Document:

EXHIBIT 10.4

THIS WARRANT AND THE SHARES PURCHASABLE HEREUNDER HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
NEITHER THIS WARRANT NOR SUCH SHARES MAY BE SOLD OR TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION IN EFFECT UNDER SUCH ACT UNLESS THE COMPANY RECEIVES AN
OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY ACCEPTABLE TO IT DEMONSTRATING
THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH
ACT.

                          Common Stock Purchase Warrant

                      To Purchase Shares of Common Stock of

                            Beacon Power Corporation

                                  June 13, 2005

FOR VALUE RECEIVED, Beacon Power Corporation, a Delaware corporation (the
"Company"), hereby grants to Perseus 2000 Expansion, L.L.C. (together with its
permitted successors and assigns, the "Registered Holder"), the right to
purchase at any time up to and including June 13, 2010 (the "Termination Date"),
the number of shares of fully paid and nonassessable Common Stock of the
Company, $0.01 par value per share (the "Common Stock", and those shares of
Common Stock purchasable under this Warrant being the "Warrant Shares"), equal
to the product of (i) 139,745 divided by (ii) the Warrant Price (as defined
below) then in effect, for a purchase price of 120% of the Per Share Price (as
defined in the Investment Agreement, dated as of April 22, 2005, by and among
the Company, the Registered Holder and Perseus Capital, L.L.C. ("Investment
Agreement")), which Per Share Price may be adjusted from time to time for
purposes of this Warrant and the calculation of the Warrant Price only during
the six-month period following the date hereof pursuant to Section 2.4 of the
Investment Agreement (the "Warrant Price"). For the avoidance of doubt, any
adjustments to the Per Share Price under the terms of the Investment Agreement
that may occur after the six-month period following the date hereof shall be
disregarded for purposes of calculating the Warrant Price hereunder.

         1.       EXERCISE.

                  (a) This Warrant may be exercised by the Registered Holder on
or before the Termination Date, in whole or in part, by surrendering this
Warrant, with the purchase form appended hereto as Exhibit I duly executed by
the Registered Holder at the principal executive offices of the Company, or at
such other office or agency as the Company may designate, accompanied by payment
in full, in lawful money of the United States, of the Warrant Price payable in
respect of the number of Warrant Shares purchased upon such exercise.

                  (b) The Registered Holder may, at its option, elect to pay
some or all of the Warrant Price payable upon an exercise of this Warrant by
surrender of this Warrant at the principal executive office of the Company, or
at such other office or agency as the Company may designate, together with the
purchase form attached hereto as Exhibit I to exercise by means of a net
issuance exercise, in which event the Company shall issue to the Registered
Holder that number of Warrant Shares equal to the total number of Warrant
Shares, minus the product obtained by multiplying (x) the total number of
Warrant Shares (or, if only a portion of the Warrant is being exercised, the
portion of the Warrant being cancelled, at the date of such calculation) by (y)
a fraction, the numerator of which shall be the Warrant Price per share and the
denominator of which shall be the Fair Market Value per share of Common Stock as
of the Exercise Date. The "Fair Market Value" per share of Common Stock shall be
determined as follows:

                               (i) As long as the Common Stock is listed on a
national securities exchange, the NASDAQ Small Cap
Market, the NASDAQ National Market or another nationally recognized trading
system as of the Exercise Date, the Fair Market Value per share of Common Stock
shall be deemed to be the average of the high and low reported sale prices per
share of Common Stock thereon on the trading day immediately preceding the
Exercise Date (provided that if no such price is reported on such day, the Fair
Market Value per share of Common Stock shall be determined pursuant to clause
(ii)).

                               (ii) In all other cases, the Fair Market Value
per share of Common Stock shall be deemed to be the
amount most recently determined by the Board of Directors to represent the fair
market value per share of the Common Stock. Notwithstanding the foregoing, if
the Board of Directors has not made such a determination within the three-month
period prior to the Exercise Date, then (A) the Board of Directors shall make a
determination of the Fair Market Value per share of the Common Stock within 20
days of a request by the Registered Holder that it do so, and (B) the exercise
of this Warrant pursuant to this subsection 1(b) shall be delayed until such
determination is made.

                  (c) Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided in subsection
1(a) above (the "Exercise Date"). At such time, the person or persons in whose
name or names any certificates for Warrant Shares shall be issuable upon such
exercise as provided in subsection 1(d) below shall be deemed to have become the
holder or holders of record of the Warrant Shares represented by such
certificates.

                  (d) As soon as practicable after the exercise of this Warrant
in full or in part, and in any event within twenty (20) days thereafter, the
Company, at its expense, will cause to be issued in the name of, and delivered
to, the Registered Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

                               (i) a certificate or certificates for the number
of Warrant Shares to which the Registered Holder
shall be entitled upon such exercise; and

                               (ii) in case such exercise is in part only, a new
warrant or warrants (dated the date hereof) of like
tenor, calling in the aggregate on the face or faces thereof for the number of
Warrant Shares equal (without giving effect to any adjustment therein) to the
number of such shares called for on the face of this Warrant minus the sum of:
(a) the number of such shares purchased by the Registered Holder upon such
exercise and (b) the number of Warrant Shares (if any) covered by the portion of
this Warrant cancelled in payment of the total Warrant Price payable upon such
exercise pursuant to subsection 1(b) above.

         2.       ADJUSTMENTS.

                  (a) Adjustment for Stock Splits and Combinations. If the
Company shall at any time or from time to time after the date on which this
Warrant was first issued (the "Original Issue Date") effect a subdivision of the
outstanding Common Stock, the number of Warrant Shares then in effect
immediately before that subdivision shall be proportionately increased and the
Warrant Price shall be proportionately decreased. If the Company shall at any
time or from time to time after the Original Issue Date combine the outstanding
shares of Common Stock, the number of Warrant Shares shall be proportionately
decreased and the Warrant Price shall be proportionately increased. Any
adjustment under this paragraph shall become effective at the close of business
on the date the subdivision or combination becomes effective.

                  (b) Adjustments for Other Dividends and Distributions. In the
event the Company at any time or from time to time after the Original Issue Date
shall make or issue, or fix a record date for the determination of holders of
Common Stock entitled to receive, a dividend or other distribution payable in
securities of the Company or in cash or other property, then and in each such
event the Registered Holder shall receive upon exercise hereof, in addition to
the number of shares of Common Stock issuable hereunder, the kind and amount of
securities of the Company and/or cash and other property which the Registered
Holder would have been entitled to receive had this Warrant been exercised on
the date of such event and had the Registered Holder thereafter, during the
period from the date of such event to and including the Exercise Date, retained
any such securities receivable, giving application to all adjustments called for
during such period under this Section 2 with respect to the rights of the
Registered Holder.

                  (c) Adjustment for Mergers or Reorganizations, etc. If there
shall occur any reclassification, reorganization, recapitalization,
consolidation, sale of all or substantially all assets or merger involving the
Company in which the Common Stock is converted into or exchanged for securities,
cash or other property (other than a transaction covered by subsection 2(a)
above), then, following any such reclassification, reorganization,
recapitalization, consolidation, sale of all or substantially all assets or
merger, and without payment of any additional consideration thereof, the
Registered Holder shall receive upon exercise hereof the kind and amount of
securities, cash or other property which the Registered Holder would have been
entitled to receive if, immediately prior to such reclassification,
reorganization, recapitalization, consolidation or merger, sale of all or
substantially all assets, the Registered Holder had held the number of shares of
Common Stock subject to this Warrant, giving application to all adjustments
called for during such period under this Section 2 with respect to the rights of
the Registered Holder.

         The foregoing provisions of this Section 2(c) shall similarly apply to
successive reorganizations, consolidations, mergers, sales and transfers and to
the stock or securities of any other corporation that are at the time receivable
upon the exercise of this Warrant. If the per share consideration payable to the
holder hereof for Warrant Shares in connection with any such transaction is in a
form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company's Board of
Directors. In all events, appropriate adjustment (as determined in good faith by
the Company's Board of Directors) shall be made in the application of the
provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.
                  (d) Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 2, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the Registered Holder a certificate setting
forth such adjustment or readjustment (including the kind and amount of
securities, cash or other property for which this Warrant shall be exercisable,
the Warrant Price and the method of calculation of each) and showing in detail
the facts upon which such adjustment or readjustment is based.

         3. FRACTIONAL SHARES. The Company shall not be required upon the
exercise of this Warrant to issue any fractional shares, and shall round any
fractional shares to the next highest whole number of shares. If a fractional
share interest arises upon any exercise or conversion of the Warrant, the
Company shall eliminate such fractional share interest by paying the Registered
Holder an amount computed by multiplying the fractional interest by the Fair
Market Value of a full share of common Stock.

         4. REPRESENTATIONS AND WARRANTIES BY THE REGISTERED HOLDER. The
Registered Holder represents and warrants to the Company as follows:

                  (a) Upon each exercise hereof, the Registered Holder must
reaffirm to the Company that the Registered Holder is an "accredited investor"
as that term is defined in Rule 501 under the Securities Act of 1933, as amended
(the "Act"). The Registered Holder is purchasing the Warrant and the Warrant
Shares for such Registered Holder's own account for investment purposes only and
not with a view to, or for the resale in connection with, any "distribution"
thereof for purposes of the Act. The Registered Holder understands that the
Warrant and the Warrant Shares have not been registered under the Act by reason
of their issuance in a transaction exempt from the registration and prospectus
delivery requirements of the Act pursuant to Section 4(2) thereof, which
exemption depends upon, among other things, the bona fide nature of Registered
Holder's investment intent as expressed herein. In this connection, the
Registered Holder understands that, in the view of the U.S. Securities and
Exchange Commission (the "SEC"), the statutory basis for such exemption may be
unavailable if the Registered Holder's representation was predicated solely upon
a present intention to hold the Warrant or the Warrant Shares for the minimum
capital gains period specified under tax statutes, for a deferred sale, for or
until an increase or decrease in the market price of the Warrant or the Warrant
Shares, or for a period of one year or any other fixed period in the future.

                  (b) The Registered Holder understands that the Warrant and the
Warrant Shares must be held by the Registered Holder indefinitely, and that the
Registered Holder must therefore bear the economic risk of such investment
indefinitely, unless a subsequent disposition thereof is registered under the
Act or is exempted from such registration. The Registered Holder further
understands that the Warrant and the Warrant Shares have not been qualified
under any state's blue sky laws by reason of their issuance in a transaction
exempt from the qualification requirements of applicable blue sky laws, which
exemptions depend upon, among other things, the bona fide nature of the
Registered Holder's investment intent expressed above. In addition, the
Registered Holder understands that any certificate evidencing the Warrant and
the Warrant Shares will be imprinted with a legend that prohibits the transfer
of the Warrant and the Warrant Shares unless they are registered or such
registration is not required in the opinion of counsel for the Company.

                  (c) The Registered Holder is familiar with the provisions of
Rule 144, promulgated under the Act, which, in substance, permits limited public
resale of "restricted securities" acquired, directly or indirectly, from the
issuer thereof, in a non-public offering subject to the satisfaction of certain
conditions.

                  (d) The Registered Holder further understands that in the
event all of the applicable requirements of Rule 144 are not satisfied,
registration under the Act, compliance with Regulation A, or some other
registration exemption will be required; and that, notwithstanding the fact that
Rule 144 is not exclusive, the staff of the SEC has expressed its opinion that
persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rule 144 will have a
substantial burden of proof in establishing that an exemption from registration
is available for such offers or sales, and that such persons and their
respective brokers who participate in such transactions do so at their own risk.

         5.       REQUIREMENTS FOR TRANSFER.

                  (a) This Warrant and the Warrant Shares shall not be sold or
transferred unless either (i) they first shall have been registered under the
Act and under applicable state securities or blue sky laws, or (ii) the Company
first shall have been furnished with an opinion of legal counsel, reasonably
satisfactory to the Company, to the effect that such sale or transfer is exempt
from the registration requirements of the Act.

                  (b) Each certificate representing Warrant Shares shall bear a
legend substantially in the following form:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
         INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
         REGISTRATION IN EFFECT UNDER SUCH ACT UNLESS THE COMPANY RECEIVES AN
         OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY ACCEPTABLE TO IT
         DEMONSTRATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE
         REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT OR UNLESS
         SOLD PURSUANT TO RULE 144 OF SUCH ACT."

The foregoing legend shall be removed from the certificates representing any
Warrant Shares, at the request of the holder thereof, at such time as (i) they
become eligible for resale pursuant to an effective registration statement or
Rule 144(k) under the Act or (ii) the Company shall have received either an
opinion of counsel or a "no-action" letter from the SEC to the effect that any
transfer of the Warrant Shares represented by such certificates will not violate
the Act and applicable state securities laws.

         6. NO IMPAIRMENT. The Company will not, by amendment of its charter
through reorganization, transfer of assets, consolidation, merger, dissolution,
issuance or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the holder of this Warrant against impairment.

         7. NOTICES OF RECORD DATE, ETC. In the event:

                  (a) that the Company shall take a record of the holders of its
Common Stock (or other stock or securities at the time deliverable upon the
exercise of this Warrant) for the purpose of entitling or enabling them to
receive any dividend or other distribution, or to receive any right to subscribe
for or purchase any shares of stock of any class or any other securities, or to
receive any other right; or
                  (b) of any capital reorganization of the Company, any
reclassification of the Common Stock of the Company, any consolidation or merger
of the Company with or into another corporation (other than a consolidation or
merger in which the Company is the surviving entity and its Common Stock is not
converted into or exchanged for any other securities or property), or any
transfer of all or substantially all of the assets of the Company; or

                  (c) of the voluntary or involuntary dissolution, liquidation
or winding-up of the Company, then, and in each such case, the Company will mail
or cause to be mailed to the Registered Holder a notice specifying, as the case
may be, (i) the record date for such dividend, distribution or right, and the
amount and character of such dividend, distribution or right, or (ii) the
effective date on which such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation or winding-up is to take place, and
the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such other stock or securities at the time deliverable upon the
exercise of this Warrant) shall be entitled to exchange their shares of Common
Stock (or such other stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
transfer, dissolution, liquidation or winding-up. Such notice shall be mailed at
least ten days prior to the record date or effective date for the event
specified in such notice.

         8. STOCK FULLY PAID, RESERVATION OF STOCK. All of the Warrant Shares
issuable upon the exercise of the rights represented by this Warrant will, upon
issuance and receipt of the purchase price therefor, be validly issued, fully
paid and nonassessable, and free from all taxes, liens and charges except for
restrictions on transfer provided for herein or under applicable federal and
state securities laws. The Company will at all times reserve and keep available,
solely for issuance and delivery upon the exercise of this Warrant, such number
of shares of Common Stock and other securities, cash and/or property, as from
time to time shall be issuable upon the exercise of this Warrant.

         9. EXCHANGE OF WARRANTS. Upon the surrender of this Warrant by the
Registered Holder, properly endorsed, to the Company at the principal executive
offices of the Company, the Company will, subject to the provisions of Sections
4 and 5 hereof, issue and deliver to or upon the order of such Holder, at the
Company's expense, a new Warrant or Warrants of like tenor, in the name of the
Registered Holder or as the Registered Holder (upon payment by the Registered
Holder of any applicable transfer taxes) may direct, calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock (or other
securities, cash and/or property) then issuable upon exercise of this Warrant.

         10. REPLACEMENT OF WARRANTS. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (without any obligation for a surety or other security
therefor) in an amount reasonably satisfactory to the Company, or (in the case
of mutilation) upon surrender and cancellation of this Warrant, the Company will
issue, in lieu thereof, a new Warrant of like tenor.

         11. TRANSFERS, ETC.

                  (a) The Company will maintain a register containing the name
and address of the Registered Holder of this Warrant. The Registered Holder may
change its or his address as shown on the warrant register by written notice to
the Company requesting such change.

                  (b) This Warrant and all rights hereunder are transferable, in
whole or in part, upon surrender of this Warrant with a properly executed
assignment in a form reasonably acceptable to the Company at the principal
executive offices of the Company.

                  (c) Until any transfer of this Warrant is made in the Warrant
register, the Company may treat the Registered Holder as the absolute owner
hereof for all purposes; provided, however, that if and when this Warrant is
properly assigned in blank, the Company may (but shall not be obligated to)
treat the bearer hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

         12. MAILING OF NOTICES, ETC. All notices and other communications from
the Company to the Registered Holder shall be mailed by first-class certified or
registered mail, postage prepaid, to the address last furnished to the Company
in writing by the Registered Holder. All notices and other communications from
the Registered Holder or in connection herewith to the Company shall be mailed
by first-class certified or registered mail, postage prepaid, to the Company at
its principal executive office. If the Company should at any time change the
location of its principal executive office to a place other than as set forth
below, it shall give prompt written notice to the Registered Holder and
thereafter all references in this Warrant to the location of its principal
executive office at the particular time shall be as so specified in such notice.

         13. NO RIGHTS AS STOCKHOLDER. Until the exercise of this Warrant, the
Registered Holder shall not have or exercise any rights by virtue hereof as a
stockholder of the Company.

         15. CHANGE OR WAIVER. Any term of this Warrant may be amended or waived
upon the written consent of the Company and the Registered Holder.

         16. SECTION HEADINGS. The Section headings in this Warrant are for the
convenience of the parties and in no way alter, modify, amend, limit or restrict
the contractual obligations of the parties.

         17. GOVERNING LAW. This Warrant will be governed by and construed in
accordance with the internal laws of the State of Delaware without giving effect
to the conflict or choice of law provision thereof that would give rise the
application of the domestic substantive law of any other jurisdiction.

<PAGE>

         EXECUTED as of the Date of Issuance indicated above.

                            BEACON POWER CORPORATION

                            By: /s/ James M. Spiezio
                                ------------------------
                             Name: James M. Spiezio
                            Title: Chief Financial Officer

<PAGE>

                                    EXHIBIT I

                                  PURCHASE FORM

To:  Beacon Power Corporation                       Dated:  ____________

The undersigned, pursuant to the provisions set forth in the attached Warrant,
hereby irrevocably elects to purchase (check applicable box):

         |_|      _____ shares of the Common Stock covered by such Warrant; or

         |_|      the maximum number of shares of Common Stock covered by such
                  Warrant pursuant to the cashless exercise procedure set forth
                  in Section 1(b).

The  undersigned  herewith makes payment of the full Warrant Price for such
shares at the price per share provided for in such Warrant, which is $____.

Such payment takes the form of (check applicable box or boxes):

         |_|      $______ in lawful money of the United States; and/or

         |_|      the cancellation of such number of Warrant Shares as is
                  necessary, in accordance with the formula set forth in Section
                  1(b), to exercise this Warrant with respect to the maximum
                  number of Warrant Shares purchasable pursuant to the cashless
                  exercise procedure set forth in Section 1(b).

Please issue a certificate representing said shares of Common Stock in the name
of the undersigned or in such other name as is specified below:

The undersigned is an "accredited investor" as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

              Name of Entity:
                             -------------------------------------

              Signature of
              Authorized Person:
                                 -----------------------------------

              Address:
                      --------------------------------------------

              Date:
                   --------------------------------------------Exhibit 4.1

 

EXECUTION VERSION

 

 

 

CIMAREX ENERGY CO.

(successor by merger to Magnum Hunter Resources, Inc.)

AND

 

THE SUBSIDIARY GUARANTORS PARTY HERETO

 

AND

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Trustee

 

 

THIRD SUPPLEMENTAL INDENTURE

 

Dated as of June 13, 2005

 

to

 

INDENTURE

 

Dated as of December 17, 2003

 

Floating Rate Convertible Senior Notes Due
2023

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE II ASSUMPTION AND
  SUBSTITUTION; AMENDMENTS

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Assumption of Obligations

  	
   

  
	
   

  	
  Section 2.2

  	
  Substitution

  	
   

  
	
   

  	
  Section 2.3

  	
  Amendments to Definitions

  	
   

  
	
   

  	
  Section 2.4

  	
  Amendments to Conversion of the Securities

  	
   

  
	
   

  	
  Section 2.5

  	
  Amendments to Section 12.02

  	
   

  
	
   

  	
  Section 2.6

  	
  Amendments to Section 12.11

  	
   

  
	
   

  	
  Section 2.7

  	
  Amendments to Exhibits A-1 and A-2

  	
   

  
	
   

  	
  Section 2.8

  	
  Amendment to Exhibit C

  	
   

  
	
   

  	
  Section 2.9

  	
  Amendments to Securities

  	
   

  
	
   

  	
   

  
	
  ARTICLE III ADDITION OF SUBSIDIARY
  GUARANTORS 

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Guarantees

  	
   

  
	
   

  	
  Section 3.2

  	
  Notations of Guaranties

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV CONCERNING THE TRUSTEE

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  Terms and Conditions

  	
   

  
	
   

  	
  Section 4.2

  	
  No Responsibility

  	
   

  
	
   

  	
   

  
	
  ARTICLE V EFFECT OF EXECUTION AND
  DELIVERY

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Headings

  	
   

  
	
   

  	
  Section 6.2

  	
  Rights and Obligations of the Trustee

  	
   

  
	
   

  	
  Section 6.3

  	
  Successors

  	
   

  
	
   

  	
  Section 6.4

  	
  Separability Clause

  	
   

  
	
   

  	
  Section 6.5

  	
  Multiple Originals

  	
   

  
	
   

  	
  Section 6.6

  	
  Governing Law

  	
   

  
	
   

  	
  Section 6.7

  	
  Conflict with Trust Indenture Act

  	
   

  
						

 

i

 

THIRD SUPPLEMENTAL INDENTURE, dated as of June 13, 2005 (this “Third
Supplemental Indenture”), among CIMAREX ENERGY CO., a Delaware corporation
(the “Successor Issuer”) and the successor by merger to Magnum Hunter
Resources, Inc., a Nevada corporation (the “Existing Issuer”) and
the “Company” under the Second Amended Indenture (as defined below), MAGNUM
HUNTER PRODUCTION, INC., a Texas corporation (“MHP”), GRUY PETROLEUM
MANAGEMENT CO., a Texas corporation (“Gruy”), HUNTER GAS GATHERING,
INC., a Texas corporation (“Hunter”), TRAPMAR PROPERTIES, INC., a Texas
corporation (“Trapmar”), CONMAG ENERGY CORPORATION, a Texas corporation
(“Conmag”), PINTAIL ENERGY, INC., a Delaware corporation (“Pintail”),
PRIZE OPERATING COMPANY, a Delaware corporation (“Prize Operating”), PEC
(DELAWARE), INC., a Delaware corporation (“PEC”), PRIZE ENERGY
RESOURCES, L.P., a Delaware limited partnership (“Prize Energy”),
OKLAHOMA GAS PROCESSING, INC., a Delaware corporation (“Oklahoma Gas,”
and together with MHP, Gruy, Hunter, Trapmar, Conmag, Pintail, Prize Operating,
PEC and Prize Energy, the “Existing Subsidiary Guarantors”), CIMAREX
TEXAS LLC, a Colorado limited liability company (“CT LLC”), CIMAREX
TEXAS L.P., a Texas limited partnership (“CT LP”), CIMAREX CALIFORNIA
PIPELINE LLC, a Colorado limited liability company (“CCP”), CIMAREX
ENERGY SERVICES, INC., an Oklahoma corporation (“CES”), KEY PRODUCTION
COMPANY, INC., a Delaware corporation (“Key”), KEY TEXAS LLC, a Colorado
limited liability company (“KT LLC”), KEY PRODUCTION TEXAS L.P., a Texas
limited partnership (“KT LP”), BROCK GAS SYSTEMS & EQUIPMENT,
INC., a Texas corporation (“Brock”), COLUMBUS ENERGY CORP., a Colorado
corporation (“Columbus”), COLUMBUS TEXAS, INC., a Nevada corporation (“Columbus
Texas”), COLUMBUS ENERGY L.P., a Texas limited partnership (“Columbus
Energy”), COLUMBUS GAS SERVICES, INC., a Delaware corporation (“CGS,”
and together with CT LLC, CT LP, CCP, CES, Key, KT LLC, KT LP, Brock, Columbus,
Columbus Texas and Columbus Energy, the “New Subsidiary Guarantors,” and
each of the New Subsidiary Guarantors, individually, a “New Subsidiary
Guarantor”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation
organized under the laws of the State of New York (herein called the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the Existing Issuer, the Existing Subsidiary Guarantors and
the Trustee are parties to an Indenture, dated as of December 17, 2003
(the “Original Indenture”), pursuant to which the Existing Issuer’s
Floating Rate Convertible Senior Notes due 2023 in the principal amount of
$125,000,000 were issued;

 

WHEREAS, the Existing Issuer, the Existing Subsidiary Guarantors, and
the Trustee have entered into the First Supplemental Indenture (as defined
below) pursuant to which, among other things, the Original Indenture was
modified at the time and in accordance with the terms thereof (such Original
Indenture as amended and supplemented by the First Supplemental Indenture is
herein called the “First Amended Indenture”);

 

WHEREAS, the Successor Issuer, the Existing Issuer, the Existing
Subsidiary Guarantors, and the Trustee have entered into the Second Supplemental
Indenture (as defined below) pursuant to which, among other things, the First
Amended Indenture was modified at the time and in

 

 

accordance with the terms thereof (such First Amended Indenture as
amended and supplemented by the Second Supplemental Indenture is herein called
the “Second Amended Indenture”);

 

WHEREAS, on the date of this Third Supplemental Indenture and
simultaneously with the effectiveness of this Third Supplemental Indenture, the
Existing Issuer is merging (the “Successor Issuer Merger”) with and into
the Successor Issuer pursuant to Section 253 of the Delaware General
Corporation Law and the relevant sections of the Nevada Revised Statutes, with
the Successor Issuer being the surviving corporation, and in connection with
and upon the effectiveness of the Successor Issuer Merger, the separate
existence of the Existing Issuer will cease;

 

WHEREAS, pursuant to Section 5.01 of the Second Amended Indenture,
the Existing Issuer may merge with or into any other Person if either (1) the
Existing Issuer is the surviving corporation, or (2) the Person (if other
than the Existing Issuer) into which the Existing Issuer is merged (a) is
a corporation organized and validly existing under the laws of the United
States or any State thereof or the District of Columbia, and (b) expressly
assumes, by an indenture supplemental thereto, executed and delivered to the
Trustee, all of the obligations of the Existing Issuer under the Securities and
the Indenture;

 

WHEREAS, the Successor Issuer desires to expressly assume, pursuant to
this Third Supplemental Indenture, all of the obligations of the Existing
Issuer under the Securities and the Indenture;

 

WHEREAS, concurrently herewith, the Successor Issuer has assumed all of
the obligations of the Existing Issuer under the Existing Issuer’s 9.6% Senior
Notes due 2012 and pursuant to the terms thereof the New Subsidiary Guarantors
must become guarantors of the 9.6% Senior Notes due 2012;

 

WHEREAS, pursuant to Section 4.08 of the Second Amended Indenture
and in connection with Successor Issuer’s assumption, pursuant to this Third
Supplemental Indenture, of all of the obligations of Existing Issuer under the
Securities and the Indenture, if any of the Successor Issuer’s Subsidiaries
that is not a Subsidiary Guarantor becomes a guarantor of the 9.6% Senior Notes
due 2012, the Successor Issuer must cause each such Subsidiary to become a
Subsidiary Guarantor by executing and delivering to the Trustee a supplemental
indenture to the Trustee pursuant to which such Subsidiary unconditionally
guarantees all of the Successor Issuer’s obligations under the Securities and
the Indenture on the terms set forth in the Indenture;

 

WHEREAS, each of the New Subsidiary Guarantors desires to
unconditionally guarantee all of the Successor Issuer’s obligations under the
Securities and the Indenture on the terms set forth in the Indenture;

 

WHEREAS, the Successor Issuer, the Existing Subsidiary Guarantors, and
the New Subsidiary Guarantors are entering into this Third Supplemental
Indenture with the Trustee in compliance with Sections 4.08, 5.01 and 9.01
of the Second Amended Indenture;

 

NOW, THEREFORE, each
party agrees as follows for the benefit of the Trustee and for the equal and
ratable benefit of the Holders of the Securities:

 

2

 

ARTICLE I

DEFINITIONS

 

Capitalized terms that are defined in this Third Supplemental Indenture
(including without limitation in the introductory paragraph and the Recitals
hereto) shall have the meanings assigned to them herein.  Capitalized terms used in this Third
Supplemental Indenture (including without limitation in the introductory
paragraph and the Recitals hereto) that are not otherwise defined herein shall
have the meanings assigned to them in the Indenture.

 

ARTICLE II

ASSUMPTION AND SUBSTITUTION; AMENDMENTS

 

Section 2.1                                      Assumption of Obligations

 

The Successor Issuer hereby expressly assumes all of the obligations of
the Existing Issuer under the Securities and the Indenture.

 

Section 2.2                                      Substitution

 

(a)                                  In
accordance with Section 5.01 of the Second Amended Indenture, from and
after the date of this Third Supplemental Indenture, the Successor Issuer shall
succeed to, and be substituted for, and may exercise every right and power of,
the Existing Issuer under the Indenture with the same effect as if the
Successor Company had been named as the “Company” therein.

 

(b)                                 From
and after the date of the Third Supplemental Indenture, the Successor Issuer
shall for all purposes be deemed to be the “Company” as such term is defined
and used in the Indenture and the Securities.

 

Section 2.3                                      Amendments to Definitions

 

(a)                                  For
all purposes of the Indenture, this Third Supplemental Indenture and the
Securities, the definitions of the following terms set forth in Section 1.1
of the Second Amended Indenture are amended and restated to read in full as
follows:

 

“Common Stock” means the common stock, par value $.01 per share,
of the Company, as it exists at the Second Supplemental Indenture Effective
Time or any other shares of Capital Stock of the Company into which Common
Stock shall be reclassified or changed.

 

“Company” means Cimarex Energy Co., a Delaware corporation,
until a successor replaces it pursuant to the applicable provisions of this
Indenture and, thereafter, shall mean such successor.  The foregoing sentence shall likewise apply
to any subsequent successor or successors.

 

3

 

“Enterprise Value” means, as of any date of calculation, an
amount equal to (i) the product of (A) the Common Stock Price on the
immediately preceding Trading Day and (B) the aggregate number of shares
of Common Stock outstanding on the immediately preceding Trading Day, plus (ii) the
aggregate amount of outstanding indebtedness of the Company and its
subsidiaries on a consolidated basis, as determined in accordance with GAAP, on
the immediately preceding Trading Day, plus (iii) the aggregate amount
recorded as outstanding preferred stock of the Company and its subsidiaries on
a consolidated basis, as determined in accordance with GAAP, on the immediately
preceding Trading Day, minus (iv) the aggregate amount of cash and cash
equivalents held by the Company and its subsidiaries on a consolidated basis on
the immediately preceding Trading Day.

 

“First Supplemental Indenture” means the First Supplemental
Indenture, dated as of June 6, 2005, among the Company, Magnum Hunter
Resources, Inc., the Subsidiary Guarantors party thereto, and the Trustee.

 

“Indenture” means this instrument as originally executed, as
supplemented and amended by the First Supplemental Indenture, the Second
Supplemental Indenture and the Third Supplemental Indenture and as amended or
supplemented from time to time in accordance with the terms hereof, including
the provisions of the TIA that are deemed to be a part hereof.

 

“Second Supplemental Indenture” means the Second Supplemental
Indenture, dated as of June 6, 2005, among the Company, Magnum Hunter
Resources, Inc., the Subsidiary Guarantors party thereto, and the Trustee.

 

“Subsidiary Guarantor” means (i) each Subsidiary of the
Company listed on the signature pages of the Third Supplemental Indenture
and (ii) any Subsidiary of the Company that provides a Guarantee with
respect to the Securities pursuant to a supplemental indenture hereto; provided that any Person constituting a
Subsidiary Guarantor as described above shall cease to constitute a Subsidiary
Guarantor when its Guarantee is released in accordance with the terms of this
Indenture.

 

(b)                                 For
all purposes of the Indenture and the Securities, Section 1.1 of the
Second Amended Indenture is amended by adding the following defined terms:

 

“Third Supplemental Indenture” means the Third Supplemental
Indenture, dated as of June 13, 2005, among the Company, the Subsidiary Guarantors
and the Trustee.

 

4

 

(c)                                  For
all purposes of the Indenture and the Securities, Section 1.1 of the
Second Amended Indenture is amended by deleting therefrom the term “Successor
Issuer” and the definition thereof in its entirety.  For all purposes of the Indenture and the
Securities, all references to the terms “Successor Issuer” and “Successor
Issuer’s” in the Second Amended Indenture, including all exhibits attached
thereto, and the Securities shall be deemed to be deleted and the terms “Company”
and “Company’s,” respectively, shall be deemed to be substituted therefor.

 

(d)                                 For
avoidance of doubt, the term “Trustee” as set forth in Section 1.1 of the
Second Amended Indenture is not amended by this Third Supplemental Indenture.

 

Section 2.4                                      Amendments to Conversion of
the Securities

 

(a)                                  Section 10.05(g) of
the Second Amended Indenture is amended by deleting the reference therein to
the term “board of directors of the Successor Issuer” and replacing it with the
term “Board of Directors.”

 

(b)                                 Section 10.11
of the Second Amended Indenture is amended by deleting the references therein
to the term “Company and the Successor Issuer” and replacing them with the term
“Company.”

 

(c)                                  The
first two sentences of Section 10.14(c) of the Second Amended
Indenture are amended and restated to read in full as follows:

 

The Company shall pay the Principal Return and cash for fractional
shares and deliver the Net Shares, if any, as promptly as practicable after the
Conversion Date, but in no event later than four Business Days thereafter.  Except as provided in Section 10.02(c) and
this Section 10.14(c), delivery of the Principal Return, Net Shares, and
cash in lieu of fractional shares shall be deemed to satisfy the Company’s
obligation with respect to a converted Security.

 

Section 2.5                                      Amendments to Section 12.02

 

Section 12.02 of the Indenture is hereby amended to provide for
the following new address for notices to the Company:

 

if to the Company:

 

Cimarex Energy Co.

1700 Lincoln Street

Suite 1800

Denver, Colorado  80203

Attention:  Chief Financial
Officer

Facsimile No.:  (303) 285-9299

 

5

 

Section 2.6                                      Amendments to Section 12.11

 

Section 12.11 of the Second Amended Indenture is amended by
deleting in its entirety the following sentence thereto:

 

All agreements of the Successor Issuer in this Indenture and the
Securities shall bind its successor.

 

Section 2.7                                      Amendments to Exhibits A-1 and A-2

 

(a)                                  Exhibits
A-1 and A-2 to the Second Amended Indenture are amended by deleting all
references therein to the terms “Magnum Hunter Resources, Inc.” and “Magnum
Hunter Resources, Inc., a Nevada corporation” and replacing them with the
terms “Cimarex Energy Co.” and “Cimarex Energy Co., a Delaware corporation,”
respectively.

 

(b)                                 The
first sentence in paragraph (4) of each of the Form of Reverse Side
of Note attached as Exhibits A-1 and A-2 to the Second Amended Indenture is
amended and restated to read in full as follows:

 

Magnum Hunter Resources, Inc., a Nevada corporation, issued the
Securities under an Indenture, dated as of December 17, 2003, among Magnum
Hunter Resources, Inc., the Subsidiary Guarantors party thereto, and the
Trustee.  Such Indenture was supplemented
and amended by (1) the First Supplemental Indenture, dated as of June 6,
2005 (the “First Supplemental Indenture”), among Magnum Hunter Resources, Inc.,
the Subsidiary Guarantors party thereto, and the Trustee, (2) the Second
Supplemental Indenture, dated as of June 7, 2005 (the “Second
Supplemental Indenture”), among Cimarex Energy Co., a Delaware corporation,
Magnum Hunter Resources, Inc., the Subsidiary Guarantors party thereto,
and the Trustee and (3) the Third Supplemental Indenture, dated as of June 13,
2005 (the “Third Supplemental Indenture”), among Cimarex Energy Co.,
successor by merger to Magnum Hunter Resources, Inc., the Subsidiary
Guarantors party thereto, and the Trustee. 
Such Indenture, as supplemented and amended by the First Supplemental
Indenture, the Second Supplemental Indenture and the Third Supplemental
Indenture and as it may from time to time be supplemented or amended by one or
more other indentures supplemental thereto entered into pursuant to the
applicable provisions thereof is herein referred to as the “Indenture.”

 

Section 2.8                                      Amendment to Exhibit C

 

The last sentence of the first paragraph of the Guarantee attached as Exhibit C
to the Original Indenture is amended and restated to read in full as follows:

 

Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Indenture, dated as of 

 

6

 

December 17, 2003, among Magnum Hunter Resources, Inc., the
Subsidiary Guarantors party thereto and Deutsche Bank Trust Company Americas,
as Trustee (as supplemented and amended by (1) the First Supplemental
Indenture, dated as of June 6, 2005 (the “First Supplemental Indenture”),
among Magnum Hunter Resources, Inc., the Subsidiary Guarantors party
thereto, and the Trustee, (2) the Second Supplemental Indenture, dated as
of June 7, 2005 (the “Second Supplemental Indenture”), among
Cimarex Energy Co., a Delaware corporation, Magnum Hunter Resources, Inc.,
the Subsidiary Guarantors party thereto, and the Trustee and (3) the Third
Supplemental Indenture, dated as of June 13, 2005 (the “Third
Supplemental Indenture”), among Cimarex Energy Co., successor by merger to
Magnum Hunter Resources, Inc., the Subsidiary Guarantors party thereto,
and the Trustee, and as it may from time to time be supplemented or amended by
one or more other indentures supplemental thereto entered into pursuant to the
applicable provisions thereof, the “Indenture”).

 

Section 2.9                                      Amendments to Securities

 

The first sentence in paragraph (4) of the reverse side of the
Securities is amended and restated to read in full as follows:

 

Magnum Hunter Resources, Inc., a Nevada corporation, issued the
Securities under an Indenture, dated as of December 17, 2003, among Magnum
Hunter Resources, Inc., the Subsidiary Guarantors party thereto, and the
Trustee.  Such Indenture was supplemented
and amended by (1) the First Supplemental Indenture, dated as of June 6,
2005 (the “First Supplemental Indenture”), among Magnum Hunter Resources, Inc.,
the Subsidiary Guarantors party thereto, and the Trustee, (2) the Second
Supplemental Indenture, dated as of June 7, 2005 (the “Second
Supplemental Indenture”), among Cimarex Energy Co., a Delaware corporation,
Magnum Hunter Resources, Inc., the Subsidiary Guarantors party thereto,
and the Trustee and (3) the Third Supplemental Indenture, dated as of June 13,
2005 (the “Third Supplemental Indenture”), among Cimarex Energy Co.,
successor by merger to Magnum Hunter Resources, Inc., the Subsidiary
Guarantors party thereto, and the Trustee. 
Such Indenture, as supplemented and amended by the First Supplemental
Indenture, the Second Supplemental Indenture and the Third Supplemental
Indenture and as it may from time to time be supplemented or amended by one or
more other indentures supplemental thereto entered into pursuant to the
applicable provisions thereof is herein referred to as the “Indenture.”

 

7

 

ARTICLE III

ADDITION OF SUBSIDIARY GUARANTORS

 

Section 3.1                                      Guarantees

 

(a)                                  Each
of the New Subsidiary Guarantors agrees that it hereby shall become a “Subsidiary
Guarantor” under and for all purposes of the Indenture with all the rights and
obligations of a Subsidiary Guarantor thereunder, and for that purpose and
subject to Section 3.1(b) of this Third Supplemental Indenture
hereby, jointly and severally, unconditionally and irrevocably guarantees, on
an unsecured senior basis (such guarantee is referred to herein as a “Guarantee”)
to each Holder of a Security authenticated and delivered by the Trustee and to
the Trustee and its successors and assigns, irrespective of the validity and
enforceability of the Indenture, the Securities or the obligations of the
Company or any other Subsidiary Guarantors to the Holders or the Trustee under
the Indenture or the Securities, that: (a) the principal of, premium, if
any, and interest on the Securities (including Liquidated Damages, if any)
shall be duly and punctually paid in full when due, whether at maturity, by
acceleration, upon redemption, purchase or otherwise, and interest on the
overdue principal and (to the extent permitted by law) interest, if any, on the
Securities and all other obligations of the Company or the Subsidiary
Guarantors to the Holders or the Trustee under the Indenture or the Securities (including
amounts due the Trustee under Section 7.07 of the Indenture) and all other
obligations shall be promptly paid in full or performed, all in accordance with
the terms of the Indenture and the Securities; and (b) in case of any
extension of time of payment or renewal of any Securities or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at maturity, by
acceleration or otherwise, all in accordance with and subject to the terms and
conditions of the Securities and Article 11 of the Indenture.

 

(b)                                 The
obligations of each New Subsidiary Guarantor to the Holders of Securities and
to the Trustee pursuant to its Guarantee and the Indenture are expressly set
forth in Article 11 of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee of each New Subsidiary
Guarantor and all of the other provisions of the Indenture pursuant to which
such Guarantees relate.

 

(c)                                  The
Guarantees are subject to release upon the terms set forth in the Indenture.

 

(d)                                 As
used in this Section 3.1, (i) the term “Subsidiary Guarantor” has the
meaning assigned to it in the Indenture, and (ii) the terms “Indenture,” “Security,”
and “Securities” mean the Indenture, Security and Securities as they may be
amended or supplemented from time to time, including without limitation
pursuant to the First Supplemental Indenture, the Second Supplemental Indenture
and this Third Supplemental Indenture.

 

(e)                                  In
the event of any conflict or inconsistency between the terms of any Guarantee
set forth in this Third Supplemental Indenture and the provisions of the
Indenture relating to the guarantees of Subsidiary Guarantors, the provisions
of the Indenture shall control.

 

8

 

Section 3.2                                      Notations of Guaranties

 

Concurrently with the execution and delivery of this Third Supplemental
Indenture, each New Subsidiary Guarantor shall execute and deliver to the
Trustee a notation of its Guarantee substantially in the form of Exhibit C
to the Indenture.  Such notation shall be
executed on behalf of each New Subsidiary Guarantor by either manual or
facsimile signature of one Officer of each New Subsidiary Guarantor, who, in
each case, shall have been duly authorized to so execute by all requisite
corporate action.  The validity and
enforceability of any Guarantee shall not be affected by the fact that the
notation of such Guarantee is not affixed to any particular Note.

 

ARTICLE IV

CONCERNING THE TRUSTEE

 

Section 4.1                                      Terms and Conditions

 

The Trustee accepts this Third Supplemental Indenture and agrees to
perform the express duties of the Trustee upon the terms and conditions set
forth herein and in the Second Amended Indenture, as modified by this Third
Supplemental Indenture.

 

Section 4.2                                      No Responsibility

 

The Trustee makes no undertaking or representations in respect of, and
shall not be responsible in any manner whatsoever for and in respect of, the
validity or sufficiency of this Third Supplemental Indenture or the proper
authorization or the due execution hereof by the Successor Issuer or the
Subsidiary Guarantors or for or in respect of the recitals and statements
contained herein, all of which recitals and statements are made solely by the
Successor Issuer or the Subsidiary Guarantors, as the case may be.

 

ARTICLE V

EFFECT OF EXECUTION AND DELIVERY

 

This Third Supplemental Indenture shall become effective immediately
upon the effectiveness of the Successor Issuer Merger.  Upon and after the effectiveness of the
Successor Issuer Merger and without any further notice or action on the part of
the Successor Issuer, the Subsidiary Guarantors, the Trustee, any Holder or any
other Person, (i) the Indenture shall be deemed to be modified in
accordance with the assumption, substitution and amendments set forth in Article II
and the Guarantees set forth in Article III of this Third Supplemental
Indenture, (ii) this Third Supplemental Indenture shall form a part of the
Indenture for all purposes, (iii) each reference in the Indenture to “this
Indenture,” “hereunder,” “herein” or words of like import shall mean and be a
reference to the Indenture, as affected, amended and supplemented hereby, (iv) except
as expressly modified by this Third Supplemental Indenture, the Second Amended
Indenture shall continue in full force and effect, (v) the Securities
shall continue to be governed by the Second Amended Indenture, as modified by
this Third Supplemental Indenture, and (vi) every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound by the
Second Amended Indenture, as modified by this Third Supplemental Indenture.

 

9

 

ARTICLE VI

MISCELLANEOUS PROVISIONS

 

Section 6.1                                      Headings

 

The Article and Section headings in this Third Supplemental
Indenture are for convenience only and shall not affect the construction of
this Third Supplemental Indenture.

 

Section 6.2                                      Rights and Obligations of the
Trustee

 

All of the provisions of the Second Amended Indenture with respect to
the rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of this Third Supplemental Indenture as fully and with
the same effect as if set forth herein in full.

 

Section 6.3                                      Successors

 

All agreements of the Successor Issuer and each of the Subsidiary
Guarantors in this Third Supplemental Indenture shall bind their respective
successors.  All agreements of the
Trustee in this Third Supplemental Indenture shall bind its successors.

 

Section 6.4                                      Separability Clause

 

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

 

Section 6.5                                      Multiple Originals

 

This Third Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

 

Section 6.6                                      Governing Law

 

THIS THIRD SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 6.7                                      Conflict with Trust Indenture
Act

 

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

 

10

 

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

 

	
   

  	
  SUCCESSOR ISSUER:

  
	
   

  	
   

  
	
   

  	
  CIMAREX ENERGY CO.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXISTING SUBSIDIARY GUARANTORS:

  
	
   

  
	
   

  	
  MAGNUM HUNTER PRODUCTION, INC.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRUY PETROLEUM MANAGEMENT CO.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HUNTER GAS GATHERING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRAPMAR PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
									

 

 

	
   

  	
  CONMAG ENERGY CORPORATION

  
	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PINTAIL ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRIZE OPERATING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PEC (DELAWARE), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRIZE ENERGY RESOURCES, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prize Operating Company,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
					

 

 

	
   

  	
  OKLAHOMA GAS PROCESSING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
  CIMAREX TEXAS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Cimarex Energy Co.

  its Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CIMAREX TEXAS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Cimarex Energy Co.

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CIMAREX CALIFORNIA PIPELINE LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Cimarex Energy Co.

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
							

 

 

	
   

  	
  CIMAREX ENERGY SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KEY PRODUCTION COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KEY TEXAS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Key Production Company, Inc.

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KEY PRODUCTION TEXAS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Key Production Company, Inc.

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BROCK GAS SYSTEMS & EQUIPMENT,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
						

 

 

	
   

  	
  COLUMBUS ENERGY CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBUS TEXAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBUS ENERGY L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Columbus Energy Corp.

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMBUS GAS SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Korus

  
	
   

  	
  Name:

  	
  Paul Korus

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irina Golovashchuk

  
	
   

  	
  Name:

  	
  Irina Golovashchuk

  
	
   

  	
  Title:

  	
  Associate

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]