defective or inconsistent with any other
provision herein, or to make any other provisions with respect to matters or
questions arising under this Indenture, provided that such action pursuant to this
Clause (12) shall not adversely affect the interests of the Holders of
Securities of any series in any material respect.

 

The Trustee is hereby
authorized to join with the Company and the Guarantors in the execution of any
such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to enter into any such supplemental indenture
which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

 

Section 902.           Supplemental
Indentures With Consent of Holders. 
Except as may otherwise be provided pursuant to Section 301
for all or any specific Securities of any series or Guarantees thereof, with
the consent of the Holders of a majority in principal amount (including
consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Securities) of the Outstanding Securities of all series affected by
such supplemental indenture (considered together as one class for this purpose
and such affected Securities potentially being 

 

53

 

Securities
of the same or different series and, with respect to any series, potentially
comprising fewer than all the Securities of such series), by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized
by a Board Resolution, each of the Guarantors when authorized by a Guarantor’s
Board Resolution of such Guarantor, and the Trustee may enter into an indenture
or indentures supplemental hereto for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture or any Guarantees of such Securities; provided,  however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby (including consents obtained in
connection with a purchase of, or tender offer or exchange offer for,
Securities),

 

(1)           change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security or any other Security which would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section 502, or permit the Company to redeem
any Security if, absent such supplemental indenture, the Company would not be
permitted to do so, or change any Place of Payment where, or the coin or
currency in which, any Security or any premium or interest thereon is payable,
or impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date), or

 

(2)           if any Security provides that the Holder may require the
Company to repurchase or convert such Security, impair such Holder’s right to
require repurchase or conversion of such Security on the terms provided
therein, or

 

(3)           reduce the percentage in principal amount of the
Outstanding Securities of any one or more series (considered separately or
together as one class, as applicable, and whether comprising the same or
different series or less than all the Securities of a series), the consent of
whose Holders is required for any such supplemental indenture, or the consent
of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

 

(4)           if any Security is guaranteed by the Guarantee of any
Grantor, release such Guarantor from any of its obligations under such
Guarantee except in accordance with the terms of this Indenture; or

 

(5)           modify any of the provisions of this Section, Section 513 or Section 1006,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby; provided,
however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the
Trustee” and concomitant changes in this Section and Section 1006, or the deletion of this
proviso, in accordance with the requirements of Sections
611 and 901(8).

 

54

 

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

 

It shall not be necessary
for any Act of Holders under this Section to approve the particular form
of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof. A consent to any indenture supplemental
hereto by or on behalf of any Holder of Securities given in connection with a
purchase of, or tender or exchange offer for, such Holder’s Securities will not
be rendered invalid by such purchase, tender or exchange.

 

Section 903.           Execution
of Supplemental Indentures.  In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel and Officers’
Certificate and Guarantor’s Officers’ Certificate, as the case may be, stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

Section 904.           Effect
of Supplemental Indentures.  Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

 

Section 905.           Conformity
with Trust Indenture Act.  Every
supplemental indenture executed pursuant to this Article shall conform to
the requirements of the Trust Indenture Act.

 

Section 906.           Reference
in Securities to Supplemental Indentures. 
Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

 

ARTICLE X

COVENANTS

 

Section 1001.         Payment
of Principal, Premium and Interest. 
The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal 

 

55

 

of
and any premium and interest on the Securities of that series in accordance
with the terms of the Securities and this Indenture.

 

Section 1002.         Maintenance
of Office or Agency.  The Company
will maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of
transfer or exchange, where Securities may be surrendered for conversion and
where notices and demands to or upon the Company or any Guarantor in respect of
the Securities of that series and this Indenture may be served. The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company shall
fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company and each Guarantor hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands.

 

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

 

With respect to any Global
Security, and except as otherwise may be specified for such Global Security as
contemplated by Section 301, the
Corporate Trust Office of the Trustee shall be the Place of Payment where such
Global Security may be presented or surrendered for payment or for registration
of transfer or exchange, or where successor Securities may be delivered in
exchange therefor, provided, however, that any such
payment, presentation, surrender or delivery effected pursuant to the
Applicable Procedures of the Depositary for such Global Security shall be
deemed to have been effected at the Place of Payment for such Global Security
in accordance with the provisions of this Indenture.

 

Section 1003.         Money
for Securities Payments to Be Held in Trust.  If the Company shall at any time act as its
own Paying Agent with respect to any series of Securities, it will, on or
before each due date of the principal of or any premium or interest on any of
the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal and any
premium and interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of its action or failure so to act.

 

Whenever the Company shall
have one or more Paying Agents for any series of Securities, it will, on or
prior to 11:00 A.M., New York City time, on each due date of the principal
of or any premium or interest on any Securities of that series, deposit (or, if
the Company has deposited any trust funds with a trustee pursuant to Section 1304(1), cause such trustee to
deposit) with a Paying Agent a sum sufficient to pay such amount, such sum to
be held 

 

56

 

as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.

 

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

 

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

 

Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of or any premium or interest on any Security of any
series and remaining unclaimed for two years after such principal, premium or
interest has become due and payable shall be paid to the Company on Company
Request (or if deposited by a Guarantor, paid to such Guarantor on Guarantor
Request), or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company or such Guarantor, as the case may be, 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 or such Guarantor, as the case may be, cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New
York, 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 or the applicable Guarantor, as the case may be.

 

Section 1004.         Corporate
Existence.  Subject to Article VIII, the Company will do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence.

 

Section 1005.         Statement
by Officers as to Default.  (a) The
Company will deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement 

 

57

 

of
notice provided hereunder) and, if the Company shall be in default, specifying
all such defaults and the nature and status thereof of which they may have
knowledge;

 

(b)  So long as any
Securities of a series to which Article XIV has been made
applicable are Outstanding, each Guarantor of such Securities will deliver to
the Trustee, within 120 days after the end of each fiscal year of the Company
ending after the date hereof, a Guarantor’s Officers’ Certificate of such
Guarantor, stating whether or not to the best knowledge of the signers thereof
such Guarantor is in default in the performance and observance of any of the
terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if such Guarantor
shall be in default, specifying all such defaults and the nature and status
thereof of which they may have knowledge.

 

Section 1006.         Waiver
of Certain Covenants.  Except as
otherwise provided pursuant to Section 301
for all or any Securities of any series, the Company may, with respect to all
or any Securities of any series, omit in any particular instance to comply with
any term, provision or condition set forth in Section 1004 or in
any covenant provided pursuant to Section 301(18),
901(2), 901(6) or
901(7) for the
benefit of the Holders of such series or in Article VIII
if, before the time for such compliance, the Holders of a majority in principal
amount (including waivers obtained in connection with a purchase of, or tender
offer or exchange offer for, Securities) of all Outstanding Securities affected
by such waiver (considered together as one class for this purpose and such
affected Securities potentially being Securities of the same or different
series and, with respect to any particular series, potentially comprising fewer
than all the Securities of such series) shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition
shall remain in full force and effect. A waiver of compliance given by or on
behalf of any Holder of Securities in connection with a purchase of, or tender
or exchange offer for, such Holder’s Securities will not be rendered invalid by
such purchase, tender or exchange.

 

ARTICLE XI

REDEMPTION OF SECURITIES

 

Section 1101.         Applicability
of Article.  Securities of any series
which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 301 for such Securities) in
accordance with this Article.

 

Section 1102.         Election
to Redeem; Notice to Trustee.  The
election of the Company to redeem any Securities shall be established in or
pursuant to a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities. In
case of any redemption at the election of the Company of less than all the
Securities of any series (including any such redemption affecting only a single
Security), the Company shall, at least 5 Business Days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date, of the principal amount
of Securities of such series to be redeemed and, if applicable, of the tenor of
the Securities to be redeemed. In the 

 

58

 

case
of any redemption of Securities (1) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, or (2) pursuant to an election of the Company
that is subject to a condition specified in the terms of the Securities of the
series to be redeemed, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction or condition.

 

Section 1103.         Selection
by Trustee of Securities to Be Redeemed. 
If less than all the Securities of any series are to be redeemed (unless
all the Securities of such series and of a specified tenor are to be redeemed
or unless such redemption affects only a single Security), the particular
Securities to be redeemed shall be selected not more than 40 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series
not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate and which may provide for the selection for redemption of
a portion of the principal amount of any Security of such series, provided that
the unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects
only a single Security), the particular Securities to be redeemed shall be
selected not more than 40 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not previously
called for redemption in accordance with the preceding sentence.

 

If any Security selected for
partial redemption is converted in part before termination of the conversion
right with respect to the portion of the Security so selected, the converted
portion of such Security shall be deemed (so far as it may be) to be the
portion selected for redemption. Securities which have been converted during a
selection of Securities to be redeemed shall be treated by the Trustee as
Outstanding for the purpose of such selection.

 

The Trustee shall promptly
notify the Company and each Security Registrar in writing of the Securities
selected for redemption as aforesaid and, in case of any Securities selected
for partial redemption as aforesaid, the principal amount thereof to be
redeemed.

 

The provisions of the two
preceding paragraphs shall not apply with respect to any redemption affecting
only a single Security, whether such Security is to be redeemed in whole or in
part. In the case of any such redemption in part, the unredeemed portion of the
principal amount of the Security shall be in an authorized denomination (which
shall not be less than the minimum authorized denomination) for such Security.

 

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

 

Section 1104.         Notice
of Redemption.  Notice of redemption
shall be given in the manner provided in Section 106
not less than 30 days nor more than 60 days prior to the Redemption Date (or
within such period as otherwise specified as contemplated by Section 301
for the relevant Securities), to each Holder of Securities to be redeemed, at
his address appearing in the Security Register.

 

59

 

All notices of redemption
shall identify the Securities to be redeemed (including CUSIP numbers, if any)
and shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price,

 

(3)           if less than all the Outstanding Securities of any series
consisting of more than a single Security are to be redeemed, the
identification (and, in the case of partial redemption of any such Securities,
the principal amounts) of the particular Securities to be redeemed and, if less
than all the Outstanding Securities of any series consisting of a single
Security are to be redeemed, the principal amount of the particular Security to
be redeemed,

 

(4)           that on the Redemption Date the Redemption Price will
become due and payable upon each such Security to be redeemed and, if
applicable, that interest thereon will cease to accrue on and after said date,

 

(5)           the place or places where each such Security is to be
surrendered for payment of the Redemption Price,

 

(6)           for any Securities that by their terms may be converted,
the terms of conversion, the date on which the right to convert the Security to
be redeemed will terminate and the place or places where such Securities may be
surrendered for conversion, and

 

(7)           that the redemption is for a sinking fund, if such is the
case.

 

Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.

 

Section 1105.         Deposit
of Redemption Price.  Prior to 11:00 A.M.,
New York City time, on any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date, other than any Securities
called for redemption on that date which have been converted prior to the date
of such deposit.

 

If any Security called for
redemption is converted, any money deposited with the Trustee or with any
Paying Agent or so segregated and held in trust for the redemption of such
Security shall (subject to any right of the Holder of such Security or any
Predecessor Security to receive interest as provided in the last paragraph of Section 307 or in the terms of such
Security) be paid to the Company upon Company Request or, if then held by the
Company, shall be discharged from such trust.

 

60

 

Section 1106.         Securities
Payable on Redemption Date.  Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless
otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section 307.

 

If any Security called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal and any premium shall, until paid, bear interest from the Redemption
Date at the rate prescribed therefor in the Security.

 

Section 1107.         Securities
Redeemed in Part.  Any Security which
is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.

 

Section 1108.         No Limit on Repurchases.  Nothing in this Indenture or the Securities
shall prohibit or limit the right of the Company or any Affiliate of the
Company to repurchase Securities from time to time at any price in open market
purchases or private transactions at negotiated prices, by tender offer or
otherwise, in each case without any notice to or consent by Holders.  Any Securities purchased by the Company or
any Affiliate of the Company may, to the extent permitted by law and at the discretion
of the Company, be held, resold or delivered to the Trustee for
cancellation.  Any such Securities
delivered to the Trustee for cancellation may not be resold and shall be
disposed of as directed by Company Order.

 

ARTICLE XII

SINKING FUNDS

 

Section 1201.         Applicability
of Article.  The provisions of this Article shall
be applicable to any sinking fund for the retirement of Securities of any
series except as otherwise specified as contemplated by Section 301
for such Securities.

 

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

 

61

 

1202. Each sinking fund payment
shall be applied to the redemption of Securities as provided for by the terms
of such Securities.

 

Section 1202.         Satisfaction
of Sinking Fund Payments with Securities. 
The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a
credit Securities of a series which have been converted in accordance with
their terms or which have been redeemed either at the election of the Company
pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited. The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed (or at such other prices as
may be specified for such Securities as contemplated in Section 301),
for redemption through operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.

 

Section 1203.         Redemption
of Securities for Sinking Fund.  Not
less than 45 days (or such shorter period as shall be satisfactory to the
Trustee) prior to each sinking fund payment date for any Securities, the
Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for such Securities pursuant to
the terms of such Securities, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities pursuant to Section 1202 and will also deliver to the
Trustee any Securities to be so delivered. Not less than 30 days prior to each
such sinking fund payment date, the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104.
Such notice having been duly given, the redemption of such Securities shall be
made upon the terms and in the manner stated in Sections
1106 and 1107.

 

ARTICLE XIII

DEFEASANCE AND COVENANT DEFEASANCE

 

Section 1301.         Company’s
Option to Effect Defeasance or Covenant Defeasance.  Unless otherwise designated pursuant to Section 301(15), the Securities of any
series of Securities shall be subject to defeasance or covenant defeasance
pursuant to such Section 1302 or 1303, in accordance with any applicable
requirements provided pursuant to Section 301
and upon compliance with the conditions set forth below in this Article. The
Company may elect, at its option, at any time, to have Section 1302
or Section 1303 applied to any
Securities or any series of Securities so subject to defeasance or covenant
defeasance. Any such election shall be evidenced by a Board Resolution or in
another manner specified as contemplated by Section 301
for such Securities.

 

Section 1302.         Defeasance
and Discharge.  Upon the Company’s
exercise of its option (if any) to have this Section applied to any Securities
or any series of Securities, as the case may be, 

 

62

 

the
Company shall be deemed to have been discharged from its obligations with
respect to such Securities as provided in this Section on and after the
date the conditions set forth in Section 1304
are satisfied (hereinafter called “Defeasance”). For
this purpose, such Defeasance means that the Company and the Guarantors of the
Securities shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all their other respective
obligations under such Securities and this Indenture insofar as such Securities
or such Guarantees are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), subject to
the following which shall survive until otherwise terminated or discharged
hereunder: (1) the rights of Holders of such Securities to receive, solely
from the trust fund described in Section 1304(1) and
as more fully set forth in such Section, payments in respect of the principal
of and any premium and interest on such Securities when payments are due, (2) the
obligations of the Company and the Guarantors of the Securities of such series
with respect to such Securities under Sections 304,
305, 306,
1002 and 1003,
(3) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (4) this Article. Subject to compliance with this Article,
the Company may exercise its option (if any) to have this Section applied
to any Securities notwithstanding the prior exercise of its option (if any) to
have Section 1303 applied to such
Securities.  Upon the effectiveness of defeasance
with respect to any series of Securities, each Guarantor of the Securities of
such series shall (except as provided in clause (2) of the next preceding
sentence) be automatically and unconditionally released and discharged from all
of its obligations under its Guarantee of the Securities of such series and all
of its other obligations under this Indenture in respect of the Securities of
such series, without any action by the Company, any Guarantor or the Trustee
and without the consent of the Holders of any Securities.

 

Section 1303.         Covenant
Defeasance.  Upon the Company’s
exercise of its option (if any) to have this Section applied to any Securities
or any series of Securities, as the case may be, (1) the Company shall be
released from its obligations under Section 1004 and any covenants
provided pursuant to Section 301(18), 901(2), 901(6) or
901(7) for the
benefit of the Holders of such Securities, and (2) the occurrence of any
event specified in Sections 501(4) (with
respect to Section 1004 and any such covenants provided pursuant to
Section 301(18), 901(2), 901(6) or
901(7)) and 501(8) shall
be deemed not to be or result in an Event of Default, in each case with respect
to such Securities as provided in this Section on and after the date the
conditions set forth in Section 1304
are satisfied (hereinafter called “Covenant Defeasance”).
For this purpose, such Covenant Defeasance means that, with respect to such
Securities, the Company and any Guarantor may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such specified Section (to the extent so specified in the case of Section 501(4)), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or
by reason of any reference in any such Section to any other provision
herein or in any other document, but the remainder of this Indenture and such
Securities and any Guarantees thereof shall be unaffected thereby.

 

Section 1304.         Conditions
to Defeasance or Covenant Defeasance. 
The following shall be the conditions to the application of Section 1302 or Section 1303
to any Securities or any series of Securities, as the case may be:

 

(1)           The Company shall irrevocably have deposited or caused to
be deposited with the Trustee (or another trustee which satisfies the
requirements contemplated by 

 

63

 

Section 609 and agrees to
comply with the provisions of this Article applicable to it) as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefits of the Holders
of such Securities, (A) money in an amount, or (B) U.S. Government
Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment, money in an amount, or (C) such
other obligations or arrangements as may be specified as contemplated by Section 301 with respect to such Securities,
or (D) a combination thereof, in each case 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 any such other qualifying
trustee) to pay and discharge, the principal of and any premium and interest on
such Securities on the respective Stated Maturities, in accordance with the
terms of this Indenture and such Securities. As used herein, “U.S. Government Obligation” means (x) any security
which is (i) a direct obligation of the United States of America for the
payment of which the full faith and credit of the United States of America is
pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or
(ii), is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any U.S. Government Obligation
which is specified in Clause (x) above and held by such bank for the
account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any U.S. Government Obligation
which is so specified and held, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depositary receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of
principal or interest evidenced by such depositary receipt.

 

(2)           In the event of an election to have Section 1302
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (B) since the date of this instrument, there has been
a change in the applicable Federal income tax law, in either case (A) or (B) to
the effect that, and based thereon such opinion shall confirm that, the Holders
of such Securities will not recognize gain or loss for Federal income tax
purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Securities and will be subject to Federal income tax on the
same amount, in the same manner and at the same times as would be the case if
such deposit, Defeasance and discharge were not to occur.

 

(3)           In the event of an election to have Section 1303
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of such Securities will not recognize gain or loss for Federal
income tax purposes as a result of the deposit and Covenant Defeasance to be
effected with respect to such Securities and will be subject to 

 

64

 

Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit and
Covenant Defeasance were not to occur.

 

(4)           The Company shall have delivered to the Trustee an
Officers’ Certificate to the effect that neither such Securities nor any other
Securities of the same series, if then listed on any securities exchange, will
be delisted as a result of such deposit.

 

(5)           No event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to such Securities or any
other Securities (other than such an event or Event of Default solely with
respect to such Securities resulting from the borrowing of funds to be applied
to such deposit) shall have occurred and be continuing at the time of such
deposit.

 

(6)           Such Defeasance or Covenant Defeasance shall not result in
a breach or violation of, or constitute a default under, any other agreement or
instrument to which the Company is a party or by which it is bound.

 

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

 

(8)           The Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent with respect to such Defeasance or Covenant Defeasance
have been complied with.

 

Section 1305.         Deposited
Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous
Provisions.  Subject to the
provisions of the last paragraph of Section 1003,
all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee or other qualifying trustee (solely for purposes of
this Section and Section 1306,
the Trustee and any such other trustee are referred to collectively as the “Trustee”) pursuant to Section 1304
in respect of any Securities shall be held in trust and applied by the Trustee,
in accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent or any Guarantor of the Securities of
the applicable series or any Subsidiary or Affiliate of the Company or any such
Guarantor 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 and any premium and interest, but money and U.S. Government
Obligations so held in trust need not be segregated from other funds except to
the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section 1304 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of Outstanding Securities.

 

Anything in this Article to
the contrary notwithstanding, the Trustee shall deliver or pay to the Company
from time to time upon Company Request any money or U.S. Government Obligations
held by it as provided in Section 1304
with respect to any Securities which, in the

 

65

 

opinion
of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect the
Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

 

Section 1306.         Reinstatement.  If the Trustee or the Paying Agent is unable
to apply any money in accordance with this Article with respect to any
Securities by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the respective obligations under this Indenture and such Securities and,
if applicable, Guarantees of such Securities from which the Company and the
applicable Guarantors have been discharged or released pursuant to Section 1302 or 1303
shall be revived and reinstated as though no deposit had occurred pursuant to
this Article with respect to such Securities, until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant
to Section 1305 with respect to such
Securities in accordance with this Article; provided, however,
that if the Company or any Guarantor makes any payment of principal of or any
premium or interest on any such Security following such reinstatement of its
obligations, the Company or such Guarantor, as the case may be, shall be
subrogated to the rights (if any) of the Holders of such Securities to receive
such payment from the money so held in trust.

 

ARTICLE XIV

GUARANTEES

 

Section 1401.         Guarantees.  Securities of any series that are to be
guaranteed by the Guarantees of any Guarantors shall be guaranteed by such
Guarantors as shall be established pursuant to Section 301 with
respect to the Securities of such series. 
The Persons who shall initially be the Guarantors of the Securities of
any such series may, but need not, include any or all of the Initial Guarantors
and may include any and all such other Persons as the Company may determine; provided that, prior to the authentication and delivery upon
original issuance of Securities that are to be guaranteed by a Person that is
not an Initial Guarantor, the Company, the Trustee and such Person shall enter
into a supplemental indenture pursuant to Section 901 hereof
whereby such Person shall become a Guarantor under this Indenture.

 

Securities
of any series that are to be guaranteed by the Guarantees of any Guarantors
shall be guaranteed in accordance with the terms of such Guarantees as established
pursuant to Section 301 with respect to such Securities and such
Guarantees thereof and (except as otherwise specified as contemplated by Section 301
for such Securities and such Guarantees thereof) in accordance with this
Article.

 

Each Guarantor of any Security hereby fully and unconditionally guarantees to each Holder of
such Security, and to the Trustee on behalf of such Holder, the due and
punctual payment of the principal of, and premium, if any, and interest, if
any, on such Security when and as the same shall become due and payable,
whether at the Stated Maturity, by declaration of acceleration, call for
redemption or otherwise, in accordance with the terms of such Security and of
this Indenture. In case of the failure of the Company punctually to make any
such payment, such Guarantor hereby agrees to cause such payment to be made
punctually when and as the same shall become due and payable, whether at the
Stated Maturity or by declaration of

 

66

 

acceleration,
call for redemption or otherwise, and as if such payment were made by the
Company.

 

The Guarantor of any Security hereby agrees that its obligations hereunder shall be absolute and unconditional
irrespective of, and shall be unaffected by, any invalidity, irregularity or
unenforceability of such Security or this Indenture, any failure to enforce the
provisions of such Security or this Indenture, or any waiver, modification or
indulgence granted to the Company with respect thereto, by the Holder of such
Security or the Trustee or any other circumstance which may otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor; provided, however, that,
notwithstanding the foregoing, no such waiver, modification or indulgence
shall, without the consent of any Guarantor, increase the principal amount of
such Security, or increase the interest rate thereon, change any redemption
provisions thereof (including any change to increase any premium payable upon
redemption thereof) or change the Stated Maturity of any payment thereon, or
increase the principal amount of any Original Issue Discount Security that
would be due and payable upon a declaration of acceleration or the maturity
thereof pursuant to Section 502 of this Indenture.

 

The Guarantor of any Security hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or any of the Holders exhaust any right or take
any action against the Company or any other Person, filing of claims with a
court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest or notice with respect
to any Security or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that its obligations hereunder will not be discharged
in respect of such Security except by complete performance of the obligations
of such Guarantor contained in such Security and in this Indenture. Any
Guarantee of any Guarantor hereunder shall constitute a guaranty of payment and
not of collection. The Guarantor of any Security hereby agrees that, in the
event of a default in payment of principal, or premium, if any, or interest, if
any, on such Security, whether at its Stated Maturity, by declaration of
acceleration, call for redemption or otherwise, legal proceedings may be
instituted by the Trustee on behalf of, or by, the Holder of such Security,
subject to the terms and conditions set forth in this Indenture, directly
against such Guarantor to enforce the obligation of such Guarantor hereunder
without first proceeding against the Company.

 

The obligations of the Guarantor of any Security hereunder with respect to such Security shall be
continuing and irrevocable until the date upon which the entire principal of,
premium, if any, and interest, if any, on such Security has been, or has been
deemed pursuant to the provisions of Article Four of this Indenture to
have been, paid in full or otherwise discharged.

 

The Guarantor of any Security shall be subrogated to all rights of the Holders of such Security against the Company in
respect of any amounts paid by the Guarantor on account of such Security
pursuant to the provisions of this Indenture; provided,
however, that such Guarantor shall not
be entitled to enforce or to receive any payments arising out of, or based
upon, such right of subrogation until the principal of, and premium, if any,
and interest, if any, on all Securities issued hereunder that are due and
payable shall have been paid in full.

 

The Guarantee by any Guarantor of any Security shall remain in full force and effect and continue notwithstanding any petition filed
by or against the Company for liquidation or

 

67

 

reorganization,
the Company becoming insolvent or making an assignment for the benefit of
creditors or a receiver or trustee being appointed for all or any significant
part of the Company’s assets, and shall, to the fullest extent permitted by
law, continue to be effective or reinstated, as the case may be, if at any time
payment of such Security, is, pursuant to applicable law, rescinded or reduced
in amount, or must otherwise be restored or returned by any Holder of such
Security, whether as a “voidable preference,” “fraudulent transfer,” or
otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned on a Security, such Security shall, to the fullest extent permitted by
law, be reinstated and deemed paid only by such amount paid and not so
rescinded, reduced, restored or returned.

 

No
Guarantor shall consolidate with or merge into any other Person or sell, convey
or transfer all or substantially all its properties and assets to any Person,
and no Guarantor shall permit any Person to consolidate with or merge into such
Guarantor, in each case in a transaction in which the successor Person formed
by such consolidation or merger or to which such sale, conveyance or transfer is
made is an Affiliate of the Company, and no Guarantor shall lease all or
substantially all its properties and assets to any Person (whether or not such
an Affiliate), unless, in any such case:

 

(1)           in case such Guarantor shall consolidate with or merge into
another Person or sell, convey, transfer or lease all or substantially all its
properties and assets to any Person, the Person formed by such consolidation or
into which such Guarantor is merged or the Person which acquires by sale,
conveyance or transfer, or which leases, all or substantially all the
properties and assets of such Guarantor shall be a corporation, partnership or
trust, shall be organized and validly existing under the laws of the United
States, any state thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form reasonably satisfactory to the Trustee, the performance or
observance of every covenant of this Indenture and any Guarantees on the part
of such Guarantor to be performed or observed;

 

(2)           immediately after giving effect to such transaction no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing; and

 

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

 

Upon any consolidation of
any Guarantor with, or merger of such Guarantor into, any other Person or any
sale, conveyance, transfer or lease of all or substantially all the properties
and assets of such Guarantor in accordance with this paragraph, the successor
Person formed by such consolidation or into which such Guarantor is merged or
to which such sale, conveyance, transfer or lease is made shall succeed to, and
be substituted for, and may exercise every right and power of, such Guarantor
under this Indenture with the same effect as if such successor Person had 

 

68

 

been named as such Guarantor
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and any
Guarantees of such Guarantor.

 

Upon (i) a
consolidation or merger of any Guarantor with or into, or a sale, conveyance or
transfer of all or substantially all the properties and assets of any Guarantor
to, any other Person or any consolidation or merger of any Person with or into
any Guarantor, in each case in a transaction in which the successor Person
formed by such consolidation or merger or to which such sale, conveyance or
transfer is made is not an Affiliate of the Company or (ii) any sale,
conveyance or transfer (including by way of merger) by the Company or any
Subsidiary thereof of all or substantially all the Capital Stock of any
Guarantor to any Person that is not an Affiliate of the Company, such Guarantor
shall be deemed to be automatically and unconditionally released and discharged
from all its obligations under its Guarantees and under this Article XIV
with respect to Securities of all series without any further action required on
the part of the Trustee or any Holder. The Trustee shall deliver an appropriate
instrument evidencing such release and discharge upon receipt of a Company
Request accompanied by an Officers’ Certificate certifying as to the compliance
with this paragraph of Section 1401. The Company may, at its
option, at any time and from time to time, cause any Guarantor to be
automatically and unconditionally released and discharged from all its
obligations under its Guarantees with respect to Securities of any series
guaranteed by Guarantees of such Guarantor and under this Article XIV
upon (i) any conditions for such release provided with respect to
Securities of such series in accordance with Section 301 having
been satisfied and (ii) delivery by the Company to the Trustee of a
Company Order relating to such release and discharge. The Trustee shall deliver
an appropriate instrument evidencing such release and discharge upon receipt of
a Company Request accompanied by an Officers’ Certificate certifying as to the
compliance with this paragraph of Section 1401.

 

Anything in this Indenture,
the Securities or any Guarantee to the contrary notwithstanding, the
obligations of any Guarantor under its Guarantees and this Indenture shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor, result in the obligations
of such Guarantor under its Guarantees and this Indenture not constituting a
fraudulent advance or fraudulent transfer under any Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal,
state or other law affecting the rights of creditors generally.

 

No Guarantee by any
Guarantor of any Security, whether or not such Guarantee is or is to be
endorsed thereon, shall be valid and obligatory for any purpose with respect to
such Security until the certificate of authentication on such Security shall
have been signed by or on behalf of the Trustee.

 

This instrument may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

69

 

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

 

	
   

  	
  BILL BARRETT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert
  W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer
  and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BILL BARRETT CBM CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert
  W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BILL BARRETT CBM, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert
  W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CIRCLE B LAND COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert
  W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer and Treasurer

  

 

[Signature
Page to Indenture]

 

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY
  AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Deutsche
  Bank National Trust Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kenneth R. Ring

  
	
   

  	
   

  	
  Name:

  	
  Kenneth
  R. Ring

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David Contino

  
	
   

  	
   

  	
  Name:

  	
  David
  Contino

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

[Signature
Page to Indenture]Exhibit 4.2

 

EXECUTION COPY

	
   

  

 

BILL BARRETT
CORPORATION,

 

as Issuer,

 

THE SUBSIDIARY GUARANTORS NAMED ON SCHEDULE 1 HERETO

 

9.875% Senior Notes due 2016

 

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of July 8, 2009

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Trustee

	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  1

  
	
   

  
	
  ISSUE
  AND DESCRIPTION OF NOTES

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Designation and Amount; Ranking Payments; Denomination

  	
  2

  
	
  Section 1.02

  	
  Form of Notes

  	
  3

  
	
  Section 1.03

  	
  Additional Notes

  	
  3

  
	
  Section 1.04

  	
  Execution and Authentication

  	
  4

  
	
  Section 1.05

  	
  Non-Business Day Payments

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  
	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  
	
  Section 2.01

  	
  Definitions

  	
  5

  
	
  Section 2.02

  	
  Other Definitions

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  
	
   

  
	
  REDEMPTION
  AND PURCHASES

  
	
   

  
	
  Section 3.01

  	
  Optional Redemption; Notices to Trustee

  	
  44

  
	
  Section 3.02

  	
  Selection of Notes to Be Redeemed

  	
  45

  
	
  Section 3.03

  	
  Notice of Redemption

  	
  45

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
  46

  
	
  Section 3.05

  	
  Deposit of Redemption Price

  	
  46

  
	
  Section 3.06

  	
  Notes Redeemed in Part

  	
  46

  
	
  Section 3.07

  	
  No Limit on Other Purchases

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  Section 4.01

  	
  Payments

  	
  47

  
	
  Section 4.02

  	
  Maintenance of Office or Agency

  	
  48

  
	
  Section 4.03

  	
  Reports to Holders

  	
  48

  
	
  Section 4.04

  	
  Existence

  	
  49

  
	
  Section 4.05

  	
  Covenant Suspension

  	
  49

  
	
  Section 4.06

  	
  Limitation on Incurrence of Additional Indebtedness and
  Issuance of Preferred Stock

  	
  50

  
	
  Section 4.07

  	
  Limitation on Restricted Payments

  	
  51

  
	
  Section 4.08

  	
  Limitation on Asset Sales

  	
  56

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 4.09

  	
  Limitation on Dividend and Other Payment Restrictions
  Affecting Restricted Subsidiaries

  	
  60

  
	
  Section 4.10

  	
  Limitation on Liens

  	
  63

  
	
  Section 4.11

  	
  Limitation on Transactions with Affiliates

  	
  63

  
	
  Section 4.12

  	
  Limitation on Restricted and Unrestricted Subsidiaries

  	
  65

  
	
  Section 4.13

  	
  Change of Control

  	
  67

  
	
  Section 4.14

  	
  Additional Subsidiary Guarantors

  	
  68

  
	
  Section 4.15

  	
  Waiver of Covenants

  	
  69

  
	
  Section 4.16

  	
  Statement by Officers as to Default

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  
	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  
	
  Section 5.01

  	
  When Company May Merge or Transfer Assets

  	
  70

  
	
  Section 5.02

  	
  When Subsidiary Guarantor May Merge or Consolidate

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  
	
   

  
	
  DEFAULTS
  AND REMEDIES

  
	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  72

  
	
  Section 6.02

  	
  Acceleration

  	
  74

  
	
  Section 6.03

  	
  Other Remedies

  	
  75

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  75

  
	
  Section 6.05

  	
  Control by Majority

  	
  76

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  76

  
	
  Section 6.07

  	
  Rights of Holders to Receive Payment

  	
  76

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  77

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim

  	
  77

  
	
  Section 6.10

  	
  Priorities

  	
  77

  
	
  Section 6.11

  	
  Undertaking for Costs

  	
  77

  
	
  Section 6.12

  	
  Waiver of Stay or Extension Laws

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  
	
   

  
	
  DISCHARGE
  OF INDENTURE

  
	
   

  
	
  ARTICLE
  8

  
	
   

  
	
  AMENDMENTS

  
	
   

  
	
  Section 8.01

  	
  Without Consent of Holders

  	
  79

  
	
  Section 8.02

  	
  With Consent of Holders

  	
  81

  
	
  Section 8.03

  	
  Compliance with Trust Indenture Act

  	
  83

  
	
  Section 8.04

  	
  Notation on or Exchange of Notes

  	
  83

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 8.05

  	
  Trustee to Sign Supplemental Indentures

  	
  83

  
	
  Section 8.06

  	
  Effect of Supplemental Indentures

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  
	
   

  
	
  LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  
	
  Section 9.01

  	
  Legal Defeasance and Covenant Defeasance

  	
  84

  
	
  Section 9.02

  	
  Conditions to Legal Defeasance or Covenant Defeasance

  	
  85

  
	
  Section 9.03

  	
  Application of Trust Money

  	
  86

  
	
  Section 9.04

  	
  Repayment to the Company

  	
  87

  
	
  Section 9.05

  	
  Reinstatement

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  
	
   

  
	
  PAYMENT
  OF INTEREST

  
	
   

  
	
  Section 10.01

  	
  Payment of Interest

  	
  87

  
	
  Section 10.02

  	
  Defaulted Interest

  	
  88

  
	
  Section 10.03

  	
  Interest Rights Preserved

  	
  88

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  
	
   

  
	
  SUBSIDIARY
  GUARANTEES

  
	
   

  
	
  Section 11.01

  	
  The Guarantee

  	
  89

  
	
  Section 11.02

  	
  Obligations Unconditional

  	
  89

  
	
  Section 11.03

  	
  Reinstatement

  	
  90

  
	
  Section 11.04

  	
  Subrogation; Subordination

  	
  91

  
	
  Section 11.05

  	
  Remedies

  	
  91

  
	
  Section 11.06

  	
  Instrument for the Payment of Money

  	
  91

  
	
  Section 11.07

  	
  Continuing Guarantee

  	
  91

  
	
  Section 11.08

  	
  General Limitation on Guarantee Obligations

  	
  91

  
	
  Section 11.09

  	
  Right of Contribution

  	
  92

  
	
  Section 11.10

  	
  Release

  	
  92

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  12

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  Section 12.01

  	
  Communication by Holders with Other Holders

  	
  93

  
	
  Section 12.02

  	
  Certificate and Opinion as to Conditions Precedent

  	
  93

  
	
  Section 12.03

  	
  Statements Required in Certificate or Opinion

  	
  93

  
	
  Section 12.04

  	
  Separability Clause

  	
  93

  
	
  Section 12.05

  	
  Governing Law

  	
  94

  
	
  Section 12.06

  	
  No Liability for Certain Persons

  	
  94

  
	
  Section 12.07

  	
  Patriot Act

  	
  94

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 12.08

  	
  Successors

  	
  94

  
	
  Section 12.09

  	
  Table of Contents; Headings

  	
  94

  
	
  Section 12.10

  	
  Multiple Originals

  	
  94

  
	
  Section 12.11

  	
  Scope of Supplemental Indenture

  	
  94

  
	
  Section 12.12

  	
  Ratification and Incorporation of Base Indenture

  	
  95

  
	
  Section 12.13

  	
  No Security Interest Created

  	
  95

  
	
  Section 12.14

  	
  Trust Indenture Act

  	
  95

  
	
  Section 12.15

  	
  Covenants Not Applicable

  	
  95

  
	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  Subsidiary
  Guarantors

  	
  1-1

  
	
  Exhibit A

  	
  Form of
  Note

  	
  A-1

  
	
  Exhibit B

  	
  Form of
  Supplemental Indenture

  	
  B-1

  

 

iv

 

FIRST SUPPLEMENTAL INDENTURE

 

THIS FIRST SUPPLEMENTAL INDENTURE, dated as of July 8,
2009 (this “Supplemental Indenture”), is
entered into among Bill Barrett Corporation, a Delaware corporation (the “Company”), the subsidiary guarantors named on Schedule 1
hereto and Deutsche Bank Trust Company Americas, a New York State banking
corporation, as trustee (the “Trustee”).  Capitalized terms used herein and not
otherwise defined have the meanings set forth in the Base Indenture (as defined
below).

 

RECITALS

 

The Company and the Trustee
entered into that certain Indenture, dated as of July 8, 2009 (the “Base Indenture”), pursuant to which the Company may from
time to time issue its senior indebtedness in the form of one or more series of
unsecured debentures, notes, bonds or other evidences of indebtedness
(collectively, the “Securities”).

 

WHEREAS, Section 901
of the Base Indenture provides that the Company and the Subsidiary Guarantors,
when authorized by a resolution of their respective Boards of Directors, and
the Trustee may, without the consent of the Holders of the Securities, enter
into a supplemental indenture to (i) in accordance with clause (7) thereof,
establish the form or terms of Securities of any series as permitted by
Sections 201, 202 or 203 of the Base Indenture or (ii) in accordance
with clause (5) thereof, add to, change or eliminate any of the provisions
of the Base Indenture in respect of all or any Securities of any series,
provided that any such addition, change or elimination (A) shall neither (i) apply
to any Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (ii) modify
the rights of the Holder of any such Security with respect to such provision or
(B) shall become effective only when there is no such Security
Outstanding; and

 

WHEREAS, the Company
has duly authorized the issue of 9.875% Senior Notes due 2016 (as they may be
issued from time to time under this Supplemental Indenture, including any
Additional Notes issued pursuant to Section 301
of the Base Indenture and Section 1.03 of this Supplemental Indenture, the “Notes”), initially in an aggregate principal amount not to
exceed $250,000,000, and in connection therewith, there being no Notes
Outstanding at the time of execution and delivery of this Supplemental
Indenture, the Company and the Subsidiary Guarantors have duly determined to
make, execute and deliver this Supplemental Indenture to set forth the terms
and provisions of the Notes as required by the Base Indenture and to add to,
change and eliminate certain provisions of the Base Indenture in respect of the
Notes; and

 

WHEREAS, the Company
and the Subsidiary Guarantors have determined that this Supplemental Indenture
is authorized or permitted by Section 901 of the Base Indenture and the
Company has delivered to the Trustee an Opinion of Counsel, the Company has
delivered an Officers’ Certificate and the Subsidiary Guarantors have delivered
a Guarantor’s Officers’ Certificate to the effect that all conditions precedent
provided for in the Base Indenture to the execution and delivery of this
Supplemental Indenture have been complied with; and

 

 

WHEREAS, the Form of
Note, the Trustee’s Certificate of Authentication to be borne by each Note, the
Form of Option of Holder to Elect Purchase and the Form of Assignment
and Transfer to be borne by the Notes are to be substantially in the forms
hereinafter provided for; and

 

WHEREAS, all things
necessary to make the Notes, when executed by the Company and authenticated and
delivered by the Trustee or a duly authorized authenticating agent, as in the
Base Indenture provided, and to make the Guarantees of each of the Subsidiary
Guarantors as set forth herein, when the Notes have been so executed,
authenticated and delivered, the valid and legally binding obligations of the
Company and the Subsidiary Guarantors, respectively, have been done; and

 

WHEREAS, all things
necessary to make this Supplemental Indenture a valid and legally binding
agreement according to its terms, and a valid and legally binding amendment of,
and supplement to, the Base Indenture, have been done.

 

NOW, THEREFORE, in
consideration of the mutual agreements and covenants set forth herein, the
parties hereto agree, subject to the terms and conditions hereinafter set
forth, as follows for the benefit of the Trustee and the Holders:

 

ARTICLE
1

ISSUE
AND DESCRIPTION OF NOTES

 

Section 1.01           Designation and Amount;
Ranking Payments; Denomination. 
The Notes shall be designated as the “9.875% Senior Notes due 2016.”  The Notes are hereby established as a series
of Securities under the Base Indenture. 
The aggregate principal amount of Notes that may be authenticated and delivered
under this Supplemental Indenture is not limited.  The aggregate principal amount of Notes
initially authorized for authentication and delivery pursuant to this
Supplemental Indenture (the “Initial Notes”)
is limited to $250,000,000 (except for Notes authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of other Notes
pursuant to Section 3.06(b), Section 3.11, Section 4.03, Section 4.08
and Section 8.05 hereof and Section 304, 305, and 306 of the Base
Indenture).  The Company may, and shall
be entitled to, from time to time, without notice to or the consent of the
Holders of the Notes, in accordance with Section 1.03 below increase the
principal amount of Notes and issue such increased principal amount (or any
portion thereof) of Notes as “Additional Notes”
under this Supplemental Indenture.

 

Payments of the principal of
and interest on the Notes shall be made in Dollars, and the Notes shall be
denominated in Dollars and in amounts of at least $2,000 and integral multiples
of $1,000 thereafter.  The Place of
Payment where the principal of and any other payments due on the Notes are
payable shall initially be at the office or agency of the Company maintained
for that purpose in New York, New York in accordance with Section 4.02
of this Supplemental Indenture.

 

2

 

Initially,
Deutsche Bank Trust Company Americas will act as Paying Agent and Registrar.  The Company may appoint and change any Paying
Agent or Registrar or co-registrar without notice.  The Company or any of its domestically
organized Wholly Owned Subsidiaries may act as Paying Agent or Registrar or
co-registrar.

 

The
Company shall pay interest (a) on any Notes in certificated form by check
mailed to the address of the Person entitled thereto as it appears in the
Security Registrar (or upon written application by such Person to the Paying
Agent not later than five Business Days before the relevant Interest Payment
Date, by wire transfer in immediately available funds to such Person’s account
at a bank in New York City, if such Person is entitled to interest on an
aggregate principal amount in excess of $1,000,000, which application shall
remain in effect until the Holder notifies the Paying Agent to the contrary) or
(b) on any Global Note by wire transfer of immediately available funds to
the account of the Depositary or its nominee.

 

The
Notes shall be guaranteed by each of the Initial Guarantors and, in accordance
with Section 4.14 hereof, any additional Subsidiary Guarantors in
accordance with Section 4.14 and Article 11 of this Supplemental
Indenture.

 

No
Guarantee nor any notation thereof shall be, or shall be required to be,
endorsed on, or attached to, or otherwise physically made part of any Note.

 

Section 1.02           Form of Notes.  The Notes shall be substantially in the form
set forth in Exhibit A hereto, which is incorporated in and made a
part of this Supplemental Indenture.

 

Any of the Notes may have
such letters, numbers or other marks of identification and such notations,
legends or endorsements as the officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of this Supplemental Indenture or the Base Indenture or as
may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange
or automated quotation system on which the Notes may be listed or designated
for issuance, or to conform to usage or to indicate any special limitations or
restrictions to which any particular Notes are subject.

 

The terms and provisions
contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Supplemental
Indenture and, to the extent applicable, the Company and the Trustee, by their
execution and delivery of this Supplemental Indenture, expressly agree to such
terms and provisions and to be bound thereby.

 

Section 1.03           Additional Notes.

 

(a)           With respect to any Additional Notes, there shall be (a) established
in or pursuant to a Board Resolution and (b) (i) set forth or
determined in the manner provided in an Officers’ Certificate or (ii) established
in one or more indentures supplemental to the Indenture, prior to the issuance
of such Additional Notes:

 

3

 

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

 

(ii)           the
issue price and the issue date of such Additional Notes, including the date
from which interest shall accrue and the first interest payment date therefor;
and

 

(iii)          if
applicable, that such Additional Notes shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective depositaries
for such Global Securities, the form of any legend or legends which shall be
borne by such Global Securities in addition to or in lieu of those set forth in
Exhibit A hereto and any circumstances in addition to or in lieu of
those set forth in Exhibit A in which any such Global Securities
may be exchanged in whole or in part for Additional Notes registered, or any
transfer of such Global Security in whole or in part may be registered, in the
name or names of Persons other than the depositary for such Global Security or
a nominee thereof.

 

(b)           If any of the
terms of any Additional Notes are established by action taken pursuant to a
Board Resolution, a copy thereof shall be delivered to the Trustee at or prior
to the delivery of the Officers’ Certificate or the indenture supplemental to
the Indenture setting forth the terms of the Additional Notes.

 

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

 

Section 1.04           Execution and
Authentication.

 

(a)           The Initial
Notes may forthwith be executed by the Company and delivered to the Trustee for
authentication and delivery by the Trustee for original issue in accordance
with the provisions of Section 303 of the Base Indenture.

 

(b)           At any time and
from time to time after the issuance of the Initial Notes, the Trustee shall
authenticate and deliver any Additional Notes for original issue in accordance
with the provisions of Section 303 of the Base Indenture in an aggregate
principal amount determined at the time of issuance and specified in a Company
Order.  Such Company Order shall specify
the principal amount of the Additional Notes to be authenticated and the date
on which the original issue of such Additional Notes is to be authenticated.

 

Section 1.05           Non-Business Day
Payments.  If any Interest
Payment Date, the Stated Maturity, any Redemption Date, any Net Proceeds Offer
Payment Date or any Change of Control Payment Date falls on a day that is not a
Business Day, then the required payment or delivery will be made on the next
succeeding Business Day with the same force and effect as if made on the date
that the payment or delivery was due, and no additional interest will

 

4

 

accrue on that required
payment or delivery for the period from and after the Interest Payment Date,
Stated Maturity, Redemption Date, Net Proceeds Offer Payment Date or Change of
Control Payment Date, as the case may be, to that next succeeding Business Day.

 

ARTICLE
2

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

All capitalized terms
contained in this Supplemental Indenture shall, except as specifically provided
for herein and except as the context may otherwise require, have the meanings
given to such terms in the Base Indenture. 
Unless the context otherwise requires, all references in this
Supplemental Indenture to Articles, Sections or Exhibits refer to Articles, or
Sections of or Exhibits to this Supplemental Indenture.  In the event of any inconsistency between the
Base Indenture and this Supplemental Indenture, this Supplemental Indenture
shall govern.  The rules of
interpretation set forth in the Base Indenture shall be applied hereto as if
set forth in full herein.  Unless the
context otherwise requires, the following terms shall have the following meanings:

 

Section 2.01           Definitions.

 

“Acquired
Indebtedness” means Indebtedness or Preferred Stock of a Person or any
of its Subsidiaries (1) existing at the time such Person becomes a Restricted
Subsidiary or at the time it merges or consolidates with the Company or any of
its Restricted Subsidiaries or (2) which becomes Indebtedness or Preferred
Stock of the Company or a Restricted Subsidiary in connection with the acquisition
of assets from such Person, in each case not incurred in connection with, or in
anticipation or contemplation of, such Person becoming a Restricted Subsidiary
or such acquisition, merger or consolidation.

 

“Acquired Subordinated Indebtedness” means Indebtedness of
the Company or any Subsidiary Guarantor that (i) is subordinated or junior
in right of payment to the Notes or such Subsidiary Guarantor’s Subsidiary
Guarantee, as the case may be, (ii) constitutes Acquired Indebtedness and (iii) was
not incurred in connection with, or in contemplation of, another Person merging
with or into, or becoming a Restricted Subsidiary of, the Company or any of its
Subsidiaries.

 

“Adjusted
Consolidated Net Tangible Assets” or “ACNTA”
of a Person means (without duplication), as of the date of determination:

 

(1)           the sum of:

 

(a)           discounted future net revenues from proved oil and gas
reserves of the Company and its Restricted Subsidiaries, calculated in
accordance with Commission guidelines (before any state or federal or other
income tax), as estimated by a nationally recognized firm of independent
petroleum engineers or the Company in a reserve report prepared by the Company’s
petroleum engineers as of a date no earlier than the date of the Company’s
latest annual consolidated

 

5

 

financial statements, as
increased by, as of the date of determination, the estimated discounted future
net revenues from:

 

(i)            estimated proved oil and gas reserves acquired by the
Company and its Restricted Subsidiaries since the date of such year-end reserve
report; and

 

(ii)           estimated oil and gas reserves attributable to extensions,
discoveries and other additions and upward revisions of estimates of proved oil
and gas reserves since the date of such year-end reserve report due to
exploration, development or exploitation, production and other activities,
which reserves were not reflected in such reserve report which would, in
accordance with standard industry practice, result in such determinations,

 

in each of cases (i) and (ii) calculated
in accordance with Commission guidelines (utilizing the prices utilized in such
year-end reserve report), and decreased by, as of the date of determination,
the estimated discounted future net revenues from:

 

(iii)          estimated proved oil and gas reserves produced or disposed
of since the date of such year-end reserve report; and

 

(iv)          estimated oil and gas reserves attributable to downward
revisions of estimates of proved oil and gas reserves since the date of such
year-end reserve report due to changes in geological conditions, exploration,
development or exploitation, production or other activities conducted since the
date of such reserve report or other factors which would, in accordance with
standard industry practice, cause such revisions,

 

in each of cases (iii) and (iv) calculated
in accordance with Commission guidelines (utilizing the prices utilized in such
year-end reserve report) and, in the case of each of clauses (i), (ii), (iii) and
(iv), as estimated by the Company’s petroleum engineers or any independent
petroleum engineers engaged by the Company for that purpose; plus

 

(b)           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 most recent annual or quarterly financial statements; plus

 

(c)           the Net Working
Capital on a date no earlier than the date of the Company’s most recent
consolidated annual or quarterly financial statements; plus

 

6

 

(d)           with respect to each other tangible asset of the Company
or its consolidated Restricted Subsidiaries specifically including, but not to
the exclusion of any other qualifying tangible assets, the Company’s or its
consolidated Restricted Subsidiaries’ gas gathering and processing facilities,
land, equipment, leasehold improvements, investments carried on the equity
method, restricted cash and the carrying value of marketable securities, the
greater of (i) the net book value of such other tangible asset on a date
no earlier than the date of the Company’s most recent consolidated annual or
quarterly financial statements and (ii) the appraised value, as estimated
by independent appraisers, of such other tangible assets of the Company and its
Restricted Subsidiaries (provided
that the Company may rely on subclause (i) of this clause (d) if
no appraisal is available or has been obtained), as of a date no earlier than
the date of the Company’s latest audited financial statements; minus

 

(2)           minority
interests and, to the extent not otherwise taken into account in determining
Adjusted Consolidated Net Tangible Assets, any net natural gas balancing
liabilities of the Company and its consolidated Restricted Subsidiaries
reflected in the Company’s latest audited financial statements.

 

In addition to, but without
duplication of, the foregoing, for purposes of this definition, “Adjusted
Consolidated Net Tangible Assets” shall be calculated after giving effect, on a
pro  forma basis, to
(A) any Investment not prohibited by this Supplemental Indenture, to and
including the date of the transaction giving rise to the need to calculate
Adjusted Consolidated Net Tangible Assets (the “Assets
Transaction Date”), in any other Person that, as a result of such
Investment, becomes a Restricted Subsidiary of the Company, (B) the
acquisition, to and including the Assets Transaction Date (by merger,
consolidation or purchase of stock or assets), of any business or assets,
including, without limitation, Permitted Industry Investments, and (C) any
sales or other dispositions of assets permitted by this Supplemental Indenture
(other than sales of Hydrocarbons or other mineral products in the ordinary
course of business) occurring on or prior to the Assets Transaction Date.  If the Company changes its method of
accounting from the successful efforts method to the full costs method or a similar
method of accounting, “ACNTA” will continue to be calculated as if the Company
were still using the successful efforts method of accounting.

 

“Affiliate”
means, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such specified Person.  The term “control” means
the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative of the foregoing.

 

“Affiliate
Transaction” has the meaning set forth under Section 4.11.

 

“Asset
Acquisition” means (1) an Investment by the Company or any
Restricted Subsidiary in any other Person pursuant to which such Person shall
become a Restricted Subsidiary, or shall be merged with or into the Company or
any Restricted Subsidiary, or (2) the acquisition

 

7

 

by the Company or any
Restricted Subsidiary of the assets of any Person (other than a Restricted
Subsidiary) which constitute all or substantially all of the assets of such
Person or comprise any division or line of business of such Person.

 

“Asset Sale”
means any direct or indirect sale, issuance, conveyance, transfer, exchange,
lease (other than operating leases entered into in the ordinary course of business),
assignment or other transfer for value by the Company or any of its Restricted
Subsidiaries (including any Sale and Leaseback Transaction) to any Person other
than the Company or a Restricted Subsidiary of:

 

(1)           any Capital
Stock of any Restricted Subsidiary; or

 

(2)           any other
property or assets (including any interests therein) (other than cash or Cash
Equivalents) of the Company or any Restricted Subsidiary, including any
disposition by means of a merger, consolidation or similar transaction; provided, however, that
Asset Sales shall not include:

 

(a)           the sale, lease, conveyance, disposition or other transfer
of all or substantially all of the assets of the Company in a transaction which
is (i) made in compliance with the provisions of Article 5 or (ii) subject
to the provisions of Section 4.13;

 

(b)           any Investment in an Unrestricted Subsidiary which is made
in compliance with the provisions of Section 4.07;

 

(c)           disposals, abandonments or replacements of damaged, unserviceable,
worn-out or other obsolete equipment or other assets or assets that are no
longer useful in the conduct of the Crude Oil and Natural Gas Business of the
Company and its Restrict Subsidiaries;

 

(d)           the sale, lease, conveyance, disposition or other transfer
(each, a “Transfer”) by the Company or any
Restricted Subsidiary of assets or property, or the issuance or sale of Capital
Stock by a Restricted Subsidiary, to the Company or one or more Restricted Subsidiaries;

 

(e)           any disposition or other Transfer of Hydrocarbons or other
mineral products in the ordinary course of business or the Transfer of
equipment, inventory, products, services, accounts receivable or other assets
in the ordinary course of business;

 

(f)            any Transfer of an interest in an oil, gas or mineral
property, pursuant to a farm-out, farm-in, joint operating, overriding royalty
interest, area of mutual interest or unitization agreement, or other similar or
customary arrangement or agreement that the Company or any Restricted
Subsidiary determines in good faith to be necessary or appropriate for the
economic development of such Property other than Production Payments and
Reserve Sales;

 

8

 

(g)           surrender or waiver of contract rights, oil and gas leases
or property related thereto, abandonment of any oil or gas property or interests
therein or the settlement, release or surrender of contract, tort or other
claims of any kind;

 

(h)           any disposition of defaulted receivables that have been
written-off as uncollectible that arose in the ordinary course of business for
collection;

 

(i)            any Asset Swap;

 

(j)            the Transfer by the Company or any Restricted Subsidiary
of assets or property in any single transaction or series of related
transactions that involve assets or properties having a Fair Market Value
(valued at the Fair Market Value of such assets or property at the time of such
Transfer) not to exceed $20.0 million;

 

(k)           a Restricted Payment that does not violate Section 4.07
or a Permitted Investment (including, without limitation, unwinding any Commodity
Agreements, Interest Rate Agreements or Currency Agreements);

 

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

 

(m)          the disposition (whether or not in the ordinary course of
the Crude Oil and Natural Gas Business) of oil or gas properties or direct or
indirect interests in real property; provided that at the
time of such sale or transfer such properties do not have associated with them
any proved reserves;

 

(n)           the farm-out, lease or sublease of developed or undeveloped
crude oil or natural gas properties owned or held by the Company or such Restricted
Subsidiary in exchange for crude oil and natural gas properties owned or held
by another Person;

 

(o)           the creation or perfection of a Lien (but not, except to
the extent contemplated in clause (p) below, the sale or other disposition
of the properties or assets subject to such Lien);

 

(p)           the creation or perfection of a Permitted Lien and the
exercise by any Person in whose favor a Permitted Lien is granted of any of its
rights in respect of that Permitted Lien;

 

9

 

(q)           the licensing or sublicensing of intellectual property,
including, without limitation, licenses for seismic data, in the ordinary
course of business and which do not materially interfere with the business of
the Company and its Restricted Subsidiaries; and

 

(r)            the disposition of oil and natural gas properties in
connection with tax credit transactions complying with Section 29 of the
Internal Revenue Code or any successor or analogous provisions of the Internal
Revenue Code.

 

“Asset Swap” means any trade or exchange by the Company or
any Restricted Subsidiary of oil and gas properties or other properties or
assets for oil and gas properties or other properties or assets owned or held
by another Person; provided that
the Fair Market Value of the properties or assets traded or exchanged by the
Company or such Restricted Subsidiary (together with any cash) is reasonably
equivalent to the Fair Market Value of the properties or assets (together with
any cash) to be received by the Company or such Restricted Subsidiary, and provided, further, that
any Net Cash Proceeds received must be applied in accordance with Section 4.08.

 

“Bankruptcy Law” means title 11, U.S. Code or any similar federal
or state law for the relief of debtors.

 

“Board of
Directors” means, as to any Person, the board of directors (or
similar governing body) of such Person or any duly authorized committee thereof
including, in the case of a limited partnership, the board of directors of the
managing general partner thereof.

 

“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 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 other than a Saturday, Sunday or any other day on which
commercial banking institutions in the City of New York are required or
authorized by law or other governmental action to be closed.

 

“Capital
Stock” means:

 

(1)           with respect to
any Person that is a corporation, any and all shares, interests, participations
or other equivalents (however designated and whether or not voting) of corporate
stock, including each class of Common Stock and Preferred Stock of such Person
and including any warrants, options or rights to acquire any of the foregoing
and instruments convertible into any of the foregoing;

 

(2)           with respect to
any Person that is not a corporation, any and all partnership, membership or
other equity interests of such Person; and

 

10

 

(3)           any other interest or participation that confers on
a Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person,

 

but excluding from all of the foregoing clauses (1),
(2) and (3) any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital
Stock.

 

“Capitalized Lease
Obligation” means, as to any Person, an obligation that is required
to be classified and accounted for as a capital lease for financial reporting
purposes in accordance with GAAP (other than any obligation that is required to
be classified and accounted for as an operating lease for financial reporting
purposes in accordance with GAAP as in effect on the Issue Date), and the
amount of Indebtedness represented by such obligation shall be the capitalized
amount of such obligation determined in accordance with GAAP; and the stated maturity
thereof shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date upon which such lease may be
terminated by the lessee without payment of a penalty.  For purposes of Section 4.10, a
Capitalized Lease Obligation will be deemed to be secured by a Lien on the
property being leased.

 

“Cash Equivalents”
means:

 

(1)           marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition thereof;

 

(2)           marketable direct obligations issued by any state of
the United States of America or any political subdivision of any such state or
any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the three
highest ratings obtainable from either S&P or Moody’s;

 

(3)           commercial paper maturing no more than one year from
the date of creation thereof and, at the time of acquisition, having one of the
two highest ratings obtainable from Moody’s or S&P;

 

(4)           certificates of deposit or bankers’ acceptances
maturing within one year from the date of acquisition thereof or demand deposit
accounts and Eurodollar time deposits and overnight bank deposits issued by any
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia or any United States branch of a foreign
bank having at the date of acquisition thereof combined capital and surplus of
not less than $100 million;

 

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

 

11

 

(6)           deposits in money market funds investing in
instruments of the type specified in clauses (1) through (5) above;
and

 

(7)           money market mutual or similar funds having assets
in excess of $100 million.

 

“Certificated
Securities” means securities that are in definitive, fully
registered certificated form.

 

“Change of Control”
means the occurrence of one or more of the following events:  (a) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company to any Person or Group other
than the Permitted Holders (each, a “Transferee”) as
such terms are used in Section 13(d) and 14(d) of the Exchange
Act (whether or not otherwise in compliance with the provisions of this Supplemental
Indenture), but excluding any such sale, lease, exchange or other transfer as
part of a transaction in compliance with Article 5 if the owners of the
Capital Stock of the Company immediately prior to such transaction own at least
a majority of the Capital Stock of such Transferee immediately after such
transaction by economic or voting interest; (b) the approval by the
Company of any plan or proposal for the liquidation or dissolution of the Company
(whether or not otherwise in compliance with the provisions of the Indenture); (c) any
Person or Group, other than Permitted Holders, shall become the beneficial
owner (as defined in Rule 13d-3 of the Exchange Act, except that a Person
or Group shall be deemed to be a beneficial owner of all securities such Person
or Group shall have the right to acquire or vote within one year), directly or
indirectly, of Capital Stock representing more than 50% of the aggregate total
ordinary voting power represented by the issued and outstanding Capital Stock
of the Company; or (d) the replacement of a majority of the Board of
Directors of the Company over a two-year period from the directors who constituted
the Board of Directors of the Company at the beginning of such period with
directors who shall not have been approved by a vote of at least a majority of
the Board of Directors of the Company then still in office who either were
members of such Board of Directors at the Issue Date or whose election as a
member of such Board of Directors was previously so approved.

 

“Change of Control Offer”
has the meaning set forth in Section 4.13.

 

“Change of Control Payment
Date” has the meaning set forth in Section 4.13.

 

“Commission”
means the Securities and Exchange Commission.

 

“Commodity Agreements”
means, with respect to any Person, any futures contract, forward contract,
commodity swap agreement, commodity option agreement, hedging agreements and
other agreements or arrangements or any combination thereof entered into by
such Person in respect of Hydrocarbons purchased, used, produced, processed or
sold by such Person or its Subsidiaries that are customary in the Crude Oil and
Natural Gas Business and that are designed to manage the risks of Hydrocarbon
price fluctuations.

 

“Common Stock”
of any Person means any and all shares, interests or other participations in,
and other equivalents (however designated and whether voting or non-voting) of
such 

 

12

 

Person’s common stock,
whether outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such common stock.

 

“Company”
means the party named as such in this Supplemental Indenture until a successor replaces
it pursuant to the applicable provisions hereof and, thereafter, means the
successor.

 

“Company Properties”
means all Properties, and equity, partnership or other ownership interests
therein, that are related or incidental to, or used or useful in connection
with, the conduct or operation of any business activities of the Company or the
Subsidiaries, which business activities are not prohibited by the terms of this
Supplemental Indenture.

 

“Comparable
Treasury Issue” means, with respect to Notes to be redeemed, the
U.S. Treasury security selected by an Independent Investment Banker as having a
maturity most nearly equal to the period from the redemption date to July 15,
2013, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities; provided if such period is less than one year, then the U.S.
Treasury security having a maturity of one year shall be used.

 

“Comparable
Treasury Price” means, with respect to any redemption date, (1) the average
of four Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the
Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such Reference Treasury Dealer Quotations.

 

“Consolidated EBITDAX”
means, for any period, the sum (without duplication) of:

 

(1)           Consolidated Net Income; and

 

(2)           to the extent Consolidated Net Income has been
reduced thereby:

 

(a)           all income taxes of the Company and its Restricted
Subsidiaries paid or accrued in accordance with GAAP for such period;

 

(b)           Consolidated Interest Expense;

 

(c)           the amount of any Preferred Stock dividends paid by
the Company and its Restricted Subsidiaries; and

 

(d)           Consolidated Non-cash Charges or consolidated
exploration expense,

 

less any non-cash
items increasing Consolidated Net Income for such period, all as determined on
a consolidated basis for the Company and its Restricted Subsidiaries in accordance
with GAAP.

 

13

 

“Consolidated EBITDAX
Coverage Ratio” means, with respect to the Company, the ratio of (i) Consolidated
EBITDAX of the Company during the four full fiscal quarters for which financial
information in respect thereof is available (the “Four Quarter
Period”) ending on or prior to the date of the transaction giving
rise to the need to calculate the Consolidated EBITDAX Coverage Ratio (the “Transaction Date”) to (ii) Consolidated Fixed Charges
of the Company for the Four Quarter Period. 
In addition to and without limitation of the foregoing, for purposes of
this definition, “Consolidated EBITDAX” and “Consolidated Fixed Charges” shall
be calculated after giving effect (without duplication) on a pro  forma basis for
the period of such calculation to:

 

(1)           the incurrence or repayment of any Indebtedness or
issuance of Preferred Stock of the Company or any of its Restricted Subsidiaries
(and the application of the proceeds thereof) giving rise to the need to make
such calculation and any incurrence or repayment of other Indebtedness or
issuance of other Preferred Stock (and the application of the proceeds
thereof), other than the incurrence or repayment of indebtedness in the ordinary
course of business for working capital purposes pursuant to working capital
facilities, occurring during the Four Quarter Period or at any time subsequent
to the last day of the Four Quarter Period and on or prior to the Transaction
Date, as if such incurrence or repayment, as the case may be (and the
application of the proceeds thereof), occurred on the first day of the Four
Quarter Period; and

 

(2)           any Asset Sales (and the application of the proceeds
thereof) or Asset Acquisitions by the Company or any Restricted Subsidiary (or
by any Person acquired by the Company or any Restricted Subsidiary) (including,
without limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of the Company or one of its Restricted Subsidiaries
(including any Person who becomes a Restricted Subsidiary as a result of the
Asset Acquisition) incurring Acquired Indebtedness, and also including, without
limitation, any Consolidated EBITDAX attributable to the assets which are the
subject of the Asset Acquisition or Asset Sale (and the application of the
proceeds thereof) during the Four Quarter Period) occurring during the Four
Quarter Period or at any time subsequent to the last day of the Four Quarter
Period and on or prior to the Transaction Date, as if such Asset Sale (and the
application of the proceeds thereof) or Asset Acquisition (including the
incurrence, assumption or liability for any such Acquired Indebtedness)
occurred on the first day of the Four Quarter Period.

 

For purposes of this definition, (a) any Person
that is a Restricted Subsidiary on the Transaction Date will be deemed to have
been a Restricted Subsidiary at all times during the Four Quarter Period; and (b) any
Person that is not a Restricted Subsidiary on the Transaction Date will be
deemed not to have been a Restricted Subsidiary at any time during the Four
Quarter Period.  If the Company or any of
its Restricted Subsidiaries directly or indirectly guarantees Indebtedness of a
third Person, the preceding paragraph shall give effect to the incurrence of
such guaranteed Indebtedness as if the Company or the Restricted Subsidiary, as
the case may be, had directly incurred or otherwise assumed such guaranteed
Indebtedness.

 

14

 

For purposes of this definition, whenever pro  forma effect is
to be given to an acquisition or disposition of assets or any other event in
connection with any calculation, the pro  forma calculations shall be determined in good faith by a responsible
financial or accounting Officer of the Company (including pro forma
expense and cost reductions and any pro forma
expense and cost reductions that have occurred or are reasonably expected to
occur, in the reasonable judgment of the chief financial officer of the Company
(regardless of whether those cost savings or operating improvements could then
be reflected in pro forma financial statements in accordance with Regulation
S-X promulgated under the Securities Act or any regulation or policy of the
Commission related thereto)).

 

Furthermore, in calculating “Consolidated Fixed
Charges” for purposes of determining the denominator (but not the numerator) of
this “Consolidated EBITDAX Coverage Ratio”:

 

(1)           interest on outstanding Indebtedness determined on a
fluctuating basis as of the Transaction Date and which will continue to be so
determined thereafter shall be deemed to have accrued at a fixed rate per  annum equal to
the rate of interest on such Indebtedness in effect on the Transaction Date;

 

(2)           if interest on any Indebtedness actually incurred on
the Transaction Date may optionally be determined at an interest rate based
upon a factor of a prime or similar rate, a eurocurrency interbank offered
rate, or other rates, then the interest rate in effect on the Transaction Date
will be deemed to have been in effect during the Four Quarter Period; and

 

(3)           notwithstanding clauses (1) and (2) above,
interest on Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Interest Rate Agreements, shall
be deemed to accrue at the rate per annum resulting after giving effect to the
operation of such agreements.

 

“Consolidated Fixed Charges”
means, with respect to the Company for any period, the sum, without
duplication, of:

 

(1)           Consolidated Interest Expense (including any premium
or penalty paid in connection with redeeming or retiring Indebtedness of the
Company and its Restricted Subsidiaries prior to the stated maturity thereof
pursuant to the agreements governing such Indebtedness), plus

 

(2)           the amount of all dividend payments on any series of
Preferred Stock of the Company or any Restricted Subsidiary (other than dividends
paid in Qualified Capital Stock and other than to the Company or any Restricted
Subsidiary) paid, accrued or scheduled to be paid or accrued during such
period.

 

“Consolidated Interest
Expense” means, with respect to the Company for any period, the sum
of, without duplication:

 

(1)           the aggregate of the interest expense of the Company
and its Restricted Subsidiaries for such period determined on a consolidated
basis in accordance with 

 

15

 

GAAP, including without
limitation, (a) any amortization of original issue discount and debt
issuance cost, (b) the net costs, losses or gains under Interest Rate Agreements,
(c) all capitalized interest, and (d) the interest portion of any
deferred payment obligation, plus

 

(2)           the interest component of Capitalized Lease
Obligations paid, accrued and/or scheduled to be paid or accrued by the Company
and its Restricted Subsidiaries during such period, as determined on a consolidated
basis in accordance with GAAP, minus

 

(3)           to the extent included above, write-off of deferred
financing costs and interest attributable to Dollar-Denominated Production
Payments.

 

“Consolidated Net Income”
means, with respect to the Company for any period, the aggregate net income (or
loss) of the Company and its Restricted Subsidiaries for such period on a
consolidated basis, determined in accordance with GAAP; provided,
however, that there shall be excluded
therefrom:

 

(1)           any net after-tax gains (or losses) from Asset Sales
or abandonments or reserves relating thereto;

 

(2)           any net after-tax extraordinary or nonrecurring
gains (or losses) and any net after-tax gain or loss realized upon the sale or
other disposition of any Capital Stock of any Person;

 

(3)           the net income (but not loss) of any Restricted
Subsidiary to the extent that the declaration of dividends or similar
distributions by that Restricted Subsidiary of that income is restricted by
charter, contract, operation of law or otherwise;

 

(4)           the net income of any Person in which the Company
has an interest, other than a Restricted Subsidiary, except to the extent of
cash dividends or distributions actually paid to the Company or to a Restricted
Subsidiary by such Person (and provided that
the Company’s equity in a net loss of any such Person for such period shall not
be included in determining such Consolidated Net Income, except to the extent
of the aggregate cash actually contributed to such Person by the Company or a
Restricted Subsidiary during such period);

 

(5)           (a) any net after-tax income or loss
attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued) and (b) any income or loss attributable to any
Person acquired in any pooling-of-interests transaction for any period prior to
the date of such acquisition;

 

(6)           in the case of a successor to the Company by
consolidation or merger or as a transferee of the Company’s assets, any net
income (or loss) of the successor corporation prior to such consolidation,
merger or transfer of assets;

 

16

 

(7)           any non-cash charges related to a ceiling test
write-down under GAAP;

 

(8)           any unrealized non-cash gains or losses or charges
in respect of Interest Rate Agreements, Currency Agreements or Commodity
Agreements (including those resulting from the application of SFAS 133);

 

(9)           any non-cash compensation charge arising from any
grant of stock, stock options or other equity-based awards, in accordance with
GAAP;

 

(10)         any consolidated non-cash gains or losses arising
from changes in GAAP standards or principles after the Issue Date or the cumulative
effect thereof;

 

(11)         all net income or loss of Unrestricted Subsidiaries;

 

(12)         any asset (including goodwill) impairment or
writedown on or related to Crude Oil and Natural Gas Properties or other
non-current assets under applicable GAAP or Commission guidelines; and

 

(13)         any non-cash or nonrecurring charges associated with
any premium or penalty paid, write-off of deferred financing costs or other
financial recapitalization charges in connection with redeeming or retiring any
Indebtedness prior to maturity.

 

“Consolidated Net Worth”
means, with respect to any specified Person as of any date, the sum of:

 

(1)           the consolidated equity of the common stockholders
of such Person and its consolidated Subsidiaries as of such date; plus

 

(2)           the respective amounts reported on such Person’s
balance sheet as of such date with respect to any series of Preferred Stock
(other than Disqualified Stock) that by its terms is not entitled to the
payment of dividends unless such dividends may be declared and paid only out of
net earnings in respect of the year of such declaration and payment, but only
to the extent of any cash received by such Person upon issuance of such Preferred
Stock.

 

“Consolidated Non-cash
Charges” means, with respect to the Company, for any period, the
aggregate depreciation, depletion, amortization, impairment and other non-cash
charges or expenses of the Company and its Restricted Subsidiaries reducing
Consolidated Net Income of the Company for such period, determined on a
consolidated basis in accordance with GAAP (excluding any such charge which
requires an accrual of or a reserve for cash charges for any future period).

 

“consolidation”
means, with respect to any Person, the consolidation of the accounts of the
Restricted Subsidiaries of such Person with those of such Person, all in
accordance with GAAP; provided, however, that “consolidation” will not include consolidation
of the accounts of any Unrestricted Subsidiary of such Person with the accounts
of such Person.  The term “consolidated”
has a correlative meaning to the foregoing.

 

17

 

“Covenant Defeasance”
has the meaning set forth under Article 9.

 

“Credit Facilities”
means, with respect to the Company or any Restricted Subsidiary, one or more
debt facilities (including the Senior Credit Facility) or debt issuances or
letters of credit or any successor or replacement agreement, in each case, as
amended, restated, modified, renewed or refinanced in whole or in part from
time to time.

 

“Crude Oil and Natural Gas
Business” means:

 

(1)           the acquisition, exploration, exploitation,
development, operation, production, hedging, swapping and disposition of
interests in oil, natural gas and other Hydrocarbon properties and assets;

 

(2)           the gathering, marketing, treating, processing,
storage, refining, hedging, swapping, selling and transporting of any
production from such interests, properties or assets (or interests, properties
or assets of others) and products produced in association therewith; and

 

(3)           activities arising from, relating to or necessary,
appropriate, ancillary, complementary or incidental to the foregoing.

 

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

 

“Crude Oil and Natural Gas
Related Assets” means any Investment or capital expenditure (but not
including additions to working capital or repayments of any revolving credit or
working capital borrowings) by the Company or any Subsidiary of the Company
which is related to the business of the Company and its Subsidiaries as it is
conducted on the date of the Asset Sale giving rise to the Net Cash Proceeds to
be reinvested.

 

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

 

“Default” means
an event or condition the occurrence of which is, or with the lapse of time or
the giving of notice or both would be, an Event of Default.

 

“Disqualified Stock”
means that portion of any Capital Stock which, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable), or
upon the happening of any event, matures or is mandatorily redeemable (other
than redeemable only for Capital Stock of such Person that is not itself
Disqualified Stock) or is convertible or exchangeable at the option of the
holder for Indebtedness or Disqualified Stock, pursuant to a sinking fund obligation
or otherwise, or is mandatorily redeemable at the sole option of the holder
thereof (other than redeemable only for Capital Stock of such Person that is
not itself Disqualified Stock) or is convertible or exchangeable at the option
of the holder for 

 

18

 

Indebtedness or Disqualified
Stock, in whole or in part, in either case, on or prior to the final stated
maturity of the Notes; provided, however, that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right
to require such Person to purchase or redeem such Capital Stock upon the
occurrence of an “asset sale” or “change of control” occurring prior to the
final stated maturity of the Notes shall not constitute Disqualified Stock if:

 

(1)           the “asset sale” or “change of control” provisions
applicable to such Capital Stock are not more favorable to the holders of such
Capital Stock than the terms applicable to the Notes and described under
Sections 4.08 and 4.13; and

 

(2)           any such requirement only becomes operative after
compliance with such terms applicable to the Notes, including the purchase of
any Notes tendered pursuant thereto (or concurrently therewith, provided that
all of the Notes validly tendered for purchase and not withdrawn pursuant to
the requirements described under Section 4.08 or 4.13 are so purchased).

 

The amount of any Disqualified Stock that does not
have a fixed redemption, repayment or repurchase price will be calculated in
accordance with the terms of such Disqualified Stock as if such Disqualified
Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Supplemental
Indenture; provided, however,
that if such Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or
repurchase price will be the book value of such Disqualified Stock as reflected
in the most recent financial statements of such Person.

 

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

 

“Equity Investor”
means each of (i) Warburg Pincus Private Equity VIII, L.P., and (ii) Warburg
Pincus Private Equity X, L.P.

 

“Equity Offering”
means an offering of Qualified Capital Stock of the Company, including any
Public Equity Offerings and any non-public, unregistered offering or private
placement of such Qualified Capital Stock, or any contribution to capital of
the Company in respect of Qualified Capital Stock of the Company.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute
or statutes thereto.

 

“Fall-Away Period”
has the meaning set forth in Section 4.05.

 

“Fair Market Value”
means, with respect to any asset or property, the price which would be paid in
an arm’s-length, free market transaction, for cash, between an informed and
willing seller and an informed and willing buyer, neither of whom is under
undue pressure or compulsion to complete the transaction, determined in good
faith by the Board of Directors of 

 

19

 

the Company (unless
otherwise provided in this Supplemental Indenture), which determination will be
conclusive for all purposes under this Supplemental Indenture.

 

“Foreign Subsidiary”
means a Restricted Subsidiary not organized or existing under the laws of the
United States of America or any state or territory thereof and any direct or indirect
subsidiary of such Restricted Subsidiary, and in each such case, as of its most
recently available balance sheet date, at least 50% of the tangible assets of
which were not located in the United States of America or any state or
territory thereof.

 

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in:

 

(1)           the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants;

 

(2)           statements and pronouncements of the Financial
Accounting Standards Board;

 

(3)           such other statements by such other entity as
approved by a significant segment of the accounting profession; and

 

(4)           the rules and regulations of the Commission
governing the inclusion of financial statements (including pro
forma financial statements) in periodic
reports required to be filed pursuant to Section 13 of the Exchange Act,
including opinions and pronouncements in staff accounting bulletins and similar
written statements from the accounting staff of the Commission.

 

“Global Note”
means a permanent global note that is in the Form of Note attached hereto
as Exhibit A, and that is deposited with the Depositary or its custodian
and registered in the name of the Depositary.

 

“guarantee”
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any Person and any obligation,
direct or indirect, contingent or otherwise, of such Person:

 

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

 

(2)           entered into for the purpose of assuring in any
other manner the obligee of such Indebtedness of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part);

 

20

 

provided, however, that
the term “guarantee” shall not include endorsements for collection or deposit
in the ordinary course of business.  The
term “guarantee” used as a verb has a corresponding
meaning.

 

“Holder” means
any Person that is the registered holder of a Note.

 

“Hydrocarbons”
means oil, natural gas, casing head gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all
constituents, elements or compounds thereof and all products, by-products and
all other substances (whether or not hydrocarbon in nature) produced in
connection therewith or refined, separated, settled or derived therefrom or the
processing thereof, and all other minerals and substances related to the
foregoing, including, but not limited to, liquified petroleum gas, natural gas,
kerosene, sulphur, lignite, coal, uranium, thorium, iron, geothermal steam,
water, carbon dioxide, helium, and any and all other minerals, ores, or
substances of value, and the products and proceeds therefrom, including,
without limitation, all gas resulting from the in-situ combustion of coal or lignite.

 

“incur” has the
meaning set forth under Section 4.06. Notwithstanding the foregoing,
solely for purposes of determining compliance with Section 4.06, the
following will not be deemed to be incurrences of Indebtedness or issuances of
Preferred Stock:

 

(1)           amortization of debt discount or the accretion of
principal with respect to a non-interest bearing or other discount security;

 

(2)           the payment of regularly scheduled interest in the
form of additional Indebtedness of the same instrument or the payment of regularly
scheduled dividends on Capital Stock in the form of additional Capital Stock of
the same class and with the same terms;

 

(3)           the obligation to pay a premium in respect of
Indebtedness or Preferred Stock arising in connection with the issuance of a
notice of redemption or making of a mandatory offer to purchase such Indebtedness
or Preferred Stock; and

 

(4)           unrealized losses or charges in respect of hedging
obligations (including those resulting from the application of SFAS 133).

 

“Indebtedness”
means with respect to any Person, without duplication:

 

(1)           the principal in respect of (A) indebtedness of
such Person for money borrowed and (B) indebtedness evidenced by notes,
debentures, bonds or other similar instruments for the payment of which such
Person is responsible or liable, including, in each case, any premium on such
indebtedness to the extent such premium has become due and payable;

 

(2)           all Capitalized Lease Obligations of such Person;

 

21

 

(3)           all obligations of such Person representing the
deferred purchase price of property, all conditional sale obligations of such
Person and all obligations under any title retention agreement (but excluding
trade accounts payable), to the extent such obligations would appear as a
liability upon the balance sheet of such Person in accordance with GAAP;

 

(4)           all obligations for the reimbursement of any obligor
on any outstanding letter of credit, banker’s acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in clauses (1) through (3) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the tenth Business Day following payment
on the letter of credit);

 

(5)           guarantees and other contingent obligations in
respect of Indebtedness referred to in this definition;

 

(6)           all obligations of any other Person of the type
referred to in clauses (1) through (5) above which are secured by any
Lien on any property or asset of such Person, the amount of such obligation
being deemed to be the lesser of the Fair Market Value of such property or asset
and the amount of the obligation so secured;

 

(7)           all net payment obligations under Commodity
Agreements, Currency Agreements and Interest Rate Agreements;

 

(8)           all Disqualified Stock issued by such Person with
the “amount” or “principal amount” of Indebtedness represented by such Disqualified
Stock being equal to the greater of its voluntary or involuntary liquidation
preference and its maximum fixed redemption price or repurchase price; and

 

(9)           any guarantee by such Person of production or
payment with respect to (A) a Production Payment or (B) Production
Payments and Reserve Sales;

 

provided, however, that any indebtedness which has been defeased in
accordance with GAAP or defeased pursuant to the deposit of cash or Cash Equivalents
(in an amount sufficient to satisfy all such indebtedness obligations at
maturity or redemption, as applicable, and all payments of interest and
premium, if any) in a trust or account created or pledged for the sole benefit
of the holders of such indebtedness, and subject to no other Liens, and the
other applicable terms of the instrument governing such indebtedness, shall not
constitute “Indebtedness.”

 

For purposes hereof, the “maximum fixed repurchase
price” of any Disqualified Stock which does not have a fixed repurchase price
shall be calculated in accordance with the terms of such Disqualified Stock as
if such Disqualified Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Supplemental Indenture, and
if such price is based upon, or measured by, the Fair Market Value of such
Disqualified Stock, such Fair Market Value shall be determined reasonably and
in good faith by the Board of Directors 

 

22

 

of the Company.  Notwithstanding the foregoing, (i) accrued
expenses and trade accounts payable arising in the ordinary course of business
shall not constitute “Indebtedness” and (ii) except as expressly provided
in clause (9) above, Production Payments and Reserve Sales shall not
constitute “Indebtedness”.

 

Any obligation of a Person in respect of a farm-in
agreement or similar arrangement whereby such Person agrees to pay all or a
share of the drilling, completion or other expenses of an exploratory or
development well (which agreement may be subject to a maximum payment
obligations, after which expenses are shared in accordance with the working or
participation interest therein or in accordance with the agreement of the
parties) or perform the drilling, completion or other operation on such well in
exchange for an ownership interest in an oil or gas property shall not
constitute Indebtedness.

 

Notwithstanding the foregoing, in connection with
the acquisition or disposition of any business, assets or Capital Stock of a
Restricted Subsidiary or the Company, “Indebtedness” will exclude any
obligations arising from agreements of the Company or any of its Restricted Subsidiaries
providing for indemnification, guarantees (other than guarantees of Indebtedness),
adjustment of purchase price, holdbacks, contingent payment obligations based
on a final financial statement or performance of acquired or disposed of assets
or similar obligations, in each case, incurred or assumed in connection with
such acquisition or disposition.

 

The “amount” or “principal amount” of Indebtedness
at any time of determination as used herein shall, except as set forth below,
be determined in accordance with GAAP:

 

(1)           the “amount” or “principal amount” of any
Indebtedness issued at a price that is less than the principal amount at
maturity thereof shall be the accreted value thereof;

 

(2)           the “amount” or “principal amount” of any
Capitalized Lease Obligation shall be the amount determined in accordance with
the definition thereof;

 

(3)           the “amount” or “principal amount” of any Preferred
Stock shall be the greater of its voluntary or involuntary liquidation
preference and its maximum fixed redemption price or repurchase price;

 

(4)           the “amount” or “principal amount” of any Interest
Rate Agreements included in the definition of Permitted Indebtedness shall be
zero;

 

(5)           the “amount” or “principal amount” of all other
unconditional obligations shall be the amount of the liability thereof
determined in accordance with GAAP; and

 

(6)           the “amount” or “principal amount” of all other
contingent obligations shall be the maximum liability at such date of such
Person.

 

“Indenture”
means the Base Indenture, as supplemented and modified by this Supplemental
Indenture, as either may be amended or supplemented from time to time in accordance

 

23

 

with the terms hereof,
including the provisions of the Trust Indenture Act that are deemed to be a
part hereof.

 

“Independent Advisor”
means a reputable accounting, appraisal or nationally recognized investment
banking, engineering or consulting firm (a) which does not, and whose directors,
officers and employees or Affiliates do not, have a direct or indirect material
financial interest in the Company and (b) which, in the judgment of the
Board of Directors of the Company, is otherwise disinterested, independent and
qualified to perform the task for which it is to be engaged.

 

“Independent
Investment Banker” means any one of Banc of America Securities LLC,
Deutsche Bank Securities Inc. or J.P. Morgan Securities Inc. and their
respective successors, at the Company’s option, or, if such firms or the successors,
if any, to such firms, as the case may be, are unwilling or unable to select
the Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Company.

 

“Interest Rate Agreements”
means, with respect to any Person, (i) any agreements of such Person with
any other Person, whereby, directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a
floating or a fixed rate of interest on a stated notional amount in exchange
for periodic payments made by such other Person calculated by applying a fixed
or a floating rate of interest on the same notional amount and (ii) any
interest rate protection agreements, interest rate future agreements, interest
rate option agreements, agreements providing for interest rate swaps, caps,
floors or collars and similar agreements or arrangements to which such Person
is a party or beneficiary.

 

“Investment”
means, with respect to any Person, any direct or indirect:

 

(1)           loan, advance or other extension of credit
(including, without limitation, a guarantee) or capital contribution (by means
of any transfer of cash or other property valued at the Fair Market Value
thereof as of the date of transfer) to others or any payment for property or services
for the account or use of others;

 

(2)           purchase or acquisition by such Person of any
Capital Stock, bonds, notes, debentures or other securities (excluding any
interest in a crude oil or natural gas leasehold to the extent constituting a
security under applicable law) or evidences of Indebtedness issued by any
Person (whether by merger, consolidation, amalgamation or otherwise and whether
or not purchased directly from the issuer of such securities or evidences of
Indebtedness);

 

(3)           guarantee or assumption of the Indebtedness of any
other Person (other than the guarantee or assumption of Indebtedness of such
Person or a Restricted Subsidiary of such Person which guarantee or assumption
is made in compliance with the provisions of Section 4.06); and

 

(4)           other items that would be classified as investments
on a balance sheet of such Person prepared in accordance with GAAP.

 

24

 

Notwithstanding the foregoing, “Investment” shall
exclude extensions of trade credit by the Company and its Restricted
Subsidiaries on commercially reasonable terms in accordance with normal trade
practices of the Company or such Restricted Subsidiary, as the case may
be.  The amount of any Investment shall
be its Fair Market Value at the time the investment is made and shall not be
adjusted for increases or decreases in value, or write-ups, write-downs or
write-offs with respect to such Investment. 
If the Company or any Restricted Subsidiary sells or otherwise disposes
of any Capital Stock of any Restricted Subsidiary such that, after giving
effect to any such sale or disposition, it ceases to be a Subsidiary of the Company,
the Company shall be deemed to have made an Investment on the date of any such
sale or disposition equal to the Fair Market Value of the Capital Stock of such
Restricted Subsidiary not sold or disposed of.

 

“Investment Grade Rating”
means a Moody’s rating of Baa3 or higher and an S&P rating of BBB- or
higher or, if either such Rating Agency ceases to rate the Notes for reasons
outside of the Company’s control, the equivalent investment grade credit rating
from any other Rating Agency.

 

“Issue Date”
means the date of original issuance of the Notes (excluding, for such purpose
any Additional Notes).

 

“Legal Defeasance”
has the meaning set forth under Article 9.

 

“Lien” means any
lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance
of any kind (including any conditional sale or other title retention agreement,
any lease in the nature thereof and any agreement to give any security
interest).

 

“Make-Whole Price” with respect
to any Notes to be redeemed, means an amount equal to the greater of:

 

(1)         100% of the principal amount
of such Notes; and

 

(2)           the
sum of the present values of (a) the redemption price of such Notes at July 15,
2013 (as set forth in Section 4 of the form of reverse of Note) and (b) the remaining
scheduled payments of interest from the redemption date to July 15, 2013 (not
including any portion of such payments of interest accrued as of the redemption
date) discounted back to the redemption date on a semi-annual basis (assuming a
360-day year consisting of 12 30-day months) at the Treasury Rate plus 50 basis points;

 

plus, in the case
of both (1) and (2), accrued and unpaid interest on such Notes to the Redemption
Date.

 

“Moody’s” means
Moody’s Investors Service, Inc.

 

“Net Cash Proceeds”
means, with respect to any Asset Sale, the aggregate proceeds in the form of
cash or Cash Equivalents including payments in respect of deferred payment
obligations when received in the form of cash or Cash Equivalents received by
the Company or any of its Restricted Subsidiaries from such Asset Sale net of (a) reasonable
out-of-pocket

 

25

 

expenses and fees relating
to such Asset Sale (including, without limitation, legal, accounting, reservoir
engineering and investment banking fees and sales commissions and title
expenses), (b) taxes (including secondary tax expenses) paid or payable or
taxes required to be accrued as a liability under GAAP after taking into
account any reduction in consolidated tax liability due to available tax
credits or deductions and any tax sharing arrangements, (c) repayment of
Indebtedness or Preferred Stock that is required to be repaid in connection
with such Asset Sale or that is secured by any assets subject to such Asset
Sale, in accordance with the terms of any Lien upon such assets, (d) appropriate
amounts to be provided by the Company or any Restricted Subsidiary, as the case
may be, as a reserve, in accordance with GAAP, against any post closing
adjustments or liabilities associated with such Asset Sale and retained by the Company
or any Restricted Subsidiary, as the case may be, after such Asset Sale, including,
without limitation, pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any
indemnification obligations associated with such Asset Sale, and (e) all
distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries as a result of such Asset Sale.

 

“Net Proceeds Offer”
has the meaning set forth in Section 4.08.

 

“Net Proceeds Offer Amount”
has the meaning set forth in Section 4.08.

 

“Net Proceeds Offer Payment
Date” has the meaning set forth in Section 4.08.

 

“Net Proceeds Offer Trigger
Date” has the meaning set forth in Section 4.08.

 

“Net Working Capital”
means all current assets (other than current assets from Commodity Agreements)
of the Company and its consolidated Subsidiaries, minus all current liabilities
of the Company and its consolidated Subsidiaries, except current liabilities
included in Indebtedness and any current liabilities from Commodity Agreements,
in each case as set forth in financial statements of the Company prepared in
accordance with GAAP (excluding any adjustments made pursuant to FAS 133), provided that current assets and current liabilities shall exclude
Consolidated Non-Cash Charges.

 

“Notes”
has the meaning set forth in the third recital of this Supplemental Indenture
and shall include the Initial Notes and any Additional Notes authenticated and
delivered in accordance with Section 1.03.

 

“Pari Passu Indebtedness”
means any Indebtedness of the Company or any Subsidiary Guarantor that ranks pari  passu in right
of payment with the Notes or such Subsidiary Guarantees, as applicable.

 

“Permitted Acquisition
Indebtedness” means Indebtedness or Preferred Stock of the Company
or any of its Restricted Subsidiaries to the extent such Indebtedness or
Preferred Stock was Indebtedness of:

 

(1)           a Subsidiary prior to the date on which such
Subsidiary became a Restricted Subsidiary; or

 

26

 

(2)           a person that was merged or consolidated into the Company
or a Restricted Subsidiary,

 

provided that on the
date such Subsidiary became a Restricted Subsidiary or the date such Person was
merged or consolidated into the Company or a Restricted Subsidiary, as applicable,
after giving pro forma effect thereto,

 

(a)           the Company would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated EBITDAX Coverage Ratio test described in Section 4.06(a).

 

(b)           the
Consolidated EBITDAX Coverage Ratio for the Company would be equal to or
greater than the Consolidated EBITDAX Coverage Ratio for the Company
immediately prior to such transaction, or

 

(c)           the Consolidated Net Worth
of the Company would be equal to or greater than the Consolidated Net Worth of
the Company immediately prior to such transaction.

 

“Permitted Holders”
means the Equity Investors and Related Parties. 
Any person or group whose acquisition of beneficial ownership
constitutes a Change of Control in respect of which a Change of Control Offer
is (or pursuant to Section 4.13(d) is not required to be) made in
accordance with the requirements of this Supplemental Indenture will
thereafter, together with its Affiliates, constitute an additional Permitted
Holder.

 

“Permitted Indebtedness”
means, without duplication, each of the following:

 

(1)           (A) the Notes issued on the Issue Date or (B) any
Subsidiary Guarantees of any Notes referred to in clause (A);

 

(2)           Indebtedness of the Company or any Restricted
Subsidiary incurred pursuant to the Credit Facilities; provided,
however, that immediately after giving effect
to the incurrence of Indebtedness under the Credit Facilities, the aggregate
principal amount of all Indebtedness incurred under this clause (2) and
then outstanding does not exceed the greater of (i) $600 million and (ii) an
amount equal to the sum of (A) $200.0 million plus (B) 30% of
Adjusted Consolidated Net Tangible Assets determined as of the date of the
incurrence of such Indebtedness;

 

(3)           Indebtedness of a Restricted Subsidiary to, or
Preferred Stock of a Restricted Subsidiary held by, the Company or to a
Restricted Subsidiary for so long as such Indebtedness or Preferred Stock is
held by the Company or a Restricted Subsidiary, in each case subject to no Lien
held by a Person other than the Company or a Restricted Subsidiary; provided, however, that
if as of any date any Person other than the Company or a Restricted Subsidiary
owns or holds any such Indebtedness or Preferred Stock or holds a Lien in
respect of such Indebtedness, such date shall be deemed the incurrence of the
Indebtedness or issuance of the Preferred Stock so held by a Person

 

27

 

other than the Company or a
Restricted Subsidiary not constituting Permitted Indebtedness under this clause
(3) by the issuer of such Indebtedness or Preferred Stock;

 

(4)           Indebtedness (including the $172.5 million aggregate
principal amount of the Company’s 5% Convertible Senior Notes due 2028) or
Preferred Stock outstanding on the Issue Date (other than Indebtedness described
in clause (1), (2) or (3));

 

(5)           the guarantee by the Company or any Restricted
Subsidiary of any Indebtedness that is (x) referred to in clause (4) or
(y) permitted by this Supplemental Indenture to be incurred by the Company
or any Restricted Subsidiary;

 

(6)           Interest Rate Agreements of the Company or a
Restricted Subsidiary covering Indebtedness of the Company or any of its Restricted
Subsidiaries; provided, however,
that such Interest Rate Agreements are entered into to manage the exposure of
the Company and its Restricted Subsidiaries to fluctuations in interest rates
with respect to Indebtedness incurred in accordance with this Supplemental
Indenture to the extent the notional principal amount of such Interest Rate
Agreements does not exceed the principal amount of the Indebtedness to which
such Interest Rate Agreements relate;

 

(7)           Indebtedness of the Company to a Restricted
Subsidiary for so long as such Indebtedness is held by a Restricted Subsidiary,
in each case subject to no Lien; provided, however, that (i) any Indebtedness of the Company to
any Restricted Subsidiary that is not a Subsidiary Guarantor is unsecured and (ii) if
as of any date any Person other than a Restricted Subsidiary owns or holds any
such Indebtedness or holds a Lien in respect of such Indebtedness, such date
shall be deemed the incurrence of the Indebtedness so held by a Person other
than the Company not constituting Permitted Indebtedness under this clause (7) by
the Company;

 

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

 

(9)           Indebtedness of the Company or any of its Restricted
Subsidiaries represented by (a) payment obligations in connection with
self-insurance, or bid, performance, appeal or surety bonds or similar bonds or
for completion or performance guarantees or obligations or for similar requirements
in the ordinary course of business and any guarantees or letters of credit
functioning as or supporting any of the foregoing bonds or (b) obligations
represented by letters of credit for the account of the Company or such
Restricted Subsidiary, as the case may be, in order to provide security for
workers’ compensation claims;

 

28

 

(10)         Refinancing Indebtedness
issued to Refinance Indebtedness incurred in accordance with Section 4.06
(other than pursuant to clauses (2), (3), (5), (6), (7), (8), (9), (11), (12),
(13), (14), (17) or (19) of this definition);

 

(11)         Capitalized Lease Obligations
and Purchase Money Indebtedness of the Company or any of its Restricted
Subsidiaries incurred after the Issue Date at any one time outstanding not to
exceed the greater of (a) 2.0% of Adjusted Consolidated Net Tangible
Assets determined at the date of incurrence after giving pro forma effect to such incurrence and
the application of proceeds thereof; and (b) $30.0 million;

 

(12)         obligations arising in
connection with Commodity Agreements of the Company or a Restricted Subsidiary;

 

(13)         Indebtedness under Currency
Agreements; provided, however,
that in the case of Currency Agreements which relate to Indebtedness, such
Currency Agreements do not increase the Indebtedness of the Company and its
Restricted Subsidiaries outstanding other than as a result of fluctuations in
foreign currency exchange rates or by reason of fees, indemnities and compensation
payable thereunder;

 

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

 

(15)         Indebtedness of any of the
Company and the Restricted Subsidiaries to the extent the net proceeds thereof
are promptly (a) used to redeem all of the Notes or (b) deposited to
effect Covenant Defeasance or Legal Defeasance or satisfy and discharge this
Supplemental Indenture as described below under Article 7 or 9;

 

(16)         Permitted Acquisition
Indebtedness;

 

(17)         Indebtedness of Company or
any Restricted Subsidiary arising from Guarantees of Indebtedness of joint
ventures at any time outstanding not to exceed the greater of (a) $15.0
million and (b) 1.0% of Adjusted Consolidated Net Tangible Assets
determined as of the date of incurrence of such Indebtedness after giving pro forma effect to such incurrence and
the application of proceeds thereof;

 

(18)         Indebtedness consisting of
the financing of insurance premiums in customary amounts consistent with the
operations and business of the Company and the Restricted Subsidiaries; and

 

(19)         additional Indebtedness of
the Company or any of its Restricted Subsidiaries in an aggregate principal
amount at any time outstanding not to exceed the greater of (a) 2.5% of
Adjusted Consolidated Net Tangible Assets determined at the date of incurrence
of such Indebtedness after giving pro forma
effect to such incurrence and the application of proceeds thereof; and (b) $35.0
million.

 

In the event that an item of Indebtedness or
Preferred Stock or proposed Indebtedness or Preferred Stock (including without
limitation Acquired Indebtedness) meets the criteria of

 

29

 

more than one of the
categories of Permitted Indebtedness described in clause (1) through (19)
above, or is entitled to be incurred under Section 4.06 even if not
Permitted Indebtedness, the Company will be permitted to classify or later reclassify
(in whole or in part in its sole discretion) such item of Indebtedness or Preferred
Stock in any manner (including by dividing and classifying such item of
Indebtedness or Preferred Stock in more than one type of Indebtedness or
Preferred Stock permitted under such covenant) that complies with that
covenant.  The dollar equivalent
principal amount of any Indebtedness denominated in a foreign currency and
incurred pursuant to any dollar-denominated restriction on the incurrence of Indebtedness
shall be calculated based on the relevant currency.

 

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

 

(1)           capital expenditures,
including, without limitation, acquisitions of Company Properties and interests
therein;

 

(2)           entry into, and Investments
in the form of or pursuant to, operating agreements, joint ventures, working
interests, royalty interests, mineral leases, unitization agreements,
processing agreements, farm-in agreements, farm-out agreements, pooling
arrangements, contracts for the sale, transportation, storage or exchange of
hydrocarbons and minerals production sharing agreements, production sales and
marketing agreements, development agreements, area of mutual interest
agreements, unitization agreements, pooling arrangements, joint bidding
agreements, service contracts, joint venture agreements, partnership agreements
(whether general or limited), limited liability company agreements,
subscription agreements, stock purchase agreements, stockholder agreements, oil
or gas leases, overriding royalty agreements, net profits agreements,
production payment agreements, royalty trust agreements, incentive compensation
programs on terms that are reasonably customary in the Crude Oil and Natural
Gas Business for geologists, geophysicists and other providers of technical
services to the Company or any Restricted Subsidiary, operating agreements, division
orders, participation agreements, master limited partnership agreements,
contracts for the sale, purchase, exchange, transportation, gathering,
processing, marketing or storage of Hydrocarbons, communitizations,
declarations, orders and agreements, gas balancing or deferred production
agreements, injection, repressuring and recycling agreements, salt water or
other disposal agreements, seismic or geophysical permits or agreements,
development agreements or other similar or customary agreements, transactions,
properties, interests or arrangements, and Investments and expenditures (including,
without limitation, capital expenditures) in connection therewith or pursuant

 

30

 

thereto, Asset Swaps, and
exchanges of Company Properties for other Company Properties that, together
with any Cash and Cash Equivalents in connection therewith, are of at least
equivalent value as determined in good faith by the Board of Directors of the
Company;

 

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

 

(4)           Investments of operating
funds on behalf of co-owners of Crude Oil and Natural Gas Properties of the
Company or the Subsidiaries pursuant to joint operating agreements.

 

“Permitted Investments”
means:

 

(1)           Investments by the Company
or any Restricted Subsidiary in any Person that is or will become immediately
after such Investment a Restricted Subsidiary or that will merge or consolidate
into the Company or a Restricted Subsidiary;

 

(2)           Investments in the Company
by any Restricted Subsidiary; provided, however, that any Indebtedness evidencing any such
Investment held by a Restricted Subsidiary that is not a Subsidiary Guarantor
is unsecured;

 

(3)           Investments in cash and Cash
Equivalents;

 

(4)           Investments made by the
Company or its Restricted Subsidiaries as a result of consideration received in
connection with an Asset Sale made in compliance with Section 4.08;

 

(5)           Permitted Industry
Investments, including prepayments, advances and deposits paid with respect
thereto;

 

(6)           Investments to the extent
that Qualified Capital Stock of the Company is the consideration paid or provided
by the Company;

 

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

 

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

 

31

 

(9)           loans or advances to
officers, directors or employees made in the ordinary course of business consistent
with past practices of the Company or such Restricted Subsidiary and otherwise
in compliance with Section 4.11;

 

(10)         stock, obligations or
securities received in settlement of debts created in the ordinary course of
business and owing to the Company or any Restricted Subsidiary or in satisfaction
of judgments or in settlement of litigation, arbitration or other disputes with
Persons who are not Affiliates;

 

(11)         any Person where such
Investment was acquired by the Company or any of its Restricted Subsidiaries (a) in
exchange for any other Investment or accounts receivable held by the Company or
any such Restricted Subsidiary in connection with or as a result of a bankruptcy,
workout, reorganization or recapitalization of the issuer of such other Investment
or accounts receivable or (b) as a result of a foreclosure by the Company
or any of its Restricted Subsidiaries with respect to any secured Investment or
other transfer of title with respect to any secured Investment in default;

 

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

 

(13)         any Person to the extent
such Investments consist of Commodity Agreements, Interest Rate Agreements or
Currency Agreements otherwise permitted under Section 4.06;

 

(14)         Investments that are in
existence on the Issue Date, and any extension, modification or renewal of any
such Investments, but only to the extent not involving additional advances,
contributions or other Investments of cash or other assets or other increases
of such Investments (other than as a result of the accrual or accretion of interest
or original issue discount or the issuance of pay-in-kind securities, in each
case, pursuant to the terms of such Investments as in effect on the Issue
Date);

 

(15)         guarantees of performance or
other obligations (other than Indebtedness) arising in the ordinary course in
the Crude Oil and Natural Gas Business, including obligations under oil and
natural gas exploration, development, joint operating, and related agreements
and licenses or concessions related to the Crude Oil and Natural Gas Business;

 

(16)         Investments of a Restricted
Subsidiary acquired after the Issue Date or of any entity merged into or
consolidated with the Company or a Restricted Subsidiary in accordance with Article 5
to the extent that such Investments were not made in contemplation of or in
connection with such acquisition, merger or consolidation and were in existence
on the date of such acquisition, merger or consolidation;

 

(17)         repurchases of or other
Investments in the Notes;

 

32

 

(18)         Investments in any units of
any oil and gas royalty trust;

 

(19)         Guarantees of Indebtedness
permitted under Section 4.06;

 

(20)         guarantees by the Company or
any of its Restricted Subsidiaries of operating leases (other than Capital
Lease Obligations) or of other obligations that do not constitute Indebtedness,
in each case entered into in the ordinary course of business;

 

(21)         advances and prepayments for
asset purchases in the ordinary course of business in the Crude Oil and Natural
Gas Business of the Company or any of its Restricted Subsidiaries; and

 

(22)         additional Investments made
after the Issue Date having, when taken together with all other Investments
made pursuant to this clause (22) that are outstanding at the time of such
additional Investment, an aggregate Fair Market Value (measured on the date
each such Investment was made and without giving effect to subsequent changes
in value) not to exceed the greater of (a) $15.0 million and (b) 1.0%
of Adjusted Consolidated Net Tangible Assets determined at the time of such
additional Investment.

 

“Permitted Liens”
means each of the following types of Liens:

 

(1)           Liens existing as of the
Issue Date (and any extensions, replacements or renewals thereof covering
property or assets secured by such Liens on the Issue Date);

 

(2)           Liens securing Indebtedness
outstanding under the Credit Facilities;

 

(3)           Liens securing the Notes and
the Subsidiary Guarantees and other obligations arising under this Supplemental
Indenture;

 

(4)           Liens of the Company or a
Subsidiary Guarantor on assets of any Restricted Subsidiary;

 

(5)           Liens securing Refinancing
Indebtedness which is incurred to Refinance any Indebtedness which has been
secured by a Lien permitted under this Supplemental Indenture and which has been
incurred in accordance with the provisions of this Supplemental Indenture; provided, however, that
such Liens do not extend to or cover any property or assets of the Company or
any of its Restricted Subsidiaries not securing the Indebtedness so Refinanced;

 

(6)           Liens for taxes, assessments
or governmental charges or claims either not delinquent or contested in good
faith by appropriate proceedings and as to which the Company or a Restricted
Subsidiary, as the case may be, shall have set aside on its books such reserves
as may be required pursuant to GAAP;

 

(7)           statutory and contractual
Liens of landlords to secure rent arising in the ordinary course of business
and Liens of carriers, warehousemen, mechanics, suppliers,

 

33

 

materialmen, repairmen and
other Liens imposed by law incurred in the ordinary course of business for sums
not yet delinquent or being contested in good faith or other Liens arising
solely by virtue of any statutory or common law provision relating to banker’s
Liens, rights of set-off or similar rights and remedies as to deposit accounts
or other funds maintained with a creditor depository institution; provided, however, that (A) such
deposit account is not a dedicated cash collateral account and is not subject
to restrictions against access by the Company in excess of those set forth by
regulations promulgated by the Federal Reserve Board and (B) such deposit
account is not intended by the Company or any Restricted Subsidiary to provide
collateral to the depository institution;

 

(8)           Liens incurred or deposits
made in the ordinary course of business (i) in connection with workers’
compensation, unemployment insurance, social security or old age pension laws
or other similar law, rule or regulation, including any Lien securing
letters of credit issued in the ordinary course of business consistent with
past practice in connection therewith, (ii) to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(including letters of credit in connection therewith but exclusive of
obligations for the payment of borrowed money), (iii) to secure public or
statutory obligations of such Person including letters of credit and bank
guarantees required or requested by the United States, any State thereof or any
foreign government or any subdivision, department, agency, organization or
instrumentality of any of the foregoing in connection with any contract or statute
(including lessee or operator obligations under statutes, governmental
regulations, contracts or instruments related to the ownership, exploration and
production of oil, natural gas, other hydrocarbons and minerals on State,
Federal or foreign lands or waters) or (iv) deposits of cash or United
States government bonds to secure surety, stay, appeal, indemnity performance
or other similar bonds to which such Person is a party, or deposits as security
for contested taxes or import duties or for the payment of rent, in each case
incurred in the ordinary course of business;

 

(9)           judgment and attachment
Liens not giving rise to an Event of Default;

 

(10)         easements, rights-of-way,
licenses, zoning restrictions, restrictive covenants, minor imperfections in
title and other similar charges or encumbrances in respect of real property not
interfering in any material respect with the ordinary conduct of the business
of the Company or any of its Restricted Subsidiaries;

 

(11)         any interest or title of a
lessor under any Capitalized Lease Obligation; provided
that such Liens do not extend to any property or assets which is not leased
property subject to such Capitalized Lease Obligation;

 

(12)         Liens securing Purchase
Money Indebtedness of the Company or any Restricted Subsidiary; provided, however, that (i) the
Purchase Money Indebtedness shall not be secured by any property or assets of
the Company or any Restricted Subsidiary other than the property and assets so
acquired or constructed (except for proceeds,

 

34

 

improvements, rents and
similar items relating to the property or assets so acquired or constructed)
and (ii) the Lien securing such Indebtedness shall be created within 120
days of such acquisition or construction;

 

(13)         Liens securing reimbursement
obligations with respect to commercial letters of credit which encumber
documents and other property relating to such letters of credit and products
and proceeds thereof and Liens in favor of issuers of surety bonds or letters
of credit issued pursuant to the request of and for the account of such Person
in the ordinary course of its business; provided, however, that such letters of credit or surety bonds do not
constitute Indebtedness;

 

(14)         Liens encumbering deposits
made to secure obligations arising from statutory, regulatory, contractual, or
warranty requirements of the Company or any of its Restricted Subsidiaries,
including rights of offset and set-off;

 

(15)         Liens securing Interest Rate
Agreements which Interest
Rate Agreements relate to Indebtedness that is otherwise permitted under this
Supplemental Indenture and Liens securing Commodity Agreements or Currency
Agreements;

 

(16)         Liens securing Acquired Indebtedness
incurred in accordance with Section 4.06; provided,
however, that (i) such Liens
secured such Acquired Indebtedness at the time of and prior to the incurrence
of such Acquired Indebtedness by the Company or a Restricted Subsidiary and
were not granted in connection with, or in anticipation of, the incurrence of
such Acquired Indebtedness by the Company or a Restricted Subsidiary and (ii) such
Liens do not extend to or cover any property or assets of the Company or of any
of its Restricted Subsidiaries other than the property or assets that secured
the Acquired Indebtedness prior to the time such Indebtedness became Acquired
Indebtedness of the Company or a Restricted Subsidiary (except for proceeds,improvements,
rents and similar items relating to the property or assets so secured) and are
no more favorable to the lienholders than those securing the Acquired
Indebtedness prior to the incurrence of such Acquired Indebtedness by the
Company or a Restricted Subsidiary;

 

(17)         Liens on, or related to,
properties and assets of the Company and its Subsidiaries to secure all or a
part of the costs incurred in the ordinary course of business of exploration,
drilling, development, production, processing, gas gathering, transportation,
marketing, refining or storage, abandonment or operation thereof;

 

(18)         Liens securing Indebtedness
incurred to finance, or Capitalized Lease Obligations with respect to, the
construction, purchase or lease of, or repairs, improvements or additions to,
property, plant or equipment of such Person; provided,
however, that the Lien may not extend to
any other property owned by such Person or any of its Restricted Subsidiaries
at the time the Lien is incurred (other than assets and property affixed or
appurtenant thereto), and the Indebtedness (other than any interest thereon) secured
by the Lien may not be incurred more than 180 days after the later of

 

35

 

the acquisition, completion
of construction, repair, improvement, addition or commencement of full
operation of the property subject to the Lien;

 

(19)         Liens on pipeline or
pipeline facilities, Hydrocarbons or properties and assets of the Company and
its Subsidiaries which arise out of operation of law;

 

(20)         royalties, overriding
royalties, revenue interests, net revenue interests, net profit interests,
reversionary interests, production payments, production sales contracts,
preferential rights of purchase, operating agreements, working interests and
other similar interests, participation agreements, properties, arrangements and
agreements, all as ordinarily exist with respect to Properties and assets of
the Company and its Subsidiaries or otherwise as are customary in the oil and
gas business;

 

(21)         with respect to any
Properties and assets of the Company and its Subsidiaries, Liens arising under,
or in connection with, or related to, farm-out agreements, farm-in agreements,
joint operating agreements, area of mutual interest agreements, partnership
agreements, oil, gas, other hydrocarbons and minerals leases, licenses or
sublicenses, assignments, purchase and sale agreements, division orders,
contracts for the sale, purchase, transportation, processing or exchange of
crude oil, natural gas or other Hydrocarbons, unitization and pooling
declarations, joint interest billing arrangements and agreements, development
agreements, any other agreements, transactions, properties, interests or
arrangements referred to in clause (2) of the definition of “Permitted
Industry Investments,” and/or other similar or customary arrangements,
agreements or interests that the Company or any Subsidiary determines in good
faith to be necessary or appropriate for the economic development of such Property
or asset or which are customary in the Crude Oil and Natural Gas Business;

 

(22)         any (a) interest or
title of a lessor or sublessor under any lease, liens reserved in oil, gas or
other hydrocarbons, minerals, leases for bonus, royalty or rental payments and
for compliance with the terms of such leases, (b) restriction or encumbrance
that the interest or title of such lessor or sublessor may be subject to
(including, without limitation, ground leases or other prior leases of the
demised premises, mortgages, mechanics’ liens, tax liens, and easements), or (c) subordination
of the interest of the lessee or sublessee under such lease to any restrictions
or encumbrance referred to in the preceding clause (b);

 

(23)         survey exceptions,
encumbrances, easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real
property, minor defects in title or Liens incidental to the conduct of the
business of such Person or to the ownership of its properties which were not
incurred or created to secure the payment of borrowed money which do not in the
aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

 

36

 

(24)         Liens on property at
the time such Person or any of its Subsidiaries acquires the property,
including any acquisition by means of a merger or consolidation with or into
such Person or a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property
owned by such Person or any of its Restricted Subsidiaries (other than assets
and property affixed or appurtenant thereto);

 

(25)         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 Restricted
Subsidiary on deposit with or in possession of such bank;

 

(26)         Liens arising under
this Supplemental Indenture in favor of the Trustee for its own benefit and
similar Liens in favor of other trustees, agents and representatives arising
under instruments governing Indebtedness permitted to be incurred under this
Supplemental Indenture, provided, however, that such Liens are solely for the benefit of the
trustees, agents or representatives in their capacities as such and not for the
benefit of the holders of such Indebtedness;

 

(27)         Liens arising from
the deposit of funds or securities in trust for the purpose of decreasing or
defeasing Indebtedness so long as such deposit of funds or securities and such
decreasing or defeasing of Indebtedness are permitted under the covenant
described under Section 4.07;

 

(28)         Liens to secure
Production Payments or Production Payments and Reserve Sales; provided, however, that
the Liens may not extend to any assets other than those that are the subject of
such Production Payments or Production Payments and Reserve Sales, as applicable;

 

(29)         Liens to secure any
Refinancing (or successive Refinancings) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in clause, (1), (11), (12), (16),
(17), (18), (24) or (30) of this definition; provided,
however, that:

 

(a)           such new Lien shall be limited to all
or part of the same property and assets that secured or, under the written agreements
pursuant to which the original Lien arose, could secure the original Lien (plus
improvements and accessions to, such property or proceeds or distributions
thereof); and

 

(b)           the Indebtedness secured by such Lien
at such time is not increased to any amount greater than the sum of (x) the
outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clause (1), (11), (12), (16), (17), (18), (24) or
(30) of this definition at the time the original Lien became a Permitted Lien
and (y) an amount necessary to pay any fees and expenses, including
premiums, related to such refinancing, refunding, extension, renewal or replacement;

 

(30)         Liens on property of
an Unrestricted Subsidiary at the time that it is designated as a Restricted
Subsidiary pursuant to the definition of “Unrestricted 

 

37

 

Subsidiary”; provided
that such Liens were not incurred in connection with, or contemplation of, such
designation;

 

(31)         to the extent not
included in any other clause of this definition, leases and subleases of real
property which do not materially interfere with the ordinary conduct of the
business of the Company
and its Restricted Subsidiaries, taken as a whole;

 

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

 

(33)         to the extent not
included in any other clause of this definition, Liens on and pledges of the
Equity Interests of any Unrestricted Subsidiary or any joint venture owned by
the Company or any Restricted Subsidiary to the extent securing Indebtedness
that is non-recourse to the Company or to any Restricted Subsidiary;

 

(34)         Liens incurred in the
ordinary course of business with respect to outstanding obligations in the
aggregate not exceeding the greater of (x) $50.0 million or (y) 5% of
Adjusted Consolidated Net Tangible Assets determined at the date of incurrence
after giving pro forma effect to such
incurrence and the application of the proceeds thereof; and

 

(35)         solely during any
Fall-Away Period, any Liens on any properties or assets not constituting a
Restricted Property.

 

In
each case set forth above, notwithstanding any stated limitation on the assets
that may be subject to such Lien, a Permitted Lien on a specified asset or
group or type of assets may include Liens on all improvements, additions and accessions
thereto and all products and proceeds thereof (including dividends, distributions
and increases in respect thereof).

 

“Person” means an individual, partnership, corporation,
unincorporated organization, limited liability company, trust, estate, or joint
venture, or a governmental agency or political subdivision thereof.

 

“Preferred Stock” of any Person means any Capital Stock of
any class or classes (however designated) of such Person that has preferential
rights to any other Capital Stock of any class of such Person with respect to
dividends or redemptions or as to the distribution of assets upon any voluntary
or involuntary liquidation or dissolution of such Person.

 

“Production Payments” means, collectively, Dollar-Denominated
Production Payments and Volumetric Production Payments.

 

“Production Payments and Reserve Sales” means the grant or
transfer to any Person of a Dollar-Denominated Production Payment, Volumetric
Production Payment, royalty, overriding royalty, revenue interest, net revenue
interest, reversionary interest, net profits interest, master limited or other
partnership interest or other interest in oil and natural gas properties,
reserves or the right to receive all or a portion of the production or the
proceeds from 

 

38

 

the sale of production attributable to such
properties, including, without limitation, any such grants or transfers
pursuant to incentive compensation programs on terms that are reasonably
customary in the Crude Oil and Natural Gas Business for geologists,
geophysicists or other providers of technical services to the Company or a
Restricted Subsidiary.

 

“Property” means, with respect to any Person, any interests
of such Person in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible, including, without limitation, Capital Stock,
partnership interests and other equity or ownership interests in any other Person.

 

“Public Equity Offering” means an underwritten public Equity
Offering by the Company.

 

“Purchase Money Indebtedness” means Indebtedness the net proceeds
of which are used to finance the cost (including the cost of construction) of
property or assets acquired in the normal course of business by the Person
incurring such Indebtedness.

 

“Qualified Capital Stock” means any Capital Stock that is not
Disqualified Stock.

 

“Rating Agency” means each of S&P and Moody’s, or if
S&P or Moody’s or both shall not make a rating on the Notes publicly
available, a nationally recognized statistical rating agency or agencies, as
the case may be, selected by the Company which shall be substituted for S&P
or Moody’s, or both, as the case may be.

 

“Redemption Date” means the date specified
in a notice of redemption on which the Notes
may be redeemed in accordance with the terms of the Notes and this Supplemental Indenture.

 

“Reference Date” has the meaning set forth under Section 4.07.

 

“Reference
Treasury Dealer” means Banc of America Securities
LLC and three additional primary U.S. government
securities dealers in New York City (each a “Primary
Treasury Dealer”) selected by the Company, and
its, in each case, successors (provided, however,
that if any such firm or any such successor, as the case may be, shall cease to
be a primary U.S. government securities dealer in New
York City, the Company shall substitute therefor another
Primary Treasury Dealer).

 

“Reference
Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any redemption date, the average,
as determined by the Company, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such redemption date.

 

“Refinance” means, in respect of any security or Indebtedness
or Preferred Stock, to refinance, extend, renew, refund, repay, prepay, redeem,
effect a change by amendment or modification, defease or retire, or to issue a
security or Indebtedness or Preferred Stock in 

 

39

 

exchange or replacement for (or the net proceeds of
which are used to Refinance), such security or Indebtedness or Preferred Stock
in whole or in part.  “Refinanced” and “Refinancing”
shall have correlative meanings.

 

“Refinancing Indebtedness” means any Indebtedness or
Preferred Stock issued in or resulting from a Refinancing by the Company or any
Restricted Subsidiary of the Company of Indebtedness or Preferred Stock, in
each case that:

 

(1)           does not have an
aggregate principal amount that is greater than the aggregate principal amount
of the Indebtedness or Preferred Stock being Refinanced as of the date of such
proposed Refinancing (plus the amount of any premium required to be paid under
the terms of the instrument governing such Indebtedness or Preferred Stock, as
applicable, being Refinanced and plus the amount of reasonable fees and expenses
incurred by the Company and its Restricted Subsidiaries in connection with such
Refinancing); or

 

(2)           does not have (x) a Weighted
Average Life to Maturity that is less than the Weighted Average Life to
Maturity of the Indebtedness or Preferred Stock, as applicable, being
Refinanced or (y) a final maturity date or redemption date, as applicable,
earlier than the final maturity date or redemption date, as applicable, of the
Indebtedness or Preferred Stock, as applicable, being Refinanced; provided, however, that (a) if
such Indebtedness being Refinanced is Indebtedness of the Company or one or
more Subsidiary Guarantors, then such Refinancing Indebtedness shall be
Indebtedness solely of the Company and/or such Subsidiary Guarantors which were
obligors or guarantors of such Indebtedness being Refinanced; (b) if such
Indebtedness being Refinanced is subordinate or junior in right of payment to
the Notes or a Subsidiary Guarantee, then such Refinancing Indebtedness shall
be subordinate or junior in right of payment to the Notes or such Subsidiary
Guarantee, as the case may be, at least to the same extent and in the same
manner as the Indebtedness being Refinanced or shall be Preferred Stock of the
obligor on the Indebtedness being refinanced; (c) if any Preferred Stock
being Refinanced was Disqualified Stock of the Company, the Refinancing
Indebtedness shall be Disqualified Stock of the Company and (d) if any
Preferred Stock being refinanced was Preferred Stock of a Restricted
Subsidiary, the Refinancing Indebtedness shall be Preferred Stock of such
Restricted Subsidiary.

 

“Related Party” means:

 

(1)           any controlling
stockholder, partner, member, 51% (or more) owned Subsidiary or immediate
family member (in the case of an individual) of any Equity Investor; or

 

(2)           any trust,
corporation, partnership, limited liability company or other Person (other than
any individual), the beneficiaries, stockholders, partners, members, owners or
Persons beneficially holding (directly or through one or more Subsidiaries) 

 

40

 

a 51% or more controlling interest of which consist of
any one or more Equity Investors or such other Persons referred to in the
immediately preceding clause (1) or this clause (2).

 

“Replacement Assets” has the meaning set forth under Section 4.08.

 

“Restricted Payment” has the meaning set forth under Section 4.07.

 

“Restricted Property” means, with respect to any Fall-Away
Period, any Crude Oil and Natural Gas Property having a Fair Market Value in
excess of $10.0 million and any facilities directly related to the production
of Hydrocarbons from a Restricted Property and includes Capital Stock of a
corporation or other Person which owns such property or facilities, but does
not include (i) any property or facilities used in connection with or
necessarily incidental to the purchase, sale, storage, transportation or
distribution of Hydrocarbons, (ii) any property which, in the opinion of
the Company’s Board of Directors, is not materially important to the total
business conducted by the Company or its Subsidiaries as an entirety or (iii) any
portion of a particular property which, in the opinion of the Company’s Board
of Directors, is not materially important to the use or operation of such
property.

 

“Restricted Subsidiary” means any Subsidiary of the Company
that has not been designated by the Board of Directors of the Company (or
deemed designated) as an Unrestricted Subsidiary pursuant to and in compliance
with Section 4.12.  Any such
designation may be revoked by a Board Resolution of the Company delivered to
the Trustee, subject to the provisions of such covenant.

 

“Reversion Date” shall have the meaning assigned to such term
in Section 4.05.

 

“S&P” means Standard and Poor’s Ratings Group.

 

“Sale and Leaseback Transaction” means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any Property,
whether owned by the Company or any Restricted Subsidiary at the Issue Date or
later acquired which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom
funds have been or are to be advanced by such Person on the security of such
Property.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“Senior Credit Facility” means the debt facility provided for
under the Second Amended And Restated Credit Agreement dated as of March 17,
2006 among Bill Barrett Corporation, as borrower, JPMorgan Chase Bank, N.A., as
administrative agent, Deutsche Bank Securities Inc., as syndication agent, Bank
of America, N.A., Harris Nesbitt Financing, Inc., and U.S. Bank National
Association, as co-documentation agents and the lenders party thereto, or any
successor or replacement agreements and whether by the same or any other agent,
lender or group of lenders, together with the related documents thereto (including,
without limitation, any guarantee agreements and security documents), in each
case as such agreements may be amended (including any amendment and restatement
thereof), 

 

41

 

supplemented or otherwise modified from time to time,
including any agreements extending the maturity of, Refinancing, replacing,
increasing or otherwise restructuring all or any portion of the Indebtedness
under such agreements.

 

“Significant Subsidiary” means a Restricted Subsidiary of a
Person that is also a “significant subsidiary” as defined in Rule 1.02(w) of
Regulation S-X under the Securities Act.

 

“Stated Maturity” when used with respect to
any Note, means July 15, 2016.

 

“Subsidiary,” with respect to any Person, means any (i) corporation,
association or other business entity of which the outstanding Capital Stock
having at least a majority of the votes entitled to be cast in the election of
directors, managers or trustees of such entity under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person or any other
Person of which at least a majority of the voting interests under ordinary
circumstances is at the time, directly or indirectly, owned by such Person or (ii) any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

 

“Subsidiary Guarantee” shall have the meaning assigned to
such term under Article 11.

 

“Subsidiary Guarantor” means each of the Company’s Restricted
Subsidiaries on the Issue Date (such Restricted Subsidiaries being the “Initial
Guarantors” as defined in the Base Indenture), and each other Person that is
required to become a Guarantor by the terms of this Supplemental Indenture
after the Issue Date; provided, however, that any Person constituting a Subsidiary Guarantor
as described above shall cease to constitute a Subsidiary Guarantor when its
Subsidiary Guarantee is released in accordance with the terms of this Supplemental
Indenture.

 

“Surviving Entity” has the meaning set forth under Article 5.

 

“Suspended Covenants” shall have the meaning assigned to such
term in Section 4.05.

 

“Treasury Rate”
means, with respect to any redemption date, (1) the yield, under the
heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(159)”
or any successor publication that is published weekly by the Board of Governors
of the Federal Reserve System and that establishes yields on actively traded
U.S. Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the stated maturity,
yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined, and the Treasury Rate shall be
interpolated or extrapolated from such yields on a straight-line basis,
rounding to the nearest month) or (2) if such release (or any successor
release) is not published during the week preceding the 

 

42

 

calculation date or does not contain such yields, the
rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.  The Treasury Rate shall be calculated on the
third business day preceding the redemption date.

 

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

 

“Unrestricted Subsidiary” means any Subsidiary of the Company
designated (or deemed designated) as such pursuant to and in compliance with Section 4.12.  Any such designation may be revoked by a
Board Resolution of the Company delivered to the Trustee, subject to the provisions
of such covenant.

 

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

 

“Voting Stock” means any class or classes of
Capital Stock or other interests then outstanding and normally entitled
(without regard to the occurrence of any contingency) to vote in the election
of the Board of Directors, managers or trustees.

 

“Weighted Average Life to Maturity” means, when applied to
any Indebtedness or Preferred Stock at any date, the number of years obtained
by dividing (1) the then outstanding aggregate principal amount of such
Indebtedness or Preferred Stock into (2) the sum of the total of the
products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal or (with respect to Preferred Stock) redemption or similar payment,
including payment at final maturity, in respect thereof, by (b) the number
of years (calculated to the nearest one-twelfth) which will elapse between such
date and the making of such payment.

 

“Wholly Owned Subsidiary” means, at any
time, a Subsidiary all the Voting Stock of which (except directors’ qualifying
shares and investments by foreign nationals mandated by applicable law) is at
such time owned, directly or indirectly, by the Company and its other Wholly
Owned Subsidiaries.

 

Section 2.02           Other Definitions.

 

	
  Term Section

  	
   

  	
  Defined
  in:

  
	
  “Defaulted Interest”

  	
   

  	
  Section 10.03

  
	
  “Event of Default”

  	
   

  	
  Section 6.01

  
	
  “Guaranteed
  Obligations”

  	
   

  	
  Section 11.01

  
	
  “Interest Payment Date”

  	
   

  	
  Section 10.01

  
	
  “Regular Record Date”

  	
   

  	
  Section 10.01

  
	
  “Subsidiary Guarantee”

  	
   

  	
  Section 11.01

  

 

43

 

ARTICLE
3

 

REDEMPTION
AND PURCHASES

 

Article XI of the Base
Indenture shall not apply to the Notes except as, and to the extent, described
in this Article 3.

 

Section 3.01           Optional Redemption;
Notices to Trustee.  Except as
described below, the Company will not be entitled to redeem the Notes at its option
prior to July 15, 2013.  The Notes
will be redeemable, at the Company’s option, in whole at any time or in part
from time to time, on and after July 15, 2013, upon not less than 30, nor
more than 60, days’ notice, at the following redemption prices (expressed as
percentages of the principal amount thereof) if redeemed during the 12-month
period commencing on July 15 of the years set forth below, plus, in each
case, unpaid accrued interest, if any, thereon to the Redemption Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  104.938

  	
  %

  
	
  2014

  	
   

  	
  102.469

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

At any time, or from time to
time, on or prior to July 15, 2012, the Company may, at its option, use
all or a portion of the net cash proceeds of one or more Equity Offerings to redeem
up to 35% of the aggregate principal amount of the Notes issued under this
Supplemental Indenture (including any Additional Notes) at a redemption price
equal to 109.875% of the aggregate principal amount of the Notes to be
redeemed, plus unpaid accrued interest, if any, thereon to the Redemption Date;
provided that:

 

(1)           at least 65% of the aggregate principal amount of Notes
issued under the Indenture (including any Additional Notes) remains Outstanding
immediately after giving effect to any such redemption; and

 

(2)           the Company makes such redemption not more than 180 days
after the consummation of any such Equity Offering.

 

Notice of any redemption
upon an Equity Offering may be given prior to the completion of the related
Equity Offering, and any such redemption or notice may at the Company’s discretion,
be subject to one or more conditions precedent, including, without limitation,
completion of the related Equity Offering.

 

The Notes will also be
redeemable, in whole or in part, at the Company’s option at any time or from
time to time, prior to July 15, 2013, at the applicable Make-Whole Price.  The notice of redemption with respect to the
foregoing redemption need not set forth the Make-Whole Price but only the manner
of calculation thereof.  The Company
shall notify the Trustee of the Make-Whole Price with respect to any redemption
promptly after the calculation, and the Trustee shall not be responsible for
such calculation.

 

44

 

In case the Company shall
desire to exercise any such right of redemption, the Company shall fix a Redemption
Date and give notice thereof to the Trustee. 
If the Redemption Date is on a date that is after a Regular Record Date
and on or prior to the Interest Payment Date to which it relates, the Company
will pay any accrued and unpaid interest to a Holder on such Regular Record
Date.

 

The
Company shall give each notice to the Trustee provided for in this Section 3.01
at least 60 days before the
Redemption Date unless the Trustee consents to a shorter period.

 

On
and after the applicable Redemption Date, interest will cease to accrue on
Notes or portions thereof called for redemption as long as the Company has previously
deposited with the Paying Agent for the Notes (or, if the Company or a
Wholly-Owned Subsidiary is the Paying Agent, such entity has segregated and
holds in trust) funds in satisfaction of the applicable redemption price
pursuant to this Supplemental Indenture.

 

Section 3.02           Selection of Notes to Be Redeemed.  If fewer than all Notes Outstanding are to be
redeemed, the Trustee shall select the Notes to be redeemed by lot, on a pro rata basis or by another method that
the Trustee considers fair and appropriate, including any method required by
DTC or any successor Depositary.  The
Trustee shall make the selection from Notes Outstanding not previously called for redemption.  The Trustee may select for redemption
portions of the principal amount of Notes that have denominations larger than $1,000.  Notes and portions of Notes
the Trustee selects shall be in principal amounts such that the unredeemed
portion of any Note shall have a principal amount of $2,000 or multiples of
$1,000 in excess thereof.  Provisions of
this Supplemental Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.  The
Trustee shall notify the Company promptly of the Notes or portions of Notes
to be redeemed.

 

Section 3.03           Notice of Redemption.  At least 30, but not more than 60, calendar days before the Redemption Date, the Company
or, at the Company’s request, the Trustee shall mail a notice of redemption by
first-class mail, postage prepaid, to each Holder of Notes to be redeemed.

 

The
notice shall identify the Notes
to be redeemed and shall state:

 

(a)           the
Redemption Date;

 

(b)           the
redemption price;

 

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

 

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

 

(e)           if
fewer than all of the Outstanding Notes are to be redeemed, the certificate numbers, if any, and principal
amounts of the particular Notes
to be redeemed;

 

45

 

(f)            that,
unless the Company defaults in making payment of such redemption price,
interest, if any, on Notes
called for redemption will cease to accrue on and after the Redemption Date;
and

 

(g)           the
CUSIP number of the Notes.

 

At
the Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at the Company’s expense, provided
that the Company makes such request at least three Business Days prior to the
date by which such notice of redemption must be given to Holders in accordance
with this Section 3.03, provided further
that, in all cases, the text of such notice of redemption shall be prepared by
the Company.

 

The
notice if given in the manner herein provided shall be conclusively presumed to
have been duly given, whether or not any Holder receives such notice.  In any case, failure to give such notice or
any defect in the notice to the Holder of any Note selected for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note.

 

Section 3.04           Effect of Notice of
Redemption.  Once notice of redemption is given, Notes called for redemption become due and payable on the Redemption Date and
at the redemption price stated in the notice of redemption.  If less than all the Notes are to be redeemed,
the notice of redemption shall specify the CUSIP numbers of the Note to be redeemed.  Upon surrender to the Paying Agent, such Notes shall be paid at the redemption price stated in the notice of
redemption.

 

Section 3.05           Deposit of Redemption
Price.  Prior to 11:00 a.m. (New York City time)
on the Redemption Date, the Company shall deposit with the Paying Agent (or if
the Company or a Wholly Owned Subsidiary is the Paying Agent, shall segregate
and hold in trust) money sufficient to pay the redemption price of all Notes to be redeemed on that date other than Notes or portions of Notes
called for redemption which have been delivered by the Company to the Trustee
for cancellation.  If such money is then
held by the Company in trust and is not required for such purpose, it shall be
discharged from such trust.

 

Section 3.06           Notes Redeemed in Part.

 

(a)           In the event of any redemption in
part, the Company will not be required to register the transfer of or exchange
any Note so selected for redemption, in whole or in part, except the unredeemed
portion of any Note being redeemed in part.

 

(b)           Upon surrender of a Note that is
redeemed in part, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder a new Note in an authorized denomination equal in
principal amount to the unredeemed portion of the Note surrendered, or in the
case of a Global Note, the Company shall instruct the Registrar to decrease
such Global Note by the principal amount of the redeemed portion of the Note
surrendered.

 

Section 3.07           No Limit on Other
Purchases.  Nothing in this
Supplemental Indenture or the Base Indenture or the Notes shall prohibit or
limit the right of the Company or any

 

46

 

Affiliate
of the Company from time to time to repurchase the Notes at any price in open
market purchases or negotiated transactions or by tender offer or otherwise without
any notice to or consent by Holders.  Any
Notes purchased by the Company may, to the extent permitted by law, be held or
resold or may, at the Company’s option, be delivered to the Trustee for cancellation.  Any Notes delivered to the Trustee for
cancellation may not be reissued or resold and will be promptly cancelled.

 

ARTICLE 4

 

COVENANTS

 

Section 1001,
Section 1002 and Section 1004 of the Base Indenture shall not apply
to, and the covenants therein shall be deemed included in this Supplemental
Indenture solely for the benefit of a different series of Securities than, the
Notes.

 

Section 4.01           Payments.  The
Company shall promptly make all payments in respect of the Notes on the dates and in the manner provided in the Notes or pursuant to this Supplemental Indenture.  Any funds to be given to the Trustee or
Paying Agent shall be deposited with the Trustee or Paying Agent by 11:00 a.m.
(New York City time) by the Company on the required date.  If the Company shall at any
time act as its own Paying Agent with respect to the Notes, the Company will,
on or before each due date of the principal of or any premium or interest on
any of the Notes, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.  Subject to the applicable provisions of Section 3.01, Section 3.07,
Section 4.08, and Section 4.13, the Company shall make any required
interest payments to the Person in whose name each Note is registered 5:00 p.m.
(New York City time) on the Regular Record Date for such interest payment.  Principal amount, accrued interest, if any, any
redemption price, Make-Whole Price, Net Proceeds Offer Amount and any amounts
due under Section 4.13 shall be considered paid on the applicable date due
if on such date the Trustee or the Paying Agent holds, in accordance with this
Supplemental Indenture, funds sufficient to pay all such amounts then due.

 

The Company will cause each
Paying Agent for any Notes other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee,
subject to the provisions of this Section, that such Paying Agent will (1) comply
with the provisions of the Trust Indenture Act applicable to it as a Paying
Agent and (2) during the continuance of any default by the Company (or any
other obligor upon the Notes) in the making of any payment in respect of the
Notes, upon the written request of the Trustee, forthwith pay to the Trustee
all sums held in trust by such Paying Agent for payment in respect of the
Notes.

 

The Company may at any time,
for the purpose of obtaining the satisfaction and discharge of the Indenture
with respect to the Notes or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company

 

47

 

or such Paying Agent, such
sums to be held by the Trustee upon the same trusts as those upon which such
sums were held by the Company or such Paying Agent; and, upon such payment by
any Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

 

Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of or any premium or interest on any Note and remaining
unclaimed for two years after such principal, premium or interest has become
due and payable shall be paid to the Company on Company Request (or if
deposited by a Guarantor, paid to such Guarantor on Guarantor Request), or (if
then held by the Company) shall be discharged from such trust; and the Holder
of such Note shall thereafter, as an unsecured general creditor, look only to
the Company or such Guarantor, as the case may be, 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 or such
Guarantor, as the case may be, cause to be published once, in a newspaper published
in the English language, customarily published on each Business Day and of
general circulation in The City of New York, 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 or the applicable Guarantor,
as the case may be.

 

Section 4.02           Maintenance of Office
or Agency.  The Company will maintain in The New York
City an office or agency of the Trustee, Registrar and Paying Agent where Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer, exchange, purchase or
redemption and where notices and demands to or upon the Company in respect of
the Notes and this
Supplemental Indenture may be served. 
The office of Deutsche Bank Trust Company Americas, Trust &
Securities Services, 60 Wall Street, NYC MS 60-2710, New York, NY 10005,
Attention:  Trust and Securities Services,
Telecopier No.:  (732) 578-4635,
shall initially be such office or agency for all of the aforesaid purposes.  The Company shall give prompt written notice
to the Trustee of the location, and of any change in the location, of any such
office or agency.  If at any time the
Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with any such address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Notes
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in New York City for such
purposes.

 

Section 4.03           Reports to Holders.

 

(a)           Whether or not
required by the rules and regulations of the Commission, so long as any
Notes are Outstanding, the Company shall file with the Commission for public 

 

48

 

availability (unless the
Commission will not accept such a filing, in which case the Company will, or
will cause the Trustee to, furnish the Holders of Notes and securities analysts
and prospective investors (upon request)):

 

(1)           all quarterly and annual financial information that would
be required to be contained in a filing with the Commission on Forms 10-Q and
10-K if the Company were required to file such Forms, including a “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” that
describes the financial condition and results of operations of the Company and
its consolidated Subsidiaries (showing in reasonable detail, either on the face
of the financial statements or in the footnotes thereto and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, the
financial condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company, if any) and, with respect to the
annual information only, a report thereon by the Company’s certified independent
accountants; and

 

(2)           all current reports that would be required to be filed
with the Commission on Form 8-K if the Company were required to file such
reports, in each case within the time periods specified in the Commission’s rules and
regulations.

 

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

 

(c)           The Company also shall comply with the other provisions of
Section 314(a) of the Trust Indenture Act.

 

Section 4.04           Existence.  Except as permitted by Section 5.01 of
this Supplement Indenture, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its and any Subsidiary
Guarantor’s corporate existence.

 

Section 4.05           Covenant Suspension.

 

(a)           During any period of time that (x) the Notes have an
Investment Grade Rating and (y) no Event of Default has occurred and is
continuing under this Supplemental Indenture, the Company and its Restricted
Subsidiaries shall not be subject to Sections 4.06, 4.07, 4.08, 4.09, 4.11, 4.14, 5.01(2), 5.01(3) and 5.02(3) (collectively, the “Suspended Covenants”).

 

(b)           If the Company and its
Restricted Subsidiaries are not subject to the Suspended Covenants for any period
of time as a result of the previous sentence (a “Fall-Away
Period”) and, subsequently, the ratings assigned to the Notes are withdrawn
or downgraded so the 

 

49

 

Notes no longer have an
Investment Grade Rating or an Event of Default (other than with respect to a Suspended
Covenant) occurs and is continuing, any such date a “Reversion
Date,” then the Company and its Restricted Subsidiaries will
thereafter again be subject to the Suspended Covenants.  The ability of the Company and its Restricted
Subsidiaries to make Restricted Payments after the Reversion Date will be
calculated as if the covenant governing Restricted Payments had been in effect
during the entire period of time from the Issue Date.  Notwithstanding the foregoing, the continued
existence after the end of the Fall-Away Period of facts and circumstances or
obligations arising from transactions which occurred during a Fall-Away Period
shall not constitute a breach of any Suspended Covenant set forth in this
Supplemental Indenture or cause an Event of Default thereunder.

 

(c)           The Company shall give the
Trustee notice of the event of any Fall-Away Period not later than five
Business Days after such date.  In the
absence of such notice, the Trustee shall assume the Suspended Covenants apply
and are in full force and effect.  The Company
shall give the Trustee notice of any occurrence of a Reversion Date not later
than five Business Days after such Reversion Date.  After any such notice of the occurrence of a
Reversion Date, the Trustee shall assume the Suspended Covenants apply and are
in full force and effect.

 

Section 4.06           Limitation on
Incurrence of Additional Indebtedness and Issuance of Preferred Stock.

 

(a)           Other than Permitted Indebtedness, the Company will not,
and will not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, “incur”) any
Indebtedness (including, without limitation, Acquired Indebtedness) and the Company
will not permit any of its Restricted Subsidiaries to issue any Preferred
Stock; provided, however,
that if no Default or Event of Default shall have occurred and be continuing at
the time of or as a consequence of the incurrence of any such Indebtedness or
issuance of Preferred Stock, then the Company and the Restricted Subsidiaries
or any of them may incur Indebtedness and any Restricted Subsidiary may issue
Preferred Stock, in each case, if on the date of the incurrence of such
Indebtedness or issuance of Preferred Stock, after giving pro
forma effect to the incurrence thereof
and the receipt and application of the proceeds therefrom, the Company’s Consolidated
EBITDAX Coverage Ratio would have been greater than 2.25 to 1.0.

 

(b)           For purposes of determining any particular amount of
Indebtedness under this covenant, (i) guarantees of, or obligations in
respect of letters of credit relating to, Indebtedness otherwise included in
the determination of such amount shall not also be included and (ii) if
obligations in respect of letters of credit are incurred pursuant to a Credit
Facility and are being treated as incurred pursuant to clause (1) of
the definition of “Permitted Indebtedness” and the letters of credit relate to
other Indebtedness, then such other Indebtedness shall not be included.

 

(c)           Indebtedness or Preferred Stock of a Person existing at
the time such Person becomes a Restricted Subsidiary (whether by merger,
consolidation, acquisition of Capital 

 

50

 

Stock or otherwise) or is
merged with or into the Company or any Restricted Subsidiary or which is
secured by a Lien on an asset acquired by the Company or a Restricted
Subsidiary (whether or not such Indebtedness is assumed by the acquiring
Person) shall be deemed incurred at the time the Person becomes a Restricted
Subsidiary or at the time of the asset acquisition, as the case may be.

 

(d)           The Company will not, and will not permit any Subsidiary
Guarantor to, incur any Indebtedness which by its terms (or by the terms of any
agreement governing such Indebtedness) is subordinated in right of payment to
any Indebtedness of the Company or such Subsidiary Guarantor, as the case may
be, other than the Notes and the Subsidiary Guarantees, unless such Indebtedness
is also by its terms (or by the terms of any agreement governing such
Indebtedness) made expressly subordinate in right of payment to the Notes or
the Subsidiary Guarantee of such Subsidiary Guarantor, as the case may be,
pursuant to subordination provisions that are at least as favorable to the
holders of the Notes or such Subsidiary Guarantee as the subordination
provisions of such Indebtedness (or agreement).

 

(e)           For purposes of this
Supplemental Indenture, no Indebtedness will be deemed to be subordinate or
junior in right of payment to other Indebtedness solely by virtue of not being
the benefit of a Lien on assets, or guarantee of a Person, that benefits the
other Indebtedness or having the benefit of such a Lien or guarantee ranking
subordinate or junior to a Lien or guarantee benefiting the other Indebtedness.

 

Section 4.07           Limitation on
Restricted Payments.  The Company will
not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly:

 

(1)           declare or pay any dividend or make any distribution
(other than dividends or distributions made to the Company or any Restricted
Subsidiary and other than any dividends or distributions payable solely in
Qualified Capital Stock of the Company) on or in respect of shares of the
Capital Stock of the Company or any Restricted Subsidiary to holders of such
Capital Stock;

 

(2)           purchase, redeem or otherwise acquire or retire for value
any Capital Stock of the Company or any Restricted Subsidiary (or make any
other payment on account of, or set apart money for a sinking fund or other
analogous fund for the purchase, redemption or other acquisition or retirement for
value of, any Capital Stock of the Company or any Restricted Subsidiary) other
than through the exchange therefor solely of Qualified Capital Stock of the
Company and other than any acquisition or retirement for value from, or payment
to, the Company or any Restricted Subsidiary;

 

(3)           make any principal payment on, purchase, defease, redeem,
prepay, decrease or otherwise acquire or retire for value before twelve months
prior to any scheduled final maturity, scheduled repayment or scheduled sinking
fund payment, any Indebtedness of the Company or a Subsidiary Guarantor that is
subordinate or junior in right of payment to the Notes or such Subsidiary
Guarantor’s Subsidiary Guarantee, as the case may be (other than a purchase,
repurchase or other acquisition of any such subordinated or junior Indebtedness
that is so purchased, repurchased or otherwise 

 

51

 

acquired
in anticipation of satisfying a sinking fund obligation, principal installment
or payment at final maturity, in each case due within 120 days of the date
of such purchase, repurchase or other acquisition); or

 

(4)           make any Investment (other than a Permitted Investment) in
any Person;

 

(each of the foregoing
actions set forth in clauses (1), (2), (3) and (4) being referred to
as a “Restricted Payment,” provided, however, that
no Permitted Investment shall be deemed to be a Restricted Payment), if at the
time of such Restricted Payment or immediately after giving effect thereto:

 

(i)            a Default or an Event of Default shall have occurred and
be continuing;

 

(ii)           the Company is not able to incur at least $1.00 of
additional Indebtedness (other than Permitted Indebtedness) in compliance with Section 4.06(a);
or

 

(iii)          the aggregate amount of Restricted Payments (including such
proposed Restricted Payment) made after the Issue Date (the amount expended for
such purposes, if other than in cash, being the Fair Market Value of such
property as determined in good faith by the Board of Directors of the Company)
shall exceed the sum (without duplication) of:

 

(a)           50% of the cumulative Consolidated Net Income (or if cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) of the
Company earned after July 1, 2009 and on or prior to the last date of the
Company’s fiscal quarter immediately preceding such Restricted Payment (the “Reference Date”) (treating such period as a single
accounting period); plus

 

(b)           100% of the aggregate net cash proceeds, or the Fair
Market Value of Property (including any Property received in any Asset
Acquisition or other acquisition other than cash, received by the Company from
any Person (other than a Restricted Subsidiary of the Company) from the
issuance and sale of Qualified Capital Stock of the Company after the Issue
Date (excluding any net cash proceeds from an Equity Offering used to redeem
the Notes); plus

 

(c)           100% of the aggregate net cash proceeds, or the Fair
Market Value of Property (including any Property received in any Asset
Acquisition or other acquisition) other than cash, of any equity contribution
received by the Company from a holder of the Company’s Capital Stock after the
Issue Date (excluding any net cash proceeds from an Equity Offering to the
extent used to redeem the Notes); plus

 

(d)           an amount equal to the net reduction in Investments in Unrestricted
Subsidiaries resulting from dividends, interest payments, distributions,
redemptions or repurchases, sales or other dispositions thereof, repayments of
loans or advances, or other transfers of cash or Properties (including
transfers 

 

52

 

as a result of merger or
liquidation), in each case to the Company or to any Restricted Subsidiary of
the Company from Unrestricted Subsidiaries (but without duplication of any such
amount included in calculating cumulative Consolidated Net Income of the Company),
or from redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries
(in each case valued as provided in Section 4.12), not to exceed, in the
case of any such redesignation, the amount of Investments previously made by
the Company or any Restricted Subsidiary in such Unrestricted Subsidiary and
which was treated as a Restricted Payment under this Supplemental Indenture; plus

 

(e)           the amount by which Indebtedness of the Company is reduced
on the consolidated balance sheet of the Company and its Restricted Subsidiaries
upon the conversion or exchange subsequent to the Issue Date of any Indebtedness
of the Company or its Restricted Subsidiaries that is convertible or exchangeable
for Qualified Capital Stock of the Company (less the amount of any cash, or the
Fair Market Value of any other property, distributed by the Company to the
holder of such Indebtedness upon such conversion or exchange); provided, however, that
the foregoing amount shall not exceed the Net Cash Proceeds, or the Fair Market
Value of Property (including any Property received in any Asset Acquisition or
other acquisition) other than cash, received by the Company or any Restricted
Subsidiary from the sale of such Indebtedness (excluding Net Cash Proceeds from
sales to a Restricted Subsidiary of the Company); plus

 

(f)            an amount equal to the net reduction in Investments
(other than Permitted Investments) resulting from dividends, distributions,
redemptions or repurchases, proceeds of sales or other dispositions thereof,
interest payments, repayments of loans or advances, or other transfers of cash
or Properties (including transfers as a result of merger or liquidation), in
each case to the Company or to any Restricted Subsidiary of the Company from
any Person (other than the Company or a Restricted Subsidiary), not to exceed
the amount in respect of such Investment which had been treated as a Restricted
Payment (but without duplication of any such amount included in calculating
cumulative Consolidated Net Income of the Company).

 

Notwithstanding the
foregoing, the provisions set forth in the immediately preceding paragraph
shall not prohibit:

 

(1)           the payment of any dividend or redemption payment or the
making of any distribution within 60 days after the date of declaration
thereof if the dividend, redemption or distribution payment, as the case may
be, would have been permitted on the date of declaration;

 

(2)           the acquisition of any Capital Stock of the Company or any
Restricted Subsidiary, either (i) solely in exchange for shares of
Qualified Capital Stock of the Company or (ii) through the application of
net proceeds of a substantially concurrent 

 

53

 

sale
for cash (other than to a Restricted Subsidiary of the Company) of Qualified
Capital Stock of the Company;

 

(3)           the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of any Indebtedness of the Company or any
Subsidiary Guarantor that is subordinate or junior in right of payment to the
Notes or such Subsidiary Guarantor’s Subsidiary Guarantee, as the case may be,
either (i) solely in exchange for Qualified Capital Stock of the Company, (ii) through
the application of the net proceeds of a substantially concurrent sale for cash
(other than to a Restricted Subsidiary of the Company) of (a) Qualified
Capital Stock of the Company or (b) Refinancing Indebtedness or (iii) solely
in exchange for Indebtedness constituting Refinancing Indebtedness;

 

(4)           the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of any Disqualified Stock of the Company or
any Subsidiary Guarantor either (i) through the application of the net
proceeds of a substantially concurrent sale for cash (other than to a
Restricted Subsidiary of the Company) of Refinancing Indebtedness or (ii) solely
in exchange for Indebtedness constituting Refinancing Indebtedness;

 

(5)           if no Default or Event of Default shall have occurred and
be continuing, the redemption or repurchase of equity interests in the Company
held by then present or former officers, directors or employees of the Company;
provided, that the aggregate cash
consideration paid for all such redemptions or repurchases in any calendar year
shall not exceed $2.0 million plus (A) the
cash proceeds received during such calendar year by the Company or any of its
Restricted Subsidiaries from the sale of the Company’s Qualified Capital Stock
to any such officers, directors or employees (provided
that the amount of such cash proceeds utilized for any such redemption or repurchase
will not increase the amount available for Restricted Payments under clause
(iii)(b) of the immediately preceding paragraph) plus
(B) the cash proceeds of key man life insurance policies received during
such calendar year by the Company and its Restricted Subsidiaries (with unused
amounts in any calendar year being carried forward to succeeding calendar
years);

 

(6)           if no Default or Event of Default shall have occurred and
be continuing, repurchases of Indebtedness that is subordinated or junior in
right of payment to the Notes or a Subsidiary Guarantee at a purchase price not
greater than (i) 101% of the principal amount of such subordinated or
junior Indebtedness and accrued and unpaid interest thereon in the event of a
Change of Control or (ii) 100% of the principal amount of such
subordinated or junior Indebtedness and accrued and unpaid interest thereon in
the event of an Asset Sale, in each case plus accrued interest, in connection
with any change of control offer or asset sale offer required by the terms of
such Indebtedness, but only if:

 

54

 

(a)                                  in the case of a Change of
Control, the Company has first complied with and fully satisfied its
obligations under the provisions described under Section 4.13; or

 

(b)                                 in the case of an Asset
Sale, the Company has complied with and fully satisfied its obligations in
accordance with the covenant under Section 4.08;

 

(7)                                  the repurchase, redemption
or other acquisition for value of Capital Stock of the Company or any
Restricted Subsidiary representing fractional shares of such Capital Stock in
connection with a merger or consolidation involving the Company or Restricted
Subsidiary or any other transaction permitted by this Supplemental Indenture;

 

(8)                                  repurchases of Capital Stock
deemed to occur upon the exercise or conversion of stock options, warrants or other
convertible securities if such Capital Stock represents a portion of the
exercise or conversion price thereof;

 

(9)                                  the declaration and payment
of regularly scheduled or accrued dividends to holders of any class or series
of Disqualified Stock of the Company or any Preferred Stock of any Restricted
Subsidiary of the Company issued on or after the Issue Date in accordance with
the Consolidated EBITDAX Coverage Ratio test described in Section 4.06(a);

 

(10)                            the payment of any dividend
or any similar distribution by a Restricted Subsidiary to the holders (other
than the Company or any Restricted Subsidiary) of Qualified Capital Stock of
such Restricted Subsidiary; provided that
such dividend or similar distribution is paid to all holders of such Qualified
Capital Stock on a pro rata basis
based on their respective holdings of such Qualified Capital Stock;

 

(11)                            the defeasance, repurchase,
redemption or other acquisition or retirement for value of any Capital Stock of
the Company or any Restricted Subsidiary held by any current or former
officers, directors or employees of the Company or any of its Restricted
Subsidiaries in connection with the exercise or vesting of any equity compensation
(including, without limitation, stock options, restricted stock and phantom
stock) in order to satisfy any tax withholding obligation with respect to such
exercise or vesting;

 

(12)                            any payments to dissenting
stockholders not to exceed $5.0 million in the aggregate after the Issue Date (x) pursuant
to applicable law or (y) in connection with the settlement or other
satisfaction of claims made pursuant to or in connection with a consolidation,
merger or transfer of assets in connection with a transaction that is not
prohibited by this Supplemental Indenture;

 

(13)                            any redemption of share
purchase rights at a redemption price not to exceed $0.01 per right;

 

55

 

(14)                            the purchase or redemption
of any Acquired Subordinated Indebtedness of the Company or any Subsidiary
Guarantor, by application of (i) cash provided from operations in the
ordinary course of business or (ii) proceeds from borrowings under the
revolving portion of the Senior Credit Facility (so long as within 30 days
prior to such purchase or redemption, a corresponding amount of borrowings
under the revolving portion of the Senior Credit Facility was repaid from cash
provided from operations in the ordinary course of business); provided, in any such case, that the Company is able to
incur an additional $1.00 of Indebtedness pursuant to Section 4.06(a) after
giving effect to such purchase or redemption; provided,
further, that this clause
(14) shall not permit the application of any proceeds from any other
borrowings under any Credit Facility to effect any such purchase or redemption;
or

 

(15)                            any other Restricted
Payments, which when combined with any other outstanding Restricted Payments
made pursuant to this clause (15), does not exceed the greater of (a) $30.0
million and (b) 2.0% of Adjusted Consolidated Net Tangible Assets
determined at the time of such Restricted Payment.

 

In determining the aggregate amount of
Restricted Payments after the Issue Date in accordance with clause (iii) of
the immediately preceding paragraph, amounts expended pursuant to clauses (1),
(2), (3)(i), (3)(ii)(a), (7), (12) and (13) of this Section 4.07 shall be
included in such calculation, and amounts expended pursuant to clauses
(3)(ii)(b), (3)(iii), (4), (5), (6), (8), (9), (10), (11), (14) and (15) of
this Section 4.07 shall be excluded from such calculation.  In determining the aggregate net cash
proceeds or Fair Market Value of Property other than cash received by the
Company from the issuance and sale of Qualified Capital Stock in accordance
with clause (b) of the immediately preceding paragraph, amounts of cash
received by the Company pursuant to clauses (2)(ii) or (3)(ii)(a), or the
Fair Market Value of Capital Stock of the Company or any Restricted Subsidiary
or Indebtedness of the Company or any Subsidiary Guarantor acquired or retired
for value pursuant to clauses (2)(i) or (3)(i), of this paragraph shall be
included in such calculation.  For
purposes of determining compliance with this covenant, in the event that a
Restricted Payment meets the criteria of more than one of the exceptions described
in (1) through (15) above or is entitled to be made pursuant to the
first paragraph of this covenant, the Company shall, in its sole discretion,
classify such Restricted Payment, or later classify, reclassify or re-divide
all or a portion of such Restricted Payment, in any manner that complies with
this covenant.

 

Section 4.08                                Limitation on Asset Sales.  The Company will not, and
will not cause or permit any of its Restricted Subsidiaries to, consummate an Asset
Sale unless:

 

(1)                                  the Company or the
applicable Restricted Subsidiary, as the case may be, receives consideration at
the time of such Asset Sale at least equal to the Fair Market Value of the
assets sold or otherwise disposed of (as determined in good faith by the
Company’s Board of Directors);

 

(2)                                  either (a) at least 75%
of the consideration received by the Company or such Restricted Subsidiary, as
the case may be, from such Asset Sale shall be in the form of cash or Cash
Equivalents and is received at the time of such disposition or 

 

56

 

(b) the Fair Market
Value (determined at the time of receipt) of all forms of consideration other
than cash and Cash Equivalents received for all Asset Sales since the Issue
Date does not exceed in the aggregate 15% of the Adjusted Consolidated Net
Tangible Assets of the Company at the time such determination is made; and

 

(3)                                  the Company shall apply, or
cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to
such Asset Sale within 360 days of receipt thereof either:

 

(a)                                  to repay or prepay
Indebtedness outstanding under the Senior Credit Facility (or, if the Senior
Credit Facility is no longer in existence, any of the Credit Facilities);

 

(b)                                 to repay or prepay any
Indebtedness of the Company that is secured by a Lien permitted to be incurred
pursuant to Section 4.10;

 

(c)                                  to make an investment
(including, without limitation, capital expenditures) in (i) properties or
assets that replace the properties or assets that were the subject of such
Asset Sale or (ii) properties or assets that will be used in the Crude Oil
and Natural Gas Business of the Company and its Restricted Subsidiaries or in
businesses reasonably related thereto (collectively, “Replacement
Assets”);

 

(d)                                 to make a Permitted Industry
Investment or to acquire or make an investment in Crude Oil and Natural Gas Related
Assets;

 

(e)                                  to the extent not included
in (c) or (d) above, any investment in (i) Capital Stock of a
Person that becomes a Restricted Subsidiary as a result of the acquisition of
such Capital Stock by the Company or a Restricted Subsidiary, (ii) Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary, and (iii) Capital Stock of any Subsidiary of
Company, provided that all the Capital Stock of
such Subsidiary held by the Company or any of its Restricted Subsidiaries shall
entitle the Company or such Restricted Subsidiary to not less than a pro  rata share of
all dividends or other distributions made by such Subsidiary upon any of such
Capital Stock; or

 

(f)                                    to make a combination of
prepayment and investment permitted by the foregoing clauses (3)(a) through
(3)(f).

 

On the 361st day after an Asset Sale or such earlier
date, if any, as the Board of Directors of the Company determines not to apply
the Net Cash Proceeds relating to such Asset Sale as set forth in clauses (3)(a) through
(3)(f) of the immediately preceding paragraph (each a “Net Proceeds Offer Trigger Date”), such aggregate amount of
Net Cash Proceeds which have been received by the Company or such Restricted
Subsidiary but which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (3)(a) through (3)(f) of the
immediately preceding paragraph (each a “Net Proceeds Offer Amount”)
shall be applied by the Company or such Restricted Subsidiary, as the case may 

 

57

 

be, to make an offer to
purchase (a “Net Proceeds Offer”) on a date
(the “Net Proceeds Offer Payment Date”) not
less than 30, nor more than 45, days following the applicable Net Proceeds
Offer Trigger Date, from all Holders and, to the extent required by the terms
of any Pari Passu Indebtedness, the holders of such Pari Passu Indebtedness, on
a pro  rata basis,
that principal amount of Notes (and Pari Passu Indebtedness) purchasable with
the Net Proceeds Offer Amount at a price equal to 100% of the principal amount
of the Notes (and Pari Passu Indebtedness) to be purchased (or, in the event
such other Pari Passu Indebtedness was issued with significant original issue
discount, 100% of the accreted value thereof), plus unpaid accrued interest, if
any, thereon to the date of purchase; provided, however, that if at any time consideration other than cash
or Cash Equivalents was received by the Company or any Restricted Subsidiary,
as the case may be, in connection with any Asset Sale is converted into or sold
or otherwise disposed of for cash or Cash Equivalents (other than interest
received with respect to any such non-cash or non-Cash Equivalents
consideration), then such conversion or disposition shall be deemed to
constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be
applied in accordance with this covenant.

 

The Company may defer the Net Proceeds Offer until
there is an aggregate unutilized Net Proceeds Offer Amount equal to or in
excess of $40.0 million resulting from one or more Asset Sales (at which time,
the entire unutilized Net Proceeds Offer Amount, and not just the amount in
excess of $40.0 million shall be applied as required pursuant to this
covenant).  Pending application of Net
Cash Proceeds pursuant to this covenant, such Net Cash Proceeds may be
temporarily invested in Cash Equivalents or applied to temporarily reduce
revolving credit indebtedness.

 

If the Note Proceeds Offer Payment Date is after an
interest Regular Record Date and on or before the related Interest Payment
Date, any accrued and unpaid interest will be paid to the Person in whose name
a Note is registered at the close of business on such Regular Record Date, and
no additional interest will be payable to holders who tender Notes pursuant to
the Net Proceeds Offer.

 

Notwithstanding the first two paragraphs of this
covenant, the Company and its Restricted Subsidiaries will be permitted to
consummate an Asset Sale without complying with such paragraphs to the extent
that:

 

(1)                                  the consideration for such
Asset Sale constitutes Replacement Assets and/or Crude Oil and Natural Gas
Related Assets and/or the assumption of obligations secured by Liens that
burden some or all of the assets being sold and/or cash or Cash Equivalents; provided that, in the case of any such assumption, (a) the
Person assuming such obligations shall have no recourse with respect to such
obligations to the Company or any of its Restricted Subsidiaries and (b) no
assets of the Company or any of its Restricted Subsidiaries (other than those
assets being sold) are subject to such Liens; and

 

(2)                                  such Asset Sale is for Fair
Market Value; provided that at least 75% of the
total consideration received by the Company or any of its Restricted
Subsidiaries in connection with any such Asset Sale shall be in the form of
Replacement Assets and 

 

58

 

Crude Oil and Natural Gas
Related Assets, the assumption of obligations secured by Liens described in (1) above,
cash or Cash Equivalents, or any combination of the foregoing, and that any Net
Cash Proceeds so received shall be subject to the provisions of clause (3) of
the first paragraph and to the provisions of the second paragraph of this
covenant.

 

For the purposes of clause (2) of both the
first and immediately preceding paragraphs of this covenant and for the
purposes of clause (1) of the immediately preceding paragraph, the
following are deemed to be cash or Cash Equivalents:

 

(1)                                  the assumption of
Indebtedness or other liabilities shown on the balance sheet of the Company
(other than obligations in respect of Disqualified Stock of the Company) or any
Restricted Subsidiary (other than obligations in respect of Disqualified Stock
or Preferred Stock of a Subsidiary Guarantor) and the release of the Company or
such Restricted Subsidiary from all liability on such Indebtedness or liabilities
in connection with such Asset Sale (or in lieu of such a release, the agreement
of the acquiror or its parent company to indemnify and hold the Company or such
Restricted Subsidiary harmless from and against any loss, liability or cost in
respect of such assumed Indebtedness or liabilities accompanied by the posting
of a letter of credit (issued by a commercial bank that has an Investment Grade
Rating) in favor of the Company or such Restricted Subsidiary for the full
amount of the liability and for so long as the liability remains outstanding; provided, however, that
such indemnifying party (or its long term debt securities) shall have an
Investment Grade Rating (with no indication of a negative outlook or credit
watch with negative implications, in any case, that contemplates such indemnifying
party (or its long term debt securities) failing to have an Investment Grade
Rating) at the time the indemnity is entered into); and

 

(2)                                  securities received by the
Company or any Restricted Subsidiary from the transferee that are converted by the
Company or such Restricted Subsidiary into cash within 180 days of the Asset
Sale, to the extent of cash received in that conversion.

 

The requirement of clause 3(c), 3(d) or 3(e) above
shall be deemed to be satisfied if an agreement (including a lease, whether a
capital lease or an operating lease) committing to make the acquisitions or
investment referred to therein is entered into by the Company or any Restricted
Subsidiary within the time period specified in clause (3) and such Net
Cash Proceeds are subsequently applied in accordance with such agreement within
six months following such agreement.

 

Notice of each Net Proceeds Offer will be mailed to
the record Holders as shown on the register of Holders within 30 days following
the Net Proceeds Offer Trigger Date, with a copy to the Trustee, and shall
comply with the procedures set forth in this Supplemental Indenture.  Upon receiving notice of the Net Proceeds
Offer, Holders may elect to tender their Notes in whole or in part in exchange
for cash with the form entitled “Option of Holder to Elect to Purchase” on the
reverse of the Note completed to the Paying Agent for the Notes at the address
specified in the notice of the Net Proceeds Offer.  To the extent Holders properly 

 

59

 

tender Notes and holders of
Pari Passu Indebtedness properly tender such Indebtedness with an aggregate principal
amount exceeding the Net Proceeds Offer Amount, Notes of tendering Holders and
Pari Passu Indebtedness will be purchased on a pro
rata basis (based on principal amounts
of Notes and Pari Passu Indebtedness (or, in the case of Pari Passu
Indebtedness issued with significant original issue discount based on the
accreted value thereof) tendered).  A Net
Proceeds Offer shall remain open for a period of 20 Business Days or such
longer period as may be required by law.

 

The Company will comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent such laws and regulations are applicable in connection with the
repurchase of Notes pursuant to a Net Proceeds Offer.  To the extent that the provisions of any
securities laws or regulations conflict with the “Asset
Sale” provisions of this Supplemental
Indenture, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under the “Asset Sale” provisions of this Supplemental Indenture by
virtue thereof.

 

If all or any portion of any Net Proceeds Offer
Amount remains after consummation of a Net Proceeds Offer, the Company may use
such remaining portion of such Net Proceeds Offer Amount for any purpose not
otherwise prohibited by this Supplemental Indenture.

 

Section 4.09                                Limitation on Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.  The Company will not, and
will not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or restriction on the ability of any Restricted
Subsidiary to:

 

(1)                                  pay dividends or make any
other distributions on or in respect of its Capital Stock;

 

(2)                                  make loans or advances, or
to pay any Indebtedness or other obligation owed, to the Company or any other
Restricted Subsidiary;

 

(3)                                  guarantee any Indebtedness
or any other obligation of the Company or any Restricted Subsidiary; or

 

(4)                                  transfer any of its property
or assets to the Company or any other Restricted Subsidiary,

 

except for such encumbrances or restrictions
existing under or by reason of:

 

(1)                                  With respect to clauses (1)-(4) above:

 

(a)                                  applicable law;

 

(b)                                 any encumbrance or
restriction pursuant to or by reason of an agreement in effect at the Issue
Date;

 

60

 

(c)                                  (i) this Supplemental
Indenture or any other indentures governing Pari Passu Indebtedness; provided, however, that
the provisions relating to such encumbrances or restriction contained in any
such other indenture are no less favorable to the Holders in any material
respect as determined by the Board of Directors of the Company in their
reasonable and good faith judgment than the provisions relating to such
encumbrances or restrictions contained in this Supplemental Indenture or (ii) instruments
governing other Indebtedness of the Company or any of its Restricted
Subsidiaries permitted to be incurred pursuant to an agreement entered into subsequent
to the Issue Date in accordance with Section 4.06; provided that the provisions relating to
such encumbrance or restriction contained in such instruments are not
materially less favorable to the Company and its Restricted Subsidiaries taken
as a whole, as determined by the Company in good faith, than the provisions
contained in the Senior Credit Facility and in this Supplemental Indenture as
in effect on the Issue Date;

 

(d)                                 the Senior Credit Facility;

 

(e)                                  customary encumbrances and
restrictions contained in agreements of the types described in the definition
of “Permitted Industry Investments”;

 

(f)                                    customary non-assignment
provisions of any contract or any lease governing a leasehold interest of any
Restricted Subsidiary;

 

(g)                                 any encumbrance or
restriction pursuant to or by reason of an instrument governing Acquired Indebtedness,
which encumbrance or restriction is not applicable to such Restricted
Subsidiary, or the properties or assets of such Restricted Subsidiary, other
than the Person or the properties or assets of the Person so acquired;

 

(h)                                 customary restrictions with
respect to a Restricted Subsidiary of the Company pursuant to an agreement that
has been entered into for the sale or disposition of Capital Stock or assets of
such Restricted Subsidiary to be consummated in accordance with the terms of
this Supplemental Indenture solely in respect of the assets or Capital Stock to
be sold or disposed of;

 

(i)                                     any instrument governing a
Permitted Lien, to the extent and only to the extent such instrument restricts
the transfer or other disposition of assets subject to such Permitted Lien;

 

(j)                                     encumbrances and
restrictions contained in contracts entered into in the ordinary course of
business, not relating to any Indebtedness, and that do not, individually or in
the aggregate, detract from the value of, or from the ability of the Company
and the Restricted Subsidiaries to realize the value 

 

61

 

of, property or assets of
the Company or any Restricted Subsidiary in any manner material to the Company
or any Restricted Subsidiary;

 

(k)                                  an agreement governing
Refinancing Indebtedness incurred to Refinance the Indebtedness issued, assumed
or incurred pursuant to an agreement referred to in clause (b), (c), (d) or
(g) above or this clause (k), or contained in any amendment to an agreement
referred to in clause (b), (c), (d) or (g) above or this clause (k); provided, however, that
the provisions relating to such encumbrance or restriction contained in any
such agreement governing Refinancing Indebtedness or amended agreement are, taken
as a whole, no less favorable to the Holders in any material respect as determined
by the Board of Directors of the Company in their reasonable and good faith
judgment than the provisions relating to such encumbrance or restriction
contained in the applicable agreement referred to in such clause (b), (c), (d) or
(g) or this clause (k);

 

(l)                                     Commodity Agreements,
Currency Agreements or Interest Rate Agreements permitted from time to time
under this Supplemental Indenture;

 

(m)                               the issuance of Preferred Stock
by a Restricted Subsidiary or the payment of dividends thereon in accordance
with the terms thereof; provided
that issuance of such Preferred Stock is permitted pursuant to Section 4.06
and the terms of such Preferred Stock do not expressly restrict the ability of
a Restricted Subsidiary to pay dividends or make any other distributions on its
Capital Stock (other than requirements to pay dividends or liquidation preferences
on such Preferred Stock prior to paying any dividends or making any other distributions
on such other Capital Stock); and

 

(n)                                 restrictions on cash or
other deposits or net worth imposed by customers under contracts entered into
in the ordinary course of business; and

 

(2)                                  with respect to clause (4) above
only:

 

(a)                                  any encumbrance or
restriction contained in security agreements, mortgages, purchase money
agreements, Capital Lease Obligations or similar instruments securing
Indebtedness of a Restricted Subsidiary to the extent such encumbrance or
restriction restricts the transfer of the property subject to such security
agreements, mortgages, purchase money agreements or similar instruments;

 

(b)                                 restrictions on cash or
other deposits imposed by customers under contracts entered into in the
ordinary course of business;

 

(c)                                  provisions with respect to
the disposition or distribution of assets or property in operating agreements,
joint venture agreements, development agreements, area of mutual interest
agreements, unitization agreements and other agreements that are customary in
the Crude Oil and Natural Gas Business and entered into in the ordinary course
of business; and

 

62

 

(d)                               provisions limiting the disposition or distribution of assets or
property in, or transfer of Capital Stock of, joint
venture agreements, asset sale agreements, sale-leaseback agreements, stock
sale agreements and other similar agreements entered into (i) in
the ordinary course of business, consistent with past practice or (ii) with
the approval of the Company’s Board of Directors, which limitations are
applicable only to the assets, property or Capital Stock that are the subject
of such agreements.

 

Section 4.10                                Limitation on Liens.  The Company will not, and
will not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Liens of any
kind, which Liens secure Indebtedness, against or upon any property or assets
of the Company or any of its Restricted Subsidiaries (whether owned on the Issue
Date or acquired after the Issue Date), other than Permitted Liens, unless:

 

(1)                                  in the case of Liens
securing Indebtedness that is expressly subordinate or junior in right of
payment to the Notes or any Subsidiary Guarantee, the Notes or such Subsidiary
Guarantee, as the case may be, are secured by a Lien on such property, assets
or proceeds that is senior in priority to such Liens at least to the same extent
as the Notes are senior in priority to such Indebtedness for so long as such
Indebtedness is so secured; and

 

(2)                                  in all other cases, the
Notes and the Subsidiary Guarantees are equally and ratably secured with the
Indebtedness so secured for so long as such Indebtedness is so secured.

 

Any Lien created for the benefit of the
Holders of the Notes pursuant to the preceding sentence shall provide by its
terms that such Lien shall be automatically and unconditionally released and
discharged upon the release and discharge of the initial Lien.

 

Section 4.11                                Limitation on Transactions with Affiliates.  The Company will not, and
will not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, enter into, amend or conduct any transaction or series of related
transactions (including, without limitation, the purchase, sale, lease or exchange
of any property, the guaranteeing of any Indebtedness or the rendering of any
service) with, or for the benefit of, any of their respective Affiliates (each
an “Affiliate Transaction”), other than
Affiliate Transactions that are on terms that, taken as a whole, are fair and
reasonable to the Company or the applicable Restricted Subsidiary and are no
less favorable to the Company or the applicable Restricted Subsidiary than
those that might reasonably have been obtained in a comparable transaction at
such time on an arm’s-length basis from a Person that is not an Affiliate of
the Company or such Restricted Subsidiary.

 

Any Affiliate Transaction (and each series of
related Affiliate Transactions which are part of a common plan) that involves
aggregate payments or other property with a Fair Market Value in excess of
$10.0 million shall be approved by a majority of the disinterested members of
the Board of Directors of the Company, such approval to be evidenced by a Board
Resolution stating that such Board of Directors has determined that such
transaction complies with 

 

63

 

the foregoing
provisions.  If the Company or any
Restricted Subsidiary enters into an Affiliate Transaction (or a series of
related Affiliate Transactions which are part of a common plan) that involves
an aggregate Fair Market Value of more than $25.0 million, the Company shall,
prior to the consummation thereof, obtain a favorable opinion as to the
fairness of such transaction or series of related transactions to the Company
or the relevant Restricted Subsidiary, as the case may be, from a financial
point of view, from an Independent Advisor and file the same with the Trustee.

 

The restrictions set forth in the second paragraph
of this covenant shall not apply to:

 

(1)                                  reasonable fees and
compensation paid to, and indemnity provided on behalf of, officers, directors,
employees or consultants of the Company or any Restricted Subsidiary as
determined in good faith by the disinterested members of the Board of Directors
of the Company or such Restricted Subsidiary, as the case may be;

 

(2)                                  transactions exclusively
between or among the Company and any of its Restricted Subsidiaries or
exclusively between or among such Restricted Subsidiaries; provided,
however, that such transactions are not
otherwise prohibited by this Supplemental Indenture;

 

(3)                                  any Investment or other
Restricted Payments permitted by this Supplemental Indenture;

 

(4)                                  any issuance of securities
or other payments, awards or grants in cash, securities or otherwise pursuant
to, or the funding of, employment or severance arrangements, stock options and
stock ownership, phantom stock or other incentive compensation plans approved
by the Board of Directors of the Company;

 

(5)                                  (a) loans or advances
to officers, directors or employees in the ordinary course of business in
accordance with the past practices of the Company or its Restricted
Subsidiaries, but in any event not to exceed $5.0 million in the aggregate outstanding
at any one time; and (b) advances to or reimbursements of officers,
directors or employees for moving, entertainment and travel expenses, drawing
accounts and similar expenditures in the ordinary course of business;

 

(6)                                  the issuance or sale of any
Capital Stock (other than Disqualified Stock) of the Company to, or the receipt
by the Company of any capital contribution from, the holders of its Capital
Stock;

 

(7)                                  transactions and
arrangements in effect, or effected in accordance with agreements or
arrangements in effect, on the Issue Date, including any modifications,
extensions or renewals thereof that do not adversely affect the Company and its
Restricted Subsidiaries, considered as a single enterprise in any material
respect as compared to the kinds of transactions, arrangements or agreements in
effect on the Issue Date;

 

64

 

(8)                                  transactions with a Person
that is an Affiliate of the Company solely because the Company owns, directly
or through a Subsidiary, an equity interest in, or controls, such Person;

 

(9)                                  transactions with any joint
venture or similar entity, which joint venture or similar entity is an
Affiliate of the Company solely because an Affiliate of the Company is a
general partner in such joint venture or similar entity; provided
that Affiliates (all such Affiliates taken together) of the Company (other than
the Company and its Restricted Subsidiaries) do not in the aggregate
beneficially own or hold, directly or indirectly, 10% or more of any class of
voting interests in such joint venture or similar entity;

 

(10)                            (a) guarantees by the
Company or any of its Restricted Subsidiaries of performance of obligations of
Unrestricted Subsidiaries in the ordinary course of business, except for
guarantees of Indebtedness in respect of borrowed money, and (b) pledges
by the Company or any Restricted Subsidiary of Capital Stock in Unrestricted
Subsidiaries for the benefit of lenders or other creditors of Unrestricted Subsidiaries;
and

 

(11)                            any transaction in which the
Company or any of its Restricted Subsidiaries, as the case may be, delivers to
the Trustee a letter from an Independent Advisor stating that such transaction
is fair to the Company or such Restricted Subsidiary from a financial point of
view or that such transaction meets the requirements of the first paragraph of
this covenant.

 

Section 4.12                                Limitation on Restricted and Unrestricted
Subsidiaries.  At the time the Notes are
originally issued, all of the Subsidiaries of the Company (Circle B Land Company
LLC, Bill Barrett CBM Corporation and Bill Barrett CBM, LLC) will be Restricted
Subsidiaries. As the Company or any of its Subsidiaries forms or acquires
Subsidiaries, each newly formed or acquired Subsidiary shall be designated by
the Company’s Board of Directors as a Restricted Subsidiary or an Unrestricted
Subsidiary, provided that (1) any Subsidiary of
any already existing Unrestricted Subsidiary shall be (and shall be deemed
designated as) an Unrestricted Subsidiary (without necessity for any Board of
Directors resolution), (2) subject to the foregoing clause (1), any
designation of an Unrestricted Subsidiary (other than during any Fall-Away
Period) shall be effective only if the Investment in that Subsidiary is made in
compliance with Section 4.07, and (3) subject to the foregoing clause
(1), any failure by the Company’s Board of Directors to affirmatively make such
a designation of a Subsidiary shall be deemed a designation (in compliance with
this Supplemental Indenture) of such Subsidiary as a Restricted
Subsidiary.  After a Subsidiary of the
Company has been designated as an Unrestricted Subsidiary, the Board of Directors
of the Company may, if no Default or Event of Default would arise therefrom,
redesignate such Unrestricted Subsidiary to be a Restricted Subsidiary; provided that:

 

(1)                                  any such redesignation shall
be deemed to be an incurrence as of the date of such redesignation (other than
during any Fall-Away Period) by the Company 

 

65

 

and its Restricted
Subsidiaries of the Indebtedness (if any) of such redesignated Subsidiary for
purposes of Section 4.06;

 

(2)                                  unless such redesignated
Subsidiary shall not have any Indebtedness outstanding, other than Indebtedness
which would be Permitted Indebtedness, no such designation shall be permitted
(other than during any Fall-Away Period) if immediately after giving effect to
such redesignation and the incurrence of any such additional Indebtedness the
Company could not incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) pursuant to Section 4.06(a); and

 

(3)                                  other than during any
Fall-Away Period, such Subsidiary assumes by execution of a supplemental
indenture all of the obligations of a Subsidiary Guarantor under a Subsidiary
Guarantee if the aggregate Indebtedness for which such Subsidiary is an obligor
or guarantor is at least $10.0 million in aggregate principal amount.

 

After a Subsidiary of the Company has been
designated as a Restricted Subsidiary, the Board of Directors of the Company
also may, if no Default or Event of Default would arise therefrom, redesignate
any Restricted Subsidiary to be an Unrestricted Subsidiary if such redesignation
is at that time permitted under Section 4.07.  Upon such permitted redesignation, such
former Restricted Subsidiary’s Subsidiary Guarantee will be released.

 

Any such designation or redesignation (other than
any deemed designation referred to in clause (1) of the proviso to the
first paragraph of this covenant) of an Unrestricted Subsidiary by the Board of
Directors shall be evidenced to the Trustee by the filing with the Trustee of a
certified copy of the resolution of the Board of Directors giving effect to
such designation or redesignation and an Officers’ Certificate certifying that
such designation or redesignation complied with the foregoing conditions and
setting forth in reasonable detail the underlying calculations.

 

For purposes of Section 4.07:

 

(1)                                  an “Investment” shall be
deemed to have been made at the time any Restricted Subsidiary is designated as
an Unrestricted Subsidiary in an amount (proportionate to the Company’s equity
interest in such Subsidiary) equal to the net worth of such Restricted
Subsidiary at the time that such Restricted Subsidiary is designated as an
Unrestricted Subsidiary (“net  worth” to be calculated based upon the Fair Market Value of
the assets of such Subsidiary as of any such date of designation as such Fair
Market Value is determined in good faith by the Company’s Board of Directors);
and

 

(2)                                  any property transferred to
or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at
the time of such transfer as such Fair Market Value is determined in good faith
by the Company’s Board of Directors.

 

Notwithstanding the foregoing, the Board of
Directors may not designate any Subsidiary of the Company to be an Unrestricted
Subsidiary (other than during any Fall-Away Period) if, after such designation
or redesignation:

 

66

 

(1)                                  the Company or any
Restricted Subsidiary:

 

(a)                                  provides credit support for,
or a guarantee of, any Indebtedness of such Subsidiary (including any
undertaking, agreement or instrument evidencing such Indebtedness); or

 

(b)                                 is otherwise directly or
indirectly liable for any Indebtedness of such Subsidiary; or

 

(2)                                  such Subsidiary owns any
Capital Stock of, or owns or holds any Lien on any property of, any Restricted
Subsidiary which (a) is not a Subsidiary of the Subsidiary to be so
designated and (b) is not also then being designated as an Unrestricted
Subsidiary.

 

During any Fall-Away Period, a Subsidiary may be
redesignated an Unrestricted Subsidiary only if such Restricted Subsidiary does
not own, at that time, Restricted Property, unless such Restricted Subsidiary
constitutes, at the time of redesignation, less than 15% of the Company’s
Adjusted Consolidated Net Tangible Assets.

 

Section 4.13                                Change of Control.

 

(a)                                  Upon the occurrence of a Change of Control, each Holder will have the
right to require that the Company purchase all or any portion of such Holder’s
Notes pursuant to the offer described below (the “Change of
Control Offer”), at a purchase price equal to 101% of the principal
amount thereof, plus unpaid accrued interest, if any, thereon to the date of purchase
(subject to the right of Holders of record on the relevant Regular Record Date
to receive interest on the relevant Interest Payment Date).

 

(b)                                 Within 30 days
following the date upon which the Change of Control occurred, the Company must
send, by first class mail, postage prepaid, a notice to each Holder, with a
copy to the Trustee, which notice shall govern the terms of the Change of Control
Offer.  Such notice shall state, among
other things, the following:

 

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

 

(2)                                  the purchase date (which
shall be no earlier than 30 days nor later than 60 days from the date such
notice is mailed; such purchase date, the “Change of Control Payment
Date”); and

 

(3)                                  the instructions, as
determined by the Company, consistent with the covenant described hereunder,
that a Holder must follow in order to have its Notes purchased.

 

67

 

(c)                                  Holders electing to have a
Note purchased pursuant to a Change of Control Offer will be required to
surrender the Note, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Note completed, to the Paying Agent for the Notes at the
address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date.  If the Change of Control Payment Date is on
or after an interest Regular Record Date and on or before the related Interest
Payment Date, any accrued and unpaid interest will be paid to the Person in
whose name a Note is registered at the close of business on the Regular Record
Date, and no additional interest will be payable to holders who tender pursuant
to the Change of Control Offer.

 

(d)                                 The Company will not be
required to make a Change of Control Offer following a Change of Control if (i) a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Supplemental
Indenture applicable to a Change of Control Offer made by the Company and
purchases all Notes validly tendered and not withdrawn under such Change of
Control Offer or (ii) notice of redemption of all Notes has been given
pursuant to this Supplemental Indenture as described in Section 3.03
unless there is a default in payment of the applicable redemption price.

 

(e)                                  A Change of Control Offer
may be made in advance of a Change in Control, and conditioned upon the
occurrence of such Change of Control, if a definitive agreement is in effect
for the Change of Control at the time of making the Change of Control Offer.

 

(f)                                    Neither the Board of
Directors of the Company nor the Trustee may waive the covenant relating to the
obligation to make a Change of Control Offer.

 

(g)                                 A Change of Control Offer
shall remain open for a period of 20 Business Days or such longer period as may
be required by law.  The Company will
comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Change of Control Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
the “Change of Control” provisions of this Supplemental Indenture, the Company
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under the “Change of Control”
provisions of this Supplemental Indenture by virtue thereof.

 

Section 4.14                                Additional
Subsidiary Guarantors.  If,
after the Issue Date, any Restricted Subsidiary (including any newly formed,
newly acquired or newly redesignated Restricted Subsidiary but excluding any
Foreign Subsidiary) incurs or guarantees any Indebtedness, which when combined
with any other such Indebtedness for which such Restricted Subsidiary is an
obligor or guarantor, is at least $10.0 million in aggregate principal amount,
the Company shall cause such Restricted Subsidiary to:

 

(1)                                  execute and deliver to the
Trustee a supplemental indenture substantially in the form set forth in Exhibit B
attached hereto and otherwise in form reasonably satisfactory to the Trustee
pursuant to which such Restricted Subsidiary shall unconditionally

 

68

 

guarantee all of the Company’s
obligations under the Notes and the Indenture on the terms set forth in the
Indenture; and

 

(2)                                  deliver to the Trustee an
Opinion of Counsel that such supplemental indenture has been duly authorized,
executed and delivered by such Restricted Subsidiary and constitutes a legal,
valid, binding and enforceable obligation of such Restricted Subsidiary in
accordance with its terms.

 

Thereafter, such Restricted
Subsidiary shall be a Subsidiary Guarantor for all purposes of the Indenture,
subject to such Restricted Subsidiary ceasing to be a Subsidiary Guarantor when
its Subsidiary Guarantee is released in accordance with the terms of the
Indenture.

 

Section 4.15                                Waiver
of Covenants.  The Company
or any Subsidiary Guarantor may omit in any particular instance to comply with
any term, provision or condition set forth in any of Sections 4.02 through 4.14
or Article 5 of this Supplemental Indenture or any other provision of the
Indenture with respect to the Notes and Subsidiary Guarantees thereof (except a
covenant that under Section 8.02 cannot be amended without the consent of
each Holder) if, before the time for such compliance, the Holders of a majority
in principal amount (including waivers obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes) of all Outstanding Notes
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and any Subsidiary Guarantor and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.  A waiver of compliance
given by or on behalf of any Holder of Notes in connection with a purchase of,
or tender or exchange offer for, such Holder’s Notes will not be rendered
invalid by such purchase, tender or exchange.

 

Section 4.16                                Statement
by Officers as to Default.

 

(a)                                  The Company
will deliver to the Trustee, within 120 days after the end of each fiscal year
of the Company ending after the Issue Date, an Officers’ Certificate, stating
whether or not to the best knowledge of the signers thereof the Company is in
default in the performance and observance of any of the terms, provisions and
conditions of the Indenture with respect to the Notes (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company
shall be in default, specifying all such defaults and the nature and status
thereof of which they may have knowledge;

 

(b)                                 Each Subsidiary
Guarantor will deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company ending after the Issue Date, a Guarantor’s Officers’
Certificate of such Guarantor, stating whether or not to the best knowledge of
the signers thereof such Guarantor is in default in the performance and
observance of any of the terms, provisions and conditions of the Indenture with
respect to the Notes and Subsidiary Guarantees thereof (without regard to any
period of grace or requirement of notice provided hereunder)

 

69

 

and, if such Guarantor shall be in default,
specifying all such defaults and the nature and status thereof of which they
may have knowledge.

 

ARTICLE 5

SUCCESSOR CORPORATION

 

Article VIII of the Base Indenture shall not
apply to the Notes except as, and to the extent, described in this Article 5.

 

Section 5.01                                When Company May Merge or Transfer Assets.  The Company will not, in a
single transaction or series of related transactions, consolidate or merge with
or into any Person, or sell, assign, transfer, lease, convey or otherwise
dispose of (or cause or permit any Restricted Subsidiary to sell, assign,
transfer, lease, convey or otherwise dispose of) all or substantially all of
the Company’s assets (determined on a consolidated basis for the Company and its
Restricted Subsidiaries), unless:

 

(1)                                  either:

 

(a)                                  (i) the Company shall
be the surviving or continuing entity or (ii) the sale or other
disposition is by one or more Restricted Subsidiaries to one or more other
Restricted Subsidiaries; or

 

(b)                                 the Person (if other than
the Company) formed by such consolidation or into which the Company is merged
or the Person which acquires by sale, assignment, transfer, lease, conveyance
or other disposition all or substantially all of the Company’s assets (as so
determined) (the “Surviving Entity”):

 

(x)                                   shall be an entity organized
and validly existing under the laws of the United States or any state thereof
or the District of Columbia; and

 

(y)                                 shall expressly assume, by
supplemental indenture, executed and delivered to the Trustee, the due and
punctual payment of the principal of, premium, if any, and interest on all of
the Notes and the performance of every covenant of the Notes and this
Supplemental Indenture on the part of the Company to be performed or observed;

 

(2)                                  immediately after giving
effect to such transaction and the assumption contemplated by clause (1)(b)(y) above
(including giving effect to any Indebtedness incurred or anticipated to be
incurred or repaid in connection with or in respect of such transaction as if
the same had occurred at the beginning of the applicable Four Quarter Period)
and the application of any net proceeds therefrom, the Company or such Surviving
Entity, as the case may be, either (x) shall be able to incur at least
$1.00 of additional Indebtedness (other than Permitted Indebtedness) pursuant
to Section 4.06(a), or (y) would have a Consolidated EBITDAX Coverage
Ratio that is equal to or greater 

 

70

 

than the Consolidated
EBITDAX Coverage Ratio of the Company immediately prior to such transaction; provided, however, that
this clause (2) will not be applicable to (A) a Restricted Subsidiary
consolidating with, merging into or transferring all or part of its properties
and assets to the Company or one or more other Restricted Subsidiaries or (B) the
Company merging with an Affiliate of the Company solely for the purpose and
with the sole effect of reincorporating the Company in another jurisdiction,
converting to an entity taxable for federal income tax purposes as a
corporation or a combination of the foregoing;

 

(3)                                  immediately after giving
effect to such transaction and the assumption contemplated by clause (1)(b)(y) above
(including, without limitation, giving effect to any Indebtedness incurred or
anticipated to be incurred or repaid and any Lien granted in connection with or
in respect of the transaction), no Default or Event of Default shall have
occurred or be continuing; provided, however, that this clause (3) will not be applicable
to a Restricted Subsidiary consolidating with, merging into or transferring all
or part of its properties and assets to the Company or one or more other Restricted
Subsidiaries; and

 

(4)                                  the Company or the Surviving
Entity, as the case may be, shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition and,
if a supplemental indenture is required in connection with such transaction,
such supplemental indenture complies with the applicable provisions of this
Supplemental Indenture and that all conditions precedent in this Supplemental
Indenture relating to such transaction have been satisfied; provided, however, that
such counsel may rely, as to matters of fact, on a certificate or certificates
of officers of the Company.

 

For purposes of the foregoing, the transfer (by
lease, assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries, the Capital Stock of which constitutes all or substantially
all of the properties and assets of the Company, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

 

Upon any consolidation or merger or any transfer or
other disposition of all or substantially all of the assets of the Company in
accordance with the foregoing, in which the Company is not the Surviving Entity,
the Surviving Entity formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer or other disposition is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under the Indenture and the Notes with the same effect as
if such Surviving Entity had been named as such, and thereafter (except in the
case of a lease of all or substantially all of the Company’s assets) the
Company will be relieved of all obligations and covenants under the Indenture
and the Notes.

 

Section 5.02                                When Subsidiary Guarantor May Merge or
Consolidate.  Each Subsidiary Guarantor
(other than any Subsidiary Guarantor whose Subsidiary Guarantee is to be 

 

71

 

released
in accordance with the terms of the Subsidiary Guarantee and this Supplemental
Indenture in connection with any transaction complying with the provisions of
this Supplemental Indenture described under Section 4.08) will not, and the
Company will not cause or permit any such Subsidiary Guarantor to, consolidate
with or merge with or into any Person other than the Company or another
Restricted Subsidiary that is a Subsidiary Guarantor unless:

 

(1)                                  the entity formed by or
surviving any such consolidation or merger (if other than the Subsidiary
Guarantor) or to which such sale, lease, conveyance or other disposition shall
have been made is an entity organized and existing under the laws of the United
States or any state thereof or the District of Columbia;

 

(2)                                  such entity (if other than
the Subsidiary Guarantor) assumes by execution of a supplemental indenture all
of the obligations of the Subsidiary Guarantor under its Subsidiary Guarantee;
and

 

(3)                                  immediately after giving
effect to such transaction, no Default or Event of Default shall have occurred
and be continuing.

 

Any merger or consolidation of a Subsidiary
Guarantor with and into the Company (with the Company being the surviving
entity) or another Restricted Subsidiary that is a Subsidiary Guarantor need
only comply with Section 5.01(4).

 

The successor
Person formed by any such consolidation or into which any Subsidiary Guarantor
is merged is made pursuant to Section 5.02 shall succeed to, and be
substituted for, and may exercise every right and power of, such Subsidiary
Guarantor under the Base Indenture (as it relates to the Notes) and this
Supplemental Indenture with the same effect as if such successor Person had
been named as such Subsidiary Guarantor; and thereafter such Subsidiary
Guarantor shall be discharged from all obligations and covenants under the Base
Indenture (as it relates to the Notes), this Supplemental Indenture and the Notes.

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

Article V of the Base Indenture shall not apply
to the Notes, except as, and to the extent, described in this Article 6.

 

Section 6.01                                Events of Default.  Each
of the following events shall constitute an “Event
of Default” with
respect to the Notes:

 

(1)                                  the failure to pay interest
on any Notes when the same becomes due and payable and the failure continues
for a period of 30 days;

 

(2)                                  the failure by the Company
to (a) pay the principal on any Notes, when such principal becomes due and
payable, at maturity, upon redemption or otherwise, 

 

72

 

or (b) consummate a
purchase of Notes when required pursuant to Section 4.08 and Section 4.13;

 

(3)                                  the failure to comply with
any other covenant contained in Article 4 or Section 5.01 of this
Supplemental Indenture, which failure continues for a period of 30 days after
the Company receives written notice specifying the default (and demanding that
such default be remedied) from the Trustee or the Holders of at least 25% of
the Outstanding principal amount of the Notes (except in the case of a failure
to comply with any of the terms or provisions of (i) the first paragraph
of Section 5.01 which will constitute an Event of Default with such notice
requirement but without such passage of time requirement or (ii) Section 4.03,
which will constitute an Event of Default only after a period of 90 days after
such notice);

 

(4)                                  the failure of the Company
or any Subsidiary Guarantor to comply with its other agreements contained in
the Indenture for 60 days after the Company receives written notice from the
Trustee or the Holders of 25% in principal amount of the Outstanding Notes
specifying the failure (and demanding that such failure be remedied);

 

(5)                                  a default under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Indebtedness of the Company or of any
Restricted Subsidiary (or the payment of which is guaranteed by the Company or
any Restricted Subsidiary), whether such Indebtedness exists on the Issue Date
or is created thereafter, which default (i) is caused by a failure to pay
principal of or premium, if any, or interest on such Indebtedness after any
applicable grace period provided in such Indebtedness on the date of such
default (a “payment default”) or (ii) results
in the acceleration of such Indebtedness prior to its express maturity and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
payment default or the maturity of which has been so accelerated, aggregates at
least $50.0 million;

 

(6)                                  one or more judgments for
the payment of money in an aggregate amount in excess of $50.0 million (unless
covered by insurance by a reputable insurer as to which the insurer has not
disclaimed coverage) shall have been rendered against the Company or any of its
Restricted Subsidiaries and such judgment(s) remain undischarged, unpaid
or unstayed for a period of 60 days after such judgment or judgments become
final and non-appealable;

 

(7)                                  (x) the Company or any of its Significant Subsidiaries pursuant to or
within the meaning of any Bankruptcy Law:

 

(A)                          commences a voluntary case;

 

(B)                            consents to the entry of an order for relief against it in an involuntary
case;

 

73

 

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

 

(D)         makes
a general assignment for the benefit of its creditors or takes any comparable
action under any foreign laws relating to insolvency; or

 

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

 

(A)         is
for relief against the Company or any of its Significant Subsidiaries in an
involuntary case;

 

(B)         appoints
a Custodian of the Company or any of its Significant Subsidiaries or for any
substantial part of its property;

 

(C)         orders
the winding up or liquidation of the Company or any of its Significant
Subsidiaries (as such term is defined in Rule 1-02 of Regulation S-X); or

 

(D)         grants
any similar relief under any foreign laws and in each such case the order or
decree remains unstayed and in effect for 60 days; or

 

(8)           any of the Subsidiary Guarantees cease to be in full
force and effect or any of the Subsidiary Guarantees are declared to be null
and void or invalid and unenforceable or any of the Subsidiary Guarantors denies
or disaffirms its liability under its Subsidiary Guarantees (other than by
reason of release of a Subsidiary Guarantor in accordance with the terms of
this Supplemental Indenture).

 

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

 

The Company shall
deliver to the Trustee, as promptly as reasonably practicable and in any event
within 5 Business Days after the Company becomes aware of the occurrence of any
Default or Event of Default, written notice in the form of an Officers’
Certificate of such Default or Event of Default.

 

Any reference in
this Article 6 or elsewhere in this Supplemental Indenture to “Event of Default”
shall be deemed to refer to and include only the Events of Default with respect
to the Notes specified in this Section 6.01, and the term “Default” as so
used in this Supplemental Indenture shall have a correlative meaning.

 

Section 6.02           Acceleration.  If
an Event of Default (other than an Event of Default specified in Section 6.01(7),
in either case with respect to the Company) occurs and is continuing, the
Trustee by notice to the Company, or the Holders of at least 25% in aggregate
principal amount of the Notes
then Outstanding by notice to the Company and the Trustee,

 

74

 

may
declare the principal amount of Notes Outstanding to be immediately due and payable.  Upon such a declaration, such accelerated
amount shall be due and payable immediately. 
If an Event of Default specified in Section 6.01(7), in either case
with respect to the Company, occurs and is continuing, the principal amount of
all the Notes shall,
automatically and without any action by the Trustee or any Holder, become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Holders.

 

The Holders of a
majority in aggregate principal amount of the Notes at the time Outstanding by notice to the Trustee and the Company and
without notice to any other Holder may rescind any declaration of acceleration:

 

(1)           if the rescission would not conflict with any
judgment or decree;

 

(2)           if all existing Events of Default have been cured or
waived except nonpayment of principal or interest that has become due solely
because of such acceleration;

 

(3)           to the extent the payment of such interest is
lawful, interest on overdue installments of interest and overdue principal,
which has become due otherwise than by such declaration of acceleration, has
been paid;

 

(4)           if the Company has paid the Trustee its reasonable
compensation and reimbursed the Trustee for its expenses, disbursements and advances;
and

 

(5)           in the event of the cure or waiver of an Event of
Default of the type described in Section 6.01(7), the Trustee shall have
received an Officers’ Certificate that such Event of Default has been cured or
waived; provided, however,
that such counsel may rely, as to matters of fact, on a certificate or
certificates of officers of the Company.

 

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

 

Section 6.03           Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of the principal amount plus accrued and unpaid interest, if any, on the Notes or to enforce the performance of any provision of the Notes, the Base
Indenture (as it relates to the Notes)
or this Supplemental Indenture.

 

The Trustee may
maintain a proceeding even if it does not possess any of the Notes or does not produce any of the Notes 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 Section 6.02
and Section 8.02 hereof, the Holders of a majority in aggregate principal
amount of the Notes
at the time Outstanding by notice to the Trustee and without notice to any
other Holder may waive any past

 

75

 

Default
and its consequences except (a) an Event of Default described in Section 6.01(2)(a) and
Section 6.01(1) and (b) a Default in respect of a covenant that
under Section 8.02 cannot be amended without the consent of each
Holder.  When a Default is waived, it is
deemed cured, but no such waiver shall extend to any subsequent or other
Default or impair any consequent right.

 

Section 6.05           Control by Majority.  The Holders of a majority in aggregate
principal amount of the Notes
at the time Outstanding may direct in writing the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any
direction that conflicts with law, the Base Indenture (as it relates to the
Notes) or this Supplemental Indenture that the Trustee reasonably determines is
unduly prejudicial to the rights of other Holders or would in the opinion of
its counsel potentially involve the Trustee in personal liability.  Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to the Trustee in its
reasonable discretion against all losses and expenses caused by taking or not
taking such action.

 

Section 6.06           Limitation on Suits.  Subject to Section 6.07,
a Holder may not pursue any remedy with respect to the Base Indenture (as it
relates to the Notes), this Supplemental Indenture or the Notes or for the appointment of a receiver or a trustee, unless:

 

(a)           such Holder shall have
previously given to the Trustee written notice of a continuing Event of
Default;

 

(b)           the Holders of at least 25%
in aggregate principal amount of the Notes at the time Outstanding make a
written request and shall have offered reasonable indemnity to the Trustee to
institute such proceeding as Trustee;

 

(c)           the Trustee has failed to
institute such remedy within 60 days after such written notice, request and
offer; and

 

(d)           the Trustee has not received
from the Holders of a majority in aggregate principal amount of the Notes then
Outstanding a direction inconsistent with such request within 60 days after
such written notice, request and offer.

 

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

 

Section 6.07           Rights of Holders to Receive Payment.  Notwithstanding any other
provision of this Supplemental Indenture, the right of any Holder to receive
payment of the principal amount, redemption price, Make-Whole Price, Net
Proceeds Offer Amount (with respect to an Asset Sale that has been consummated),
any amounts due under Section 4.13 (with respect to a Change of Control
that has occurred) or interest, if any, in respect of the Notes held by such Holder, on or after the respective due dates expressed
in such Holder’s Notes
or any Redemption Date, Net Proceeds Offer Payment Date or Change of Control Payment
Date, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

 

76

 

Section 6.08           Collection Suit by Trustee.  If an Event of Default specified
in Section 6.01(1) or Section 6.01(2)(a) occurs and is
continuing, the Trustee may recover judgment in its own name and as Trustee of
an express trust against the Company for the whole amount then due and owing
(together with interest on any unpaid interest) and the amounts provided for in
Section 607 of the Base Indenture.

 

Section 6.09           Trustee May File Proofs of Claim.  The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee and the Holders allowed in any
judicial proceedings relative to the Company, a Subsidiary Guarantor, its creditors
or its property and, unless prohibited by law or applicable regulations, may
vote on behalf of the Holders in any election of a Trustee in bankruptcy or
other Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section 607
of the Base Indenture.

 

Section 6.10           Priorities.  If the Trustee collects any money or property
pursuant to this Article 6, it shall pay out the money or property in the
following order:

 

FIRST:  to the Trustee for amounts due under Section 607
of the Base Indenture;

 

SECOND:  to Holders for amounts due and unpaid on the Notes for the principal amount, redemption price, Make-Whole Price, Net
Proceeds Offer Amount (with respect to an Asset Sale that has been
consummated), any amount due under Section 4.13 (with respect to a Change
of Control that has occurred) or interest, if any, as the case may be, ratably,
without preference or priority of any kind, according to such amounts due and
payable on the Notes;
and

 

THIRD:  the balance, if any, to the Company or, if
applicable, the Subsidiary Guarantors.

 

The Trustee may fix
a record date and payment date for any payment to Holders pursuant to this Section 6.10.  At least 15 days before such record date, the
Company shall mail to each Holder and the Trustee a notice that states the record
date, the payment date and the amount to be paid.

 

Section 6.11           Undertaking for Costs.  In any suit for the
enforcement of any right or remedy under the Base Indenture or this
Supplemental 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

 

77

 

by
the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in aggregate principal amount of the Notes at the time Outstanding.

 

Section 6.12           Waiver of Stay or Extension Laws.  The Company and the
Subsidiary Guarantor (to the extent they may lawfully do so) shall not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance
of this Supplemental Indenture; and the Company and the Subsidiary Guarantor
(to the extent that they may lawfully do so) hereby expressly waive all benefit
or advantage of any such law, and shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

 

ARTICLE 7

DISCHARGE OF INDENTURE

 

Article IV of
the Base Indenture shall not apply to the Notes except as, and to the extent,
described in this Article 7.

 

The Indenture (including this Supplemental
Indenture) will be discharged and will cease to be of further effect (except as
to surviving rights of registration of transfer or exchange of the Notes, as
expressly provided for in the Indenture) as to all Outstanding Notes and as to
all Subsidiary Guarantees thereof, and the Trustee, upon a Company Request and
at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of the Indenture (including this Supplemental
Indenture) with respect to such Notes and Subsidiary Guarantees, when:

 

(1)           either:

 

(a)           all the Notes theretofore authenticated and delivered
(except lost, stolen or destroyed Notes which have been replaced or paid and
Notes for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust) have been delivered to the Trustee for
cancellation; or

 

(b)           all Notes not theretofore delivered to the Trustee
for cancellation have become due and payable or will become due and payable
within one year by reason of the mailing of a notice of redemption or otherwise
and the Company has irrevocably deposited or caused to be deposited with the
Trustee funds (constituting cash in U.S. dollars, non-callable Cash Equivalents
within the meaning of clauses (1) or (2) of the definition thereof or
a combination of cash in U.S. dollars and such non-callable Cash Equivalents)
in an amount sufficient (without consideration or any reinvestment of interest)
to pay and discharge the entire Indebtedness on the Notes not theretofore
delivered to the Trustee for cancellation, for principal of, premium, if any,
and interest on the

 

78

 

Notes to the date of deposit
together with irrevocable instructions from the Company directing the Trustee
to apply such funds to the payment thereof at maturity or redemption, as the
case may be;

 

(2)           the Company has paid all other sums payable under
this Supplemental Indenture by the Company; and

 

(3)           the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent
under this Supplemental Indenture relating to the satisfaction and discharge of
this Supplemental Indenture have been complied with; provided,
however, that such counsel may rely, as
to matters of fact, on a certificate or certificates of officers of the
Company.

 

Notwithstanding the satisfaction and discharge of
the Indenture with respect to the Notes, the obligations of the Company to the
Trustee under Section 607 of the Base Indenture, the obligations of the
Trustee to any Authenticating Agent under Section 614 of the Base Indenture,
and, if funds shall have been deposited with the Trustee pursuant to subclause (b) of
Clause (1) of this Section with respect to such Notes, the
obligations of the Company under Section 4.02 and the obligations of the
Trustee under the following paragraph, Section 606 of the Base Indenture
and the last paragraph of Section 4.01 with respect to such Notes shall survive
such satisfaction and discharge.

 

Subject to the provisions of the last paragraph of Section 4.01,
all funds deposited with the Trustee pursuant to this Article 7 shall be
held in trust and applied by it, in accordance with the provisions of the Notes
and the Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such funds have been deposited with the
Trustee.  The Company may direct by a
Company Order the investment of any funds deposited with the Trustee pursuant
to this Article 7, without distinction between principal and income, in
any Cash Equivalents and from time to time the Company may direct the
reinvestment of all or a portion of such funds in other Cash Equivalents.

 

ARTICLE 8

 

AMENDMENTS

 

Article IX of the Base Indenture shall not
apply to the Notes except as, and to the extent, described in this Article 8.

 

Section 8.01           Without Consent of Holders.  The Company, the Subsidiary
Guarantors and the Trustee may enter into any supplemental indenture to amend
or supplement the Indenture (including this Supplemental Indenture) or the Notes without notice to, or the consent of, any Holder to:

 

79

 

(a)           evidence the assumption of
the Company’s or a Guarantor’s obligations under the Indenture or the Notes or
the Subsidiary Guarantees, as the case may be, by a successor Person under Article 5;

 

(b)           surrender any of the Company’s
or any Guarantor’s rights or powers under this Supplemental Indenture;

 

(c)           add covenants or Events of
Default for the benefit of the Holders of Notes;

 

(d)           add any Person as an
additional Guarantor or additional Guarantees with respect to the Notes
(including pursuant to Section 4.14) or evidence the release and discharge
of any Guarantor from its obligations under its Guarantees of the Notes and its
obligations under this Supplemental Indenture with respect to the Notes in accordance
with the terms of this Supplemental Indenture or to secure the Notes or any
Guarantees;

 

(e)           cure any omission or correct
any inconsistency in the Indenture or to make any other provisions with respect
to matters or questions arising under the Indenture, so long as such action
will not materially adversely affect the interests of the Holders;

 

(f)            cure any ambiguity, defect
or inconsistency;

 

(g)           modify or amend the
Indenture to permit the qualification of the Indenture under the Trust Indenture
Act;

 

(h)           establish the forms or terms
of the Notes and the Guarantees thereof pursuant to Sections 201 and 301 of the Base Indenture and to change the
procedures for transferring and exchanging Notes so long as such change does
not adversely affect the Holders of any Notes Outstanding;

 

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

 

(j)            provide for the issuance of
Additional Notes as permitted by Section 1.03 of this Supplemental
Indenture and Section 301 of
the Base Indenture, which will have terms substantially identical to
the other Notes Outstanding except as specified in Section 1.03 of this
Supplemental Indenture and Section 301
of the Base Indenture, and which will be treated, together with any other
Notes Outstanding, as a single series of Securities;

 

80

 

(k)           solely to conform the
provisions of the Indenture or the Notes to the description hereof and thereof
contained in the Prospectus
Supplement relating to the Notes dated June 30, 2009;

 

(l)            make any other change to the
Indenture or forms or terms of the Notes that would provide any additional
right or benefit to Holders or that does not adversely affect the rights of the
Holders of the Notes;

 

(m)          to add to, change or
eliminate any of the provisions of the Indenture in respect of one or more
series of Securities other than the Notes; or

 

(n)           to establish the form or
terms of Securities of any series other than the Notes as permitted by Sections
201 and 301 of the Base Indenture.

 

The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, to make any
further appropriate agreements and stipulations which may be therein contained
and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property thereunder, but the Trustee shall not be obligated to enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Supplemental Indenture or otherwise.

 

Any supplemental indenture authorized by the
provisions of this Section 8.01 may be executed by the Company, the
Subsidiary Guarantors and the Trustee without the consent of the Holders of any
of the Notes at the time Outstanding, notwithstanding any of the provisions of Section 8.02.

 

After an amendment
under this Section 8.01 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment.  The failure to give such notice to all such
Holders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section.

 

Section 8.02           With Consent of Holders.  With the consent of the
Holders of a majority in aggregate principal amount of the Notes at the time Outstanding (including the consents obtained in
connection with a purchase of, or tender or exchange offer for, Notes), by Act
of said Holders delivered to the Company and the Trustee, the Company, the
Subsidiary Guarantors and the Trustee may enter into any supplemental indenture
to amend or supplement the Indenture (including this Supplemental Indenture) or
the Notes for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Notes or the Indenture
(including this Supplemental Indenture) or of modifying in any manner the
rights of the Holders of the Notes under the Indenture (including this
Supplemental Indenture).  However, no amendment, supplement or waiver
may be made without the consent of each Holder of Notes Outstanding affected thereby if such amendment, supplement or waiver
would (with respect to Notes held by any non-consenting Holder):

 

(a)           reduce the amount of Notes
whose Holders must consent to an amendment;

 

81

 

(b)           reduce the rate of or change
or have the effect of changing the time for payment of interest, including
defaulted interest, on any Notes;

 

(c)           reduce the principal of or
change or have the effect of changing the fixed maturity of any Notes;

 

(d)           reduce the amount payable
upon the redemption of any Note or change the time at which any Note may be
redeemed as described in Section 3.01 on the dates specified thereunder; provided, however, that
solely for the avoidance of doubt and without any other implication, redemption
shall not be deemed to include any purchase or repurchase of Notes;

 

(e)           make any Notes payable in
money other than that stated in the Notes;

 

(f)            make any change in
provisions of the Indenture protecting the right of each Holder to receive
payment of principal of and interest on such Note on or after the due date
thereof or to bring suit to enforce such payment, or permitting Holders of a
majority in principal amount of Notes to waive Defaults or Events of Default;

 

(g)           amend, change or modify in
any material respect the obligation of the Company (A) to make and
consummate a Change of Control Offer in the event a Change of Control has
occurred or (B) to make and consummate a Net Proceeds Offer with respect
to any Asset Sale that has been consummated or modify any of the provisions or
definitions applicable to any such Change of Control or Asset Sale that has
occurred or been consummated;

 

(h)           modify or change any
provision of the Indenture or the related definitions affecting the ranking in
right of payment of the Notes or any Subsidiary Guarantee as senior unsecured
indebtedness of the Company or the relevant Subsidiary Guarantors, as the case
may be, in a manner which adversely affects the Holders; and

 

(i)            release any Subsidiary
Guarantor from any of its obligations under its Subsidiary Guarantee or the
Indenture otherwise than in accordance with the terms of the Indenture.

 

It shall not be
necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent approves the substance thereof.

 

Any Notes owned by
the Company, any Subsidiary Guarantor or any other obligor upon the Notes or
any Affiliate of the Company or any Subsidiary Guarantor shall, except to the
extent provided in the definition of “Outstanding” in Section 101 of the
Base Indenture, be disregarded and deemed not to be Outstanding for voting
purposes in connection with any notice, waiver, consent or direction requiring
the vote or concurrence of Holders.

 

82

 

A consent to any
indenture supplemental hereto by or on behalf of any Holder of Notes given in
connection with a purchase of, or tender or exchange offer for, such Holder’s
Notes will not be rendered invalid by such purchase, tender or exchange.

 

After a supplemental
indenture under this Section 8.02 becomes effective, the Company shall
mail to each Holder a notice briefly describing the supplemental
indenture.  Notwithstanding anything in
this Section 8.02 to the contrary, the failure of the Company to give such
notice to all the Holders, or any defect in the notice, will not impair or
affect the validity of the supplemental indenture.

 

Upon the request of
the Company, accompanied by a copy of a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the filing with the Trustee
of the Act of Holders as aforesaid, the Trustee shall join with the Company in
the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under the Indenture or
otherwise, in which case the Trustee may in its discretion but shall not be
obligated to enter into such supplemental indenture.

 

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

 

Section 8.03           Compliance with Trust Indenture Act.  Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the
Trust Indenture Act.

 

Section 8.04           Notation on or Exchange of Notes.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture.  If the Company
shall so determine, new Notes so modified as to conform, in the opinion of
the Trustee and the Board of Directors, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Notes.

 

Section 8.05           Trustee to Sign Supplemental Indentures.  The Trustee
shall sign any supplemental indenture authorized pursuant to this Article 8
if the amendment contained therein does not affect the rights, duties, liabilities
or immunities of the Trustee.  If it
does, the Trustee may, but need not, sign such supplemental indenture.  In signing such supplemental indenture the
Trustee shall be provided with, and (subject to the provisions of Section 601
of the Base Indenture) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Supplemental Indenture.

 

Section 8.06           Effect of Supplemental Indentures.  Upon the execution of any supplemental
indenture under this Article, the Indenture (including this Supplemental Indenture)

 

83

 

shall be modified in accordance therewith,
and such supplemental indenture shall form a part of the Indenture for all
purposes; and every Holder of Notes theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.  Nothing in this
Supplemental Indenture shall limit or affect the provisions of Article IX
or Section 513 of the Base Indenture insofar as relating to any amendment
or waiver in respect of any series of Securities other than the Notes.

 

ARTICLE
9

LEGAL
DEFEASANCE AND COVENANT DEFEASANCE

 

Article XIII of the Base Indenture shall not
apply to the Notes, except as, and to the extent, described in this Article 9.

 

Section 9.01           Legal Defeasance and Covenant Defeasance.  The Company may, at its option and at any
time, elect to have its obligations and the corresponding obligations of the
Subsidiary Guarantors discharged with respect to the Outstanding Notes (“Legal Defeasance”). 
Such Legal Defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by the Outstanding
Notes, and satisfied all of its obligations with respect to the Notes, except
for:

 

(1)           the rights of Holders to receive payments in respect
of the principal of, premium, if any, and interest on the Notes when such payments
are due;

 

(2)           the Company’s obligations with respect to the Notes
concerning issuing temporary Notes, registration of Notes, mutilated,
destroyed, lost or stolen Notes and the maintenance of an office or agency for
payments;

 

(3)           the rights, powers, trust, duties and immunities of
the Trustee and the Company’s obligations in connection therewith; and

 

(4)           the Legal Defeasance provisions of this Supplemental
Indenture.

 

In addition, the Company may, at its option and at
any time, elect to terminate its obligations under Section 4.03, Sections
4.06 through 4.14 and Article 5 (other than the first paragraph of Section 5.01,
except to the extent described below) and the operation of Section 6.01(2)(b),
Sections 6.01(3) through (6) and Section 6.01(8) and the
limitations described in clause (2) of the first paragraph of Section 5.01
and thereafter any omission to comply with such obligations shall not
constitute a Default or Event of Default with respect to the Notes (“Covenant Defeasance”). 
In the event of Legal Defeasance, payment of the Notes may not be
accelerated because of an Event of Default with respect thereto.  In the event Covenant Defeasance occurs, the
events described in clauses (3), (4), (5), (6) and (8) of Section 6.01
will no longer constitute an Event of Default with respect to the Notes.  If the Company exercises either its Legal
Defeasance or Covenant Defeasance option, each Subsidiary Guarantor will be
released and relieved of any obligations under its Subsidiary Guarantee.

 

84

 

Section 9.02           Conditions to Legal Defeasance or Covenant Defeasance.  In order to exercise either Legal Defeasance
or Covenant Defeasance:

 

(1)           the Company must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders cash in United States dollars,
non-callable United States government obligations, or a combination thereof, in
such amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm or firm of independent public accountants, to
pay the principal of, premium, if any, and interest on the Notes on the stated
date for payment thereof or on the applicable redemption date, as the case may
be;

 

(2)           in the case of Legal Defeasance, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that:

 

(a)           the Company has received from, or there has been
published by, the Internal Revenue Service a ruling; or

 

(b)           since the date of this Supplemental  Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based
thereon such opinion of counsel shall confirm that, the Holders 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;

 

(3)           in the case of Covenant Defeasance, the Company
shall have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders 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;

 

(4)           no Default or Event of Default, of which the Trustee
is deemed to have notice, shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the
borrowing of funds to be applied to such deposit);

 

(5)           such Legal Defeasance or Covenant Defeasance shall
not result in a breach or violation of, or constitute a default under the
Indenture or any other Indebtedness incurred under clause (1) of the
definition of “Permitted Indebtedness”;

 

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

 

85

 

(7)           the Company shall have delivered to the Trustee an
Officers’ Certificate stating that all conditions precedent relating to such
Legal Defeasance or Covenant Defeasance, as applicable, have been complied
with; and

 

(8)           the Company shall have delivered to the Trustee an
Opinion of Counsel (which opinion of counsel may be subject to customary
assumptions, qualifications and exclusions), stating that all conditions precedent
relating to such Legal Defeasance or Covenant Defeasance, as applicable, have
been complied with; provided, however, that such counsel may rely, as to matters of fact,
on a certificate or certificates of officers of the Company.

 

As used herein, “United
States government obligation”  means
(x) any security which is (i) a direct obligation of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged or (ii) an obligation of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the payment of which is unconditionally guaranteed as
a full faith and credit obligation by the United States of America, which, in
either case (i) or (ii), is not callable or redeemable at the option of
the issuer thereof, and (y) any depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any United States government obligation which is specified in clause
(x) above and held by such bank for the account of the holder of such
depositary receipt, or with respect to any specific payment of principal of or
interest on any United States government obligation which is so specified and
held, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
United States government obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

 

Section 9.03           Application of Trust Money.

 

(a)           The Trustee or Paying Agent
shall hold in trust all cash in United States dollars or non-callable United
States government obligations deposited with it pursuant to this Article 9
in respect of the Outstanding Notes, and shall apply the deposited cash in
United States dollars and non-callable United States government obligations in
accordance with this Supplemental Indenture to the payment, either directly or
through any such Paying Agent (including the Company acting as its own Paying
Agent or any Subsidiary Guarantor or any Subsidiary or Affiliate of the Company
or any Subsidiary Guarantor acting as Paying Agent) as the Trustee may determine,
to the Holders of such Notes, of all sums due and to become due thereon in
respect of the principal of and the interest on the Notes, but money and United
States government obligations so held in trust need not be segregated from
other funds except to the extent required by law.  The Trustee shall be under no obligation to
invest said funds, except as it may agree with the Company.

 

(b)           The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash in United States dollars and non-callable United
States government obligations deposited pursuant to Section 9.02, or the
principal and 

 

86

 

interest received in respect thereof, other
than any such tax, fee or other charge which by law is for the account of the
Holders of the Outstanding Notes.

 

(c)           Anything in this Article 9
to the contrary notwithstanding, the Trustee shall promptly deliver or pay to
the Company from time to time upon the request of the Company any funds or
United States government obligations held by it as provided in Section 9.02
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee,
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 9.04           Repayment to the Company.  Any cash in United States dollars or
non-callable United States government obligations deposited with the Trustee or
any Paying Agent, or then held by the Company, in trust for the payment of the
principal of or interest on the Notes and remaining unclaimed for two years
after such principal or interest has become due and payable shall be repaid to
the Company on its request or (if then held by the Company) will be discharged
from such trust; and the Holders will thereafter be permitted to look only to
the Company (unless an applicable law designates another Person) for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust funds, and all liability of the Company as trustee thereof, will
thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, shall at the expense of the Company cause to be published once, in
the New York Times and The Wall Street Journal (national edition), or mail to
each Holder entitled to such funds, notice that such money remains unclaimed
and that, after a date specified therein, which will not be less than thirty
(30) days from the date of such publication or mailing, any unclaimed balance
of such money then remaining will be repaid to the Company.

 

Section 9.05           Reinstatement.  If the Trustee or Paying Agent is unable to
apply any funds in accordance with this Article 9 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, or
if the funds deposited with the Trustee to effect Covenant Defeasance are
insufficient to pay the principal of, and interest on, the Notes when due, the
Company’s obligations under this Supplemental Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to this Article 9
until such time as the Trustee or Paying Agent is permitted to apply all such
funds in accordance with this Article 9; provided,
however, that if the Company has made
any payment of interest on, or principal of, any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the funds held by the
Trustee or Paying Agent.

 

ARTICLE 10

PAYMENT OF INTEREST

 

Section 10.01         Payment of Interest.

 

87

 

The Company shall pay interest on the Notes at a
rate of 9.875% per annum, payable semi-annually in arrears on January 15
and July 15 of each year (each, an “Interest
Payment Date”), commencing January 15, 2010.  Interest shall be paid on each Interest Payment
Date to the Holder of such Note in whose name the Note is registered at 5:00 p.m.
(New York City time) on January 1 or July 1 (whether or not a Business
Day) (a “Regular Record Date”), as
the case may be, next preceding the related Interest Payment Date.  Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months.  In the event of the maturity,
or purchase of a Note by the Company at the option of the Holder, interest
shall cease to accrue on such Note. 
Interest on the Notes shall accrue (except, in the case of Additional
Notes, as otherwise specified in the Company Order delivered pursuant to Section 1.04(b) of
this Supplemental Indenture in respect thereof) from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
issuance.

 

Holders of Notes at 5:00 p.m. (New York City
time) on a Regular Record Date shall receive payment of interest payable on the
corresponding Interest Payment Date.

 

Section 10.02         Defaulted Interest.  Any installment of interest that is payable,
but is not punctually paid or duly provided for on any Interest Payment Date (“Defaulted Interest”) shall forthwith cease
to be payable to the Holders in whose names the Notes were registered on the Regular Record Date applicable to such
installment of interest.  The Company
shall make payment of any Defaulted Interest (including any interest on such
Defaulted Interest) to the Holders in whose names the Notes are registered at 5:00 p.m. (New
York City time)  on a special
record date for the payment of such Defaulted Interest (a “Special Record Date”), which shall be fixed
in the following manner.  The Company
shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Holders entitled to such Defaulted Interest as provided
in this Section 10.02.  Thereupon
the Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest, which shall be not more than 15 calendar days and not less than ten
calendar days prior to the date of the proposed payment and not less than ten
calendar days after the receipt by the Trustee of the notice of the proposed
payment.  The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be sent, by
first-class mail, postage prepaid, to each Holder at such Holder’s address as
it appears in the registration books of the Registrar, not less than ten
calendar days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Holders in whose names the
Notes are registered at 5:00 p.m. (New York City time)
on such Special Record Date.

 

Section 10.03         Interest Rights Preserved.  Subject
to the foregoing provisions of this Article 10, each Note delivered under
this Supplemental Indenture upon registration of transfer

 

88

 

of or in exchange for or in lieu of any other
Note shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Note.

 

ARTICLE 11

 

SUBSIDIARY GUARANTEES

 

Article XIV
of the Base Indenture shall not apply to the Notes, except as, and to the
extent, described in this Article 11.

 

Section 11.01         The
Guarantee.  Each
Subsidiary Guarantor hereby jointly and severally guarantees (the “Subsidiary Guarantee”), as a primary obligor and not as a
surety, to the Trustee and each Holder and their respective successors and
assigns, the prompt payment in full when due (whether at Stated Maturity, by
required prepayment, declaration, demand, by acceleration or otherwise) of the
principal of and interest (including any interest, fees, costs or charges that
would accrue but for the provisions of Title 11 of the United States Code
after any bankruptcy or insolvency petition under Title 11 of the United
States Code) on the Notes, and all other obligations from time to time owing to
the Trustee and the Holders by the Company under this Indenture and the Notes,
in each case strictly in accordance with the terms hereof (such obligations
being herein collectively called the “Guaranteed Obligations”).  Each Subsidiary Guarantor jointly and
severally agrees that if the Company shall fail to pay in full when due
(whether at stated maturity, by acceleration or otherwise) any of the
Guaranteed Obligations, each Subsidiary Guarantor will promptly pay the same in
cash, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of the Guaranteed Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
by acceleration or otherwise) in accordance with the terms of such extension or
renewal.

 

Section 11.02         Obligations
Unconditional.  The obligations of the Subsidiary Guarantors under Section 11.01
shall constitute a guaranty of payment and to the fullest extent permitted by
applicable law, are absolute, irrevocable and unconditional, joint and several
with each of the Subsidiary Guarantors, irrespective of the value, genuineness,
validity, regularity or enforceability of the Guaranteed Obligations, or any
substitution, release or exchange of any other guarantee of or security for any
of the Guaranteed Obligations, and irrespective of any other circumstance
whatsoever that might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor (except for payment in full).  Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following
shall not alter or impair the liability of a Subsidiary Guarantor hereunder,
which shall remain absolute, irrevocable and unconditional under any and all
circumstances as described above:

 

(i)             at any time or
from time to time, without notice to any Subsidiary Guarantor, the time for any
performance of or compliance with any of the Guaranteed Obligations shall be
extended, or such performance or compliance shall be waived;

 

89

 

(ii)                any of the acts mentioned in any of the
provisions of this Subsidiary Guarantee or the Notes, if any, or any other
agreement or instrument referred to herein or therein shall be done or omitted;

 

(iii)               the maturity of any of the Guaranteed
Obligations shall be accelerated, or any of the Guaranteed Obligations shall be
amended in any respect, or any right under this Supplemental Indenture or any
other agreement or instrument referred to herein or therein shall be amended or
waived in any respect or any other guarantee of any of the Guaranteed
Obligations or any security therefor shall be released or exchanged in whole or
in part or otherwise dealt with; or

 

(iv)          the release of
any other Subsidiary Guarantor pursuant to this Supplemental Indenture.

 

Each Subsidiary Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever,
and any requirement that the Trustee or any Holder exhaust any right, power or
remedy or proceed against the Company or any other Subsidiary Guarantor under
this Supplemental Indenture or the Notes or a Subsidiary Guarantee, if any, or
any other agreement or instrument referred to herein or therein, or against any
other Person under any other guarantee of, or security for, any of the
Guaranteed Obligations.  Each Subsidiary
Guarantor waives any and all notice of the creation, renewal, extension,
waiver, termination or accrual or any of the Guaranteed Obligations and notice
of or proof of reliance by the Trustee or any Holder upon this Subsidiary
Guarantee or acceptance of this Subsidiary Guarantee, and the Guaranteed
Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred in reliance upon this Subsidiary Guarantee, and
all dealings between the Company and the Trustee or any Holder shall likewise
be conclusively presumed to have been had or consummated in reliance upon this
Subsidiary Guarantee.  Each Subsidiary
Guarantee shall be construed as a continuing, absolute, irrevocable and unconditional
guarantee of payment without regard to any right of offset with respect to the
Guaranteed Obligations at any time or from time to time held by the Trustee or
any Holder, and the obligations and liabilities of each Subsidiary Guarantor
hereunder shall not be conditioned or contingent upon the pursuit by the
Trustee or any Holder or any other Person at any time of any right or remedy
against the Company, any other Subsidiary Guarantor or any other Person which
may be or become liable in respect of all or any part of the Guaranteed
Obligations or against any collateral security or guarantee therefor or right
of offset with respect thereto.  Each
Subsidiary Guarantee shall remain in full force and effect and be binding in
accordance with and to the extent of its terms upon the Subsidiary Guarantor
and the successors and assigns thereof, and shall inure to the benefit of the
Trustee and the Holders, and their respective successors and assigns.

 

Section 11.03         Reinstatement.  The obligations of each Subsidiary Guarantor
hereunder shall be automatically reinstated if and to the extent that for any
reason any payment by or on behalf of the Company in respect of the Guaranteed
Obligations is rescinded or must be otherwise restored by any holder of any of
the Guaranteed Obligations, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise.

 

90

 

Section 11.04         Subrogation;
Subordination.  Each Subsidiary Guarantor hereby agrees that
until the indefeasible payment and satisfaction in full in cash of all
Guaranteed Obligations, it shall waive any claim and shall not exercise any
right or remedy, direct or indirect, arising by reason of any performance by it
of its guarantee in Section 11.01, whether by subrogation or otherwise,
against the Company or any other Subsidiary Guarantor or any security for any
of the Guaranteed Obligations.

 

Section 11.05         Remedies.  Each Subsidiary Guarantor
jointly and severally agrees that, as between the Subsidiary Guarantor and the
Trustee or any Holder, the obligations of the Company under this Supplemental
Indenture and the Notes may be declared to be forthwith due and payable as provided
in this Supplemental Indenture (and shall be deemed to have become
automatically due and payable in the circumstances provided in this Supplemental
Indenture) for purposes of Section 11.01, notwithstanding any stay,
injunction or other prohibition preventing such declaration (or such
obligations from becoming automatically due and payable) as against the Company
and that, in the event of such declaration (or such obligations being deemed to
have become automatically due and payable), such obligations (whether or not
due and payable by the Company) shall forthwith become due and payable by the
Subsidiary Guarantor for purposes of Section 11.01.

 

Section 11.06         Instrument
for the Payment of Money.  Each Subsidiary Guarantor hereby acknowledges
that the guarantee in this Subsidiary Guarantee constitutes an instrument for
the payment of money, and consents and agrees that the Trustee or (if permitted
by this Supplemental Indenture) any Holder shall have the right to bring a
motion-action under New York CPLR Section 3213.

 

Section 11.07         Continuing
Guarantee.  The guarantee in each Subsidiary Guarantee is
a continuing guarantee of payment, and shall apply to all Guaranteed
Obligations whenever arising.

 

Section 11.08         General
Limitation on Guarantee Obligations.  In any action or proceeding involving any
state corporate, limited partnership or limited liability company law, or any
applicable state, federal or foreign bankruptcy, insolvency, reorganization or
other law affecting the rights of creditors generally, if the obligations of
the Subsidiary Guarantor under Section 11.01 would otherwise be held or
determined to be void, voidable, invalid or unenforceable, or subordinated to
the claims of any other creditors, on account of the amount of its liability under
Section 11.01, then, notwithstanding any other provision to the contrary,
the amount of such liability shall, without any further action by the
Subsidiary Guarantor, the Trustee or any Holder or any other person, be
automatically limited and reduced to the maximum amount which, 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 Subsidiary Guarantee or pursuant to
its contribution obligations under Section 11.09, will result in the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.

 

91

 

Section 11.09            Right of Contribution.  The Subsidiary Guarantor hereby agrees that
to the extent that any Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made under a Subsidiary Guarantee (based on
the respective net assets of all Subsidiary Guarantors at the time of such
payment determined in accordance with GAAP), such Subsidiary Guarantor shall be
entitled to seek and receive contribution from and against any other Subsidiary
Guarantor which has not paid its proportionate share of such payment.  Each Subsidiary Guarantor’s right of
contribution shall be subject to the terms and conditions of Section 11.04.  The provisions of this Section 11.09
shall in no respect limit the obligations and liabilities of any Subsidiary
Guarantor to the Trustee or any Holder and the Subsidiary Guarantor shall
remain liable to the Trustee or any Holder for the full amount guaranteed by
the Subsidiary Guarantor hereunder.

 

Section 11.10            Release.  The Subsidiary Guarantee of a Subsidiary Guarantor
will be released:

 

(1)           in
the event of a sale or other disposition of all or substantially all of the
assets of such Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all of the Capital Stock of such
Subsidiary Guarantor then held by the Company and the Restricted Subsidiaries;
or

 

(2)           if
such Subsidiary Guarantor is designated as an Unrestricted Subsidiary or
otherwise ceases to be a Restricted Subsidiary, in each case in accordance with
the provisions of this Supplemental Indenture, upon effectiveness of such
designation or when it first ceases to be a Restricted Subsidiary, respectively;
or

 

(3)           if
such Subsidiary Guarantor shall not incur or guarantee or otherwise be
obligated under Indebtedness aggregating in excess of $10.0 million in
aggregate principal amount (other than if such Subsidiary Guarantor no longer
guarantees or otherwise is obligated under Indebtedness aggregating in excess
of $10.0 million in aggregate principal amount as a result of payment under any
guarantee of any such Indebtedness by any Subsidiary Guarantor); provided that a Subsidiary Guarantor shall not be permitted
to be released from its Subsidiary Guarantee pursuant to this clause (3) if
it is an obligor with respect to Indebtedness that would not, under Section 4.06
be permitted to be incurred by a Restricted Subsidiary that is not a Guarantor;
or

 

(4)           upon
Covenant Defeasance, Legal Defeasance or satisfaction and discharge of the
Indenture with respect to the Notes as provided pursuant to Article 7 or Article 9,
as applicable; or

 

(5)           upon
the liquidation or dissolution of such Subsidiary Guarantor provided no Default
or Event of Default has occurred or is continuing; or

 

(6)           at
such time as, after giving effect to such release, the Indebtedness for which
such Subsidiary Guarantor is an obligor or guarantor does not exceed $10.0
million in aggregate principal amount.

 

92

 

The Company may, at its option, at any time
and from time to time, cause any Subsidiary Guarantor to be automatically and
unconditionally released and discharged from all its obligations under its
Subsidiary Guarantee with respect to the Notes and under this Article 11
upon (i) compliance with any of the conditions in the preceding sentence
of this Section 11.10 and (ii) delivery by the Company to the Trustee
of a Company Order relating to such release and discharge.  The Trustee shall deliver an appropriate
instrument evidencing such release and discharge upon receipt of a Company
Request accompanied by an Officers’ Certificate certifying as to the compliance
with this Section 11.10.

 

ARTICLE 12

 

MISCELLANEOUS

 

Section 12.01            Communication by
Holders with Other Holders.  Holders may communicate pursuant to Trust
Indenture Act Section 312(b) with other Holders with respect to their
rights under this Supplemental Indenture or the Notes.  The Company, the Trustee, the
Registrar, the Paying Agent and anyone else shall have the protection of Trust
Indenture Act Section 312(c).

 

Section 12.02            Certificate and
Opinion as to Conditions Precedent.  Upon any request or application by the
Company to the Trustee to take any action under this Supplemental Indenture,
the Company shall furnish to the Trustee:

 

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

 

(b)           if required by the Trustee, an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent (to the extent of legal conclusions) have been complied
with.

 

Section 12.03            Statements Required in
Certificate or Opinion.   Each Officers’ Certificate or Opinion of
Counsel with respect to compliance with a covenant or condition provided for in
this Supplemental Indenture shall include: (i) a statement that each
Person making such Officers’ Certificate or Opinion of Counsel has read such
covenant or condition; (ii) a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions
contained in such Officers’ Certificate or Opinion of Counsel are based; (iii) a
statement that, in the opinion of each such Person, he or she has made such examination
or investigation as is necessary to enable such Person to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and (iv) a statement that, in the opinion of such Person, such covenant or
condition has been complied with.

 

Section 12.04            Separability Clause.  In case any provision in this
Supplemental Indenture or in the Notes 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.

 

93

 

Section 12.05            Governing Law.  THIS SUPPLEMENTAL INDENTURE AND
THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 12.06            No Liability for Certain Persons.  An incorporator or any past, present or
future director, officer, employee, partner, member or stockholder of the
Company or any Subsidiary Guarantor, as such, 
shall not have any liability for any obligations of the Company or any
Subsidiary Guarantor, respectively, under the Notes or the Indenture or any Subsidiary
Guarantee or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Note, each Holder shall waive and release all such liability.  The waiver and release shall be part of the consideration
for the issuance of the Notes.

 

Section 12.07            Patriot Act.  The parties hereto acknowledge that in
accordance with Section 326 of the USA Patriot Act, Deutsche Bank Trust
Company Americas, like all financial institutions and in order to help fight
the funding of terrorism and money laundering, is required to obtain, verify,
and record information that identifies each Person or legal entity that
establishes a relationship or opens an account. 
The parties to this Supplemental Indenture agree that they will provide
Deutsche Bank Trust Company Americas with such information as it may request in
order for Deutsche Bank Trust Company Americas to satisfy the requirements of
the USA Patriot Act.

 

Section 12.08            Successors.  All agreements of the Company
and each Subsidiary Guarantor in this Supplemental Indenture and the Notes
shall bind its successor.  All agreements
of the Trustee in this Supplemental Indenture
shall bind its successor.

 

Section 12.09            Table of Contents;
Headings.  The table of contents and headings of the
Articles and Sections of this Supplemental Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

 

Section 12.10            Multiple Originals.   The parties may sign any number of
copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together shall represent the same agreement.  One signed copy is sufficient to prove this
Supplemental Indenture.

 

Section 12.11            Scope of Supplemental
Indenture.  The changes,
modifications and supplements to the Base Indenture affected by this
Supplemental Indenture shall be applicable only with respect to, and shall only
govern the terms of, and shall be deemed expressly included in this Supplemental
Indenture solely for the benefit of, the Notes which may be issued from time to
time, and shall not apply to any other Securities that may be issued under the
Base Indenture unless a supplemental indenture with respect to such other
Securities specifically incorporates such changes, modifications and supplements.

 

94

 

Section 12.12            Ratification and
Incorporation of Base Indenture. 
As supplemented hereby, the Base Indenture is in all respects ratified
and confirmed, and the Base Indenture and this Supplemental Indenture shall be
read, taken and construed as one and the same instrument.  This Supplemental Indenture shall form a part
of the Indenture for all purposes, and every Holder of Notes shall be bound
hereby.

 

Section 12.13            No Security Interest
Created.  Nothing in this
Supplemental Indenture or in the Notes, expressed or implied, shall be
construed to constitute a security interest under the Uniform Commercial Code
or similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction

 

Section 12.14            Trust Indenture Act.  This Supplemental Indenture is hereby made
subject to, and shall be governed by, the provisions of the Trust Indenture Act
required to be part of and to govern indentures qualified under the Trust Indenture
Act.  If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be included
in an indenture qualified under the Trust Indenture Act, such required
provisions shall control.

 

Section 12.15            Covenants Not
Applicable.  In accordance
with Section 301(18), Section 901(2) and Section 901(5) of
the Base Indenture, (i) except as, and to the extent, described herein,
the covenants and agreements on the part of the Company in Article IV, Article V,
Article VIII, Article IX, Article X, Article XI, Article XIII
and Article XIV of the Base Indenture are hereby eliminated from the Base
Indenture in respect of, and shall not apply to, and shall be deemed covenants
included in this Supplemental Indenture solely for the benefit of a different
series of Securities than, the Notes; and (ii) no Default or Event of
Default with respect to the Notes shall arise, or be deemed to exist as the
result of any failure on the part of the Company duly to observe or perform any
of such covenants or agreements.

 

95

 

IN WITNESS WHEREOF,
each of BILL BARRETT CORPORATION and each INITIAL SUBSIDIARY GUARANTOR has caused
this Supplemental Indenture to be duly executed as of the day and year first
before written.

 

	
   

  	
  BILL BARRETT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert
  W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer and

  
	
   

  	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BILL BARRETT CBM
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer
  and

  
	
   

  	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BILL BARRETT CBM, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer
  and

  
	
   

  	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CIRCLE B LAND COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Howard

  
	
   

  	
   

  	
  Name:

  	
  Robert W. Howard

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer and

  
	
   

  	
   

  	
   

  	
  Treasurer

  

 

96

 

IN WITNESS WHEREOF,
the undersigned, being duly authorized, has executed this Supplemental
Indenture as of the date first above written.

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Deutsche Bank National Trust Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kenneth R. Ring

  
	
   

  	
   

  	
  Name:

  	
  Kenneth
  R. Ring

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David Contino

  
	
   

  	
   

  	
  Name:

  	
  David
  Contino

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

97

 

SCHEDULE
1

 

Subsidiary
Guarantors

 

Bill Barrett CBM Corporation

Bill Barrett CBM, LLC

Circle B Land Company LLC

 

 

1-1

 

EXHIBIT
A — FORM OF NOTE

 

[FORM OF FACE OF NOTE]

 

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

 

A-1

 

BILL BARRETT CORPORATION

 

No.                          $

CUSIP
No.

 

BILL BARRETT CORPORATION, a
Delaware corporation (herein called the “Company,” which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to
[                    ],
or registered assigns, the principal sum of
[          ] Dollars
($[          ]) on July 15,
2016, and to pay interest thereon from July 8, 2009 or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on January 15 and July 15 of each year, commencing
January 15, 2010, at the rate of 9.875% per annum, until the principal
hereof is paid or made available for payment. 
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Note is registered at 5:00 p.m. (New York City time) on the Regular Record Date
for such interest, which shall be the January 1 or July 1 (whether or
not a Business Day), as the case may be, next preceding such Interest Payment
Date.  Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and will be paid to the Person in whose name this Note
is registered at 5:00 p.m. (New
York City time) on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes not less than 10 days prior to such Special Record Date.

 

Payment of the principal of
and interest on this Note shall be made in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.

 

Reference is hereby made to
the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth
at this place.  Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Note shall not be entitled to any
benefit under the Supplemental Indenture or be valid or obligatory for any
purpose.

 

[Remainder of Page Left
Intentionally Blank]

 

A-2

 

IN
WITNESS WHEREOF, Bill Barrett Corporation has caused this instrument to be duly
executed.

 

	
   

  	
  BILL BARRETT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This
is one of the Notes referred to in the within-mentioned Indenture.

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

[FORM OF
REVERSE OF NOTE]

 

9.875%
Senior Note due 2016

 

Bill
Barrett Corporation, a corporation organized under the laws of Delaware (such
corporation, and its successors and assigns under the Indenture hereinafter referred
to, being herein called the “Company”),
issued this Note under an Indenture, dated as of July 8, 2009 (as it may
be amended or supplemented from time to time (including by the Supplemental
Indenture referred to below) in accordance with the terms thereof, the “Indenture”), among the Company, the
Subsidiary Guarantors and Deutsche Bank Trust Company Americas, as Trustee, as
supplemented by the First Supplemental Indenture thereto dated as of July 8,
2009 (the “Supplemental Indenture”), to which
reference is hereby made for a statement of the respective rights, obligations,
duties and immunities thereunder of the Trustee, the Company, the Subsidiary
Guarantors and the Holders and of the terms upon which the Notes are, and are
to be, authenticated and delivered.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) (the “Trust Indenture
Act”).  Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture.  The Notes are subject to all
such terms, and Holders are referred to the Indenture and the Trust Indenture
Act for a statement of those terms.  This
Note is one of the Notes
referred to in the Indenture initially issued in an aggregate principal amount
of TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000).

 

1.                                       Method of Payment

 

The
Company will pay interest on the Notes to the Persons who are registered
Holders of Notes at 5:00 p.m. (New York City time) on the Regular Record
Date with respect to the applicable Interest Payment Date even if Notes are
canceled after the Regular Record Date and on or before the Interest Payment
Date, except as otherwise provided in the Supplemental Indenture.  Holders must surrender Notes to a Paying Agent
to collect principal payments.  The
Company will pay principal and interest in money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts.

 

The
Place of Payment where the principal of and any other payments due on the Notes
are payable shall initially be at the office or agency of the Company
maintained for that purpose in New York, New York in accordance with Section 4.02
of the Supplemental Indenture.

 

The
Company shall pay interest (a) on any Notes in certificated form by check
mailed to the address of the Person entitled thereto as it appears in the Security
Register on the relevant Regular Record Date (or upon written application by
such Person to the Paying Agent at least five Business Days before the relevant
Initial Payment Date, by wire transfer in immediately available funds to such
Person’s account at a bank in New York City, if such Person is entitled to
interest on an aggregate principal amount in excess of $1,000,000, which application
shall remain in effect until the Holder notifies the Paying Agent to the
contrary) or (b) on any Global Note by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

 

R-1

 

2.                                       Paying Agent and Registrar

 

Initially,
Deutsche Bank Trust Company Americas (the “Trustee”)
will act as Paying Agent and Registrar. 
The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice.  The Company
or any of its domestically organized Wholly Owned Subsidiaries may act as
Paying Agent or Registrar or co-registrar.

 

3.                                       Ranking

 

The
Notes are senior unsecured obligations of the Company and rank equal in right
of payment to all of the Company’s existing and future senior unsecured debt
and senior to all of the Company’s future subordinated debt.

 

4.                                       Optional Redemption

 

Except as described below,
the Company will not be entitled to redeem the Notes at its option prior to July 15,
2013.  The Notes will be redeemable, at
the Company’s option, in whole at any time or in part from time to time, on and
after July 15, 2013, upon not less than 30, nor more than 60, days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the 12-month period commencing on July 15
of the years set forth below, plus, in each case, unpaid accrued interest, if
any, thereon to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  104.938

  	
  %

  
	
  2014

  	
   

  	
  102.469

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

At any time, or from time to
time, on or prior to July 15, 2012, the Company may, at its option, use
all or a portion of the net cash proceeds of one or more Equity Offerings to
redeem up to 35% of the aggregate principal amount of the Notes issued under
the Indenture (including any Additional Notes) at a redemption price equal to
109.875% of the aggregate principal amount of the Notes to be redeemed, plus
unpaid accrued interest, if any, thereon to the date of redemption; provided that:

 

(1)                                  at least 65% of
the aggregate principal amount of Notes issued under the Indenture (including
any Additional Notes) remains Outstanding immediately after giving effect to
any such redemption; and

 

(2)                                  the Company
makes such redemption not more than 180 days after the consummation of any such
Equity Offering.

 

The Notes will also be
redeemable, in whole or in part, at the Company’s option at any time or from
time to time, prior to July 15, 2013, at the applicable Make-Whole Price,
in accordance with the provisions of the Supplemental Indenture.

 

R-2

 

If
the Redemption Date is on a date that is after a Regular Record Date and on or
prior to the corresponding Interest Payment Date, the Company shall pay the related
interest to a Holder on such Regular Record Date.

 

5.                                       Purchase at the Option of Holders

 

Pursuant
to Section 4.13 of the Supplemental Indenture
upon the occurrence of a Change of Control, each Holder will have the
right to require that the Company purchase all or any portion of such Holder’s
Notes pursuant to the offer described in Section 4.13 of the Supplemental
Indenture at a purchase price equal to 101% of the principal amount thereof,
plus unpaid accrued interest, if any, thereon to the date of purchase (subject
to the right of Holders of record on the relevant Regular Record Date to
receive interest on the relevant Interest Payment Date).

 

The Company is, subject to
certain conditions and exceptions set forth in the Supplemental Indenture, obligated
to make an offer to purchase Notes at 100% of their principal amount, plus accrued and unpaid interest, if any, thereon to the
date of repurchase (subject to the right of Holders of record on the Relevant
Record Date to receive interest on the relevant Interest Payment Date), with
Net Cash Proceeds of certain sales or other dispositions of assets in
accordance with the Supplemental Indenture.

 

6.                                       Denominations, Transfer, Exchange

 

The
Notes are issuable in registered form without coupons in denominations of at
least $2,000 and integral multiples of $1,000 thereafter and any integral
multiple thereof.  A Holder of this Note
may transfer or exchange Notes in accordance with the Supplemental
Indenture.  Upon any transfer or
exchange, the Registrar and the Trustee may require a Holder of this Note,
among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes required by law or permitted by this Supplemental
Indenture.

 

7.                                       Persons Deemed Owners

 

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

 

8.                                       Unclaimed Money

 

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

 

9.                                       Amendment, Waiver

 

Subject
to certain exceptions set forth in the Supplemental Indenture, (i) the Supplemental Indenture or the Notes may be
amended for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Notes or the Indenture (including
the Supplemental Indenture) or of any supplemental indenture to the Indenture
or of modifying in any manner the rights of the Holders of the Notes without
prior notice to any Holder but with the written consent of the Holders of at
least a majority in aggregate principal amount of the 

 

R-3

 

Notes
Outstanding and (ii) any Default or Event of Default may be waived by
Notice to the Trustee by the Holders of at least a majority in aggregate principal
amount of the Notes Outstanding.  In
certain circumstances set forth in the Supplemental Indenture, the Company and the Trustee may amend or supplement the
Indenture or the Notes without the consent of any Holder.

 

10.                                 Defaults and Remedies

 

If
an Event of Default (other than an Event of Default specified in Section 6.01(7) of
the Supplemental Indenture with respect to the Company) occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then Outstanding may declare the principal of and accrued
but unpaid interest, if any on all the Notes Outstanding to be immediately due
and payable, except as provided in the Supplemental Indenture.  If an Event of
Default specified in Section 6.01(7) of the Supplemental Indenture occurs and is continuing with respect to the Company, the
principal of and accrued and unpaid interest, if any, on all the Notes then
Outstanding, will, automatically and without any action by the Trustee or any
Holder, become and be immediately due and payable.  Under certain circumstances, the Holders of a
majority in aggregate principal amount of the Notes Outstanding may rescind any
such declaration with respect to the Notes and its consequences.  No reference herein to the Indenture or the Supplemental Indenture and no provision of this Note or of the Indenture or the
Supplemental Indenture shall impair, as among the Company and the Holder of the
Notes, the obligation of the Company, which is absolute and unconditional, to
pay the principal of and interest on this Note at the place, at the respective
times, at the rate and in the coin or currency herein and in the Indenture
prescribed.

 

11.                                 Trustee Dealings with the Company

 

Subject
to certain limitations imposed by the Trust Indenture Act, the Trustee under
this Supplemental Indenture, in its individual or any other capacity, may
become the owner or pledgee of Notes and may otherwise deal with the Company or
its Affiliates with the same rights it would have if it were not Trustee.

 

12.                                 Indenture and Notes Solely Corporate Obligations

 

No
recourse for the payment of the principal of or interest on any Notes or for
any claim based upon any Notes or otherwise in respect thereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in the
Indenture or in any supplemental indenture or in any Notes or because of the
creation of any indebtedness represented thereby shall be had against any incorporator,
stockholder, member, manager, employee, agent, officer or director, as such,
past, present or future, of the Company, the Subsidiary Guarantors or any of
the Company’s subsidiaries or of any successor thereto, either directly or
through the Company, the Subsidiary Guarantors or any of the Company’s
subsidiaries or any successor thereto, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise; it being expressly understood that all such liability is hereby
expressly waived and released as a condition of, and as a consideration for,
the execution of the Indenture and the issue of the Notes.

 

R-4

 

13.                                 Authentication

 

This
Note shall not be valid until an authorized signatory of the Trustee manually
signs the certificate of authentication on the face of this Note.

 

14.                                 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 rights of Minors Act).

 

15.                                 GOVERNING LAW

 

THIS
NOTE 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.

 

16.                                 CUSIP Number

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused a CUSIP number to be printed on the Notes
and has directed the Trustee to use CUSIP numbers in all notices issued to Holders
of this Note as a convenience to such Holders. 
No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any such notice and reliance may be
placed only on the other identification numbers placed thereon.

 

17.                                 Guarantees.

 

This Note will be entitled
to the benefits of certain Subsidiary Guarantees made for the benefit of the
Holders by the Subsidiary Guarantors pursuant to the Indenture.  Reference is hereby made to the Supplemental
Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Subsidiary Guarantors, the Trustee and
the Holders.

 

The Company will furnish
to any Holder of Notes upon written request and without charge to the Holder a copy
of the Indenture.

 

R-5

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company 
pursuant to Section 4.08 or Section 4.13 of the Supplemental
Indenture, check the appropriate box below:

 

Section 4.08
[      ]            Section 4.13
[       ]

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 4.08
or Section 4.13 of the Supplemental Indenture, state the amount (in minimum
denominations of $2,000 and integral multiples of $1,000):  $

 

	
  Dated: 

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name 

  
	
   

  	
   

  	
  appears on the other 

  
	
   

  	
   

  	
  side of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature Guarantee 

  Medallion Program (or other signature guarantor 

  program reasonably acceptable to the Trustee)

  
						

 

R-6

 

FORM OF ASSIGNMENT AND
TRANSFER

 

For
value received
                                  
hereby sell(s), assign(s) and transfer(s) unto
                          
(Please insert social security or other Taxpayer Identification Number of assignee)
the within Notes, and hereby irrevocably constitutes and appoints
                                  
attorney to transfer said Notes on the books of the Company, with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s) must be guaranteed
  by an “eligible guarantor institution” meeting the requirements of the
  Registrar, which requirements include membership or participation in the Note
  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.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature Guarantee

  

 

NOTICE:  The signature on this Assignment must
correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatever.

 

R-7

 

EXHIBIT B- FORM OF
SUPPLEMENTAL INDENTURE

 

SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated as of
                        ,
20    , among [SUBSIDIARY GUARANTOR] (the “New Guarantor”), a Subsidiary of Bill Barrett Corporation
(or its successor) (the “Company”), BILL
BARRETT CORPORATION, a Delaware corporation, on behalf of itself and the
Subsidiary Guarantors (the “Existing Guarantors”)
under the Indenture referred to below, and DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Trustee under the Indenture referred to below (the “Trustee”).

 

WITNESSETH:

 

WHEREAS the Company has
heretofore executed and delivered to an Indenture dated as of July 8, 2009
(the “Base Indenture”), as amended,
supplemented and modified by a First Supplemental Indenture dated as of July 8,
2009 (the “First Supplemental  Indenture” and, together with the Base Indenture, the “Indenture”), by and among the Company, the Existing
Guarantors and the Trustee, providing for the issuance of 9.875% Senior Notes
due 2016 (the “Notes”);

 

WHEREAS Section 4.14 of
the First Supplemental Indenture provides that under certain circumstances the
Company is required to cause the New Guarantor to execute and deliver to the
Trustee a supplemental indenture pursuant to which the New Guarantor shall
unconditionally guarantee all of the Company’s obligations under the Notes and
the Indenture pursuant to a guarantee on the terms and conditions set forth
herein and therein; and

 

WHEREAS pursuant to Section 9.01
of the Indenture, the Trustee, the Company and the Existing Guarantors are
authorized to execute and deliver this supplemental indenture;

 

NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the New Guarantor, the Trustee
and, on behalf of itself and the Existing Guarantors, the Company mutually
covenant and agree for the equal and ratable benefit of the Holders as follows:

 

SECTION 1.  Definitions.  For all purposes of this Supplemental Indenture,
except as otherwise herein expressly provided or unless the context otherwise
requires: (i) the terms and expressions used herein shall have the same
meanings as corresponding terms and expressions used in the First Supplemental
Indenture; and (ii) the words “herein,” “hereof” and “hereby” and other
words of similar import used in this Supplemental Indenture refer to this
Supplemental Indenture as a whole and not to any particular section hereof.

 

SECTION 2.  Agreement to Guarantee.  The New Guarantor hereby unconditionally and
irrevocably agrees, jointly and severally with all other Subsidiary Guarantors,
to guarantee the Company’s obligations under the Notes and the Indenture on the
terms and subject to the conditions set forth in Article Eleven of the
First Supplemental Indenture and to be bound by all other applicable provisions
of the Indenture.

 

SECTION 3.  Ratification of Indenture; Supplemental
Indenture Part of Indenture. Except as expressly amended hereby, the
Indenture is in all respects ratified and confirmed and all the terms,
conditions and provisions thereof shall remain in full force and effect. This
Supplemental

 

B-1

 

Indenture shall form a part
of the Indenture for all purposes, and every Holder heretofore or hereafter
authenticated and delivered shall be bound hereby.

 

SECTION 4.  Governing Law.  THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 5.  Trustee Makes No Representation. The
Trustee makes no representation as to the validity or sufficiency of this
supplemental indenture.

 

SECTION 6.  Counterparts. The parties may sign any
number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

 

SECTION 7.  Effect of Headings. The Section headings
herein are for convenience only and shall not effect the construction thereof.

 

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

 

	
   

  	
  [NEW
  SUBSIDIARY GUARANTOR],

  
	
   

  	
  as
  the New Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BILL
  BARRETT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING
  GUARANTORS]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-2

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]