Document:

exv4w1

 

Exhibit 4.1

 

MARINER ENERGY, INC.

THE GUARANTORS PARTIES HERETO,

AND

WELLS FARGO BANK, N.A.,

AS TRUSTEE

[                    ]% Senior Notes due [                    ]

 

INDENTURE

Dated as of                     , 2007

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	Section 1.1.
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Other Definitions	 	 	33	 
	Section 1.3.
	 	Incorporation by Reference of Trust Indenture Act	 	 	35	 
	Section 1.4.
	 	Rules of Construction	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE II THE NOTES	 	 	36	 
	Section 2.1.
	 	Form, Dating and Terms	 	 	36	 
	Section 2.2.
	 	Execution and Authentication	 	 	41	 
	Section 2.3.
	 	Registrar and Paying Agent	 	 	42	 
	Section 2.4.
	 	Paying Agent to Hold Money in Trust	 	 	43	 
	Section 2.5.
	 	Holder Lists	 	 	43	 
	Section 2.6.
	 	Transfer and Exchange	 	 	43	 
	Section 2.7.
	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S	 	 	46	 
	Section 2.8.
	 	Mutilated, Destroyed, Lost or Wrongfully Taken Notes	 	 	47	 
	Section 2.9.
	 	Outstanding Notes	 	 	48	 
	Section 2.10.
	 	Cancellation	 	 	48	 
	Section 2.11.
	 	Payment of Interest; Defaulted Interest	 	 	49	 
	Section 2.12.
	 	Computation of Interest	 	 	50	 
	Section 2.13.
	 	CUSIP Numbers, Etc	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE III COVENANTS	 	 	50	 
	Section 3.1.
	 	Payment of Notes	 	 	50	 
	Section 3.2.
	 	Reports	 	 	50	 
	Section 3.3.
	 	Incurrence of Indebtedness and Issuance of Preferred Stock	 	 	51	 
	Section 3.4.
	 	Restricted Payments	 	 	55	 
	Section 3.5.
	 	Liens	 	 	60	 
	Section 3.6.
	 	Dividend and Other Payment Restrictions Affecting Subsidiaries	 	 	60	 
	Section 3.7.
	 	Asset Sales	 	 	62	 
	Section 3.8.
	 	Transactions with Affiliates	 	 	65	 
	Section 3.9.
	 	Change of Control Triggering Event	 	 	67	 
	Section 3.10.
	 	Future Note Guarantees	 	 	69	 
	Section 3.11.
	 	Designation of Restricted and Unrestricted Subsidiaries	 	 	69	 
	Section 3.12.
	 	Maintenance of Office or Agency	 	 	70	 
	Section 3.13.
	 	Corporate Existence	 	 	71	 
	Section 3.14.
	 	Payment of Taxes and Other Claims	 	 	71	 
	Section 3.15.
	 	Compliance Certificate	 	 	71	 
	Section 3.16.
	 	Further Instruments and Acts	 	 	71	 
	Section 3.17.
	 	Statement by Officers as to Default	 	 	71	 
	Section 3.18.
	 	Payments for Consent	 	 	72	 
	Section 3.19.
	 	Effectiveness of Covenants and
Other Provisions Upon an Investment Grade Rating Event	 	 	72	 
	 
	 		 	 	 	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE IV SUCCESSOR COMPANY	 	 	72	 
	Section 4.1.
	 	Merger, Consolidation or Sale of Assets	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE V REDEMPTION OF NOTES	 	 	73	 
	Section 5.1.
	 	Optional Redemption	 	 	74	 
	Section 5.2.
	 	Applicability of Article	 	 	75	 
	Section 5.3.
	 	Election to Redeem; Notice to Trustee	 	 	75	 
	Section 5.4.
	 	Selection by Trustee of Notes to Be Redeemed	 	 	75	 
	Section 5.5.
	 	Notice of Redemption	 	 	75	 
	Section 5.6.
	 	Deposit of Redemption Price	 	 	76	 
	Section 5.7.
	 	Notes Payable on Redemption Date	 	 	76	 
	Section 5.8.
	 	Notes Redeemed in Part	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE VI DEFAULTS AND REMEDIES	 	 	77	 
	Section 6.1.
	 	Events of Default	 	 	77	 
	Section 6.2.
	 	Acceleration	 	 	79	 
	Section 6.3.
	 	Other Remedies	 	 	80	 
	Section 6.4.
	 	Waiver of Past Defaults	 	 	80	 
	Section 6.5.
	 	Control by Majority	 	 	81	 
	Section 6.6.
	 	Limitation on Suits	 	 	81	 
	Section 6.7.
	 	Rights of Holders to Receive Payment	 	 	81	 
	Section 6.8.
	 	Collection Suit by Trustee	 	 	81	 
	Section 6.9.
	 	Trustee May File Proofs of Claim	 	 	82	 
	Section 6.10.
	 	Priorities	 	 	82	 
	Section 6.11.
	 	Undertaking for Costs	 	 	82	 
	Section 6.12.
	 	Waiver of Stay, Extension and Usury Laws	 	 	83	 
	 
	 	 	 	 	 	 
	ARTICLE VII TRUSTEE	 	 	83	 
	Section 7.1.
	 	Duties of Trustee	 	 	83	 
	Section 7.2.
	 	Rights of Trustee	 	 	84	 
	Section 7.3.
	 	Individual Rights of Trustee	 	 	86	 
	Section 7.4.
	 	Trustee’s Disclaimer	 	 	86	 
	Section 7.5.
	 	Notice of Defaults	 	 	86	 
	Section 7.6.
	 	Reports by Trustee to Holders	 	 	86	 
	Section 7.7.
	 	Compensation and Indemnity	 	 	86	 
	Section 7.8.
	 	Replacement of Trustee	 	 	87	 
	Section 7.9.
	 	Successor Trustee by Merger	 	 	88	 
	Section 7.10.
	 	Eligibility; Disqualification	 	 	88	 
	Section 7.11.
	 	Preferential Collection of Claims Against Company	 	 	88	 
	 
	 	 	 	 	 	 
	ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	88	 
	Section 8.1.
	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	 	89	 
	Section 8.2.
	 	Legal Defeasance and Discharge	 	 	89	 
	Section 8.3.
	 	Covenant Defeasance	 	 	89	 
	Section 8.4.
	 	Conditions to Legal or Covenant Defeasance	 	 	90	 
	Section 8.5.
	 	Deposited Cash and Government
Securities to be Held in Trust; Other Miscellaneous Provisions	 	 	91	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 8.6.
	 	Repayment to Company	 	 	91	 
	Section 8.7.
	 	Reinstatement	 	 	92	 
	 
	 	 	 	 	 	 
	ARTICLE IX AMENDMENTS	 	 	92	 
	Section 9.1.
	 	Without Consent of Holders	 	 	92	 
	Section 9.2.
	 	With Consent of Holders	 	 	93	 
	Section 9.3.
	 	Compliance with Trust Indenture Act	 	 	94	 
	Section 9.4.
	 	Revocation and Effect of Consents and Waivers	 	 	94	 
	Section 9.5.
	 	Notation on or Exchange of Notes	 	 	95	 
	Section 9.6.
	 	Trustee To Sign Amendments	 	 	95	 
	 
	 	 	 	 	 	 
	ARTICLE X NOTE GUARANTEE	 	 	95	 
	Section 10.1.
	 	Note Guarantee	 	 	95	 
	Section 10.2.
	 	Limitation on Liability; Termination, Release and Discharge	 	 	97	 
	Section 10.3.
	 	Limitation of Guarantors’ Liability	 	 	98	 
	Section 10.4.
	 	Contribution	 	 	98	 
	 
	 	 	 	 	 	 
	ARTICLE XI SATISFACTION AND DISCHARGE	 	 	99	 
	Section 11.1.
	 	Satisfaction and Discharge	 	 	99	 
	 
	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	100	 
	Section 12.1.
	 	Trust Indenture Act Controls	 	 	100	 
	Section 12.2.
	 	Notices	 	 	100	 
	Section 12.3.
	 	Communication by Holders with other Holders	 	 	101	 
	Section 12.4.
	 	Certificate and Opinion as to Conditions Precedent	 	 	101	 
	Section 12.5.
	 	Statements Required in Certificate or Opinion	 	 	101	 
	Section 12.6.
	 	When Notes Disregarded	 	 	102	 
	Section 12.7.
	 	Rules by Trustee, Paying Agent and Registrar	 	 	102	 
	Section 12.8.
	 	Legal Holidays	 	 	102	 
	Section 12.9.
	 	GOVERNING LAW	 	 	102	 
	Section 12.10.
	 	No Recourse Against Others	 	 	102	 
	Section 12.11.
	 	Successors	 	 	102	 
	Section 12.12.
	 	Multiple Originals	 	 	103	 
	Section 12.13.
	 	Severability	 	 	103	 
	Section 12.14.
	 	No Adverse Interpretation of Other Agreements	 	 	103	 
	Section 12.15.
	 	Table of Contents; Headings	 	 	103	 
	 
	 	 	 	 	 	 
	EXHIBIT A
	 	Form of the Note	 	 	 	 
	EXHIBIT B
	 	Form of the Exchange Note	 	 	 	 
	EXHIBIT C
	 	Form of Supplemental Indenture	 	 	 	 

iii

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(b)
	 	7.8; 7.10
	(c)
	 	N.A.
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.5
	(b)
	 	12.3
	(c)
	 	12.3
	313(a)
	 	7.6
	(b)(1)
	 	7.6
	(b)(2)
	 	7.6
	(c)
	 	7.6
	(d)
	 	7.6
	314(a)
	 	3.2; 12.2
	(b)
	 	N.A.
	(c)(1)
	 	11.4
	(c)(2)
	 	11.4
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	12.5
	315(a)
	 	7.1
	(b)
	 	7.5; 12.2
	(c)
	 	7.1
	(d)
	 	7.1
	(e)
	 	6.11
	316(a)(last sentence)
	 	12.6
	(a)(1)(A)
	 	6.5
	(a)(1)(B)
	 	6.4
	(a)(2)
	 	N.A.
	(b)
	 	6.7
	317(a)(1)
	 	6.8
	(a)(2)
	 	6.9
	(b)
	 	2.4
	318(a)
	 	12.1

N.A. means Not Applicable.

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

iv

 

     INDENTURE dated as of                     , 2007, among MARINER ENERGY, INC., a Delaware corporation
(the “Company”), the GUARANTORS (as defined herein) and WELLS FARGO BANK, N.A., a national
banking association, as trustee (the “Trustee”).

     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of (i) the Company’s [                    ] % Senior Notes due [                    ], issued on
the date hereof in a registered offering (the “Initial Notes”), (ii) if and when issued, an
unlimited principal amount of additional [                    ]% Senior Notes due [                    ] in a non-registered offering
or in a registered offering of the Company that may be offered from time to time subsequent to the
Issue Date (the “Additional Notes”) and (iii) if and when issued, the Company’s [                    ]%
Senior Notes due [                    ] that may be issued from time to time in exchange for any Additional
Restricted Notes (as defined herein) in an offer registered under the Securities Act (the
“Exchange Notes,” and together with the Initial Notes and Additional Notes, the
“Notes”).

ARTICLE I

Definitions and Incorporation by Reference

     Section 1.1. Definitions.

     “Acquired Debt” means, with respect to any specified Person:

	 	(1)	 	Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person, whether or not
such Indebtedness is incurred in connection with, or in contemplation of, such other
Person merging with or into, or becoming a Restricted Subsidiary of, such specified
Person but excluding Indebtedness which is extinguished, retired or repaid in
connection with such Person merging with or becoming a Subsidiary of such specified
Person; and
	 
	 	(2)	 	Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Additional Assets” means:

	 	(1)	 	any assets used or useful in the Oil and Gas Business, other than Indebtedness
or Capital Stock;
	 
	 	(2)	 	the Capital Stock of a Person that becomes a Restricted Subsidiary as a result
of the acquisition of such Capital Stock by the Company or any of its Restricted
Subsidiaries; or
	 
	 	(3)	 	Capital Stock constituting a minority interest in any Person that at such time
is a Restricted Subsidiary;

provided, however, that any such Restricted Subsidiary described in clause (2) or (3) is primarily
engaged in the Oil and Gas Business.

1

 

     “Additional Notes” has the meaning ascribed to it in the second introductory paragraph
of this Indenture.

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

	 	(1)	 	the sum of:

(a) discounted future net revenue from proved crude oil and natural gas reserves of
the Company and its Restricted Subsidiaries calculated in accordance with SEC
guidelines before any state or Federal income taxes, as estimated in a reserve
report prepared as of the end of the fiscal year ending at least 91 days prior to
the date of determination, which reserve report is prepared or audited by
independent petroleum engineers as increased by, as of the date of determination,
the discounted future net revenue of:

	 	(i)	 	estimated proved crude oil and natural gas
reserves of the Company and its Restricted Subsidiaries attributable to
acquisitions consummated since the date of such reserve report, and
	 
	 	(ii)	 	estimated crude oil and natural gas reserves of
the Company and its Restricted Subsidiaries attributable to extensions,
discoveries and other additions and upward determinations of estimates
of proved crude oil and natural gas reserves (including previously
estimated development costs incurred during the period and the
accretion of discount since the prior period end) due to exploration,
development or exploitation, production or 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 case calculated in accordance with SEC
guidelines (utilizing the prices utilized in such year-end reserve
report),

and decreased by, as of the date of determination, the discounted future net
revenue attributable to:

	 	(iii)	 	estimated proved crude oil and natural gas
reserves of the Company and its Restricted Subsidiaries reflected in
such reserve report produced or disposed of since the date of such
reserve report, and
	 
	 	(iv)	 	reductions in the estimated oil and natural gas
reserves of the Company and its Restricted Subsidiaries reflected in
such reserve report since the date of such reserve report attributable
to downward determinations of estimates of proved crude oil and natural
gas reserves due to exploration, development or exploitation,
production or other activities conducted or otherwise

2

 

	 	 	 	occurring since the date of such reserve report which would, in
accordance with standard industry practice, result in such
determinations, in each case calculated in accordance with SEC
guidelines (utilizing the prices utilized in such reserve report);

provided, however, that, in the case of each of the determinations made
pursuant to clauses (i) through (iv), such increases and decreases shall be
estimated by the Company’s engineers, except that if as a result of such
acquisitions, dispositions, discoveries, extensions or revisions, there is a
Material Change, then such increases and decreases in the discounted future
net revenue shall be confirmed in writing by an independent petroleum
engineer;

(b) the capitalized costs that are attributable to crude oil and natural gas
properties of the Company and its Restricted Subsidiaries to which no proved crude
oil and natural gas reserves are attributable, based on the Company’s books and
records as of a date no earlier than the date of the Company’s latest available
annual or quarterly financial statements;

(c) the Net Working Capital (excluding, to the extent included in the determination
of discounted future net revenues under clause (1)(a) above, any adjustments made
pursuant to FAS 143) as of a date no earlier than the date of the Company’s latest
available annual or quarterly financial statements; and

(d) the greater of

	 	(i)	 	the net book value as of a date no earlier than
the date of the Company’s latest available annual or quarterly
financial statements and
	 
	 	(ii)	 	the appraised value, as estimated by
independent appraisers, of other tangible assets of the Company and its
Restricted Subsidiaries as of a date no earlier than the date of the
Company’s latest available annual or quarterly financial statements
(provided that the Company shall not be required to obtain such an
appraisal of such assets if no such appraisal has been performed);
minus

	 	(2)	 	the sum of:

(a) Minority Interests;

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

(c) to the extent included in clause (1)(a) above, the discounted future net
revenue, calculated in accordance with SEC guidelines (utilizing the same prices in
the Company’s year-end reserve report), attributable to reserves subject to
participation interests, overriding royalty interests or other interests of third

3

 

parties, pursuant to participation, partnership, vendor financing or other
agreements then in effect, or which otherwise are required to be delivered to third
parties;

(d) to the extent included in clause (1)(a) above, the discounted future net revenue
calculated in accordance with SEC guidelines (utilizing the same prices utilized in
the Company’s year-end reserve report), attributable to reserves that are required
to be delivered to third parties to fully satisfy the obligations of the Company and
its Restricted Subsidiaries with respect to Volumetric Production Payments on the
schedules specified with respect thereto; and

(e) the discounted future net revenue, calculated in accordance with SEC guidelines,
attributable to reserves subject to Dollar-Denominated Production Payments that,
based on the estimates of production included in determining the discounted future
net revenue specified in the immediately preceding clause (i)(a) (utilizing the same
prices utilized in the Company’s year-end reserve report), would be necessary to
satisfy fully the obligations of the Company and its Restricted Subsidiaries with
respect to Dollar-Denominated Production Payments on the schedules specified with
respect thereto.

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

     “Adjusted Net Assets” of a Guarantor at any date means the amount by which the fair
value of the properties and assets of such Guarantor exceeds the total amount of liabilities,
including, without limitation, contingent liabilities (after giving effect to all other fixed and
contingent liabilities incurred or assumed on such date), but excluding liabilities under its Note
Guarantee, of such Guarantor at such date.

     “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 purposes of this definition, “control,” as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings.

     “Applicable Premium” means, with respect to any Note on any Redemption Date, an amount
equal to the excess of:

	 	(1)	 	the present value at such Redemption Date of (A) the redemption price of the
Note at [                                        , [                    ]] plus (B) all required interest payments and Special
Interest payments, if applicable, due on the Note through [                                        ,                     ]] (excluding
accrued but unpaid interest and Special Interest, if any, to the Redemption Date)
discounted back to the Redemption Date on a semi-annual

4

 

	 	 	 	basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal
to the Treasury Rate as of such Redemption Date plus 50 basis points; over
	 	 	 	 
	 	(2)	 	the principal amount of the Note.

     Unless the Company defaults in payment of the Applicable Premium, on and after the applicable
Redemption Date, interest and Special Interest will cease to accrue on the Notes to be redeemed.

     “Asset Sale” means:

	 	(1)	 	the sale, lease, conveyance or other disposition of any assets or rights
(including by way of a Production Payment or a sale and leaseback transaction);
provided that the sale, lease, conveyance or other disposition of all or substantially
all of the assets of the Company or of the Company and its Restricted Subsidiaries
taken as a whole will be governed by Sections 3.9 and/or 4.1 and not by
Section 3.7; and
	 
	 	(2)	 	the issuance of Equity Interests in any of the Company’s Restricted
Subsidiaries or the sale of Equity Interests held by the Company or its Subsidiaries in
any of its Subsidiaries.

Notwithstanding the preceding, none of the following items will be deemed to be an Asset
Sale:

	 	(1)	 	any single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $5.0 million;
	 
	 	(2)	 	a transfer of assets between or among the Company and its Restricted
Subsidiaries;
	 
	 	(3)	 	an issuance of Equity Interests by a Restricted Subsidiary of the Company to
the Company or to a Restricted Subsidiary of the Company;
	 
	 	(4)	 	the sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or obsolete
assets in the ordinary course of business;
	 
	 	(5)	 	the sale or other disposition of cash or Cash Equivalents;
	 
	 	(6)	 	a Restricted Payment that is permitted by Section 3.4;
	 
	 	(7)	 	a Permitted Investment, including without limitation, unwinding Hedging
Obligations;
	 
	 	(8)	 	a disposition of Hydrocarbons or mineral products inventory in the ordinary
course of business;

5

 

	 	(9)	 	the sale or transfer (whether or not in the ordinary course of business) of
crude oil and natural 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;
	 
	 	(10)	 	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;
	 
	 	(11)	 	any trade or exchange by the Company or any Restricted Subsidiary of oil and
gas properties or other properties or assets for oil and gas properties or other
properties or assets owned or held by another Person, provided that the Fair Market
Value of the properties or assets traded or exchanged by the Company or such Restricted
Subsidiary (together with any cash) is reasonably equivalent to the Fair Market Value
of the properties or assets (together with any cash) to be received by the Company or
such Restricted Subsidiary, and provided further that any net cash received must be
applied in accordance with Section 3.7;
	 
	 	(12)	 	the creation or perfection of a Lien (but not, except to the extent
contemplated in clause (13) below, the sale or other disposition of the properties or
assets subject to such Lien);
	 
	 	(13)	 	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;
	 
	 	(14)	 	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
	 
	 	(15)	 	a surrender or waiver of contract rights or the settlement, release or
surrender of contract, tort or other claims of any kind.

     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time
of determination, the present value of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction including any
period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest implicit
in such transaction, determined in accordance with GAAP.

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

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be

6

 

deemed to have beneficial ownership of all securities that such “person” has the right to
acquire by conversion or exercise of other securities, whether such right is currently exercisable
or is exercisable only after the passage of time. The terms “Beneficial Ownership”, “Beneficially
Owns” and “Beneficially Owned” have a corresponding meaning.

     “Board of Directors” means:

	 	(1)	 	with respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

	 	(2)	 	with respect to a partnership, the board of directors of the general partner of
the partnership;

	 	(3)	 	with respect to a limited liability company, the managing member or members or
any controlling committee of managing members thereof; and
	 
	 	(4)	 	with respect to any other Person, the board or committee of such Person serving
a similar function.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the applicable 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 each day that is not a Saturday, Sunday or other day on which
banking institutions in New York, New York or another place of payment are authorized or required
by law to close.

     “Capital Lease Obligation” means, at the time any determination is to be made, the
amount of the liability in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet prepared 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 prepaid by the lessee without payment of a penalty.

     “Capital Stock” means:

	 	(1)	 	in the case of a corporation, corporate stock;
	 
	 	(2)	 	in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock;
	 
	 	(3)	 	in the case of a partnership or limited liability company, partnership
interests (whether general or limited) or membership interests; and
	 
	 	(4)	 	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,

7

 

	 	 	 	but excluding from all of the foregoing any debt securities convertible into Capital
Stock, whether or not such debt securities include any right of participation with
Capital Stock.

     “Cash Equivalents” means:

	 	(1)	 	United States dollars;
	 
	 	(2)	 	securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality of the United States government
(provided that the full faith and credit of the United States is pledged in support of
those securities) having maturities of not more than one year from the date of
acquisition;
	 
	 	(3)	 	marketable general obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality
thereof maturing within one year from the date of acquisition thereof and, at the time
of acquisition thereof, having a credit rating of “A” or better from either S&P or
Moody’s;
	 
	 	(4)	 	certificates of deposit, demand deposit accounts and eurodollar time deposits
with maturities of one year or less from the date of acquisition, bankers’ acceptances
with maturities not exceeding one year and overnight bank deposits, in each case, with
any domestic commercial bank having capital and surplus in excess of $500.0 million and
a Thomson Bank Watch Rating of “B” or better;
	 
	 	(5)	 	repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2), (3) and (4) above entered into with
any financial institution meeting the qualifications specified in clause (4) above;
	 
	 	(6)	 	commercial paper having one of the two highest ratings obtainable from Moody’s
or S&P and, in each case, maturing within six months after the date of acquisition; and
	 
	 	(7)	 	money market funds at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (1) through (6) of this definition.

     “Change of Control” means the occurrence of any of the following:

	 	(1)	 	the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the Company
and its Subsidiaries taken as a whole to any “person” (as that term is used in Section
13(d) of the Exchange Act);
	 
	 	(2)	 	the adoption of a plan relating to the liquidation or dissolution of the
Company;

8

 

	 	(3)	 	the consummation of any transaction (including, without limitation, any merger
or consolidation), the result of which is that any “person” (as defined above) becomes
the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of
the Company, measured by voting power rather than number of shares; or
	 
	 	(4)	 	during any period of two consecutive years, Continuing Directors cease to
constitute a majority of the Board of Directors of the Company.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Decline with respect to the Notes.

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

     “Consolidated Cash Flow” means, with respect to any specified Person for any period,
the Consolidated Net Income of such Person for such period plus without duplication:

	 	(1)	 	an amount equal to any extraordinary loss plus any net loss realized by such
Person or any of its Restricted Subsidiaries in connection with an Asset Sale (together
with any related provision for taxes and any related non-recurring charges relating to
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 its Stated Maturity), to the extent such losses were deducted in computing
such Consolidated Net Income; plus
	 
	 	(2)	 	provision for taxes based on income or profits of such Person and its
Restricted Subsidiaries for such period, to the extent that such provision for taxes
was deducted in computing such Consolidated Net Income; plus
	 
	 	(3)	 	the Fixed Charges of such Person and its Restricted Subsidiaries for such
period, to the extent that such Fixed Charges were deducted in computing such
Consolidated Net Income; plus
	 
	 	(4)	 	depreciation, depletion, amortization (including amortization of intangibles
but excluding amortization of prepaid cash expenses that were paid in a prior period),
impairment and other non-cash expenses (excluding any such non-cash expense to the
extent that it represents an accrual of or reserve for cash expenses in any future
period or amortization of a prepaid cash expense that was paid in a prior period) of
such Person and its Restricted Subsidiaries for such period to the extent that such
depreciation, depletion, amortization, impairment and other non-cash expenses were
deducted in computing such Consolidated Net Income; minus
	 
	 	(5)	 	non-cash items increasing such Consolidated Net Income for such period, other
than items that were accrued in the ordinary course of business, and minus
	 
	 	(6)	 	the sum of (a) the amount of deferred revenues that are amortized during such
period and are attributable to reserves that are subject to Volumetric Production

9

 

	 	 	 	Payments and (b) amounts recorded in accordance with GAAP as repayments of principal
and interest pursuant to Dollar-Denominated Production Payments,

in each case, on a consolidated basis and determined in accordance with GAAP.

     Notwithstanding the foregoing, the provision for taxes on the income or profits of, and the
depreciation, depletion and amortization and other non-cash charges and expenses of, a Restricted
Subsidiary of the referent Person shall be added to Consolidated Net Income to compute Consolidated
Cash Flow only to the extent (and in the same proportion) that the Net Income of such Restricted
Subsidiary was included in calculating the Consolidated Net Income of such Person and only if a
corresponding amount would be permitted at the date of determination to be dividended to the
referent Person by such Restricted Subsidiary without prior governmental approval (that has not
been obtained), and without direct or indirect restriction pursuant to the terms of its charter and
all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to that Restricted Subsidiary or its stockholders.

     “Consolidated Net Income” means, with respect to any specified Person for any period,
the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on
a consolidated basis, determined in accordance with GAAP; provided that:

	 	(1)	 	the Net Income (but not loss) of any Person that is not a Restricted Subsidiary
or that is accounted for by the equity method of accounting will be included only to
the extent of the amount of dividends or similar distributions paid in cash to the
specified Person or a Restricted Subsidiary of the Person;
	 
	 	(2)	 	the Net Income of any Restricted Subsidiary will be excluded to the extent that
the declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted without any
prior governmental approval (that has not been obtained) or, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders, partners or members;
	 
	 	(3)	 	the cumulative effect of a change in accounting principles will be excluded;
	 
	 	(4)	 	income resulting from transfers of assets (other than cash) between such Person
or any of its Restricted Subsidiaries, on the one hand, and an Unrestricted Subsidiary,
on the other hand, will be excluded;
	 
	 	(5)	 	any gain (loss) realized upon the sale or other disposition of any property,
plant or equipment of such Person or its consolidated Restricted Subsidiaries
(including pursuant to any sale or leaseback transaction) which is not sold or
otherwise disposed of in the ordinary course of business and any gain (loss) realized
upon the sale or other disposition of any Capital Stock of any Person will be excluded;
	 
	 	(6)	 	any asset impairment writedowns on oil and gas properties under GAAP or SEC
guidelines will be excluded;

10

 

	 	(7)	 	any unrealized non-cash gains or losses or charges in respect of hedge or
non-hedge derivatives (including those resulting from the application of FAS 133) will
be excluded;
	 
	 	(8)	 	to the extent deducted in the calculation of Net Income, 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 its Stated Maturity will be excluded;
and
	 
	 	(9)	 	items classified as extraordinary or nonrecurring gains and losses (less all
fees and expenses related thereto) or expenses (including without limitation,
severance, relocation, other restructuring costs and expense arising from the
transactions closing contemporaneously with the offering of the Initial Notes), and the
related tax effects according to GAAP, shall be excluded.

     “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.

     “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors of the Company who:

	 	(1)	 	was a member of such Board of Directors on the Issue Date; or
	 
	 	(2)	 	was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

     “Company” has the meaning ascribed to it in the first introductory paragraph of this
Indenture.

     “Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as
of March 2, 2006, by and among the Company and Mariner Energy Resources, Inc., as borrowers, Union
Bank of California, N.A., as administrative agent and issuing lender, BNP Paribas, as syndication
agent, and the lenders from time to time party thereto, providing for up to $540 million of
revolving credit and term loan borrowings and letters of credit, including any related notes,
Guarantees, collateral documents, instruments and agreements executed in connection therewith, and,
in each case, as amended, restated, modified, renewed, refunded,

11

 

replaced (whether upon or after termination or otherwise), supplemented or refinanced
(including by means of sales of debt securities to institutional investors) in whole or in part
from time to time.

     “Credit Facilities” means, with respect to the Company or any of its Restricted
Subsidiaries, one or more debt facilities (including, without limitation, the Credit Agreement),
commercial paper facilities or Debt Issuances with banks, investment banks, insurance companies,
mutual funds, other institutional lenders, institutional investors or any of the foregoing
providing for revolving credit loans, term loans, receivables financing (including through the sale
of receivables to such lenders, other financiers or to special purpose entities formed to borrow
from (or sell such receivables to) such lenders or other financiers against such receivables),
letters of credit, bankers’ acceptances, other borrowings or Debt Issuances, in each case, as
amended, restated, modified, renewed, extended, refunded, replaced or refinanced (in each case,
without limitation as to amount), in whole or in part, from time to time (including through one or
more Debt Issuances) and any agreements and related documents governing Indebtedness or Obligations
incurred to refinance amounts then outstanding or permitted to be outstanding, whether or not with
the original administrative agent, lenders, investment banks, insurance companies, mutual funds,
other institutional lenders, institutional investors or any of the foregoing and whether provided
under the original agreement, indenture or other documentation relating thereto).

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

     “Debt Issuances” means, with respect to the Company or any Restricted Subsidiary, one
or more issuances after the Issue Date of Indebtedness evidenced by notes, debentures, bonds or
other similar securities or instruments.

     “Default” means any event that is, or with the passage of time or the giving of notice
or both would be, an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.1 hereof, in the form of Exhibit A
hereto except that such Note shall not bear the Global Note Legend specified in Section
2.1(d)(B).

     “De Minimis Guaranteed Amount” means a principal amount of Indebtedness that does not
exceed $5.0 million.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of
any security into which it is convertible, or for which it is exchangeable, in each case, at the
option of the holder of the Capital Stock), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the
option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91
days after the date on which the Notes mature; provided, that only the portion of Capital Stock
which so matures or is mandatorily redeemable, or is so redeemable at the option of the holder
thereof prior to such date, will be deemed to be Disqualified Stock. Notwithstanding the preceding
sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders

12

 

of the Capital Stock have the right to require the Company to repurchase such Capital Stock
upon the occurrence of a change of control or an asset sale will not constitute Disqualified Stock
if the terms of such Capital Stock provide that the Company may not repurchase or redeem any such
Capital Stock pursuant to such provisions unless such repurchase or redemption complies with
Section 3.4. The amount of Disqualified Stock deemed to be outstanding at any time for
purposes of this Indenture will be the maximum amount that the Company and its Restricted
Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.

     “Distribution Compliance Period” means the 40-day restricted period as defined in
Regulation S.

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

     “Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed
under the laws of the United States or any state of the United States or the District of Columbia
or that guarantees or otherwise provides direct credit support for any Indebtedness of the Company.

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

     “Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable
for, Capital Stock).

     “Equity Offering” means any public or private sale of Capital Stock (other than
Disqualified Stock) by the Company after the Issue Date.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Notes” has the meaning ascribed to it in the second introductory paragraph
of this Indenture.

     “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries (other
than Indebtedness under the Credit Agreement) in existence on the date of this Indenture, until
such amounts are repaid.

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

     “Fixed Charge Coverage Ratio” means with respect to any specified Person for any
period, the ratio of the Consolidated Cash Flow of such Person for such period to the Fixed

13

 

Charges of such Person for such period. In the event that the specified Person or any of its
Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or
otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues,
repurchases or redeems Preferred Stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for
which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”),
then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence,
assumption, Guarantee, repayment, repurchase, redemption, defeasance or other discharge of
Indebtedness, or such issuance, repurchase or redemption of Preferred Stock, and the use of the
proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter
reference period.

     In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

	 	(1)	 	acquisitions that have been made by the specified Person or any of its
Restricted Subsidiaries, including through mergers, consolidations or otherwise
(including acquisitions of assets used or useful in the Oil and Gas Business), or any
Person or any of its Restricted Subsidiaries acquired by the specified Person or any of
its Restricted Subsidiaries, and including any related financing transactions and
including increases in ownership of Restricted Subsidiaries, during the four-quarter
reference period or subsequent to such reference period and on or prior to the
Calculation Date, shall be deemed to have occurred on the first day of the four-quarter
reference period and the Consolidated Cash Flow for such reference period will be
calculated giving pro forma effect to any expense and cost reductions that have
occurred or, in the reasonable judgment of the chief financial officer of the Company,
are reasonably expected to occur (regardless of whether those operating improvements or
cost savings could then be reflected in pro forma financial statements prepared in
accordance with Regulation S-X under the Securities Act or any other regulation or
policy of the SEC related thereto);
	 
	 	(2)	 	the Consolidated Cash Flow attributable to discontinued operations, as
determined in accordance with GAAP, and operations or businesses (and ownership
interests therein) disposed of prior to the Calculation Date, will be excluded;
	 
	 	(3)	 	the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the extent
that the obligations giving rise to such Fixed Charges will not be obligations of the
specified Person or any of its Restricted Subsidiaries following the Calculation Date;
	 
	 	(4)	 	any Person that is a Restricted Subsidiary on the Calculation Date will be
deemed to have been a Restricted Subsidiary at all times during such four-quarter
period;
	 
	 	(5)	 	any Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such four-quarter
period; and

14

 

	 	(6)	 	if any Indebtedness bears a floating rate of interest, the interest expense on
such Indebtedness will be calculated as if the rate in effect on the Calculation Date
had been the applicable rate for the entire period (taking into account any Hedging
Obligation applicable to such Indebtedness if such Hedging Obligation has a remaining
term as at the Calculation Date in excess of 12 months).

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

	 	(1)	 	the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (excluding any interest
attributable to Dollar-Denominated Production Payments but including, without
limitation, amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations, the
interest component of all payments associated with Capital Lease Obligations, imputed
interest with respect to Attributable Debt, commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers’ acceptance financings), and
net of the effect of all payments made or received pursuant to Hedging Obligations in
respect of interest rates; plus
	 
	 	(2)	 	the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period; plus
	 
	 	(3)	 	any interest on Indebtedness of another Person that is guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such
Person or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is
called upon; plus
	 
	 	(4)	 	all dividends, whether paid or accrued and whether or not in cash, on any
series of Preferred Stock of such Person or any of its Restricted Subsidiaries, other
than dividends on Equity Interests payable solely in Equity Interests of the Company
(other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the
Company.

     “Foreign Subsidiary” means any Restricted Subsidiary of the Company that was not
formed under the laws of the United States or any state of the United States or the District of
Columbia.

     “GAAP” means 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, which are in effect from time to time. All ratios and computations based on
GAAP contained in this Indenture will be computed in conformity with GAAP.

     “Government Securities” means direct obligations of, or obligations guaranteed by, the
United States of America for the payment of which obligations or guarantee the full faith and
credit of the United States of America is pledged.

15

 

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to maintain financial statement conditions
or otherwise), or entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part).

     “Guarantors” means each of:

	 	(1)	 	Mariner LP LLC, Mariner Energy Resources, Inc. and Mariner Energy Texas LP; and
	 
	 	(2)	 	any other Subsidiary of the Company that executes a Note Guarantee in
accordance with the provisions of this Indenture,

and their respective successors and assigns, in each case, until the Note Guarantee of such Person
has been released in accordance with the provisions of this Indenture.

     “Hedging Obligations” means, with respect to any specified Person, the obligations of
such Person under:

	 	(1)	 	interest rate swap agreements (whether from fixed to floating or from floating
to fixed), interest rate cap agreements and interest rate collar agreements entered
into with one or more financial institutions and other arrangements or agreements
designed to protect the Person entering into the agreement against fluctuations in
interest rates with respect to Indebtedness incurred and not for purposes of
speculation;
	 
	 	(2)	 	foreign exchange contracts and currency protection agreements entered into with
one or more financial institutions and designed to protect the Person entering into the
agreement against fluctuations in currency exchange rates with respect to Indebtedness
incurred and not for purposes of speculation;
	 
	 	(3)	 	any commodity futures contract, commodity option or other similar agreement or
arrangement designed to protect against fluctuations in the price of commodities used,
produced, processed or sold by that Person or any of its Restricted Subsidiaries at the
time; and
	 
	 	(4)	 	other agreements or arrangements designed to protect such Person against
fluctuations in interest rates, commodity prices or currency exchange rates.

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

     “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or
compounds thereof and products refined or processed therefrom.

16

 

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such
Person (excluding accrued expenses and trade payables), whether or not contingent:

	 	(1)	 	in respect of borrowed money;
	 
	 	(2)	 	evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof);
	 
	 	(3)	 	in respect of banker’s acceptances;
	 
	 	(4)	 	representing Capital Lease Obligations or Attributable Debt in respect of sale
and leaseback transactions;
	 
	 	(5)	 	representing the balance deferred and unpaid of the purchase price of any
property due more than nine months after such property is acquired;
	 
	 	(6)	 	the principal component or liquidation preference of all obligations of such
Person with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary, any Preferred Stock (but
excluding, in each case, any accrued dividends);
	 
	 	(7)	 	representing any Hedging Obligations;
	 
	 	(8)	 	the principal component of all Indebtedness of other Persons secured by a Lien
on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided, however, that the amount of such Indebtedness will be the lesser of
(a) the Fair Market Value of such asset at such date of determination and (b) the
amount of such Indebtedness of such other Persons; and
	 
	 	(9)	 	the principal component of Indebtedness of other Persons to the extent
Guaranteed by such Person (including, with respect to any Production Payment, any
warranties or guarantees of production or payment by such Person with respect to such
Production Payment, but excluding other contractual obligations of such Person with
respect to such Production Payment);

provided that the indebtedness described in clauses (1), (2), (4) and (5) shall be included in this
definition of Indebtedness only if, and to the extent that, the indebtedness described in such
clauses would appear as a liability upon a balance sheet of such Person prepared in accordance with
GAAP. Subject to clause (9) of the preceding sentence, neither Dollar-Denominated Production
Payments nor Volumetric Production Payments shall be deemed to be Indebtedness.

     The amount of any Indebtedness outstanding as of any date will be:

	 	(1)	 	the accreted value of the Indebtedness, in the case of any Indebtedness issued
with original issue discount;

17

 

	 	(2)	 	in the case of any Hedging Obligation, the termination value of the agreement
or arrangement giving rise to such Hedging Obligation that would be payable by such
Person at such date; and
	 
	 	(3)	 	the principal amount of the Indebtedness, together with any interest on the
Indebtedness that is more than 30 days past due, in the case of any other Indebtedness.

     The amount of Indebtedness of any Person at any date will be the outstanding balance at such
date of all unconditional obligations as described above and the maximum liability, upon the
occurrence of the contingency giving rise to the obligation, of any contingent obligations at such
date.

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

	 	(1)	 	such Indebtedness is the obligation of a partnership or joint venture that is
not a Restricted Subsidiary (a “Joint Venture”);
	 
	 	(2)	 	such Person or a Restricted Subsidiary of such Person is a general partner of
the Joint Venture (a “General Partner”); and
	 
	 	(3)	 	there is recourse, by contract or operation of law, with respect to the payment
of such Indebtedness to property or assets by such Person or a Restricted Subsidiary of
such Person; and then such Indebtedness shall be included in an amount not to exceed:

	 	(a)	 	the lesser of (i) the net assets of the General Partner and
(ii) the amount of such obligations to the extent that there is recourse, by
contract or operation of law, to the property or assets of such Person or a
Restricted Subsidiary of such Person; or
	 
	 	(b)	 	if less than the amount determined pursuant to clause (a)
immediately above, the actual amount of such Indebtedness that is recourse to
such Person or a Restricted Subsidiary of such Person, if the Indebtedness is
evidenced by a writing and is for a determinable amount and the related
interest expense shall be included in Fixed Charges to the extent actually paid
by such Person or its Restricted Subsidiaries.

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

     “Initial Notes” has the meaning ascribed to it in the second introductory paragraph of
this Indenture.

     “Investments” means, with respect to any Person, all direct or indirect investments by
such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or
other obligations), advances or capital contributions (excluding endorsements of negotiable
instruments and documents in the ordinary course of business, and commission, travel and

18

 

similar advances to officers, employees and consultants made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or
other securities, together with all items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary of the
Company sells or otherwise disposes of any Equity Interest of any direct or indirect Subsidiary of
the Company such that, after giving effect to any such sale or disposition, such Person is no
longer a Restricted 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
Company’s Investments in such Restricted Subsidiary that were not sold or disposed of in an amount
determined as provided in Section 3.4. The acquisition by the Company or any Subsidiary of
the Company of a Person that holds an Investment in a third Person will be deemed to be an
Investment by the Company or such Subsidiary in such third Person in an amount equal to the Fair
Market Value of the Investments held by the acquired Person in such third Person in an amount
determined as provided in Section 3.4. Except as otherwise provided in this Indenture, the
amount of an Investment will be determined at the time the Investment is made and without giving
effect to subsequent changes in value.

     “Investment Grade Rating” means a rating equal to or higher than:

	 	(1)	 	Baa3 (or the equivalent) by Moody’s; or
	 
	 	(2)	 	BBB- (or the equivalent) by S&P,

or, if either such entity ceases to rate the Notes for reasons outside of the Company’s control,
the equivalent investment grade credit rating from any other Rating Agency.

     “Investment Grade Rating Event” means the first day on which the Notes have an
Investment Grade Rating from a Rating Agency and no Default has occurred and is then continuing
under this Indenture.

     “Investment Grade Securities” means:

	 	(1)	 	securities issued or directly and fully guaranteed or insured by the U.S.
government or any agency or instrumentality thereof (other than Cash Equivalents) and
in each case with maturities not exceeding two years from the date of acquisition;
	 
	 	(2)	 	investments in any fund that invests exclusively in investments of the type
described in clause (1) which fund may also hold immaterial amounts of cash pending
investment and/or distribution; and
	 
	 	(3)	 	corresponding instruments in countries other than the United States customarily
utilized for high quality investments and in each case with maturities not exceeding
two years from the date of acquisition.

     “Issue Date” means                     , 2007.

19

 

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction.

     “Material Change” means an increase or decrease (excluding changes that result solely
from changes in prices and changes resulting from the incurrence of previously estimated future
development costs) of more than 25% during a fiscal quarter in the discounted future net revenues
from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries,
calculated in accordance with clause (1)(a) of the definition of Adjusted Consolidated Net Tangible
Assets; provided, however, that the following will be excluded from the calculation of Material
Change:

	 	(1)	 	any acquisitions during the fiscal quarter of oil and gas reserves that have
been estimated by independent petroleum engineers and with respect to which a report or
reports of such engineers exist; and
	 
	 	(2)	 	any disposition of properties existing at the beginning of such fiscal quarter
that have been disposed of in compliance with Section 3.7.

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

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

     “Net Income” means, with respect to any specified Person, the net income (loss) of
such Person, determined in accordance with GAAP and before any reduction in respect of Preferred
Stock dividends, excluding, however:

	 	(1)	 	any gain (but not loss), together with any related provision for taxes on such
gain (but not loss), realized in connection with: (a) any Asset Sale; or (b) the
disposition of any securities by such Person or any of its Restricted Subsidiaries or
the extinguishment of any Indebtedness of such Person or any of its Restricted
Subsidiaries; and
	 
	 	(2)	 	any extraordinary or nonrecurring gain (but not loss), together with any
related provision for taxes on such extraordinary or nonrecurring gain (but not loss).

     “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset
Sale), net of:

20

 

	 	(1)	 	all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses incurred, and all Federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing
agreements), as a consequence of such Asset Sale;
	 
	 	(2)	 	all payments made on any Indebtedness which is secured by any assets subject to
such Asset Sale, in accordance with the terms of any Lien upon such assets, or which
must by its terms, or in order to obtain a necessary consent to such Asset Sale, or by
applicable law be repaid out of the proceeds from such Asset Sale;
	 
	 	(3)	 	all distributions and other payments required to be made to holders of Minority
Interests in Subsidiaries or joint ventures as a result of such Asset Sale; and
	 
	 	(4)	 	the deduction of appropriate amounts to be provided by the seller as a reserve,
in accordance with GAAP, or held in escrow, in either case for adjustment in respect of
the sale price or for any liabilities associated with the assets disposed of in such
Asset Sale and retained by the Company or any Restricted Subsidiary after such Asset
Sale.

     “Net Working Capital” means (a) all current assets of the Company and its Restricted
Subsidiaries except current assets from commodity price risk management activities arising in the
ordinary course of business, less (b) all current liabilities of the Company and its Restricted
Subsidiaries, except current liabilities included in Indebtedness and any current liabilities from
commodity price risk management activities arising in the ordinary course of business, in each case
as set forth in the consolidated financial statements of the Company prepared in accordance with
GAAP (excluding any adjustments made pursuant to FAS 133).

     “Non-Recourse Debt” means Indebtedness:

	 	(1)	 	as to which neither the Company nor any of its Restricted Subsidiaries (a)
provides credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness), (b) is directly or indirectly liable as a
guarantor or otherwise, or (c) constitutes the lender;
	 
	 	(2)	 	no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary)
would permit upon notice, lapse of time or both any holder of any other Indebtedness of
the Company or any of its Restricted Subsidiaries to declare a default on such other
Indebtedness or cause the payment of the Indebtedness to be accelerated or payable
prior to its Stated Maturity; and
	 
	 	(3)	 	as to which the lenders have been notified in writing that they will not have
any recourse to the stock or assets of the Company or any of its Restricted
Subsidiaries except as contemplated by clause (26) of the definition of Permitted
Liens.

     “Non-U.S. Person” means a person who is not a U.S. person, as defined in Regulation S.

21

 

     “Note Guarantee” means the Guarantee by each Guarantor of the Company’s Obligations
under this Indenture and the Notes, executed pursuant to the provisions of this Indenture.

     “Notes” has the meaning ascribed to it in the second introductory paragraph of this
Indenture.

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

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Officer” means the Chairman of the Board, the President, any Vice President, the
Treasurer or the Secretary of the Company.

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

     “Oil and Gas Business” means:

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

	 	(2)	 	the gathering, marketing, treating, processing (but not refining), storage,
distribution, selling and transporting of any production from such interests or
properties;
	 
	 	(3)	 	any business relating to exploration for or development, production,
exploitation, treatment, processing (but not refining), storage, transportation or
marketing of oil, gas and other minerals and products produced in association
therewith; and
	 
	 	(4)	 	any activity that is ancillary or complementary to or necessary or appropriate
for the activities described in clauses (1) through (3) of this definition.

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

     “Permitted Acquisition Indebtedness” means Indebtedness or Disqualified Stock of the
Company or any of the Company’s Restricted Subsidiaries to the extent such Indebtedness or
Disqualified Stock was Indebtedness or Disqualified Stock of:

	 	(1)	 	a Subsidiary prior to the date on which such Subsidiary became a Restricted
Subsidiary; or
	 
	 	(2)	 	a Person that was merged, consolidated or amalgamated into the Company or a
Restricted Subsidiary, provided that on the date such Subsidiary became a

22

 

Restricted Subsidiary or the date such Person was merged, consolidated and
amalgamated into the Company or a Restricted Subsidiary, as applicable, after giving
pro forma effect thereto,

	 	(a)	 	the Restricted Subsidiary or the Company, as applicable, would
be permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test described in Section 3.3(a).
	 
	 	(b)	 	the Fixed Charge Coverage Ratio for the Restricted Subsidiary
or the Company, as applicable, would be greater than the Fixed Charge Coverage
Ratio for such Restricted Subsidiary or the Company immediately prior to such
transaction, or
	 
	 	(c)	 	the Consolidated Net Worth of the Restricted Subsidiary or the
Company, as applicable, would be greater than the Consolidated Net Worth of
such Restricted Subsidiary or the Company immediately prior to such
transaction.

     “Permitted Business Investments” means Investments made in the ordinary course of, and
of a nature that is or shall have become customary in, the Oil and Gas Business, including through
agreements, transactions, interests or arrangements that permit one to share risk or costs, comply
with regulatory requirements regarding local ownership or satisfy other objectives customarily
achieved through the conduct of the Oil and Gas Business jointly with third parties, including
without limitation:

	 	(1)	 	direct or indirect ownership of crude oil, natural gas and other related
Hydrocarbon properties or any interest therein or gathering, transportation,
processing, storage or related systems; and
	 
	 	(2)	 	the entry into operating agreements, joint ventures, processing agreements,
working interests, royalty interests, mineral leases, farm-in agreements, farm-out
agreements, development agreements, production sharing agreements, area of mutual
interest agreements, contracts for the sale, transportation or exchange of crude oil
and natural gas and related Hydrocarbons and minerals, unitization agreements, pooling
arrangements, joint bidding agreements, service contracts, partnership agreements
(whether general or limited), or other similar or customary agreements, transactions,
properties, interests or arrangements and Investments and expenditures in connection
therewith or pursuant thereto, in each case made or entered into in the ordinary course
of the Oil and Gas Business, excluding, however, Investments in corporations and
publicly-traded limited partnerships.

     “Permitted Investment” means:

	 	(1)	 	any Investment in the Company or in a Restricted Subsidiary of the Company;
	 
	 	(2)	 	any Investment in Cash Equivalents or Investment Grade Securities;

23

 

	 	(3)	 	any Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

	 	(a)	 	such Person becomes a Restricted Subsidiary of the Company; or
	 
	 	(b)	 	such Person is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company or a Restricted Subsidiary of the Company;

	 	(4)	 	any Investment made as a result of the receipt of non-cash consideration from
an Asset Sale that was made pursuant to and in compliance with Section 3.7;
	 
	 	(5)	 	any acquisition of assets or Capital Stock solely in exchange for the issuance
of Equity Interests (other than Disqualified Stock) of the Company;
	 
	 	(6)	 	any Investments received in compromise or resolution of (A) obligations of
trade creditors or customers that were incurred in the ordinary course of business of
the Company or any of its Restricted Subsidiaries, including pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of any trade
creditor or customer; or (B) litigation, arbitration or other disputes with Persons who
are not Affiliates;
	 
	 	(7)	 	Investments represented by Hedging Obligations;
	 
	 	(8)	 	advances to or reimbursements of employees for moving, entertainment and travel
expenses, drawing accounts and similar expenditures in the ordinary course of business;
	 
	 	(9)	 	loans or advances to employees in the ordinary course of business or consistent
with past practice not to exceed $5.0 million in the aggregate at any one time
outstanding;
	 
	 	(10)	 	receivables owing to the Company or any Restricted Subsidiary created or
acquired in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
	 
	 	(11)	 	surety and performance bonds and workers’ compensation, utility, lease, tax,
performance and similar deposits and prepaid expenses in the ordinary course of
business;
	 
	 	(12)	 	Guarantees of Indebtedness permitted under Section 3.3;
	 
	 	(13)	 	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 by any Restricted Subsidiary in the
ordinary course of business;

24

 

	 	(14)	 	Investments of a Restricted Subsidiary acquired after the Issue Date or of any
entity merged into the Company or merged into or consolidated or amalgamated with a
Restricted Subsidiary in accordance with Section 4.1 to the extent that such
Investments were not made in contemplation of or in connection with such acquisition,
merger, consolidation or amalgamation and were in existence on the date of such
acquisition, merger or consolidation;
	 
	 	(15)	 	Permitted Business Investments;
	 
	 	(16)	 	Investments received as a result of a foreclosure by the Company or any of its
Restricted Subsidiaries with respect to any secured Investment in default;
	 
	 	(17)	 	Investments in any units of any oil and gas royalty trust; and
	 
	 	(18)	 	other Investments in any Person having an aggregate Fair Market Value (measured
on the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant to this
clause (18) that are at the time outstanding not to exceed the greater of (a) 1.00% of
Adjusted Consolidated Net Tangible Assets or (b) $10.0 million.

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

	 	(1)	 	Liens securing Indebtedness incurred under the Credit Facilities pursuant to
Section 3.3;
	 
	 	(2)	 	Liens in favor of the Company or the Guarantors;
	 
	 	(3)	 	Liens on property of a Person existing at the time such Person is merged with
or into or consolidated or amalgamated with the Company or any Subsidiary of the
Company; provided that such Liens were in existence prior to the contemplation of such
merger, consolidation or amalgamation and do not extend to any assets other than those
of the Person merged into or consolidated or amalgamated with the Company or the
Subsidiary and do not extend to any assets other than those of the Person merged into
or consolidated or amalgamated with the Company or the Subsidiary;
	 
	 	(4)	 	Liens on property (including Capital Stock) existing at the time of acquisition
of the property by the Company or any Subsidiary of the Company; provided that such
Liens were in existence prior to, such acquisition, and not incurred in contemplation
of, such acquisition;
	 
	 	(5)	 	Liens existing on the Issue Date;
	 
	 	(6)	 	Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided that any reserve or other

25

 

	 	 	 	appropriate provision as is required in conformity with GAAP has been made therefor;

	 	(7)	 	survey exceptions, 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
that were not incurred in connection with Indebtedness and that 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;
	 
	 	(8)	 	leases or subleases granted to others that do not materially interfere with the
ordinary course of business of the Company and its Restricted Subsidiaries, taken as a
whole;
	 
	 	(9)	 	landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s
or the like Liens arising by contract or statute in the ordinary course of business and
with respect to amounts which are not yet delinquent or are being contested in good
faith by appropriate proceedings;
	 
	 	(10)	 	pledges or deposits made in the ordinary course of business (A) in connection
with leases, tenders, bids, statutory obligations, surety or appeal bonds, government
contracts, performance bonds and similar obligations, or (B) in connection with
workers’ compensation, unemployment insurance and other social security legislation;
	 
	 	(11)	 	Liens encumbering property or assets under construction arising from progress
or partial payments by a customer of the Company or its Restricted Subsidiaries
relating to such property or assets;
	 
	 	(12)	 	Liens in favor of customs and revenue authorities arising as a matter of law to
secure payments of customs duties in connection with the importation of goods;
	 
	 	(13)	 	any attachment or judgment Lien that does not constitute an Event of Default;
	 
	 	(14)	 	Liens created for the benefit of (or to secure) the Notes (or the Note
Guarantees);
	 
	 	(15)	 	Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Indenture; provided, however, that:

	 	(a)	 	the 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 the new Lien is not increased to
any amount greater than the sum of (x) the outstanding principal amount, or, if
greater, committed amount, of the Permitted Refinancing Indebtedness and (y) an
amount necessary to pay any fees and expenses, including premiums,

26

 

	 	 	 	related to such renewal, refunding, refinancing, replacement, defeasance or
discharge;

	 	(16)	 	Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capital Lease Obligations with respect to, or the repair, improvement or
construction cost of, assets or property acquired or repaired, improved or constructed
in the ordinary course of business; provided that:

	 	(a)	 	the aggregate principal amount of Indebtedness secured by such
Liens is otherwise permitted to be incurred under this Indenture and does not
exceed the cost of the assets or property so acquired or repaired, improved or
constructed plus fees and expenses in connection therewith; and
	 
	 	(b)	 	such Liens are created within 180 days of repair, improvement,
construction or acquisition of such assets or property and do not encumber any
other assets or property of the Company or any of its Restricted Subsidiaries
other than such assets or property and assets affixed or appurtenant thereto
(including improvements);

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

	 	(a)	 	such deposit account is not a dedicated cash collateral account
and is not subject to restrictions against access by the Company in excess of
those set forth by regulations promulgated by the Federal Reserve Board; and
	 
	 	(b)	 	such deposit account is not intended by the Company or any
Restricted Subsidiary to provide collateral to the depositary institution;

	 	(18)	 	Liens arising from Uniform Commercial Code financing statement filings
regarding operating leases entered into by the Company and its Restricted Subsidiaries
in the ordinary course of business;
	 
	 	(19)	 	Liens in respect of Production Payments and Reserve Sales;
	 
	 	(20)	 	Liens on pipelines and pipeline facilities that arise by operation of law;
	 
	 	(21)	 	farmout, carried working interest, joint operating, unitization, royalty, sales
and similar agreements relating to the exploration or development of, or production
from, oil and gas properties entered into in the ordinary course of business;
	 
	 	(22)	 	Liens reserved in oil and gas mineral leases for bonus or rental payments and
for compliance with the terms of such leases;
	 
	 	(23)	 	Liens arising under this Indenture in favor of the trustee for its own benefit
and similar Liens in favor of other trustees, agents and representatives arising under

27

 

	 	 	 	instruments governing Indebtedness permitted to be incurred under this 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 the Indebtedness;

	 	(24)	 	Liens securing Hedging Obligations of the Company and its Restricted
Subsidiaries;
	 
	 	(25)	 	Liens on and pledges of the Equity Interests of any Unrestricted Subsidiary or
any joint venture owned by the Company or any of its Restricted Subsidiary to the
extent securing Non-Recourse Debt of such Unrestricted Subsidiary or joint venture;
	 
	 	(26)	 	Liens upon specific items of inventory, receivables or other goods or proceeds
of the Company or any of its Restricted Subsidiaries securing such Person’s obligations
in respect of bankers’ acceptances or receivables securitizations issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such
inventory, receivables or other goods or proceeds and permitted by Section 3.3;
and
	 
	 	(27)	 	Liens incurred in the ordinary course of business of the Company or any
Subsidiary of the Company with respect to Obligations that do not exceed the greater of
(a) $10.0 million at any one time outstanding and (b) 1.00% of the Adjusted
Consolidated Net Tangible Assets determined as of the date of the incurrence of such
Obligations after giving pro forma effect to such incurrence and the application of
proceeds therefrom.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of
its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
extend, renew, refund, refinance, replace, defease or discharge other Indebtedness of the Company
or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

	 	(1)	 	the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness being extended, renewed, refunded, refinanced,
replaced, defeased or discharged (plus all accrued interest on the Indebtedness and the
amount of all fees and expenses, including premiums, incurred in connection therewith);
	 
	 	(2)	 	such Permitted Refinancing Indebtedness has a final maturity date later than
the final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being extended,
renewed, refunded, refinanced, replaced, defeased or discharged;
	 
	 	(3)	 	if the Indebtedness being extended, renewed, refunded, refinanced, replaced,
defeased or discharged is subordinated in right of payment to the Notes, such Permitted
Refinancing Indebtedness has a final maturity date later than the final

28

 

	 	 	 	maturity date of, and is subordinated in right of payment to, the Notes on terms at
least as favorable to the holders of Notes as those contained in the documentation
governing the Indebtedness being extended, renewed, refunded, refinanced, replaced,
defeased or discharged; and
	 
	 	(4)	 	such Indebtedness is incurred either by the Company or by the Restricted
Subsidiary who is the obligor on the Indebtedness being extended, renewed, refunded,
refinanced, replaced, defeased or discharged; provided, however, that a Restricted
Subsidiary that is also a Guarantor may Guarantee Permitted Refinancing Indebtedness
incurred by the Company, whether or not such Restricted Subsidiary was an obligor or
guarantor of the Indebtedness being renewed, refunded, refinanced, replaced, defeased
or discharged.

     Notwithstanding the foregoing, any Indebtedness incurred under Credit Facilities pursuant to
Section 3.3 shall be subject to the refinancing provisions of the definition of “Credit
Facilities” and not pursuant to the requirements set forth in this definition of Permitted
Refinancing Indebtedness.

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

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

     “Production Payments” means, collectively, Dollar-Denominated Production Payments and
Volumetric Production Payments.

     “Production Payments and Reserve Sales” means the grant or transfer by the Company or
a Restricted Subsidiary of the Company to any Person of a royalty, overriding royalty, net profits
interest, production payment (whether volumetric or dollar denominated), partnership or other
interest in oil and gas properties, reserves or the right to receive all or a portion of the
production or the proceeds from the sale of production attributable to such properties, including
any such grants or transfers pursuant to incentive compensation programs on terms that are
reasonably customary in the oil and gas business for geologists, geophysicists and other providers
of technical services to the Company or a Subsidiary of the Company.

     “Prospectus” means the prospectus, dated                     , 2007, prepared in connection with
the issuance of the Initial Notes.

     “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 (as certified by a Board Resolution) which
shall be substituted for S&P or Moody’s, or both, as the case may be.

29

 

     “Rating Decline” means the occurrence of:

	 	(1)	 	a decrease of one or more gradations (including gradations within Rating
Categories as well as between Rating Categories) in the rating of the Notes by either
Rating Agency; or
	 
	 	(2)	 	a withdrawal of the rating of the Notes by either Rating Agency;

provided, however, that such decrease or withdrawal occurs on, or within 90 days before or after
the earlier of (a) a Change of Control, (b) the date of public notice of the occurrence of a Change
of Control or (c) public notice of the intention by the Company to effect a Change of Control
(which period shall be extended so long as the rating of the Notes is under publicly announced
consideration for downgrade by either Rating Agency).

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

     “Reference Date” means April 24, 2006.

     “Registration Rights Agreement” means future registration rights agreements, if any,
with respect to Additional Restricted Notes.

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

     “Restricted Notes” means Notes bearing the Private Placement Legend.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that
is not an Unrestricted Subsidiary.

     “sale and leaseback transaction” means an arrangement relating to property now owned
or hereafter acquired whereby the Company or a Restricted Subsidiary transfers such property to a
Person and the Company or a Restricted Subsidiary leases it from such Person.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

     “Senior Debt” means:

	 	(1)	 	all Indebtedness of the Company or any of its Restricted Subsidiaries
outstanding under Credit Facilities and all Hedging Obligations with respect thereto;
	 
	 	(2)	 	any other Indebtedness of the Company or any of its Restricted Subsidiaries
permitted to be incurred under the terms of this Indenture, unless the instrument under
which such Indebtedness is incurred expressly provides that it is subordinated in right
of payment to the Notes or any Note Guarantee; and

30

 

	 	(3)	 	all Obligations with respect to the items listed in the preceding clauses (1)
and (2).

               Notwithstanding anything to the contrary in the preceding sentence, Senior Debt will
not include:

	 	(a)	 	any intercompany Indebtedness of the Company or any of its
Subsidiaries to the Company or any of its Affiliates; or
	 
	 	(b)	 	any Indebtedness that is incurred in violation of this
Indenture.

For the avoidance of doubt, “Senior Debt” will not include any trade payables or taxes owed or
owing by the Company or any Restricted Subsidiary.

     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act,
as such Regulation is in effect on the date of this Indenture.

     “Special Interest” means, with respect to any Additional Restricted Notes, all
liquidated damages then owing pursuant to the related Registration Rights Agreement. The Trustee
shall be under no obligation to determine or calculate the Special Interest, whether the Special
Interest is due and payable, or to give notice with respect thereto. The Trustee may conclusively
assume, in the absence of written notice to the contrary from the Company or a Holder or Holders of
Additional Restricted Notes, that no Special Interest is due and payable.

     “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which the payment of interest or principal was scheduled to
be paid in the documentation governing such Indebtedness as of the date of this Indenture, and will
not include any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

     “Subordinated Obligation” means any Indebtedness of the Company (whether outstanding
on the Issue Date or thereafter incurred) which is subordinate or junior in right of payment to the
Notes pursuant to a written agreement or any Indebtedness of a Guarantor (whether outstanding on
the Issue Date or thereafter incurred) which is subordinate or junior in right of payment to the
Note Guarantee pursuant to a written agreement, as the case may be.

     “Subsidiary” means, with respect to any specified Person:

	 	(1)	 	any corporation, association or other business entity of which more than 50% of
the total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement or
stockholders’ agreement that effectively transfers voting power) to vote in the
election of directors, managers or trustees of the corporation, association or other
business entity is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person (or a combination
thereof); and

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	 	(2)	 	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).

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15
U.S.C. §§ 77aaa 77bbbb), as in effect on the Issue Date.

     “Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to [___, [___]]; provided, however, that if the
period from the Redemption Date to [___, [___]] is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a constant maturity of one
year will be used.

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

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

     “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by
the Board of Directors of the Company as an Unrestricted Subsidiary pursuant to a Board Resolution,
but only to the extent that such Subsidiary:

	 	(1)	 	has no Indebtedness other than Non-Recourse Debt;
	 
	 	(2)	 	except as permitted by Section 3.8, is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted Subsidiary of
the Company unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted Subsidiary than
those that might be obtained at the time from Persons who are not Affiliates of the
Company;
	 
	 	(3)	 	is a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for additional
Equity Interests or (b) to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results; and

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	 	(4)	 	has not guaranteed or otherwise directly or indirectly provided credit support
for any Indebtedness of the Company or any of its Restricted Subsidiaries, other than
pursuant to a Note Guarantee.

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

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of Directors of such
Person.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing:

	 	(1)	 	the sum of the products obtained by multiplying (a) the amount
of each then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final maturity, in respect
of the Indebtedness, by (b) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by
	 
	 	(2)	 	the then outstanding principal amount of such Indebtedness.

     Section 1.2. Other Definitions.

	 	 	 
	 	 	Defined in
	Term	 	Section
	“Additional Restricted Notes”
	 	2.1(b)
	 
	 	 
	“Affiliate Transaction”
	 	3.8(a)
	 
	 	 
	“Agent Member”
	 	2.1(e)(iii)
	 
	 	 
	“Asset Sale Offer”
	 	3.7(d)
	 
	 	 
	“Asset Sale Offer Amount”
	 	3.7(e)
	 
	 	 
	“Asset Sale Offer Period”
	 	3.7(e)
	 
	 	 
	“Asset Sale Payment Date”
	 	3.7(e)
	 
	 	 
	“Authenticating Agent”
	 	2.2
	 
	 	 
	“Certificate of Destruction”
	 	2.10
	 
	 	 
	“Change of Control Offer”
	 	3.9

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	 	 	Defined in
	Term	 	Section
	“Change of Control Payment”
	 	3.9
	 
	 	 
	“Change of Control Purchase Date”
	 	3.9
	 
	 	 
	“Change of Control Payment Date”
	 	3.9
	 
	 	 
	“Company Order”
	 	2.2
	 
	 	 
	“Corporate Trust Office”
	 	3.12
	 
	 	 
	“Covenant Defeasance”
	 	8.3
	 
	 	 
	“Defaulted Interest”
	 	2.11
	 
	 	 
	“Event of Default”
	 	6.1
	 
	 	 
	“Excess Proceeds”
	 	3.7(c)
	 
	 	 
	“Exchange Global Note”
	 	2.1(b)
	 
	 	 
	“Funding Guarantor”
	 	10.4
	 
	 	 
	“General Partner”
	 	1.1 (definition of
“Indebtedness”)
	 
	 
	 
	 	 
	“Global Notes”
	 	2.1(b)
	 
	 	 
	“Global Note Legend”
	 	2.1(d)
	 
	 	 
	“incur”
	 	3.3(a)
	 
	 	 
	“Joint Venture”
	 	1.1 (definition of
“Indebtedness”)
	 
	 
	 
	 	 
	“Legal Defeasance”
	 	8.2
	 
	 	 
	“Payment Default”
	 	6.1(5)(a)
	 
	 	 
	“Paying Agent”
	 	2.3
	 
	 	 
	“Permitted Debt”
	 	3.3(b)
	 
	 	 
	“Private Placement Legend”
	 	2.1(d)
	 
	 	 
	“protected purchaser”
	 	2.8

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	 	 	Defined in
	Term	 	Section
	“QIB”
	 	2.1(b)
	 
	 	 
	“Registrar”
	 	2.3
	 
	 	 
	“Regulation S”
	 	2.1(b)
	 
	 	 
	“Regulation S Global Note”
	 	2.1(b)
	 
	 	 
	“Regulation S Notes”
	 	2.1(b)
	 
	 	 
	“Resale Restriction Termination Date”
	 	2.6(a)
	 
	 	 
	“Restricted Payment”
	 	3.4(a)
	 
	 	 
	“Rule 144A”
	 	2.1(b)
	 
	 	 
	“Rule 144A Global Note”
	 	2.1(b)
	 
	 	 
	“Rule 144A Notes”
	 	2.1(b)
	 
	 	 
	“Securities Custodian”
	 	2.1(b)
	 
	 	 
	“Special Interest Payment Date”
	 	2.11(a)
	 
	 	 
	“Special Record Date”
	 	2.11(a)
	 
	 	 
	“Successor Company”
	 	4.1

     Section 1.3. Incorporation by Reference of Trust Indenture Act. This Indenture is subject
to the mandatory provisions of the TIA which are incorporated by reference in and made a part of
this Indenture. The following TIA terms have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Notes.

     “indenture security holder” means a Holder of a Note.

     “indenture to be qualified” means this Indenture.

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

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

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

     Section 1.4. Rules of Construction. Unless the context otherwise requires:

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

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

               (3) “or” is not exclusive;

               (4) “including” means including without limitation;

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

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

               (7) the principal amount of any Preferred Stock shall be (i) the maximum
liquidation value of such Preferred Stock or (ii) the maximum mandatory redemption
or mandatory repurchase price with respect to such Preferred Stock, in each case, at
the date of determination, whichever is greater.

ARTICLE II

The Notes

     Section 2.1. Form, Dating and Terms.

          (a) The aggregate principal amount of Notes that may be authenticated and delivered under this
Indenture is unlimited. The Initial Notes issued on the date hereof will be in an aggregate
principal amount of $[                    ] million. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, including, without limitation, Section
3.3 hereof, Additional Notes and Exchange Notes. Furthermore, Notes may be authenticated and
delivered upon registration or transfer, or in lieu of, other Notes pursuant to Section
2.6, 2.8, 2.9, 5.8 or 9.5 or in connection with an Asset Sale
Offer pursuant to Section 3.7 or a Change of Control Offer pursuant to Section 3.9.

     With respect to any Additional Notes, the Company shall set forth in a Board Resolution and an
Officer’s Certificate, the following information:

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

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               (2) the issue price and the issue date of such Additional Notes, including the
date from which interest shall accrue; and

               (3) whether such Additional Notes shall be Restricted Notes issued in the form
of Exhibit A hereto and/or shall be issued in the form of Exhibit B
hereto.

     The Initial Notes, the Additional Notes and the Exchange Notes shall be considered
collectively as a single class for all purposes of this Indenture. Holders of the Initial Notes,
the Additional Notes and the Exchange 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, the Additional Notes or the Exchange Notes shall have the right to vote or consent as a
separate class on any matter to which such Holders are entitled to vote or consent.

               (b) The Initial Notes are being offered and sold by the Company pursuant to an Underwriting
Agreement, dated                     , 2007, among the Company, the Guarantors, J.P. Morgan Securities Inc.
and the other underwriters named therein. Any Additional Notes (if issued as Restricted
Securities) (the “Additional Restricted Notes”) will be resold initially only to (A)
qualified institutional buyers (as defined in Rule 144A under the Securities Act (“Rule
144A”)) in reliance on Rule 144A (“QIBs”) and (B) Persons other than U.S. Persons (as
defined in Regulation S under the Securities Act (“Regulation S”)) in reliance on
Regulation S. Such Additional Restricted Notes thereafter may be transferred to, among others,
QIBs and purchasers in reliance on Regulation S in accordance with the procedure described herein.

     The Initial Notes and Exchange Notes exchanged for interests in the Rule 144A Notes and the
Regulation S Notes shall be issued in the form of a permanent global Note, without interest
coupons, substantially in the form of Exhibit B, which is hereby incorporated by reference
and made a part of this Indenture, deposited with the Trustee, as custodian for DTC or its nominee
(the “Securities Custodian”), duly executed by the Company and authenticated by the Trustee
as hereinafter provided, including the appropriate legend set forth in Section 2.1(d) (the
“Exchange Global Note”). The Exchange Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented
by a single certificate. The aggregate principal amount of the Exchange Global Note may from time
to time be increased or decreased by adjustments made on the records of the Trustee, as Securities
Custodian, as hereinafter provided

     Additional Restricted Notes offered and sold to qualified institutional buyers in the United
States of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the
form of a permanent global Note, without interest coupons, substantially in the form of Exhibit
A, which is hereby incorporated by reference and made a part of this Indenture, including
appropriate legends as set forth in Section 2.1(d) (the “Rule 144A Global Note”),
deposited with the Trustee, as Securities Custodian, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The Rule 144A Global Note may be represented by more than
one certificate, if so required by DTC’s rules regarding the maximum principal amount to be
represented by a single certificate. The aggregate principal amount of the Rule 144A Global
Note may from time to time be increased or decreased by adjustments made on the records of the
Trustee, as Securities Custodian, as hereinafter provided.

37

 

     Additional
Restricted Notes offered and sold outside the United States of America (the “Regulation S
Notes”) in reliance on Regulation S shall be issued in the form of a permanent global Note,
without interest coupons, substantially in the form of Exhibit A (the “Regulation S
Global Note”) deposited with the Trustee as Securities Custodian, duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The Regulation S Global Note may be
represented by more than one certificate, if so required by DTC’s rules regarding the maximum
principal amount to be represented by a single certificate. The aggregate principal amount of the
Regulation S Global Note may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for DTC or its nominee, as hereinafter provided.

     The Rule 144A Global Note, the Regulation S Global Note and the Exchange Global Note are
sometimes collectively herein referred to as the “Global Notes.”

     If a Holder has given wire transfer instructions to the Company, the Company will, or if the
Company is not then the Paying Agent, the Company will cause the Paying Agent to, pay all
principal, interest, Special Interest, if any, and premium, if any, on that Holder’s Notes in
accordance with the instructions; all other payments of the principal of (and premium, if any),
interest and Special Interest, if any, on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to Section 2.3; provided,
however, that, at the option of the Company, each installment of interest and Special Interest, if
any, may be paid by check mailed to addresses of the Persons entitled thereto as such addresses
shall appear on the Note Register. Payments in respect of Notes represented by a Global Note
(including principal, premium and interest and Special Interest, if any) will be made by wire
transfer of immediately available funds to the accounts specified by DTC or its nominee.

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

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

               (d) Legends. Unless and until (i) an Additional Restricted Note is sold under an
effective registration statement or (ii) an Additional Restricted Note is exchanged for an Exchange
Note in connection with an effective registration statement, in each case pursuant to a
Registration Rights Agreement or a similar agreement,

     (A) the Additional Restricted Note, shall bear the following legend (the “Private
Placement Legend”) on the face thereof:

“THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”),

38

 

OR OTHER SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE RE-OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. EACH PURCHASER OF THE NOTE
EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER
OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE ISSUER (II) IN THE UNITED STATES
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), OR (V) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF CASES (I) THROUGH
(V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT
PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.”

     (B) The Global Notes, whether or not an Initial Note, shall bear the following legend (the
“Global Note Legend”) on the face thereof:

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

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN

39

 

ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.”

               (e) Book-Entry Provisions

               (i) This Section 2.1(e) shall apply only to Global Notes deposited
with the Trustee, as custodian for DTC.

               (ii) Each Global Note initially shall (x) be registered in the name of DTC
for such Global Note or the nominee of DTC, (y) be delivered to the Trustee as
custodian for DTC and (z) bear legends as set forth in Section 2.1(d).

               (iii) Members of, or participants in, DTC (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Note held on
their behalf by DTC or by the Trustee as the custodian of DTC or under such
Global Note, and DTC may be treated by the Company, the Guarantors, the Trustee
and any agent of the Company or the Trustee as the absolute owner of such
Global Note for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall (A) prevent the Company, the Guarantors, the Trustee or
any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by DTC or (B) impair, as
between DTC and its Agent Members, the operation of customary practices of DTC
governing the exercise of the rights of a Holder of a beneficial interest in
any Global Note.

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

               (v) In connection with the transfer of an entire Global Note to beneficial
owners pursuant to subsection (f) of this Section 2.1, such Global Note
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by DTC in exchange for its beneficial interest in
such Global Note, an equal aggregate principal amount of Definitive Notes of
authorized denominations.

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

40

 

     (f) Definitive Notes. (i) Except as provided below, owners of beneficial
interests in Global Notes will not be entitled to receive Definitive Notes. If required to
do so pursuant to any applicable law or regulation, beneficial owners may obtain Definitive
Notes in exchange for their beneficial interests in a Global Note upon written request in
accordance with DTC’s and the Registrar’s procedures. In addition, Definitive Notes shall
be transferred to all beneficial owners in exchange for their beneficial interests in a
Global Note if (a) DTC notifies the Company that it is unwilling or unable to continue as
depositary for such Global Notes or DTC ceases to be a clearing agency registered under the
Exchange Act, at a time when DTC is required to be so registered in order to act as
depositary, and, in either case, a successor depositary is not appointed by the Company
within 90 days of such notice, (b) the Company, at its option, notifies the Trustee in
writing that it elects to cause the issuance of Definitive Notes or (c) a Default or Event
of Default has occurred and is continuing with respect to the Notes.

               (ii) Any Definitive Note delivered in exchange for an interest in a Global
Note pursuant to Section 2.1(e)(iv) or (v) shall, except as
otherwise provided by Section 2.6(c), bear the Private Placement Legend
set forth in Section 2.1(d).

               (iii) In connection with the exchange of a portion of a Definitive Note for
a beneficial interest in a Global Note, the Trustee shall cancel such
Definitive Note, and the Company shall execute, and the Trustee shall
authenticate and deliver, to the transferring Holder a new Definitive Note
representing the principal amount not so transferred.

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

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

     At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Notes for original issue
on the Issue Date in an aggregate principal amount of $[                    ],000,000, (2) Additional Notes for
original issue and (3) Exchange Notes for issue only in an exchange offer pursuant to any
Registration Rights Agreement, and only in exchange for Additional Notes of an equal principal
amount, in each case upon a written order of the Company signed by two Officers of the Company or
by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Company (the
“Company Order”). Such Company Order shall specify the amount of the Notes to be
authenticated and the date on which the original issue of Notes is to be authenticated and whether
the Notes are to be Initial Notes, Additional Notes or Exchange Notes.

41

 

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

     In case the Company or any Guarantor, pursuant to Article IV or Section 10.2,
shall be consolidated, amalgamated or merged with or into any other Person, shall convert into
another form of entity or continue in another jurisdiction or shall convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets to any Person, and the
successor Person resulting from such consolidation, amalgamation, conversion or continuation, or
surviving such merger, or into which any Company or any Guarantor shall have been merged, or the
Person which shall have received a conveyance, transfer, lease or other disposition as aforesaid,
shall have executed an indenture supplemental hereto with the Trustee pursuant to Article
IV, any of the Notes authenticated or delivered prior to such consolidation, amalgamation,
merger, conversion, continuation, conveyance, transfer, lease or other disposition may, from time
to time, at the request of the successor Person, be exchanged for other Notes executed in the name
of the successor Person with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the Notes surrendered for such exchange and of like
principal amount; and the Trustee, upon Company Order of the successor Person, shall authenticate
and deliver Notes as specified in such order for the purpose of such exchange. If Notes shall at
any time be authenticated and delivered in any new name of a successor Person pursuant to this
Section 2.2 in exchange or substitution for or upon registration of transfer of any Notes,
such successor Person, at the option of the Holders but without expense to them, shall provide for
the exchange of all Notes at the time outstanding for Notes authenticated and delivered in such new
name.

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

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

     The Company initially appoints the Trustee as Registrar and Paying Agent for the Notes.

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     Section 2.4. Paying Agent to Hold Money in Trust. By no later than 11:00 a.m. (New York
City time) on the date on which any principal of, premium, if any, on or interest and Special
Interest, if any, on, any Note is due and payable, the Company shall deposit with the Paying Agent
a sum sufficient in immediately available funds to pay such principal, premium, interest and
Special Interest, if any, when due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that such Paying Agent shall hold in trust for the benefit of the
Holders or the Trustee all money held by such Paying Agent for the payment of principal of, or
premium, if any, on, and interest and Special Interest, if any, on, the Notes and shall notify the
Trustee in writing of any default by the Company or any Guarantor in making any such payment. If
the Company or a Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent
(other than the Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section 2.4, the Paying Agent (if
other than the Company or a Subsidiary) shall have no further liability for the money delivered to
the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the
Company, the Trustee shall serve as Paying Agent for the Notes.

     Section 2.5. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, or to the extent otherwise required under the TIA, the Company
shall furnish to the Trustee, in writing at least five Business Days before each interest payment
date and at such other times as the Trustee may request in writing, a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of Holders.

     Section 2.6. Transfer and Exchange.

     (a) The following provisions shall apply with respect to any proposed transfer of a
Rule 144A Note prior to the date which is two years after the later of the date of its
original issue and the last date on which the Company or any Affiliate of the Company was
the owner of such Notes (or any predecessor thereto) (the “Resale Restriction
Termination Date”):

               (i) a transfer of a Rule 144A Note or a beneficial interest therein to a
QIB shall be made upon the representation of the transferee in the form as set
forth on the reverse of the Note that it is purchasing for its own account or
an account with respect to which it exercises sole investment discretion and
that it and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided
by Rule 144A; and

               (ii) a transfer of a Rule 144A Note or a beneficial interest therein to a
Non-U.S. Person shall be made upon receipt by the Trustee or its agent

43

 

of a certificate substantially in the form set forth in Section 2.7
from the proposed transferee and, if requested by the Company or the Trustee,
the delivery of an opinion of counsel, certification and/or other information
satisfactory to each of them.

     (b) The following provisions shall apply with respect to any proposed transfer of a
Regulation S Note prior to the expiration of the Distribution Compliance Period:

               (i) a transfer of a Regulation S Note or a beneficial interest therein to
a QIB shall be made upon the representation of the transferee, in the form of
assignment on the reverse of the certificate, that it is purchasing the Note
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration
provided by Rule 144A; and

               (ii) a transfer of a Regulation S Note or a beneficial interest therein to
a Non-U.S. Person shall be made upon receipt by the Trustee or its agent of a
certificate substantially in the form set forth in Section 2.7 from the
proposed transferee and, if requested by the Company or the Trustee, receipt by
the Trustee or its agent of an opinion of counsel, certification and/or other
information satisfactory to each of them.

     After the expiration of the Distribution Compliance Period, interests in the Regulation S Note
may be transferred without requiring the certification set forth in Section 2.7 or any
additional certification.

     (c) Private Placement Legend. Upon the transfer, exchange or replacement of
Notes not bearing a Private Placement Legend, the Registrar shall deliver Notes that do not
bear a Private Placement Legend unless such transferee is an affiliate (as defined in Rule
144) of the Company. Upon the transfer, exchange or replacement of Notes bearing a Private
Placement Legend, the Registrar shall deliver only Notes that bear a Private Placement
Legend unless there is delivered to the Registrar an Opinion of Counsel to the effect that
neither such legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act.

     (d) The Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.1 or this Section 2.6. The
Company shall have the right to inspect and make copies of all such letters, notices or
other written communications at any reasonable time upon the giving of reasonable prior
written notice to the Registrar.

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

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

               (ii) No service charge shall be made to a Holder for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient
to cover any transfer tax, assessments, or similar governmental charge payable
in connection therewith (other than any such transfer taxes, assessments or
similar governmental charges payable upon exchange or transfer pursuant to
Sections 3.7, 3.9, 5.8 or 9.5).

               (iii) The Registrar or co-registrar shall not be required to register the
transfer or exchange of (i) any Notes selected for redemption (except in the
case of Notes to be redeemed in part, the portion of the Note not to be
redeemed) or (ii) any Notes for a period beginning 15 days before a selection
of Notes to be redeemed.

               (iv) Prior to the due presentation for registration of transfer of any
Note, the Company, the Trustee, the Paying Agent, the Registrar or any
co-registrar may deem and treat the person in whose name a Note is registered
as the absolute owner of such Note for the purpose of receiving payment of
principal of, premium, if any, on and interest and Special Interest, if any,
on, such Note and for all other purposes whatsoever, whether or not such Note
is overdue, and none of the Company, the Trustee, the Paying Agent, the
Registrar or any co-registrar shall be affected by notice to the contrary.

               (v) Any Definitive Note delivered in exchange for an interest in a Global
Note pursuant to Section 2.1(e) shall, except as otherwise provided by
Section 2.6(c), bear the Private Placement Legend set forth in
Section 2.1(d).

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

     (f) No Obligation of the Trustee

               (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Note, a member of, or a participant in, DTC or
other Person with respect to the accuracy of the records of DTC or its nominee
or of any participant or member thereof, with respect to any ownership interest
in the Notes or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than DTC) of any notice (including any
notice of redemption) or the payment of any

45

 

amount or delivery of any Notes (or other Note or property) under or with
respect to such Notes. All notices and communications to be given to the
Holders and all payments to be made to Holders in respect of the Notes shall be
given or made only to or upon the order of the registered Holders (which shall
be DTC or its nominee in the case of a Global Note). The rights of beneficial
owners in any Global Note shall be exercised only through DTC subject to the
applicable rules and procedures of DTC. The Trustee may rely and shall be
fully protected in relying upon information furnished by DTC with respect to
its members, participants and any beneficial owners.

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

     Section 2.7. Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

[Date]

Mariner Energy, Inc.

c/o Wells Fargo Bank, N.A., as Trustee

201 Main Street, Suite 301

MAC T5441-030

Fort Worth, Texas 76102

Attention: Melissa Scott

	 	 	 	 	 
	 

	 	Re:
	 	Mariner Energy, Inc.
	 

	 	 	 	[                    ]% Senior Notes due [                    ] (the “Notes”)

Ladies and Gentlemen:

               In connection with our proposed sale of $                     aggregate principal amount of the Notes,
we confirm that such sale has been effected pursuant to and in accordance with Regulation S under
the United States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, we represent that:

          (a) the offer of the Notes was not made to a person in the United States;

          (b) either (i) at the time the buy order was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (ii) the transaction was executed in, on

46

 

or through the facilities of a designated off-shore securities market and neither we
nor any person acting on our behalf knows that the transaction has been pre-arranged with a
buyer in the United States;

          (c) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

          (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

          (e) we have advised the transferee of the transfer restrictions applicable to the
Notes.

                    You and the Trustee are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	 
	 

	 	 	 	Authorized Signature	 	 

     Section 2.8. Mutilated, Destroyed, Lost or Wrongfully Taken Notes. If a mutilated Note is
surrendered to the Registrar or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Note if the requirements of Section 8-405 of the Uniform Commercial Code are met, such
that the Holder (a) satisfies the Company or the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking and the Registrar does not register a
transfer prior to receiving such notification, (b) makes such request to the Company or Trustee
prior to the Note being acquired by a protected purchaser as defined in Section 8-303 of the
Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Company, such Holder shall furnish
an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company,
the Trustee, the Paying Agent, the Registrar and any co-registrar from any loss which any of them
may suffer if a Note is replaced, and, in the absence of notice to the Company or the Trustee that
such Note has been acquired by a protected purchaser, the Company shall execute and, upon a Company
Order, the Trustee shall authenticate and make available for delivery, in exchange for any such
mutilated Note or in lieu of any such destroyed,
lost or wrongfully taken Note, a new Note of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

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

     Upon the issuance of any new Note under this Section 2.8, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) in
connection therewith.

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

     The provisions of this Section 2.8 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Notes.

     Section 2.9. Outstanding Notes. Notes outstanding at any time are all Notes authenticated
by the Trustee except for those canceled by it, those delivered to it for cancellation and those
described in this Section 2.9 as not outstanding. A Note ceases to be outstanding in the
event the Company or a Subsidiary of the Company holds the Note, provided, however, that (i) for
purposes of determining which are outstanding for consent or voting purposes hereunder, the
provisions of Section 12.6 shall apply and (ii) in determining whether the Trustee shall be
protected in making a determination whether the Holders of the requisite principal amount of
outstanding Notes are present at a meeting of Holders of Notes for quorum purposes or have
consented to or voted in favor of any request, demand, authorization, direction, notice, consent,
waiver, amendment or modification hereunder, or relying upon any such quorum, consent or vote, only
Notes which a Trust Officer of the Trustee actually knows to be held by the Company or an Affiliate
of the Company shall not be considered outstanding.

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

     If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal, premium, if any, and
interest and Special Interest, if any, payable on that date with respect to the Notes (or portions
thereof) to be redeemed or maturing, as the case may be, and the Paying Agent is not prohibited
from paying such money to the Holders on that date pursuant to the terms of this Indenture, then on
and after that date such Notes (or portions thereof) cease to be outstanding and interest on them
ceases to accrue.

     Section 2.10. Cancellation.  The Company at any time may deliver Notes to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes

48

 

surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Notes surrendered for registration of transfer, exchange, payment or cancellation
and destroy such Notes in accordance with its internal policies, including delivery of a
certificate (a “Certificate of Destruction”) describing such Notes disposed (subject to the
record retention requirements of the Exchange Act). The Company may not issue new Notes to replace
Notes it has paid or delivered to the Trustee for cancellation for any reason other than in
connection with a transfer or exchange.

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

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

               (a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective predecessor Notes) are registered at the close of
business on a Special Record Date (as defined below) for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and
the date (not less than 30 days after such notice) of the proposed payment (the “Special
Interest Payment Date”), and at the same time the Company shall deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a record date (the “Special Record Date”) for the
payment of such Defaulted Interest, which date shall be not more than 15 days and not less
than 10 days prior to the Special Interest Payment Date and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date, and in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date and Special Interest Payment Date therefor to be given in the manner
provided for in Section 12.2, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
and Special Interest Payment
Date therefor having been so given, such Defaulted Interest shall be paid on the
Special Interest Payment Date to the Persons in whose names the Notes (or their respective
predecessor Notes) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (b).

49

 

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

     Subject to the foregoing provisions of this Section 2.11, each Note delivered under
this Indenture upon registration of, transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest and Special Interest, if any, each as accrued and unpaid, and to
accrue, which were carried by such other Note.

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

     Section 2.13. CUSIP Numbers, Etc. The Company in issuing the Notes may use CUSIP numbers
(if then generally in use) and, if so, the Trustee shall use CUSIP, ISIN and Common Code numbers in
notices of redemption as a convenience to Holders; provided, however, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of a redemption and that reliance may be placed only on the
other identification numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company shall promptly notify the Trustee in
writing of any change in the CUSIP, ISIN and Common Code numbers.

ARTICLE III

Covenants

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

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

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

     Section 3.2. Reports. Whether or not required by the rules and regulations of the
SEC, so long as any Notes are outstanding, the Company will file with the SEC for public
availability

50

 

within the time periods specified in the SEC’s rules and regulations (unless the SEC will not
accept such a filing, in which case the Company will furnish to the Holders of Notes or cause the
Trustee to furnish to the Holders of Notes, within the time periods specified in the SEC’s rules
and regulation)

               (a) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file such reports; and

               (b) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

     All such reports will be prepared in all material respects in accordance with all of the rules
and regulations applicable to such reports. Each annual report on Form 10-K will include a report
on the Company’s consolidated financial statements by the Company’s certified independent
accountants.

     If, at any time, the Company is no longer subject to the periodic reporting requirements of
the Exchange Act for any reason, the Company will nevertheless continue filing the reports
specified in the preceding paragraphs of this covenant with the SEC within the time periods
specified above unless the SEC will not accept such a filing. The Company will not take any action
for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the
foregoing, the SEC will not accept the Company’s filings for any reason, the Company will post the
reports referred to in the preceding paragraphs on its website within the time periods that would
apply if the Company were required to file those reports with the SEC.

     If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then, to
the extent material, the quarterly and annual financial information required by the preceding
paragraphs will include a reasonably detailed presentation, 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, of 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.

     In addition, the Company and the Guarantors agree that, for so long as any Notes remain
outstanding, if at any time they are not required to file the reports required by the preceding
paragraphs with the SEC, they will furnish to the holders of Notes and to securities analysts and
prospective investors, upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

     Section 3.3. Incurrence of Indebtedness and Issuance of Preferred Stock.

               (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, Guarantee or otherwise become directly
or indirectly liable, contingently or otherwise, with respect to (collectively,
“incur”) any Indebtedness (including Acquired Debt), and the Company will not issue
any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any
shares of Preferred Stock; provided, however, that the Company and the Restricted
Subsidiaries may incur Indebtedness (including Acquired Debt) or

51

 

issue Disqualified Stock, if the Fixed Charge Coverage Ratio for the Company’s most
recently ended four full fiscal quarters for which internal financial statements are
available immediately preceding the date on which such additional Indebtedness is incurred
or such Disqualified Stock is issued, as the case may be, would have been at least 2.25 to
1.0, determined on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock
had been issued, as the case may be, at the beginning of such four-quarter period.

               (b) The provisions of Section 3.3(a) hereof shall not prohibit the incurrence
of any of the following items of Indebtedness (collectively, “Permitted Debt”):

               (1) the incurrence by the Company and any Restricted Subsidiary of additional
Indebtedness and letters of credit under Credit Facilities in an aggregate principal
amount at any one time outstanding under this clause (1) (with letters of credit
being deemed to have a principal amount equal to the maximum potential liability of
the Company and its Restricted Subsidiaries thereunder) not to exceed the greater of
(a) $600.0 million and (b) an amount equal to the sum of (A) $300.0 million plus (B)
10% of Adjusted Consolidated Net Tangible Assets determined as of the date of the
incurrence of such Indebtedness after giving pro forma effect to such incurrence and
the application of the proceeds therefrom;

               (2) the incurrence by the Company and its Restricted Subsidiaries of the
Existing Indebtedness;

               (3) the incurrence by the Company and the Guarantors of Indebtedness
represented by the Notes and the related Note Guarantees to be issued on the date of
this Indenture;

               (4) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness represented by Capital Lease Obligations, mortgage financings or
purchase money obligations, in each case, incurred for the purpose of financing all
or any part of the purchase price or cost of design, construction, installation or
improvement of property, plant or equipment used in the business of the Company or
any of its Restricted Subsidiaries, in an aggregate principal amount, including all
Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace,
defease or discharge any Indebtedness incurred pursuant to this clause (4), not to
exceed $50.0 million at any time outstanding;

               (5) the incurrence by the Company or any of its Restricted Subsidiaries of
Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are
used to renew, refund, refinance, replace, defease or discharge any Indebtedness
(other than intercompany Indebtedness) that was permitted by this Indenture to be
incurred under the first paragraph of this covenant or clauses (2), (3), (4) or (11)
of this Section 3.3(b) or this clause (5);

52

 

               (6) the incurrence by the Company or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among the Company and any of its Restricted
Subsidiaries; provided, however, that:

                    (i) if the Company or any Guarantor is the obligor on such Indebtedness
and the payee is not the Company or a Guarantor, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all Obligations
then due with respect to the Notes, in the case of the Company, or the Note
Guarantee, in the case of a Guarantor; and

                    (ii) (a) any subsequent issuance or transfer of Equity Interests that
results in any such Indebtedness being held by a Person other than the Company
or a Restricted Subsidiary of the Company and (b) any sale or other transfer of
any such Indebtedness to a Person that is not either the Company or a
Restricted Subsidiary of the Company will be deemed, in each case, to
constitute an incurrence of such Indebtedness by the Company or such Restricted
Subsidiary, as the case may be, that was not permitted by this clause (6);

               (7) the issuance by any of the Company’s Restricted Subsidiaries to the Company
or to any of its Restricted Subsidiaries of shares of Preferred Stock; provided,
however, that:

                    (i) any subsequent issuance or transfer of Equity Interests that results
in any such Preferred Stock being held by a Person other than the Company or a
Restricted Subsidiary of the Company; and

                    (ii) any sale or other transfer of any such Preferred Stock to a Person
that is not either the Company or a Restricted Subsidiary of the Company,

will be deemed, in each case, to constitute an issuance of such Preferred Stock by
such Restricted Subsidiary that was not permitted by this clause (7);

               (8) the incurrence by the Company or any of its Restricted Subsidiaries of
Hedging Obligations in the ordinary course of business;

               (9) the incurrence by the Company or any of its Restricted Subsidiaries of
obligations relating to net gas balancing positions arising in the ordinary course
of business and consistent with past practice;

               (10) the Guarantee by the Company or any of the Guarantors of Indebtedness of
the Company or a Restricted Subsidiary of the Company that was permitted to be
incurred by another provision of this covenant; provided that if the Indebtedness
being guaranteed is subordinated to or pari passu with the Notes (in the case of the
Company) or a Note Guarantee (in the case of a Guarantor), then the Guarantee shall
be subordinated or pari passu, as applicable, to the same extent as the Indebtedness
guaranteed;

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               (11) Permitted Acquisition Indebtedness;

               (12) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument inadvertently drawn against insufficient funds,
so long as such Indebtedness is covered within five Business Days;

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

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

               (15) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness in respect of bid, performance, surety and similar bonds issued for the
account of the Company and any of its Restricted Subsidiaries in the ordinary course
of business, including Guarantees and obligations of the Company or any of its
Restricted Subsidiaries with respect to letters of credit supporting such
obligations (in each case, other than an obligation for money borrowed);

               (16) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness arising from Guarantees of Indebtedness of joint ventures at any time
outstanding not to exceed the greater of $10.0 million and 1.00% of the Adjusted
Consolidated Net Tangible Assets determined as of the date of the incurrence of such
Indebtedness after giving pro forma effect to such incurrence and the application of
proceeds therefrom; and

               (17) the incurrence by the Company or any of its Restricted Subsidiaries of
additional Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding not to exceed the greater of $50.0 million and
2.50% of the Adjusted Consolidated Net Tangible Assets determined as of the date of
the incurrence of such Indebtedness after giving pro forma effect to such incurrence
and the application of proceeds therefrom.

     The Company will not incur, and will not permit any Guarantor to incur, any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee on

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substantially
identical terms; provided, however, that no Indebtedness will be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being
unsecured or by virtue of being secured on a first or junior Lien basis.

     For purposes of determining compliance with this Section 3.3, in the event that an
item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted
Debt described in clauses (1) through (17) of Section 3.3(b) above, or is entitled to be
incurred pursuant to Section 3.3(a) above, the Company will be permitted to classify (or
later classify or reclassify in whole or in part in its sole discretion) such item of Indebtedness
in any manner that complies with this covenant.

     The accrual of interest, the accretion or amortization of original issue discount, the payment
of interest on any Indebtedness in the form of additional Indebtedness with the same terms, the
reclassification of Preferred Stock as Indebtedness due to a change in accounting principles, and
the payment of dividends on Disqualified Stock in the form of additional shares of the same class
of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Stock for purposes of this Section 3.3, provided, in each such case, that the
amount of any such accrual, accretion or payment is included in Fixed Charges of the
Company as accrued. Notwithstanding any other provision of Section 3.3, the maximum
amount of Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this
Section 3.3 shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

     Section 3.4. Restricted Payments.

     (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on
account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests
(including, without limitation, any such payment or distribution made in connection
with any merger or consolidation involving the Company or any of its Restricted
Subsidiaries) or to the direct or indirect holders of the Company’s or any of its
Restricted Subsidiaries’ Equity Interests in their capacity as such (other than
dividends or distributions payable in Equity Interests (other than Disqualified
Stock) of the Company and other than dividends or distributions payable to the
Company or a Restricted Subsidiary of the Company);

     (2) purchase, redeem or otherwise acquire or retire for value (including,
without limitation, any such purchase, redemption, acquisition or retirement made in
connection with any merger or consolidation involving the Company) any Equity
Interests of the Company or any direct or indirect parent or other Affiliate of the
Company that is not a Restricted Subsidiary of the Company;

     (3) make any payment on or with respect to, or purchase, redeem, defease or
otherwise acquire or retire for value, prior to the Stated Maturity

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thereof, any
Indebtedness of the Company or any Guarantor that is contractually subordinated to
the Notes or to any Note Guarantee (excluding (a) any intercompany Indebtedness
between or among the Company and any of its Restricted Subsidiaries or (b) the
purchase, repurchase or other acquisition of Indebtedness that is subordinated to
the Notes or the Note Guarantees purchased in anticipation of satisfying a sinking
fund obligation, principal installment or final maturity, in each case due within
one year of the date of purchase, repurchase or acquisition); or

     (4) make any Restricted Investment (all such payments and other actions set
forth in clauses (1) through (4) above being collectively referred to as
“Restricted Payments”),

unless, at the time of and after giving effect to such Restricted Payment:

     (1) no Default or Event of Default has occurred and is continuing or would
occur as a consequence of such Restricted Payment;

     (2) the Company would, at the time of such Restricted Payment and after giving
pro forma effect thereto as if such Restricted Payment had been made at the
beginning of the applicable four-quarter period, have been permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 3.3(a) above; and

     (3) such Restricted Payment, together with the aggregate amount of all other
Restricted Payments made by the Company and its Restricted Subsidiaries after the
Reference Date (excluding Restricted Payments permitted by clauses (2), (3), (4),
(5), (6), (7), (8) and (10) of Section 3.4(b) below), is equal to or less
than the sum, without duplication, of:

     (a) 50% of the Consolidated Net Income of the Company for the period
(taken as one accounting period) from the beginning of the first fiscal
quarter commencing after the Reference Date to the end of the Company’s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment (or, if such Consolidated
Net Income for such period is a deficit, less 100% of such deficit); plus

     (b) 100% of the aggregate net cash proceeds received, and the Fair
Market Value of property received from a non-Affiliate used or useful in an
Oil and Gas Business, by the Company since the Reference Date as a
contribution to its common capital or from the issue or sale of Equity
Interests of the Company (other than Disqualified Stock) or from the issue
or sale of convertible or exchangeable Disqualified Stock or convertible or
exchangeable debt securities of the Company that have been converted into or
exchanged for such Equity Interests (other than Equity Interests (or
Disqualified Stock or debt securities) sold to a Subsidiary of the Company

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or an employee stock ownership plan, option plan or similar trust to the
extent such sale to an employee stock ownership plan, option plan or similar
trust is financed by loans from or guaranteed by the Company or any of its
Restricted Subsidiaries unless such loans have been repaid with cash on or
prior to the date of determination); plus

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

     (i) repurchases or redemptions of such Restricted Investments by
such Person, proceeds realized upon the sale of such Restricted
Investment to a purchaser other than the Company or a Subsidiary of
the Company, repayments of loans or advances or other transfers of
assets (including by way of dividend or distribution) by such Person
to the Company or any Restricted Subsidiary of the Company; or

     (ii) the redesignation of Unrestricted Subsidiaries as
Restricted Subsidiaries (valued in each case as provided in the
definition of “Investment”) not to exceed, in the case of any
Unrestricted Subsidiary, the amount of Investments previously made by
the Company or any Restricted Subsidiary in such Unrestricted
Subsidiary,

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

          (d) 50% of any dividends received by the Company or a Restricted Subsidiary of
the Company that is a Guarantor after the Reference Date from an Unrestricted
Subsidiary of the Company, to the extent that such dividends were not otherwise
included in the Consolidated Net Income of the Company for such period.

     (b) So long as no Default or Event of Default has occurred and is continuing or would
be caused thereby, the preceding provisions will not prohibit:

     (1) the payment of any dividend or the consummation of any irrevocable
redemption within 60 days after the date of declaration of the dividend or giving of
the redemption notice, as the case may be, if at the date of declaration or notice,
the dividend or redemption payment would have complied with the provisions of this
Indenture;

     (2) the making of any Restricted Payment in exchange for, or out of the net
cash proceeds of the substantially concurrent sale (other than to a Subsidiary of
the Company) of, Equity Interests of the Company (other than

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Disqualified Stock and
other than Equity Interests issued or sold to an employee stock ownership plan,
option plan or similar trust to the extent such sale to an employee stock ownership
plan, option plan or similar trust is financed by loans from or guaranteed by the
Company or any of its Restricted Subsidiaries unless such loans have been repaid
with cash on or prior to the date of determination) or from the substantially
concurrent contribution of common equity capital to the Company; provided that the
amount of any such net cash proceeds that are utilized for any such Restricted
Payment will be excluded from the second clause (3)(b) of Section 3.4(a);

     (3) the repurchase, redemption, defeasance or other acquisition or retirement
for value of Indebtedness of the Company or any Guarantor that is contractually
subordinated to the Notes or to any Note Guarantee with the net cash proceeds from a
substantially concurrent incurrence of Permitted Refinancing Indebtedness;

     (4) the payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary of the
Company to the holders of its Equity Interests on a pro rata basis;

     (5) the defeasance, repurchase, redemption or other acquisition or retirement
for value of any Equity Interests of the Company or any Restricted Subsidiary of the
Company held by any of the Company’s (or any of its Restricted Subsidiaries’)
current or former directors or employees pursuant to any director or employee equity
subscription agreement, stock option agreement or restricted stock agreement;
provided that the aggregate price paid for all such repurchased, redeemed, acquired
or retired Equity Interests may not exceed $3.0 million in any twelve-month period
(with unused amounts in any twelve-month period being permitted to be carried over
into succeeding twelve-month periods); provided, further, that the amounts in any
twelve-month period may be increased by an amount not to exceed (A) the cash
proceeds received by the Company or any of its Restricted Subsidiaries from the sale
of the Company’s Equity Interests (other than Disqualified Stock) to any such
directors or employees that occurs after the Reference Date (provided that the amount of
such cash proceeds utilized for any such repurchase, retirement or other acquisition
or retirement will not increase the amount available for Restricted Payments under
the second clause (3) of Section 3.4(a) and to the extent such proceeds have
not otherwise been applied to the payment of Restricted Payments) plus (B) the cash
proceeds of key man life insurance policies received by the Company and its
Restricted Subsidiaries after the Reference Date;

     (6) the defeasance, repurchase, redemption or other acquisition or retirement
for value of any Equity Interests of the Company or any Restricted Subsidiary of the
Company held by any of the Company’s (or any of its Restricted Subsidiaries’)
current or former directors or employees 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 the

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Company’s or such Restricted
Subsidiary’s tax withholding obligation with respect to such exercise or vesting;

     (7) any payments made in connection with the consummation of the transaction
closing contemporaneously with the closing of this offering on substantially the
terms described in the Prospectus;

     (8) so long as no Default has occurred and is continuing or would be caused
thereby, repurchases of Indebtedness that is subordinated to the Notes or a Note
Guarantee at a purchase price not greater than (i) 101% of the principal amount of
such subordinated Indebtedness and accrued and unpaid interest thereon in the event
of a Change of Control Triggering Event or (ii) 100% of the principal amount of such
subordinated 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:

     (i) in the case of a Change of Control Triggering Event, the Company has
first complied with and fully satisfied its obligations under Section
3.9; or

     (ii) in the case of an Asset Sale, the Company has complied with and fully
satisfied its obligations under Section 3.7;

     (9) the repurchase, redemption or other acquisition for value of Capital Stock
of the Company representing fractional shares of such Capital Stock in connection
with a merger, consolidation, amalgamation or other combination involving the
Company or any other transaction permitted by this Indenture;

     (10) repurchases of Capital Stock deemed to occur upon the exercise of stock
options if such Capital Stock represents a portion of the exercise price thereof;

     (11) 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
Restricted Subsidiary of the Company issued on or after the Reference Date in
accordance with the Fixed Charge Coverage Ratio test under Section 3.3(a);
and

     (12) other Restricted Payments in an aggregate amount not to exceed $25.0
million since the Reference Date.

     (c) The amount of all Restricted Payments (other than cash) will be the Fair Market
Value on the date of the Restricted Payment of the asset(s) or securities proposed to be
transferred or issued by the Company or such Restricted Subsidiary, as the case may be,
pursuant to the Restricted Payment. The Fair Market Value of any assets or securities that
are required to be valued by this covenant will be determined by the Board of Directors of
the Company, whose resolution with respect thereto will be delivered to the

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Trustee. 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 (12)
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 3.5. Liens. The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur or permit to exist any Lien (other than
Permitted Liens) upon any of its property or assets (whether now owned or hereafter acquired),
securing any Subordinated Obligations or Indebtedness, unless:

     (a) in the case of any Lien securing Subordinated Obligations of the Company or a
Guarantor, the Notes or Note Guarantee, as applicable, are secured by a Lien on such
property or assets on a senior basis to the Subordinated Obligations so secured until
such time as such Subordinated Obligations are no longer so secured by that Lien; and

     (b) in the case of any other Lien (other than a Permitted Lien) securing Indebtedness,
the Notes or Note Guarantees, as applicable, are secured by a Lien on such property or
assets on an equal and ratable basis with the Senior Debt so secured until such time as such
Senior Debt is no longer so secured by that Lien.

     Section 3.6. Dividend and Other Payment Restrictions Affecting Subsidiaries.

     (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create 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 its Capital Stock to the
Company or any of its Restricted Subsidiaries, or with respect to any other interest
or participation in, or measured by, its profits, or pay any Indebtedness owed to
the Company or any of its Restricted Subsidiaries;

     (2) make loans or advances to the Company or any of its Restricted
Subsidiaries; or

     (3) sell, lease or transfer any of its properties or assets to the Company or
any of its Restricted Subsidiaries.

     (b) However, the preceding restrictions will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements governing Existing Indebtedness and Credit Facilities as in
effect on the Issue Date and any amendments, restatements, modifications, renewals,
supplements, increases, refundings, replacements or refinancings of those
agreements, provided that the amendments, restatements, modifications, renewals,
supplements, increases, refundings, replacements or refinancings are no

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more restrictive, taken as a whole, with respect to such dividend and other payment
restrictions than those contained in those agreements on the Issue Date;

     (2) this Indenture, the Notes and the Note Guarantees;

     (3) applicable law, rule, regulation, order, approval, permit or similar
restriction;

     (4) any instrument governing Indebtedness or Capital Stock of a Person acquired
by the Company or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness or Capital Stock was
incurred in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of
the Person, so acquired, provided that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Indenture to be incurred;

     (5) customary non-assignment provisions in contracts, leases and licenses
(including, without limitation, licenses of intellectual property) entered into in
the ordinary course of business;

     (6) purchase money obligations for property (including Capital Stock) acquired
in the ordinary course of business, Capital Lease Obligations and mortgage
financings that impose restrictions on the property purchased or leased of the
nature described in clause (3) of Section 3.6(a) above;

     (7) any agreement for the sale or other disposition of assets, including,
without limitation, an agreement for the sale or other disposition of the Capital
Stock or assets of a Restricted Subsidiary, that restricts distributions by the
applicable Restricted Subsidiary pending the sale or other disposition;

     (8) Permitted Refinancing Indebtedness, provided that the restrictions
contained in the agreements governing such Permitted Refinancing Indebtedness are
not materially more restrictive, taken as a whole, than those contained in the
agreements governing the Indebtedness being refinanced;

     (9) Liens permitted to be incurred under the provisions of this Section
3.5 that limit the right of the debtor to dispose of the assets subject to such
Liens;

     (10) 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 (a) in the ordinary course of business, consistent with past
practice or (b) 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;

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     (11) 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 3.3; provided that the provisions
relating to such encumbrance or restriction contained in such Indebtedness are not
materially less favorable to the Company taken as a whole, as determined by the
Board of Directors of the Company in good faith, than the provisions contained in
the Credit Agreement and in this Indenture as in effect on the Issue Date;

     (12) 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 Section 3.3 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);

     (13) supermajority voting requirements existing under corporate charters,
bylaws, stockholders agreements and similar documents and agreements;

     (14) customary provisions restricting subletting or assignment of any lease
governing a leasehold interest;

     (15) encumbrances or restrictions contained in Hedging Obligations permitted
from time to time under this indenture; and

     (16) restrictions on cash or other deposits or net worth imposed by customers
under contracts entered into in the ordinary course of business.

     Section 3.7. Asset Sales.

     (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (1) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market Value
of the assets or Equity Interests issued or sold or otherwise disposed of; and

     (2) (i) at least 75% of the consideration received in the Asset Sale by the
Company or such Restricted Subsidiary is in the form of cash or (ii) the Fair Market
Value of all forms of consideration other than cash received for all Asset Sales
since the Issue Date does not exceed in the aggregate 10% of the Adjusted
Consolidated Net Tangible Assets of the Company at the time each determination is
made. For purposes of this provision, each of the following will be deemed to be
cash:

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     (a) any liabilities, as shown on the Company’s most recent consolidated
balance sheet, of the Company or any Restricted Subsidiary (other than
contingent liabilities and liabilities that are by their terms subordinated
to the Notes or any Note Guarantee) that are assumed by the transferee of
any such assets pursuant to a customary novation agreement that releases the
Company or such Restricted Subsidiary from further liability; and

     (b) any securities, notes or other obligations received by the Company
or any such Restricted Subsidiary from such transferee that are converted by
the Company or such Restricted Subsidiary into cash within
180 days after the date of the Asset Sale, to the extent of the cash
received in that conversion;

     (c) any stock or assets of the kind referred to in clauses (2) or (4)
of Section 3.7(b) below; and

     (d) accounts receivable of a business retained by the Company or any
Restricted Subsidiary, as the case may be, following the sale of such
business, provided that such accounts receivable are not (1) past due more
than 90 days and (2) do not have a payment date greater than 120 days from
the date of the invoice creating such accounts receivable.

     (b) Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the
Company (or the applicable Restricted Subsidiary, as the case may be) may apply such Net
Proceeds at its option to any combination of the following:

     (1) to repay Senior Debt;

     (2) to invest in Additional Assets;

     (3) to make capital expenditures in respect of the Company’s or its Restricted
Subsidiaries’ Oil and Gas Business; or

     (4) enter into a bona fide binding contract with a Person other than an
Affiliate of the Company to apply the Net Proceeds pursuant to clauses (2) or (3)
above, provided that such binding contract shall be treated as a permitted
application of the Net Proceeds from the date of such contract until the earlier of

     (i) the date on which such acquisition or expenditure is consummated, and

     (ii) the 180th day following the expiration of the
aforementioned 360-day period.

     (c) Pending the final application of any Net Proceeds, the Company or any such
Restricted Subsidiary may temporarily reduce revolving credit borrowings or otherwise invest
the Net Proceeds in any manner that is not prohibited by this Indenture.

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Any Net Proceeds
from Asset Sales that are not applied or invested as provided in the preceding Section
3.7(b) will constitute “Excess Proceeds.”

     (d) On the 361st day after the Asset Sale (or, at the Company’s option, any earlier
date), if the aggregate amount of Excess Proceeds then exceeds $20.0 million, the Company
will make an offer (an “Asset Sale Offer”) to all Holders of Notes, and all holders
of other Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets, to purchase the maximum principal amount of Notes and such
other pari passu Indebtedness that may be purchased out of the Excess Proceeds. The offer
price in any Asset Sale Offer will be equal to 100% of the principal
amount plus accrued and unpaid interest and Special Interest, if any, to the date of
purchase, and will be payable in cash. If the Asset Sale Payment Date is on or after an
interest record date and on or before the related interest payment date, any accrued and
unpaid interest (including Special Interest, if any) will be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender Notes pursuant to the Asset Sale Offer. If
any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use
those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the
aggregate principal amount of Notes and other pari passu Indebtedness tendered into such
Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes to
be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of
Excess Proceeds will be reset at zero.

     (e) The Asset Sale Offer will remain open for a period of 20 Business Days following
its commencement, except to the extent that a longer period is required by applicable law
(the “Asset Sale Offer Period”). No later than five Business Days after the
termination of the Asset Sale Offer Period (the “Asset Sale Payment Date”), the
Company will purchase the principal amount of Notes and other pari passu Indebtedness
required to be purchased pursuant to this covenant (the “Asset Sale Offer Amount”)
or, if less than the Asset Sale Offer Amount has been so validly tendered, all Notes and
other pari passu Indebtedness validly tendered in response to the Asset Sale Offer. On or
before the Asset Sale Payment Date, the Company will, to the extent lawful, accept for
payment, on a pro rata basis to the extent necessary, the Asset Sale Offer Amount of Notes
and other pari passu Indebtedness or portions thereof so validly tendered and not properly
withdrawn pursuant to the Asset Sale Offer, or if less than the Asset Sale Offer Amount has
been validly tendered and not properly withdrawn, all Notes and other pari passu
Indebtedness so validly tendered and not properly withdrawn. The Company will deliver to
the Trustee an Officers’ Certificate stating that such Notes or portions thereof were
accepted for payment by the Company in accordance with the terms of this covenant; and, in
addition, the Company will make such deliveries of all certificates and notes as are
required by the agreements governing the other pari passu Indebtedness. The Company or the
Paying Agent, as the case may be, will promptly (but in any case not later than five
Business Days after the termination of the Asset Sale Offer Period) mail or deliver to each
tendering Holder of Notes, an amount equal to the purchase price of the Notes so validly
tendered and not properly withdrawn by such Holder and accepted by the Company for purchase,
and the Company will promptly issue a new Note, and the

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Trustee, upon delivery of an
Officers’ Certificate from the Company, will authenticate and mail or deliver such new Note
to such Holder, in a principal amount equal to any unpurchased portion of the Note
surrendered. In addition, the Company will take any and all other actions required by the
agreements governing the other pari passu Indebtedness. Any Note not so accepted will be
promptly mailed or delivered by the Company to the Holder thereof. The Company will
publicly announce the results of the Asset Sale Offer on or as soon as practicable after the
Asset Sale Payment Date.

     (f) 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 those laws and
regulations are applicable in connection with each repurchase of Notes pursuant
to an Asset Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with the Asset Sale provisions hereunder, the Company will comply with
the applicable securities laws and regulations and will not be deemed to have breached its
obligations under the Asset Sale provisions hereunder by virtue of such compliance.

     (g) The Trustee shall be under no obligation to ascertain the occurrence of an Asset
Sale, or to determine or calculate Excess Proceeds, the Asset Sale Offer Period, the Asset
Sale Payment Date or the Asset Sale Offer Amount, or give any notice with respect thereto.
The Trustee may conclusively assume, in the absence of written notice to the contrary from
the Company or a Holder or Holders of Notes, that no Asset Sale has occurred.

     Section 3.8. Transactions with Affiliates.

     (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties
or assets to, or purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate of the Company (each, an “Affiliate Transaction”),
unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the
Company or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Company or such Restricted Subsidiary
with an unrelated Person; and

     (2) the Company delivers to the Trustee:

     (a) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $10.0
million a resolution of the Board of Directors of the Company set forth in
an Officers’ Certificate certifying that such Affiliate Transaction complies
with this covenant and that such Affiliate Transaction has been approved by
a majority of the disinterested members of the Board of Directors of the
Company; and

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     (b) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $30.0
million an opinion as to the fairness to the Company or such Subsidiary of
such Affiliate Transaction from a financial point of view issued by an
accounting, appraisal or investment banking firm of national standing.

     (b) The following items will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 3.8(a) above:

     (1) any employment agreement or arrangement, stock option or stock ownership
plan, employee benefit plan, officer or director indemnification agreement,
restricted stock agreement, severance agreement or other compensation plan or
arrangement entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business and payments, awards, grants or issuances of securities
pursuant thereto, including, without limitation, pursuant to the Company’s Equity
Participation Plan, as amended, and its Amended and Restated Stock Incentive Plan,
as amended;

     (2) transactions between or among the Company and/or its Restricted
Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of the
Company) that is an Affiliate of the Company solely because the Company owns,
directly or through a Restricted Subsidiary, an Equity Interest in, or controls,
such Person;

     (4) reasonable fees and expenses and compensation paid to, and indemnity or
insurance provided on behalf of, officers, directors or employees of the Company or
any Restricted Subsidiaries as determined in good faith by the Board of Directors;

     (5) any issuance of Equity Interests (other than Disqualified Stock) of the
Company to, or receipt of a capital contribution from, Affiliates (or a Person that
becomes an Affiliate) of the Company;

     (6) Restricted Payments that do not violate the provisions of Section
3.4;

     (7) transactions between the Company or any Restricted Subsidiaries and any
Person, a director of which is also a director of the Company or any direct or
indirect parent company of the Company and such director is the sole cause for such
Person to be deemed an Affiliate of the Company or any Restricted Subsidiaries;
provided, however, that such director abstains from voting as director of the
Company or such direct or indirect parent company, as the case may be, on any matter
involving such other Person;

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     (8) loans or advances to employees in the ordinary course of business or
consistent with past practice not to exceed $5.0 million in the aggregate at any one
time outstanding;

     (9) advances to or reimbursements of employees for moving, entertainment and
travel expenses, drawing accounts and similar expenditures in the ordinary course of
business;

     (10) any transaction in which the Company or any of its Restricted
Subsidiaries, as the case may be, deliver to the trustee a letter from an
accounting, appraisal or investment banking firm of national standing 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 clause
(1) of Section 3.8(a);

     (11) the performance of obligations of the Company or any of its Restricted
Subsidiaries under the terms of any written agreement to which the Company or any of
its Restricted Subsidiaries is a party on the Issue Date and which is described in
the Prospectus, as these agreements may be amended, modified or supplemented from
time to time; provided, however, that any future amendment, modification or
supplement entered into after the Issue Date will be permitted to the extent that
its terms do not materially and adversely affect the rights of any holders of the
Notes (as determined in good faith by the Board of Directors of the Company) as
compared to the terms of the agreements in effect on the Issue Date; and

     (12) (a) guarantees of performance by the Company and its Restricted
Subsidiaries of the Company’s Unrestricted Subsidiaries in the ordinary course of
business, except for Guarantees of Indebtedness in respect of borrowed money, and
(b) pledges of Equity Interests of the Company’s Unrestricted Subsidiaries for the
benefit of lenders of the Company’s Unrestricted Subsidiaries.

     Section 3.9. Change of Control Triggering Event. If a Change of Control Triggering Event
occurs, each Holder of Notes will have the right to require the Company to repurchase all or any
part (equal to $1,000 or an integral multiple thereof) of that Holder’s Notes at a purchase price
in cash equal to 101% of the principal amount of the Notes repurchased plus accrued and unpaid
interest and Special Interest, if any, on the Notes repurchased to the date of purchase (subject to
the right of Holders of record on the relevant record date to receive interest and Special
Interest, if applicable, due on the relevant interest payment date that is on or prior to the
Change of Control Payment Date (defined below)).

     Within 30 days following any Change of Control Triggering Event, the Company will mail a
notice (the “Change of Control Offer”) to each registered Holder with a copy to the Trustee
describing the transaction or transactions that constitute the Change of Control Triggering Event
and stating:

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     (1) that a Change of Control Triggering Event 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 of such Notes plus accrued and
unpaid interest and Special Interest, if any, to the date of purchase (the
“Change of Control Payment Date”) (subject to the right of Holders of record
on a record date to receive interest on the relevant interest payment date that is
on or prior to the Change of Control Payment Date) (the “Change of Control
Payment”);

     (2) the purchase date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed) (the “Change of Control Purchase
Date”); and

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

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

     (1) accept for payment all Notes or portions of Notes properly tendered
pursuant to the Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of
Notes or portions of Notes being purchased by the Company.

     On the Change of Control Payment Date, the Paying Agent will mail to each Holder of Notes
properly tendered the Change of Control Payment for such Note (or, if all the Notes are then in
global form, make such payment through the facilities of DTC), and the Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each
such new Note will be in a principal amount of $1,000 or an integral multiple thereof. Any Note so
accepted for payment will cease to accrue interest and Special Interest, if applicable, on and
after the Change of Control Payment Date unless the Company defaults in making the Change of
Control Payment. The Company will publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Purchase Date.

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

     The Company will not be required to make a Change of Control Offer upon a Change of Control
Triggering Event if (1) a third party makes the Change of Control Offer in the manner, at

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the time
and otherwise in compliance with the requirements set forth in this Indenture applicable to a
Change of Control Offer made by the Company and purchases all Notes validly tendered and not
withdrawn under such Change of Control Offer or (2) notice of redemption has been given under this
Indenture pursuant to the optional redemption provisions in paragraph 5 of the Notes.

     A Change of Control Offer may be made in advance of a Change of Control Triggering Event, and
conditioned upon the occurrence of such Change of Control Triggering Event, if a definitive
agreement is in place for the Change of Control Triggering Event at the time of making the Change
of Control Offer. Notes repurchased by the Company pursuant to a Change of
Control Offer will have the status of Notes issued but not outstanding or will be retired and
cancelled, at the Company’s option. Notes purchased by a third party pursuant to the preceding
paragraph will have the status of Notes issued and outstanding.

     The Company will comply, to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act, including Rule 14e-1, and any other securities laws or regulations to in
connection with the repurchase of Notes pursuant to this Section 3.9. To the extent that
the provisions of any securities laws or regulations conflict with provisions of this Indenture,
the Company will comply with the applicable securities laws and regulations and will not be deemed
to have breached its obligations described in this Indenture by virtue of such compliance.

     The Trustee shall be under no obligation to ascertain the occurrence of a Change of Control
Triggering Event or to give notice with respect thereto. The Trustee may conclusively assume, in
the absence of written notice to the contrary from the Company, or a Holder or Holders of Notes,
that no Change of Control Triggering Event has occurred.

     In the event that Holders of not less than 90% of the aggregate principal amount of the Notes
accept a Change of Control Offer and the Company purchases all of the Notes held by such Holders,
the Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given
not more than 30 days following the purchase pursuant to a Change of Control Offer, to redeem all
of the Notes that remain outstanding following such purchase at a purchase price equal to the
Change of Control Payment plus, to the extent not included in the Change of Control Payment,
accrued and unpaid interest and Special Interest, if any, on the Notes that remain outstanding, to
the Redemption Date (subject to the right of Holders on the relevant record date to receive
interest due on the relevant interest payment date).

     Section 3.10. Future Note Guarantees. If, after the Issue Date, any Domestic Subsidiary
that is not already a Guarantor Guarantees any other Indebtedness of the Company or a Guarantor in
excess of the De Minimis Guaranteed Amount, then in such case such Domestic Subsidiary will become
a Guarantor with respect to the Notes by executing a supplemental indenture substantially in the
form of Exhibit C hereto and delivering it to the Trustee within 180 days of the date on
which it Guaranteed such Indebtedness of the Company or a Guarantor, as the case may be.

     Section 3.11. Designation of Restricted and Unrestricted Subsidiaries. The Board of
Directors of the Company may designate any Restricted Subsidiary of the Company to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary
of the Company is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of

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all
outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary
properly designated as Unrestricted will be deemed to be an Investment made as of the time of the
designation and will reduce the amount available for Restricted Payments under Section
3.4(a) or under one or more clauses of the definition of Permitted Investments, as determined
by the Company. That designation will only be permitted if the Investment would be permitted at
that time and if the Restricted Subsidiary so designated otherwise meets the definition of an
Unrestricted Subsidiary.

     Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a Board Resolution giving effect to such designation and
an Officers’ Certificate certifying that such designation complied with the preceding conditions
and was permitted by Section 3.4. If, at any time, any Unrestricted Subsidiary would fail
to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary will
be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such
Indebtedness is not permitted to be incurred as of such date under the covenant described under
Section 3.3 the Company will be in default of such covenant.

     The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to
be a Restricted Subsidiary of the Company; provided that such designation will be deemed to be an
incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation will only be permitted if (1)
such Indebtedness is permitted under the covenant described above in Section 3.3,
calculated on a pro forma basis as if such designation had occurred at the beginning of the
four-quarter reference period, and (2) no Default or Event of Default would be in existence
following such designation.

     Section 3.12. Maintenance of Office or Agency. The Company will maintain in The City of
New York, an office or agency where the Notes may be presented or surrendered for payment, where,
if applicable, the Notes may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The principal corporate trust office of the Trustee, or if the Trustee’s principal
corporate trust office is not located in The City of New York, any other office or agency
maintained by the Trustee in The City of New York (the “Corporate Trust Office”), shall be
such office or agency of the Company, unless the Company shall designate and maintain some other
office or agency for one or more of such purposes. The Company will give prompt written notice to
the Trustee of any change in the location of any such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies (in or
outside of The City of New York) where the Notes may be presented or surrendered for any or all
such purposes and may from time to time rescind any such designation; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in The City of New York for such purposes. The

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Company will give
prompt written notice to the Trustee of any such designation or rescission and any change in the
location of any such other office or agency.

     Section 3.13. Corporate Existence. Subject to Article IV and Section 10.2, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate existence and that
of each Restricted Subsidiary and the corporate rights (charter and statutory) licenses and
franchises of the Company and each Restricted Subsidiary; provided, however, that the Company shall
not be required to preserve any such existence (except the Company), right, license or franchise if
the Board of Directors of the Company shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and each of its Restricted Subsidiaries,
taken as a whole, and that the loss thereof would not have a material adverse effect on the ability
of the Company to perform its obligations under the Notes or this Indenture, provided further that
the Company and the Guarantors may merge in accordance with Sections 4.1 and 10.2.

     Section 3.14. Payment of Taxes and Other Claims. The Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon the Company or any Restricted
Subsidiary or upon the income, profits or property of the Company or any Restricted Subsidiary and
(ii) all lawful claims for labor, materials and supplies, which, if unpaid, might by law become a
material liability or lien upon the property of the Company or any Restricted Subsidiary, except
for any Lien permitted to be incurred pursuant to subsections (6) and (9) of the definition of
“Permitted Liens;” provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings and for which
appropriate reserves, if necessary (in the good faith judgment of management of the Company), are
being maintained in accordance with GAAP or where the failure to pay or discharge the same would
not have a material adverse effect on the ability of the Company to perform its obligations under
the Notes or this Indenture.

     Section 3.15. Compliance Certificate. The Company shall deliver to the Trustee within 120
days after the end of each fiscal year of the Company an Officers’ Certificate stating that in the
course of the performance by the signers of their duties as Officers of the Company they would
normally have knowledge of any Default or Event of Default and whether or not the signers know of
any Default or Event of Default that occurred during such period. If they do, the certificate
shall describe the Default or Event of Default, its status and what action the Company is taking or
proposes to take with respect thereto. The Company also shall comply with TIA § 314(a)(4).

     Section 3.16. Further Instruments and Acts. Upon the reasonable request of the Trustee,
the Company will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

     Section 3.17. Statement by Officers as to Default. The Company shall deliver to the
Trustee, as soon as possible and in any event within 5 Business Days after the Company becomes
aware of the occurrence of any Event of Default or
Default an Officers’ Certificate setting forth

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the details of such Event of Default or Default and
the action which the Company is taking or proposes to take in respect thereof.

     Section 3.18. Payments for Consent. Neither the Company nor any of its Subsidiaries shall,
directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee
or otherwise, to any Beneficial Owner or Holder of any Notes for or as an inducement to any consent
to any waiver, supplement or amendment of any terms or provisions of this Indenture or the Notes,
unless such consideration is offered to be paid or agreed to be paid to all Beneficial Owners and
Holders of the Notes which so consent in the time frame set forth in solicitation documents
relating to such consent.

     Section 3.19. Effectiveness of Covenants and Other Provisions Upon an Investment Grade Rating
Event. Upon and after the occurrence of an Investment Grade Rating Event, the Company and its
Subsidiaries, as the case may be, shall cease to be subject to Sections 3.3, 3.4, 3.6, 3.7,
3.8, 3.9, 3.11, 3.12 (other than with respect to the corporate existence of the Company) and
3.14 hereof and clause (4) of Section 4.1 hereof and such provisions of this Indenture
shall no longer have any effect. Such provisions of this Indenture shall not be reinstituted
following the occurrence of an Investment Grade Rating Event even if the rating assigned the Notes
by a Rating Agency falls below an Investment Grade Rating.

ARTICLE IV

Successor Company

     Section 4.1. Merger, Consolidation or Sale of Assets. The Company will not, directly or
indirectly: (1) consolidate, amalgamate or merge with or into another Person (whether or not the
Company is the surviving corporation), convert into another form of entity or continue in another
jurisdiction; or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its properties or assets, in one or more related transactions, to another
Person, unless:

     (1) either: (a) the Company is the surviving corporation; or (b) the Person
(the “Successor Company”) formed by or surviving any such consolidation,
amalgamation or merger or resulting from such conversion (if other than the Company)
or to which such sale, assignment, transfer, lease, conveyance or other disposition
has been made is a corporation, limited liability company or limited partnership
organized or existing under the laws of the United States, any state of the United
States or the District of Columbia;

     (2) the Person formed by or surviving any such conversion, consolidation,
amalgamation or merger (if other than the Company) or the Person to which such sale,
assignment, transfer, lease, conveyance or other disposition has been made assumes
all the obligations of the Company under the Notes, this Indenture and any
Registration Rights Agreement pursuant to a supplemental
indenture and other agreements reasonably satisfactory to the Trustee; provided
that, unless such Person is a corporation, a corporate co-issuer of the Notes will
be added to this Indenture by agreements reasonably satisfactory to the Trustee;

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     (3) immediately after such transaction no Default or Event of Default exists;
and

     (4) the Company or the Person formed by or surviving any such consolidation,
amalgamation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition has been made:

     (i) would have Consolidated Net Worth immediately after the transaction
equal to or greater than the Consolidated Net Worth of the Company immediately
preceding the transaction;

     (ii) would, on the date of such transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 3.3(a); or

     (iii) would, on the date of such transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, have a Fixed Charge
Coverage Ratio that is not less than the Fixed Charged Coverage Ratio of the
Company and its Restricted Subsidiaries immediately prior to such transaction.

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

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

     Notwithstanding the preceding clause (4) of this Section 4.1, (x) any Restricted
Subsidiary of the Company may consolidate with, merge into or transfer all or part of its
properties and assets to the Company, (y) the Company may merge into a Restricted Subsidiary for
the purpose of reincorporating the Company in another jurisdiction and (z) any Restricted
Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets to
another Restricted Subsidiary.

ARTICLE V

Redemption of Notes

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     Section 5.1. Optional Redemption. Except as described below or in Section 3.9
above, the Notes will not be redeemable by the Company’s option prior to [               , [     ]].

     (a) On or after [               , [     ]], the Company may redeem all or any part of the
Notes, upon not less than 30 days’ nor more than 60 days’ prior notice, except that a
redemption notice may be made more than 60 days prior to a redemption date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and discharge of the
Indenture, at the redemption prices (expressed as percentages of principal amount) set forth
below, plus accrued and unpaid interest and Special Interest, if any, on the Notes redeemed
to, but not including, the applicable Redemption Date (subject to the right of Holders of
record on the relevant record date to receive interest and Special Interest, if any, due on
an interest payment date that is on or prior to the Redemption Date), if redeemed during the
twelve-month period beginning on [               ] of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	[____]
	 	 	[_____]	%
	[____]
	 	 	[_____]	%
	[____] and thereafter
	 	 	[_____]	%

     (b) At any time prior to [          ,      ] the Company may also redeem, in whole or in
part, the Notes at a redemption price equal to 100% of the principal amount of Notes to be
redeemed, plus the Applicable Premium as of, and accrued and unpaid interest and Special
Interest, if any, to, but not including, the Redemption Date, subject to the rights of the
holders on the relevant record date to receive interest and Special Interest, if any, due on
the relevant interest payment date.

     (c) The notice of redemption with respect to the foregoing redemption need not set
forth the Applicable Premium but only the manner of calculation thereof. The Company will
notify the Trustee of the Applicable Premium with respect to any redemption promptly after
the calculation, and the Trustee shall not be responsible for such calculation.

     (d) At any time prior to [               ,      ], the Company may, at its option, on any one
or more occasions, redeem up to 35% of the aggregate principal amount of Notes (including
any Additional Notes) issued after the Issue Date at a redemption price of [          ]% of the
principal amount, plus accrued and unpaid interest and Special Interest, if any, to, but not
including, the Redemption Date (subject to the right of Holders of record on the relevant
record date to receive interest due on an interest payment date that is on or prior to the
Redemption Date), with all or a portion of the net proceeds of one or more Equity Offerings,
provided that:

     (1) at least 65% of the aggregate principal amount of Notes issued hereunder
remains outstanding immediately after the occurrence of such redemption (excluding
Notes held by the Company and its Subsidiaries); and

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     (2) the redemption occurs within 180 days of the date of the closing of such
Equity Offering.

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

     Section 5.3. Election to Redeem; Notice to Trustee. The election of the Company to redeem
any Notes pursuant to Section 5.1 or Section 3.9 shall be evidenced by a Board
Resolution. In case of any redemption at the election of the Company, the Company shall, upon not
later than the earlier of the date that is 45 days prior to the Redemption Date fixed by the
Company or the date on which notice is given to the Holders (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Notes to be redeemed and shall deliver to the Trustee such documentation and records as
shall enable the Trustee to select the Notes to be redeemed pursuant to Section 5.4.

     Section 5.4. Selection by Trustee of Notes to Be Redeemed. If fewer than all of the Notes
are to be redeemed at any time, the Trustee will, subject to applicable law, select Notes for
redemption as follows:

     (1) if the Notes are listed on any national securities exchange, in compliance
with the requirements of the principal national securities exchange on which the
Notes are listed; or

     (2) if the Notes are not listed on any national securities exchange, on a pro
rata basis.

     Section 5.5. Notice of Redemption. Notice of redemption shall be given in the manner
provided for in Section 12.2 not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Notes to be redeemed, except that redemption notices may be mailed more
than 60 days prior to a Redemption Date if such notice is issued in connection with a defeasance of
the Notes or a satisfaction and discharge of this Indenture. Notice of any redemption including,
without limitation, upon an Equity Offering may, at the Company’s discretion, be subject to one or
more conditions precedent, including, but not limited to, completion of the related Equity
Offering. The Trustee shall give notice of redemption in the Company’s name and at the Company’s
expense; provided, however, that the Company shall deliver to the Trustee, at least 45 days prior
to the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee), an Officers’
Certificate requesting
that the Trustee give such notice at the Company’s expense and setting forth the information to be
stated in such notice as provided in the following items.

     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the redemption price (subject to the provisions of Section 5.1(c)
above) and the amount of accrued interest and Special Interest, if any, to the
Redemption Date payable as provided in Section 5.7;

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     (3) if less than all outstanding Notes are to be redeemed, the identification
of the particular Notes (or portion thereof) to be redeemed, as well as the
aggregate principal amount of Notes to be redeemed and the aggregate principal
amount of Notes to be outstanding after such partial redemption;

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

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

     (6) the place or places where such Notes are to be surrendered for payment of
the Redemption Price and accrued interest, if any;

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

     (8) that Notes called for redemption (other than a Global Note) must be
surrendered to the Paying Agent to collect the redemption price;

     (9) the CUSIP, ISIN or Common Code number, and that no representation is made
as to the accuracy or correctness of the CUSIP, ISIN or Common Code number, if any,
listed in such notice or printed on the Notes; and

     (10) the section of this Indenture and the paragraph of the Notes pursuant to
which the Notes are to be redeemed.

Any redemption and notice thereof pursuant to this Indenture may, in the Company’s discretion, be
subject to the satisfaction of one or more conditions.

     Section 5.6. Deposit of Redemption Price. Not later than 11:00 a.m. New York time on the 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 2.4) an amount of money sufficient to pay the
redemption price of, and accrued interest and Special Interest, if any, on, all the Notes which are
to be redeemed on that date.

     Section 5.7. Notes Payable on Redemption Date. Notice of redemption having been given as
aforesaid, unless the notice of redemption is subject to one or more conditions precedent which
have not been satisfied, the Notes so to be redeemed shall, on the Redemption Date, become due and
payable at the redemption price therein specified (together with accrued and unpaid interest and
Special Interest, if any, to the Redemption Date), and from and after such date (unless the Company
shall default in the payment of the redemption price and accrued

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interest and Special Interest, if
any) such Notes shall cease to bear interest and Special Interest, if any. Upon surrender of any
such Note for redemption in accordance with said notice, such Note shall be paid by the Company at
the redemption price, together with accrued and unpaid interest and Special Interest, if any, to
the Redemption Date (subject to the rights of Holders of record on the relevant record date to
receive interest and Special Interest, if any, due on an interest payment date that is on or prior
to the Redemption Date).

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

     Section 5.8. Notes Redeemed in Part. Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article V) shall be surrendered at the office or agency
of the Company maintained for such purpose pursuant to Section 3.12 (with, if the Company
or the Trustee so require, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Note at the expense of the
Company, a new Note or Notes, of any authorized denomination as requested by such Holder, in an
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Note so surrendered, provided that each such new Note will be in a principal amount of $1,000
or integral multiple thereof. No Notes of $1,000 or less may be redeemed in part.

ARTICLE VI

Defaults and Remedies

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

     (1) default in any payment of interest on, or Special Interest, if any, with
respect to, any Note under this Indenture when due, continued for 30 days;

     (2) default in the payment when due (at Stated Maturity, upon redemption or
otherwise) of the principal of, or premium, if any, on the Notes;

     (3) failure by the Company to comply with the provisions of Sections
3.7, 3.9 or 4.1 hereof;

     (4) failure by the Company for 60 days after notice to the Company by the
Trustee or the Holders of at least 25% in aggregate principal amount of the Notes
then outstanding voting as a single class to comply with any of the other agreements
in this Indenture;

     (5) default under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any of its Restricted Subsidiaries (or the payment of
which is Guaranteed by the Company or any of its

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Restricted Subsidiaries), whether
such Indebtedness or Guarantee now exists, or is created after the date of this
Indenture, if that default:

	 	(a)	 	is caused by a failure to pay principal of, or
interest or premium, if any, on, such Indebtedness prior to the
expiration of the grace period provided in such Indebtedness (a
“Payment Default”); or
	 
	 	(b)	 	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 $20.0 million or more; provided that if any such default is cured
or waived or any such acceleration rescinded, or such Indebtedness is
repaid, within a period of ten Business Days from the continuation of such
default beyond the applicable grace period or the occurrence of such
acceleration, as the case may be, such Event of Default and any
consequential acceleration of the Notes shall be automatically rescinded, so
long as such rescission does not conflict with any judgment or decree;

     (6) failure by the Company or any of its Restricted Subsidiaries to pay final
judgments entered by a court or courts of competent jurisdiction aggregating in
excess of $20.0 million, (net of any amount with respect to which a reputable and
solvent insurance company has acknowledged liability in writing) which judgments are
not paid, discharged, stayed or fully bonded (including a stay pending appeal) for a
period of 60 days (or, if later, the date when payment is due pursuant to such
judgment);

     (7) (a) except as permitted by this Indenture, any Note Guarantee shall be held
in any judicial proceeding to be unenforceable or invalid or ceases for any reason
to be in full force and effect or (b) any Guarantor, or any Person acting on
behalf of any Guarantor, shall deny or disaffirm its obligations under its Note
Guarantee (except pursuant to the release or termination of such Note Guarantee in
accordance with this Indenture); and

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

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

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	 	(iii)	 	consents to the appointment of a Custodian of
it or for any substantial part of its property;
	 
	 	(iv)	 	makes a general assignment for the benefit of
its creditors; or
	 
	 	(v)	 	consents to or acquiesces in the institution of
a bankruptcy or an insolvency proceeding against it;

     or takes any comparable action under any foreign laws relating to insolvency; or

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

	 	(i)	 	is for relief against the Company or any Significant Subsidiary
or a group of Restricted Subsidiaries that, taken together (as of the latest
available consolidated financial statements of the Company), would constitute a
Significant Subsidiary in an involuntary case;
	 
	 	(ii)	 	appoints a Custodian of the Company or any Significant
Subsidiary or a group of Restricted Subsidiaries that, taken together (as of
the latest available consolidated financial statements of the Company), would
constitute a Significant Subsidiary or for any substantial part of its
Property; or
	 
	 	(iii)	 	orders the winding up or liquidation of the Company or any
Significant Subsidiary or a group of Restricted Subsidiaries that, taken
together (as of the latest available consolidated financial statements of the
Company), would constitute a Significant Subsidiary;

		 	or any similar relief is granted under any foreign laws and the order, decree or relief
remains unstayed and in effect for 60 days.

     Section 6.2. Acceleration. If any Event of Default (other than those of the type described in clause (8) of Section
6.1) occurs and is continuing, the Trustee may, and at the direction of the Holders of at least
25% in aggregate principal amount of outstanding Notes shall, declare the principal of all the
Notes, together with all accrued and unpaid interest and Special Interest, if any, and premium, if
any, to be due and payable immediately by notice in writing to the Company and the Trustee
specifying the respective Event of Default and that such notice is a notice of acceleration, and
the same shall become immediately due and payable.

     In the case of an Event of Default specified in clause (8) of Section 6.1 hereof, all
outstanding Notes shall become due and payable immediately without further action or notice by the
Trustee or the Holders. Holders may not enforce this Indenture or the Notes except as provided in
this Indenture.

     At any time after a declaration of acceleration with respect to the Notes, the Holders of a
majority in principal amount of the Notes then outstanding (by notice to the Trustee) may, on

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behalf of the Holders of all the Notes, rescind and cancel such declaration and its consequences
if:

     (1) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction;

     (2) all existing Defaults and Events of Default have been cured or waived
except nonpayment of principal of or interest on the Notes that has become due
solely by reason of such declaration of acceleration;

     (3) to the extent the payment of such interest is lawful, interest (at the same
rate specified in the Notes) on overdue installments of interest and Special
Interest, if any, and overdue payments of principal which has become due otherwise
than by such declaration of acceleration has been paid;

     (4) the Company has paid the Trustee its reasonable compensation and reimbursed
the Trustee for its reasonable expenses, disbursements and advances; and

     (5) in the event of the cure or waiver of an Event of Default of the type
described in clause (8) of Section 6.1, the Trustee has received an
Officers’ Certificate and Opinion of Counsel that such Event of Default has been
cured or waived.

     Notwithstanding the foregoing, if an Event of Default specified in Section 6.1(5)
shall have occurred and be continuing, such Event of Default and any consequential acceleration
shall be automatically rescinded if (i) the Indebtedness that is the subject of the Event of
Default has been repaid, or (ii) if the default relating to such Indebtedness is waived or cured
and if such Indebtedness has been accelerated, then the holders thereof have rescinded their
declaration of acceleration in respect of such Indebtedness.

     Section 6.3. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of (or premium, if any) or interest or Special Interest, if any,
on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

     Section 6.4. Waiver of Past Defaults. The Holders of a majority in principal amount of the
then outstanding Notes by notice to the Trustee may, on behalf of the Holders of all the Notes, (a)
waive, by their consent (including, without limitation consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Notes), an existing Default or Event of Default
and its consequences or compliance with any provisions except (i) a Default or Event of Default in
the payment of the principal of, or premium, if any, or interest or Special Interest, if

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any, on a
Note or (ii) a Default or Event of Default in respect of a provision that under Section 9.2
cannot be amended without the consent of each Holder affected and (b) rescind any such acceleration
with respect to the Notes and its consequences if rescission would not conflict with any judgment
or decree of a court of competent jurisdiction. When a Default or Event of Default is waived, it
is deemed cured, but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

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

     Section 6.6. Limitation on Suits. Subject to Section 6.7, a Holder may not pursue
any remedy with respect to this Indenture or the Notes unless:

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

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

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

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

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

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

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

     Section 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses (1)
or (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company for the whole amount then due and owing

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(together with interest on any unpaid interest to the extent lawful) and the amounts provided for
in Section 7.7.

     Section 6.9. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee and the Holders allowed in any judicial proceedings relative to the Company, its
Subsidiaries or its or their respective creditors or properties and, unless prohibited by law or
applicable regulations, may 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
7.7. To the extent that the payment of any such compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the
rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in
any such proceeding.

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

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

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

     THIRD: to the Company or the Guarantors or to such other party as a court of competent
jurisdiction may direct.

     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 amount to be
paid.

     Section 6.11. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit,
having due

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regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by the
Company, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10%
in outstanding principal amount of the Notes.

     Section 6.12. Waiver of Stay, Extension and Usury Laws. Each of the Company and the
Guarantors covenant (to the extent permitted by applicable law) that it will not at any time insist
upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law wherever enacted, now or at any time hereafter in force, which
would prohibit or forgive the Company or any Guarantor from paying all of any portion of the
principal of (premium, if any, on) or interest and Special Interest, if any, on the Notes as
contemplated herein, or which may affect the covenants or the performance of this Indenture; and
(to the extent that it may lawfully do so) each of the Company and the Guarantors hereby expressly
waive all benefit or advantage of any such law, and covenants that they will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

ARTICLE VII

Trustee

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

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

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

     (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, opinions or orders furnished to the Trustee and
conforming to the requirements of this Indenture. However, in the case of any such
certificates or opinions which by any provisions hereof are specifically required to
be furnished to the Trustee, the Trustee shall examine such certificates and
opinions to determine whether or not they conform on their face to the requirements
of this Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

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

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

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

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

     (d) Every provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs (a), (b) and (c) of this Section 7.1.

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

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

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

     (h) 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 7.1 and to the provisions of the TIA.

     (i) Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company shall be sufficient if signed by an Officer of the
Company.

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

     Section 7.2. Rights of Trustee. Subject to Section 7.1:

     (a) The Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been

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signed or presented
by the proper person. The Trustee need not investigate any fact or matter stated in the
document.

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

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

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

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

     (f) The Trustee is not required to make any inquiry or investigation into facts or
matters stated in any 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
determines to make such further inquiry or investigation, it shall be entitled to examine
the books, records and premises of the Company.

     (g) The Trustee is not required to take notice or shall not be deemed to have notice of
any Default or Event of Default hereunder, unless a Trust Officer of the Trustee has actual
knowledge thereof or has received notice in writing of such Default or Event of Default from
the Company or the Holders of at least 25% in aggregate principal amount of the Notes then
outstanding, and in the absence of any such notice, the Trustee may conclusively assume that
no such Default or Event of Default exists.

     (h) The Trustee is not required to give any bond or surety with respect to the
performance of its duties or the exercise of its powers under this Indenture.

     (i) In the event the Trustee receives inconsistent or conflicting requests and
indemnity from two or more groups of Holders of Notes, each representing less than the
aggregate principal amount of Notes outstanding required to take any action thereunder, the
Trustee, in its sole discretion may determine what action, if any, shall be taken.

     (j) The Trustee’s immunities and protections from liability and its right to
indemnification in connection with the performance of its duties under this Indenture shall
extend to the Trustee’s officers, directors, agents, attorneys and employees. Such
immunities and protections and right to indemnification, together with the Trustee’s right
to compensation, shall survive the Trustee’s resignation or removal, the discharge of this
Indenture and final payments of the Notes.

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     (k) The permissive right of the Trustee to take actions permitted by this Indenture
shall not be construed as an obligation or duty to do so.

     Section 7.3. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply
with Sections 7.10 and 7.11.

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

     Section 7.5. Notice of Defaults. If a Default or Event of Default occurs and is continuing
and if a Trust Officer has actual knowledge thereof, the Trustee shall mail to each Holder notice
of the Default or Event of Default within 90 days after it. Except in the case of a Default or
Event of Default in payment of principal of, premium, if any, or interest or Special Interest, if
any, on any Note, the Trustee may withhold the notice if and so long as a committee of its trust
officers in good faith determines that withholding the notice is in the interests of Holders.

     Section 7.6. Reports by Trustee to Holders. As promptly as practicable after each May 15
beginning with the May 15 following the date of this Indenture and for so long as the Notes remain
outstanding, the Trustee shall mail to each Holder a brief report dated as of such reporting date
that complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b). The Trustee
shall also transmit by mail all reports required by TIA § 313(c).

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

     Section 7.7. Compensation and Indemnity. The Company shall pay to the Trustee from time to
time reasonable compensation for its acceptance of this Indenture and services hereunder as the
Company and the Trustee shall from time to time agree in writing. The Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, costs of preparing and reviewing reports, certificates and other
documents, costs of preparation and mailing of notices to Holders, in addition to the compensation
for its services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s agents, counsel, accountants and experts. The Company
shall indemnify the Trustee against any and all loss, liability, damages, claims or expense
(including reasonable attorneys’ fees and expenses) incurred by it without negligence or willful
misconduct on its part in connection with the

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administration of this trust and the performance of
its duties hereunder, including the costs and expenses of enforcing this Indenture (including this
Section 7.7) and of defending itself against any claims (whether asserted by any Holder,
the Company or otherwise). The Trustee shall notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company
of its obligations hereunder. The Company shall defend the claim and the Trustee shall provide
reasonable cooperation at the Company’s expense in the defense. The Trustee may have separate
counsel and the Company shall pay the fees and expenses of such counsel provided that the
Company shall not be required to pay such fees and expenses if it assumes the Trustee’s defense,
and, in the reasonable judgment of outside counsel to the Trustee, there is no conflict of interest
between the Company and the Trustee in connection with such defense. The Company shall not be
under any obligation to pay for any written settlement without its consent, which consent shall not
be unreasonably delayed, conditioned or withheld. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own
willful misconduct or negligence.

     To secure the Company’s payment obligations in this Section 7.7, the Trustee shall
have a Lien prior to the Notes on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of, interest and Special Interest, if any, on
particular Notes.

     The Company’s payment obligations pursuant to this Section 7.7 shall survive the
discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default
specified in clause (9) of Section 6.1 with respect to the Company, the expenses are
intended to constitute expenses of administration under any Bankruptcy Law.

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

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

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee otherwise becomes incapable of acting.

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

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall

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become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the Lien provided for in Section 7.7.

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

     If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed as provided in TIA § 310(b), any Holder who has been a bona fide Holder of a Note for at
least six months may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

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

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

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

     Section 7.10. Eligibility; Disqualification. The Trustee shall at all times satisfy the
requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least
$100.0 million as set forth in its most recent published annual report of condition. The Trustee
shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation
of TIA § 310(b)(1) any indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Company are outstanding if the requirements
for such exclusion set forth in TIA § 310(b)(1) are met.

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

ARTICLE VIII

Legal Defeasance and Covenant Defeasance

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     Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance. The Company may, at its option and at any time, elect to have either Section 8.2 or
8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set
forth in this Article VIII.

     Section 8.2. Legal Defeasance and Discharge. Upon the Company’s exercise under Section
8.1 hereof of the option applicable to this Section 8.2, the Company shall, subject to
the satisfaction of the conditions set forth in Section 8.4 hereof, be deemed to have been
discharged from its Obligations with respect to all outstanding Notes on the date the conditions
set forth below are satisfied (hereinafter, “Legal Defeasance”) and each Guarantor shall be
released and relieved from all of its Obligations under its Note Guarantee. For this purpose,
Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, which shall thereafter be deemed to be
“outstanding” only for the purposes of Section 8.5 hereof and the other Sections of this
Indenture referred to in clauses (a) through (e) below, and to have satisfied all its other
obligations under the Notes and this Indenture (and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging the same), except for the following
provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights
of Holders of outstanding Notes to receive, solely from the trust fund described in Sections
8.4 and 8.5 hereof, and as more fully set forth in such Section, payments in respect of
the principal of, premium, if any, interest and Special Interest, if any, on such Notes when such
payments are due, (b) the Company’s Obligations with respect to such Notes under Article II
and Sections 3.1 and 3.14 hereof, (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and the Company’s and the Guarantors’ obligations in connection
therewith, (d) the optional redemption provisions of this Indenture, and (e) this Article
VIII. If the Company exercises under Section 8.1 hereof the option applicable to this
Section 8.2, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, payment of the Notes may not be accelerated because of an Event of Default. Subject to
compliance with this Article VIII, the Company may exercise its option under this
Section 8.2 notwithstanding the prior exercise of its option under Section 8.3
hereof.

     Section 8.3. Covenant Defeasance. Upon the Company’s exercise under Section 8.1
hereof of the option applicable to this Section 8.3, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.4 hereof, be released from its
obligations under the covenants contained in Sections 3.2 through 3.11,
3.13 (other than with respect to the Company’s corporate existence), and 3.14
hereof, and the operation of clause (4) of Section 4.1 hereof, with respect to the
outstanding Notes on and after the date the conditions set forth in Section 8.4 hereof are
satisfied (hereinafter, “Covenant Defeasance”) and each Guarantor shall be released from
all of its obligations under its Note Guarantee and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders
(and the consequences of any thereof) in connection with such covenants, but shall continue to be
deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall
not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes, the Company and the Guarantors may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by
reason of any reference in any such covenant to any other provision herein or in any other document
and such omission to comply

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shall not constitute a Default or an Event of Default under Section
6.1 hereof, but, except as specified above, the remainder of this Indenture and such Notes
shall be unaffected thereby. If the Company exercises under Section 8.1 hereof the option
applicable to this Section 8.3, subject to the satisfaction of the conditions set forth in
Section 8.4 hereof, payment of the Notes may not be accelerated because of an Event of
Default specified in clauses (3) (with respect to the covenant contained in clause (4) of
Section 4.1 hereof), (4) (with respect to Sections 3.2 through 3.11,
3.13 (other than with respect to the Company’s corporate existence) and 3.14
hereof), (5), (6) and (8) of such Section 6.1 (but in the case of clause (8) of Section
6.1 hereof, with respect to Significant Subsidiaries only).

     Section 8.4. Conditions to Legal or Covenant Defeasance. The following shall be the
conditions to the application of either Section 8.2 or 8.3 hereof to the
outstanding Notes.

     In order to exercise Legal Defeasance or Covenant Defeasance:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the
benefit of the Holders of the Notes, cash in U.S. dollars, non-callable Government
Securities, or a combination of cash in U.S. dollars, and non-callable Government
Securities, in 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, and interest, Special Interest, if any, and
premium, if any, on the outstanding Notes on the stated date for payment or on the
applicable Redemption Date, as the case may be, and the Company must specify whether
the Notes are being defeased to such stated date for payment or to a particular
Redemption Date

     (2) in the case of Legal Defeasance, the Company must deliver to the Trustee an
Opinion of Counsel 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 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 will confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and shall be subject to federal income
tax in 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 must deliver to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that Holders
of the outstanding Notes shall not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and shall be subject to federal
income tax in 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 has occurred and be continuing with respect
to the Notes on the date of such deposit (other than a Default or

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Event of Default
resulting from the borrowing of funds to be applied to such deposit) and the deposit
will not result in a breach or violation of, or constitute a default under, any
Indebtedness incurred under clause (1) of Permitted Debt;

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument
(other than this Indenture) to which the Company or any of its Subsidiaries is a
party or by which the Company or any of its Subsidiaries is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating
that such deposit was not made by the Company with the intent of preferring the
Holders of Notes over the other creditors of the Company with the intent of
defeating, hindering, delaying or defrauding creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

     Section 8.5. Deposited Cash and Government Securities to be Held in Trust; Other Miscellaneous
Provisions. Subject to Section 8.6 hereof, all cash and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee), collectively for purposes of this Section 8.5, the “Trustee”) pursuant to
Section 8.4 hereof in respect of the outstanding Notes shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of all sums due and to become due thereon in respect of
principal, premium, if any, interest and Special Interest, if any, but such cash and securities
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 cash or non-callable Government Securities deposited pursuant to
Section 8.4 hereof 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 the outstanding
Notes.

     Anything in this Article VIII to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon the request of the Company any cash or
non-callable Government Securities held by it as provided in Section 8.4 hereof which, in
the opinion of a nationally recognized independent registered public accounting firm expressed in a
written
certification thereof delivered to the Trustee (which may be the certification delivered under
clause (1) of Section 8.4 hereof), 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 8.6. Repayment to Company. Any cash or non-callable Government Securities
deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the

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payment of the principal of, premium, if any, on, or interest or Special Interest, if any, on, any
Note and remaining unclaimed for one year after such principal, premium, if any, or interest or
Special Interest, if any, has become due and payable shall be paid to the Company on its request
(unless an abandoned property law designates another Person) or (if then held by the Company) shall
be discharged from such trust; and the Holder shall thereafter, as an unsecured creditor, look only
to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such cash and securities, and all liability of the Company as Trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to
make any such repayment, may at the expense of the Company cause to be published once, in The New
York Times and The Wall Street Journal (national edition), notice that such cash and securities
remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such cash and
securities then remaining shall be repaid to the Company.

     Section 8.7. Reinstatement. If the Trustee or Paying Agent is unable to apply any cash or
non-callable Government Securities in accordance with Section 8.2, 8.3 or
8.5 hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 8.4 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such cash and securities in accordance with Section
8.2, 8.3 or 8.5 hereof, as the case may be; provided, however, that, if the
Company makes any payment of principal of, premium, if any, on, or interest or Special Interest, if
any, on, any Note following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders to receive such payment from the cash and securities held by the
Trustee or Paying Agent.

ARTICLE IX

Amendments

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

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

     (2) to provide for uncertificated Notes in addition to or in place of
certificated Notes;

     (3) to provide for the assumption of the Company’s or a Guarantor’s obligations
to Holders of Notes and Note Guarantees in the case of a merger or consolidation or
sale of all or substantially all of the Company’s or such Guarantor’s properties or
assets, as applicable;

     (4) to make any change that would provide any additional rights or benefits to
the Holders of Notes or that does not adversely affect the legal rights under this
Indenture of any Holder;

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     (5) to comply with requirements of the SEC in order to maintain the
qualification of this Indenture under the Trust Indenture Act;

     (6) to conform the text of this Indenture, the Note Guarantees or the Notes to
any provision of the Description of Senior Notes contained in the Prospectus;

     (7) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in this Indenture as of the date of this Indenture;

     (8) to allow any Guarantor to execute a supplemental indenture and/or a Note
Guarantee with respect to the Notes or release Note Guarantees pursuant to the terms
of this Indenture;

     (9) to secure the Notes; or

     (10) to evidence and provide for the acceptance under this Indenture of a
successor trustee.

     After an amendment under this Indenture becomes effective, the Company is required to mail to
the Holders a notice briefly describing such amendment. However, the failure to give such notice
to all the Holders, or any defect therein, will not impair or affect the validity of the amendment
or supplemental indenture under this Section 9.1.

     Section 9.2. With Consent of Holders. The Company, the Guarantors and the Trustee may
amend or supplement this Indenture or the Notes without notice to any Holder but with the written
consent of the Holders of at least a majority in aggregate principal amount of the Notes then
outstanding (including, without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes), and any existing Default or Event of Default or
compliance with any provision of this Indenture or the Notes or the Note Guarantees may be waived
with the consent of the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding (including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes).

     However, without the consent of each Holder affected, an amendment, supplement or waiver may
not (with respect to any Notes held by a non-consenting Holder):

     (1) reduce the principal amount of Notes whose Holders must consent to an
amendment, supplement or waiver;

     (2) reduce the principal of or change the fixed maturity of any Note or alter
the provisions with respect to the redemption or repurchase of the Notes (other than
provisions relating to covenants contained in Sections 3.7 and 3.9);

     (3) reduce the rate of or change the time for payment of interest, including
default interest on any Note;

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     (4) waive a Default or Event of Default in the payment of principal of, or
interest or premium, or Special Interest, if any, on the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes and a waiver of the payment default
that resulted from such acceleration);

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

     (6) make any change in the provisions of this Indenture relating to waivers of
past Defaults or the rights of Holders of Notes to receive payments of principal of,
or interest or premium, if any, on the Notes (other than as permitted in clause (7)
below);

     (7) waive a redemption payment with respect to any Note (other than a payment
required by one of the covenants under Sections 3.7 and 3.9);

     (8) allow any Guarantor to execute a supplemental indenture and/or a Note
Guarantee with respect to the Notes or release any Guarantor from any of its
obligations under its Note Guarantee or this Indenture, except in accordance with
the terms of this Indenture; or

     (9) make any change in the preceding amendment, supplement and waiver
provisions.

     It shall not be necessary for the consent of the Holders under this Section 9.2 to
approve the particular form of any proposed amendment, but it shall be sufficient if such consent
approves the substance of the proposed amendment.

     A consent to any amendment or waiver under this Indenture by any Holder of the Notes given in
connection with a tender of such Holder’s Notes will not be rendered invalid by such tender. After
an amendment under this Section becomes effective, the Company shall mail to Holders a notice
briefly describing such amendment. The failure to give such notice to all Holders, or any defect
therein, shall not impair or affect the validity of an amendment, supplemental indenture or waiver
under this Section 9.2.

     Section 9.3. Compliance with Trust Indenture Act. Every amendment or supplement to this
Indenture or the Notes shall comply with the TIA as then in effect.

     Section 9.4. Revocation and Effect of Consents and Waivers. A consent to an amendment or a
waiver by a Holder of a Note shall bind the Holder and every subsequent Holder of that Note or
portion of the Note that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent or waiver is not made on the Note. However, any such Holder or subsequent Holder
may revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee
receives the notice of revocation before the date the amendment or waiver becomes effective. After
an amendment or waiver becomes effective, it shall bind every Holder.

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     For purposes of this Indenture, the written consent of the Holder of a Global Note shall be
deemed to include any consent delivered by an Agent Member by electronic means in accordance with
the Automated Tender Offer Procedures system or other customary procedures of, and pursuant to
authorization by, DTC.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to give their consent or take any other action described above or
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be entitled to give such
consent or to revoke any consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall become valid or
effective more than 120 days after such record date.

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

     Section 9.6. Trustee To Sign Amendments. The Trustee shall sign any amendment authorized
pursuant to this Article IX if the amendment does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In
signing such amendment the Trustee shall be entitled to receive indemnity reasonably satisfactory
to it and to receive, and (subject to Sections 7.1 and 7.2) shall be fully
protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.

ARTICLE X

Note Guarantee

     Section 10.1. Note Guarantee. Each Guarantor hereby fully, unconditionally and irrevocably
guarantees, as primary obligor and not merely as surety, jointly and severally with each other
Guarantor, to each Holder of the Notes and the Trustee the full and punctual payment when due,
whether at maturity, by acceleration, by redemption or otherwise, of the principal of, premium, if
any, interest and Special Interest, if any, on the Notes and all other monetary Obligations of the
Company under this Indenture. Each Guarantor further agrees (to the extent permitted by law) that
the Obligations may be extended or renewed, in whole or in part, without notice or further assent
from it, and that it will remain bound under this Article X notwithstanding any extension
or renewal of any Obligation.

     Each Guarantor waives presentation to, demand of payment from and protest to the Company of
any of the Obligations and also waives notice of protest for nonpayment. Each Guarantor waives
notice of any default under the Notes or the Obligations. The obligations of

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

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

     Except as expressly set forth in Article VIII and Section 10.2, the
obligations of each Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than payment of the Obligations in full), including
any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any
defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Guarantor herein shall not be discharged or
impaired or otherwise affected by the failure of the Trustee or any Holder to assert any claim or
demand or to enforce any remedy under this Indenture, the Notes or any other agreement, by any
waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in
the performance of the Obligations, or by any other act or thing or omission or delay to do any
other act or thing which may or might in any manner or to any extent vary the risk of any Guarantor
or would otherwise operate as a discharge of such Guarantor as a matter of law or equity.

     Each Guarantor further agrees that its Note Guarantee herein shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
interest or Special Interest, if any, on any of the Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or otherwise.

     In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Guarantor by virtue hereof, upon the failure of the Company to pay
any of the Obligations when and as the same shall become due, whether at maturity, by acceleration,
by redemption or otherwise, each Guarantor hereby promises to and will, upon receipt of written
demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders an amount equal
to the sum of (i) the unpaid amount of such Obligations then due and owing and (ii) accrued and
unpaid interest on such Obligations then due and owing (but only to the extent not prohibited by
law) and except as provided in Section 10.2.

     Each Guarantor further agrees that, as between such Guarantor, on the one hand, and the
Holders, on the other hand, (x) the maturity of the Obligations Guaranteed hereby may be
accelerated as provided in this Indenture for the purposes of its Note Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Obligations Guaranteed hereby and (y) in the event of any such declaration of acceleration

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of such Obligations, such Obligations (whether or not due and payable) shall forthwith become due
and payable by the Guarantor for the purposes of this Note Guarantee.

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

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

     (a) The obligations of each Guarantor hereunder will be limited to the maximum amount
as will, after giving effect to all other contingent and fixed liabilities of such Guarantor
(including, but not limited to, Senior Debt of a Guarantor) and after giving effect to any
collections from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Note Guarantee or pursuant to its contribution
obligations under this Indenture, result in the obligations of such Guarantor under its Note
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.

     (b) Subject to Article IV and Section 3.7, a Guarantor may not sell or
otherwise dispose of all or substantially all of its assets to, or consolidate or amalgamate
with or merge with or into (whether or not such Guarantor is the surviving Person), another
Person, other than the Company or another Guarantor, unless:

     (1) immediately after giving effect to such transaction, no Default or Event of
Default exists; and

     (2) either:

     (a) the Person acquiring the properties or assets in any such sale or
other disposition or the Person formed by or surviving any such
consolidation, amalgamation or merger (if other than the Company or another
Guarantor) unconditionally assumes, pursuant to a supplemental indenture
substantially in the form specified in this Indenture, all the obligations
of such Guarantor under such indenture, under the Notes, its Note Guarantee
and the applicable registration rights agreement on terms set forth therein;
or

     (b) the Net Proceeds of such sale or other disposition are applied in
accordance with the Section 3.7 hereof.

     (c) The Note Guarantee of a Guarantor will be deemed released and the Guarantor will be
relieved of its obligations under this Indenture and its Note Guarantee without any further
action required on the part of the Company or such Guarantor:

     (1) in connection with any sale or other disposition of all or substantially
all of the assets of that Guarantor (including by way of merger. amalgamation or
consolidation) to a Person that is not (either before or after

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giving effect to such
transaction) the Company or a Restricted Subsidiary of the Company, if the sale or
other disposition complies with Section 3.7 hereof;

     (2) in connection with any sale or other disposition of all of the Capital
Stock of that Guarantor to a Person that is not (either before or after giving
effect to such transaction) the Company or a Restricted Subsidiary of the Company,
if the sale or other disposition complies with Section 3.7 hereof;

     (3) if such Guarantor is a Restricted Subsidiary and the Company designates
such Guarantor as an Unrestricted Subsidiary in accordance with the applicable
provisions of this Indenture;

     (4) upon Legal Defeasance or Covenant Defeasance as provided in Article
VIII or upon satisfaction and discharge of this Indenture as provided in
Article XI;

     (5) upon the liquidation or dissolution of such Guarantor provided no Default
or Event of Default has occurred or is continuing;

     (6) at any time after the occurrence of an Investment Grade Rating Event, at
such time as such Guarantor does not have outstanding or guarantee Indebtedness
(other than Indebtedness or guarantees under the Notes) in excess of $5.0 million in
aggregate principal amount; or

     (7) upon such Guarantor consolidating or amalgamating with, merging into or
transferring all of its properties or assets to the Company or another
Guarantor, and as a result of, or in connection with, such transaction such
Guarantor dissolving or otherwise ceasing to exist.

     Section 10.3. Limitation of Guarantors’ Liability. Each Guarantor, and by its acceptance
hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee
by such Guarantor pursuant to its Note Guarantee not constitute a fraudulent transfer or conveyance
for purposes of the Federal Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law. To effectuate the foregoing
intention, the Holders and each Guarantor hereby irrevocably agree that the obligations of such
Guarantor under its Note Guarantee will be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities (including, but not limited to, Senior Debt of
a Guarantor) of such Guarantor and after giving effect to any collections from or payments made by
or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its
Note Guarantee or pursuant to Section 10.4 hereof, result in the obligations of such
Guarantor under its Note Guarantee not constituting such a fraudulent conveyance or fraudulent
transfer. This Section 10.3 is for the benefit of the creditors of each Guarantor.

     Section 10.4. Contribution. In order to provide for just and equitable contribution among
the Guarantors, the Guarantors agree that in the event any payment or distribution is made by any
Guarantor (a “Funding Guarantor”) under its Note Guarantee, such Funding Guarantor will be
entitled to a contribution from each other Guarantor (if any) in a pro rata

98

 

amount based on the
Adjusted Net Assets of each Guarantor (including the Funding Guarantor) for all payments, damages
and expenses incurred by that Funding Guarantor in discharging the Company’s obligations with
respect to the Notes or any other Guarantor’s obligations with respect to its Note Guarantee.

ARTICLE XI

Satisfaction and Discharge

     Section 11.1. Satisfaction and Discharge. This Indenture will be discharged and will cease
to be of further effect as to all Notes issued hereunder (except as to surviving rights of
registration of transfer or exchange of the Notes and as otherwise specified hereunder), when:

     (1) either:

     (a) all Notes that have been authenticated, except lost, stolen or
destroyed Notes that have been replaced or paid and Notes for whose payment
money has been deposited in trust and thereafter repaid to the Company, have
been delivered to the Trustee for cancellation; or

     (b) all Notes that have not been 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 or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination of cash in U.S. dollars and
non-callable Government Securities, in amounts as will be sufficient without
consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium, if any, and accrued interest and
Special Interest, if any, to the date of maturity or redemption;

     (2) no Default or Event of Default has occurred and is continuing on the date
of the deposit (other than a Default or Event of Default resulting from the
borrowing of funds to be applied to such deposit) and the deposit will not result in
a breach or violation of, or constitute a default under, any other instrument to
which the Company or any of its Subsidiaries is a party or by which the Company or
any of its Subsidiaries is bound;

     (3) the Company or any Guarantor has paid or caused to be paid all sums payable
by it hereunder;

     (4) the Company has delivered irrevocable instructions to the Trustee hereunder
to apply the deposited money toward the payment of the Notes at fixed maturity or
the Redemption Date, as the case may be; and

99

 

     (5) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, which state that all conditions precedent under this Indenture
relating to the satisfaction and discharge of this Indenture have been satisfied.

ARTICLE XII

Miscellaneous

     Section 12.1. Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included in this Indenture by
the TIA, the provision required by the TIA shall control. Each Guarantor in addition to performing
its obligations under its Note Guarantee shall perform such other obligations as may be imposed
upon it with respect to this Indenture under the TIA.

     Section 12.2. Notices. Any notice or communication shall be in writing and delivered in
person, by telecopier or overnight air courier guaranteeing next day delivery or mailed by
first-class mail addressed as follows:

	 	 	 
	 

	 	if to the Company or the Guarantors:
	 
	 	 
	 

	 	Mariner Energy, Inc.
	 

	 	One BriarLake Plaza, Suite 2000
	 

	 	2000 West Sam Houston Parkway South,
	 

	 	Houston, Texas 77042
Attention: General Counsel
	 
	 	 
	 

	 	if to the Trustee:
	 
	 	 
	 

	 	Wells Fargo Bank, N.A.
	 

	 	201 Main Street, Suite 301
	 

	 	MAC T5441-030
	 

	 	Fort Worth, Texas 76102
	 

	 	Attention: Melissa Scott

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

     Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed. The Registrar shall provide the Company with
address information with respect to the Holders as promptly as practicable following the Company’s
request therefor. Any notice or communication shall also be mailed to any Person described in TIA
§ 3.13(c), to the extent required by the TIA.

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

100

 

     Section 12.3. Communication by Holders with other Holders. Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or
the Notes. The Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA § 312(c).

     Section 12.4. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

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

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

     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 as to such matters in one or several documents.

     Any certificate or opinion of an Officer of the Company or any 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, or in the exercise of reasonable care should know, 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 Counsel may be based, and may state that
it is so 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 stating that the
information with respect to such factual matters known to the Company or such Guarantor, unless
such counsel knows that the certificate or opinion or representations with respect to such matters
are erroneous.

     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 12.5. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a covenant or condition provided for in this Indenture (except for
the Certificate specified in Section 3.15) shall include:

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

101

 

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

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

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

     Section 12.6. When Notes Disregarded. In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Company
shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes which the Trustee knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Notes outstanding at the time shall be considered in any such determination.

     Section 12.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

     Section 12.8. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other
day on which commercial banking institutions are authorized or required to be closed in New York,
New York. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

     Section 12.9. GOVERNING LAW. THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     Section 12.10. No Recourse Against Others. No director, manager, officer, employee,
incorporator, member, partner, stockholder or other owner of Capital Stock of the Company or any
Guarantor, as such, will have any liability for any obligations of the Company or any Guarantor
under the Notes, this Indenture or the Note Guarantees or for any claim based on, in respect of, or
by reason of such obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the consideration for issuance
of the Notes.

     Section 12.11. Successors. All agreements of the Company in this Indenture and the Notes
shall bind its successors. All agreements of the Trustee in this Indenture shall bind its
successors.

102

 

     Section 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

     Section 12.13. Severability. In case any provision in this 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.

     Section 12.14. No Adverse Interpretation of Other Agreements. This Indenture may not be
used to interpret any other indenture, loan or debt agreement of the Company or any Subsidiary or
any other Person. Any such indenture, loan or debt agreement may not be used to interpret this
Indenture or the Note Guarantees.

     Section 12.15. Table of Contents; Headings. The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not modify or restrict
any of the terms or provisions hereof.

103

 

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

	 	 	 	 	 
	 	MARINER ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MARINER LP LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MARINER ENERGY RESOURCES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MARINER ENERGY TEXAS LP

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, N.A.

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

104

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[Private Placement Legend, if applicable]

[Global Note Legend, if applicable]

			
	No. [                    ]
	 	Principal Amount $[                    ]

CUSIP NO. [                     or                     ]

ISIN OR COMMON CODE NO. [                    ]

MARINER ENERGY, INC.

[                    ]% Senior Note due [                    ]

     Mariner Energy, Inc., a Delaware corporation (the “Company”), promises to pay to
                                        , or registered assigns, the principal sum of [                    ] Dollars [or such greater or
lesser amount as shall be reflected on the books and records of the custodian with respect to the
Global Note (as appointed by DTC) (the “Notes Custodian”)1], on [                    ,
[                    ]].

     Interest Payment Dates:                      and                     

     Record Dates:                      and                     

     Additional provisions of this Note are set forth on the other side of this Note.

	 	 	 	 	 
	 	MARINER ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	1	 	Global Note only

A-1

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

Wells Fargo Bank, N.A.,

as Trustee, certifies that this is

one of the Notes referred

to in the Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory
	 	           Date:

A-2

 

[FORM OF REVERSE SIDE OF NOTE]

[     ]% Senior Note due 20     

1. Interest

     Mariner Energy, Inc., a Delaware corporation (the “Company”), promises to pay interest
on the principal amount of this Note at the rate per annum shown above.

     The Company will pay interest semiannually in arrears on                      and                     of each year
commencing [     ], 2007. Interest on the Notes will accrue from the most recent date to
which interest has been paid on the Notes or, if no interest has been paid, from and including
          , 2007. The Company shall pay interest on overdue principal or premium, if any and on
overdue installments of interest (“Defaulted Interest”), at the rate that is 1.0% higher
than the then applicable interest rate on the Notes to the extent lawful and (with respect to any
Additional Restricted Notes) will pay Special Interest as provided for in the related Registration
Rights Agreement. Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

2. Method of Payment

     By no later than 11:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest or Special Interest, if any, on, any Note is due and payable, the
Company shall deposit with the Trustee or the Paying Agent money sufficient to pay such principal,
premium, if any, interest and Special Interest, if any. The Company will pay interest (except
Defaulted Interest) and Special Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the           or           next preceding the interest payment
date even if Notes are cancelled, repurchased or redeemed after the record date and on or before
the interest payment date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest and Special Interest, if any, in money of
the United States that at the time of payment is legal tender for payment of public and private
debts. If a Holder has given wire transfer instructions to the Company, the Company will, or if
the Company is not then the Paying Agent, the Company will cause the Paying Agent to, pay all
principal, interest, Special Interest, if any, and premium, if any, on that Holder’s Notes in
accordance with the instructions; all other payments of the principal of (and premium, if any),
interest and Special Interest, if any, on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to Section 2.3 of the Indenture;
provided, however, that, at the option of the Company, each installment of interest and Special
Interest, if any, may be paid by check mailed to addresses of the Persons entitled thereto as such
addresses shall appear on the Note Register. Payments in respect of Notes represented by a Global
Note (including principal, premium, if any, and interest and Special Interest, if any) will be made
by the transfer of immediately available funds to the accounts specified by The Depository Trust
Company.

3. Paying Agent and Registrar

A-3

 

     Initially, Wells Fargo Bank, N.A. (the “Trustee”), will act as Trustee, Paying Agent
and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice to any Holder of the Notes. The Company or any of the Restricted Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4. Indenture

     The Company issued the Notes under an Indenture dated as of           , 2007 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company, the Guarantors party thereto and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on
the Issue Date (the “Act”). Capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Indenture. The Notes are subject to all terms in the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.

     The Notes are general unsecured senior obligations of the Company. The aggregate principal
amount of Notes that may be authenticated and delivered under the Indenture is unlimited. The
Indenture imposes certain limitations, among other things, on the ability of the Company and the
Restricted Subsidiaries to make Investments; incur additional Indebtedness or issue Preferred
Stock, create certain Liens; sell assets; enter into agreements that restrict dividends or other
payments from the Restricted Subsidiaries; consolidate, merge or transfer all or substantially all
of the assets of the Company and its Restricted Subsidiaries; engage in transactions with
Affiliates; pay dividends or make other distributions on Capital Stock or subordinated
Indebtedness; and create Unrestricted Subsidiaries.

     To guarantee the due and punctual payment of the principal of, premium, if any, on, and
interest and Special Interest, if any, on, the Notes and all other amounts payable by the Company
under the Indenture and the Notes when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the
Guarantors have unconditionally guaranteed (and future Guarantors, together with the Guarantors,
will unconditionally guarantee), jointly and severally, such obligations on a senior basis pursuant
to the terms of the Indenture.

5. Redemption

     Except as forth below, the Notes will not be redeemable at the option of the Company prior to
[          , [     ]]. On and after such date, the Notes will be redeemable, at the Company’s option,
in whole or in part, at any time upon not less than 30 days’ nor more than 60 days’ prior notice,
except that a redemption notice may be made more than 60 days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of
the Indenture, at the following redemption prices (expressed in percentages of principal amount),
plus accrued and unpaid interest and Special Interest, if any, thereon, if any, to, but not
including, the applicable Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on an interest payment date that is on or prior to the
Redemption Date) if redeemed during the twelve-month period commencing on           of the years
indicated below:

A-4

 

	 	 	 
	Period	 	Redemption Price
	[     ]

	 	[     ]%
	 
	 	 
	[     ]

	 	[     ]%
	 
	 	 
	[     ] and thereafter

	 	[     ]%

     Notes will also be redeemable, in whole or in part, at the option of the Company at any time
or from time to time, prior to [          , [     ]] at a price equal to 100% of the principal amount
of Notes to be redeemed, plus the Applicable Premium and accrued and unpaid interest and Special
Interest, if any, to, but not including, the Redemption Date, subject to the rights of the Holders
of the Notes on the relevant record date to receive interest and Special Interest, if any, due on
the relevant interest payment date.

     The notice of redemption with respect to the foregoing redemption need not set forth the
Applicable Premium but only the manner of calculation thereof. The Company will notify the Trustee
of the Applicable Premium with respect to any redemption promptly after the calculation, and the
Trustee shall not be responsible for such calculation.

     In addition, at any time and from time to time prior to [          , [     ]], the Company may
redeem in the aggregate up to 35% of the aggregate principal amount of the Notes (which includes
Additional Notes) with the net cash proceeds of one or more Equity Offerings received by the
Company at a redemption price (expressed as a percentage of principal amount) of [          ]% of the
principal amount plus accrued and unpaid interest and Special Interest, if any, to but not
including, the Redemption Date (subject to the right of Holders of record on the relevant record
date to receive interest due on an interest payment date that is on or prior to the Redemption
Date); provided, however, that (1) at least 65% of the aggregate principal amount of the Notes,
including any Additional Notes, remains outstanding after each such redemption and (2) each such
redemption occurs within 180 days of the date of closing of such Equity Offering.

     Notice of any redemption upon an Equity Offering may, at the Company’s discretion, be subject
to one or more conditions precedent, including completion of the related Equity Offering.

     If the optional Redemption Date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest and Special Interest, if any, will
be paid to the Person in whose name the Note is registered at the close of business on such record
date, and no additional interest will be payable to Holders whose Notes will be subject to
redemption by the Company.

     In the case of any partial redemption, selection of the Notes for redemption will be made by
the Trustee in compliance with the requirements of the principal national securities exchange, if
any, on which the Notes are listed or, if the Notes are not listed, then on a pro rata basis. No
Notes of $1,000 in original principal amount or less will be redeemed in part. If any Note is to
be redeemed in part only, the notice of redemption relating to such Note shall state the portion of
the principal amount thereof to be redeemed. A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of
the original Note. Notes called for redemption become due on the Redemption Date. On and

A-5

 

after the Redemption Date, interest and Special Interest, if any, will cease to accrue on
Notes or portions thereof called for redemption unless the Company defaults in making the payments
of funds for such redemption.

6. Repurchase Provisions

     (a) Upon a Change of Control Triggering Event any Holder of Notes will have the right to cause
the Company to repurchase all or any part of the Notes of such Holder at a purchase price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid interest and Special
Interest, if any, to the date of repurchase (subject to the right of Holders of record on the
relevant record date to receive interest due on an interest payment date that is on or prior to the
date of repurchase) as provided in, and subject to the terms of, the Indenture. In the event that
Holders of not less than 90% of the aggregate principal amount of the outstanding Notes accept a
Change of Control Offer and the Company purchases all of the Notes held by such Holders, the
Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not
more than 30 days following the purchase pursuant to the Change of Control Offer described above,
to redeem all of the Notes that remain outstanding following such purchase at a purchase price
equal to the Change of Control Payment plus, to the extent not included in the Change of Control
Payment, accrued and unpaid interest and Special Interest, if any, on the Notes that remain
outstanding, to the date of redemption (subject to the right of Holders on the relevant record date
to receive interest due on the relevant interest payment date).

     (b) In the event of an Asset Disposition that requires the purchase of Notes pursuant to
Section 3.7(d) of the Indenture, the Company will be required to apply such Excess Proceeds
to the repayment of the Notes and any pari passu Indebtedness in accordance with the procedures set
forth in Section 3.7 of the Indenture.

7. Denominations; Transfer; Exchange

     The Notes are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register the transfer or exchange of (i) any Notes selected
for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not
to be redeemed) or (ii) any Notes for a period of 15 days before a selection of Notes to be
redeemed.

8. Persons Deemed Owners

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

9. Unclaimed Money

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

A-6

 

10. Defeasance

     Subject to certain conditions set forth in the Indenture, the Company at any time may
terminate some or all of its obligations under the Notes and the Indenture if the Company deposits
with the Trustee money or non-callable Government Securities for the payment of principal, premium,
interest and Special Interest, if any, on the Notes to redemption or maturity, as the case may be.

11. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended with the written consent or electronic consent pursuant to the second paragraph of
Section 9.4 of the Indenture, as applicable, of the Holders of at least a majority in
principal amount of the then outstanding Notes and (ii) any default (other than with respect to
nonpayment or in respect of a provision that cannot be amended without the written consent of each
Holder affected) or noncompliance with any provision may be waived with the written consent or
electronic consent pursuant to the second paragraph of Section 9.4 of the Indenture, as
applicable, of the Holders of a majority in principal amount of the then outstanding Notes.
Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the
Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, defect or
inconsistency, or to comply with Article IV of the Indenture, or to provide for
uncertificated Notes in addition to or in place of certificated Notes, or to add guarantees with
respect to the Notes, to release a Guarantor in accordance with the Indenture or to secure the
Notes, or to provide additional rights or benefits to the Holders of the Notes, or to comply with
any requirement of the SEC in connection with maintaining the qualification of the Indenture under
the Trust Indenture Act, or to make any change that does not adversely affect the rights of any
Holder, or to provide for the issuance of Additional Notes or to evidence or provide for a
successor trustee.

12. Defaults and Remedies

     Under the Indenture, Events of Default include in summary form: (i) default for 30 days in
payment of interest or Special Interest, if any, when due on the Notes; (ii) default in payment of
principal or premium, if any, on the Notes at Stated Maturity, upon required repurchase, upon
optional redemption pursuant to paragraphs 5 and 6 of the Notes, upon declaration or otherwise;
(iii) failure to comply with the provisions of Sections 3.7, 3.9 or 4.1 of
the Indenture; (iv) the failure by the Company to comply for 60 days after notice with its other
agreements contained in the Indenture or under the Notes (other than those referred to in (i), (ii)
or (iii) above); (v) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists, or is
created after the Issue Date, if that default (a) is caused by a failure to pay principal of, or
interest or Special Interest or premium, if any, on such Indebtedness prior to the expiration of
the grace period provided in such Indebtedness (“Payment Default”) or (b) results in the
acceleration of such Indebtedness prior to its 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

A-7

 

there has been a Payment Default or the maturity of which has been so accelerated, aggregates
$20.0 million or more; (vi) certain events of bankruptcy, insolvency or reorganization of the
Company or a Significant Subsidiary or group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary; (vii) failure by the Company or any of its Subsidiaries to pay
final judgments entered by a court or courts of competent jurisdiction aggregating in excess of
$20.0 million, which judgments are not paid, discharged, stayed or fully bonded for a period of 60
days or (viii) any Note Guarantee shall be held in a judicial proceeding to be not enforceable or
valid or shall cease to be in full force and effect or any Guarantor or other Person acting on its
behalf shall deny or disaffirm its obligations under its Note Guarantee (except pursuant to the
release or termination of any such Note Guarantee in accordance with the Indenture).

     If an Event of Default occurs and is continuing (other than an Event of Default described in
clause (vi) above), the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes may declare all the Notes to be due and payable. Certain events of bankruptcy or insolvency
are Events of Default which will result in the Notes being due and payable immediately upon the
occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Notes unless it receives reasonable indemnity or
security. Subject to certain limitations, Holders of a majority in principal amount of the Notes
then outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default if it
determines that withholding notice is in their interest, except a Default or Event of Default
relating to the payment of principal, interest or premium, if any, or Special Interest, if any.

13. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

     No director, manager, officer, employee, incorporator, member, partner, stockholder or other
owner of Capital Stock of the Company or any Guarantor, as such, shall have any liability for any
obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or
for any claim based on, in respect of, or by reason of, such obligations of their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes.

A-8

 

15. Authentication

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Note.

16. Abbreviations

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

17. CUSIP Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the
Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

18. Governing Law

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

     The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture, which has in it the text of this Note in larger type. Requests may be made
to:

Mariner Energy, Inc

One BriarLake Plaza, Suite 2000

2000 West Sam Houston Parkway South,

Houston, Texas 77042

Attention: General Counsel

A-9

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

	 	 	 	 	 
	 

	 	 

	 	 
	 

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

	 	 

	 	 
	 

	 	(Insert assignee’s soc. see. or tax I.D. No.)	 	 

and irrevocably appoint ___agent to transfer this Note on the books of the Company.
The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

      

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

The signatures) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

     In connection with any transfer or exchange of any of the Notes evidenced by this certificate
occurring prior to the date that is two years after the later of the date of original issuance of
such Notes and the last date, if any, on which such Notes were owned by the Company or any
Affiliate of the Company, the undersigned confirms that such Notes are being:

CHECK ONE BOX BELOW:

	 	1 o	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	2 o	 	transferred to the Company; or

	 
	 	3 o	 	transferred pursuant to and in compliance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”); or
	 
	 	4 o	 	transferred pursuant to an effective registration statement under the
Securities Act; or

A-10

 

	 	5 o	 	transferred pursuant to and in compliance with Regulation S under the
Securities Act; or
	 
	 	6 o	 	transferred pursuant to another available exemption from the
registration requirements of the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any person other than the registered Holder thereof; provided,
however, that if box (5) or (6) is checked, the Trustee or the Company may require, prior to
registering any such transfer of the Notes, in their sole discretion, such legal opinions,
certifications and other information as the Trustee or the Company may reasonably request to
confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

	 	 	 	 	 
	 

	 	 

Signature
	 	 
	 Signature
Guarantee:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	(Signature must be guaranteed)

	 	Signature	 	 

      

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 
	 

Dated:

	 	 

A-11

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section
3.7 or Section 3.9 of the Indenture, check either box:

o           o

3.7           3.9

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 3.7 or Section 3.9 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of the Note)	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

A-12

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE1

     The following increases or decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of	 
	 	 	 	 	 	 	 	 	 	 	this Global Note	 	 	authorized	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	following such	 	 	signatory of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	decrease or	 	 	Trustee or Notes	 
	Date of Exchange	 	of this Global Note	 	 	of this Global Note	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	Include only if security is issued in global
form.

A-13 

 

EXHIBIT B

[FORM OF FACE OF EXCHANGE NOTE]

[Global Note Legend, if applicable]

			
	 	 	 
	No. [     ]
	 	Principal Amount $[          ]
	 
	 	CUSIP NO. [           or           ]
	 
	 	ISIN OR COMMON CODE NO. [                    ]

MARINER ENERGY, INC.

[     ]% Senior Note due [     ]

     Mariner Energy, Inc., a Delaware corporation (the “Company”), promises to pay to
          , or registered assigns, the principal sum of [          ] Dollars [or such greater or
lesser amount as shall be reflected on the books and records of the custodian with respect to the
Global Note (as appointed by DTC) (the “Notes
Custodian”)2], on [          ,
[          ]].

     Interest Payment Dates:           and           

     Record Dates:                      and                     

     Additional provisions of this Note are set forth on the other side of this Note.

	 	 	 	 	 
	 	MARINER ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	2	 	Global Note only

B-1 

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

Wells Fargo Bank, N.A.,

as Trustee, certifies that this is

one of the Notes referred

to in the Indenture.

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 	 	 Date:

B-2 

 

[FORM OF REVERSE SIDE OF NOTE]

[     ]% Senior Note due [     ]

1. Interest

     Mariner Energy, Inc., a Delaware corporation (the “Company”), promises to pay interest
on the principal amount of this Note at the rate per annum shown above.

     The Company will pay interest semiannually in arrears on            and           of each year
commencing [          ], 2007. Interest on the Notes will accrue from the most recent date to
which interest has been paid on the Notes or, if no interest has been paid, from and including
          , 2007. The Company shall pay interest on overdue principal or premium, if any and on
overdue installments of interest (“Default Interest”), at the rate that is 1.0% higher than
the then applicable interest rate on the Notes to the extent lawful and (with respect to any
Additional Restricted Notes) will pay Special Interest as provided for in the related Registration
Rights Agreement. Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

2. Method of Payment

     By no later than 11:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest or Special Interest, if any, on, any Note is due and payable, the
Company shall deposit with the Trustee or the Paying Agent money sufficient to pay such principal,
premium, if any, interest and Special Interest, if any. The Company will pay interest (except
Defaulted Interest) and Special Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the [          ] or [          ] next preceding the interest payment
date even if Notes are cancelled, repurchased or redeemed after the record date and on or before
the interest payment date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest and Special Interest, if any, in money of
the United States that at the time of payment is legal tender for payment of public and private
debts. If a Holder has given wire transfer instructions to the Company, the Company will, or if
the Company is not then the Paying Agent, the Company will cause the Paying Agent to, pay all
principal, interest, Special Interest, if any, and premium, if any, on that Holder’s Notes in
accordance with the instructions; all other payments of the principal of (and premium, if any),
interest and Special Interest, if any, on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to
Section 2.3 of the Indenture;
provided, however, that, at the option of the Company, each installment of interest and Special
Interest, if any, may be paid by check mailed to addresses of the Persons entitled thereto as such
addresses shall appear on the Note Register. Payments in respect of Notes represented by a Global
Note (including principal, premium, if any, and interest and Special Interest, if any) will be made
by the transfer of immediately available funds to the accounts specified by The Depository Trust
Company.

B-3 

 

3. Paying Agent and Registrar

     Initially, Wells Fargo Bank, N.A. (the “Trustee”), will act as Trustee, Paying Agent
and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice to any Holder of the Notes. The Company or any of the Restricted Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4. Indenture

     The Company issued the Notes under an Indenture dated as of           , 2007 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company, the Guarantors party thereto and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on
the Issue Date (the “Act”). Capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Indenture. The Notes are subject to all terms in the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.

     The Notes are general unsecured senior obligations of the Company. The aggregate principal
amount of Notes that may be authenticated and delivered under the Indenture is unlimited. The
Indenture imposes certain limitations, among other things, on the ability of the Company and the
Restricted Subsidiaries to make Investments; incur additional Indebtedness or issue Preferred
Stock, create certain Liens; sell assets; enter into agreements that restrict dividends or other
payments from the Restricted Subsidiaries; consolidate, merge or transfer all or substantially all
of the assets of the Company and its Restricted Subsidiaries; engage in transactions with
Affiliates; pay dividends or make other distributions on Capital Stock or subordinated
Indebtedness; and create Unrestricted Subsidiaries.

     To guarantee the due and punctual payment of the principal of, premium, if any, on, and
interest and Special Interest, if any, on, the Notes and all other amounts payable by the Company
under the Indenture and the Notes when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the
Guarantors have unconditionally guaranteed (and future Guarantors, together with the Guarantors,
will unconditionally guarantee), jointly and severally, such obligations on a senior basis pursuant
to the terms of the Indenture.

5. Redemption

     Except as forth below, the Notes will not be redeemable at the option of the Company prior to
[          , [     ]]. On and after such date, the Notes will be redeemable, at the Company’s option,
in whole or in part, at any time upon not less than 30 days’ nor more than 60 days’ prior notice,
except that a redemption notice may be made more than 60 days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of
the Indenture, at the following redemption prices (expressed in percentages of principal amount),
plus accrued and unpaid interest and Special Interest, if any, thereon, if any, to, but not
including, the applicable Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on an interest payment date

B-4 

 

that is on or prior to the Redemption Date) if redeemed during the twelve-month
period commencing on            of the years indicated below:

	 	 	 	 	 
	Period	 	 	 	Redemption Price
	[     ]

	 	 	 	[          ]%
	 
	 	 	 	 
	[     ]

	 	 	 	[          ]%
	 
	 	 	 	 
	[     ] and thereafter

	 	 	 	[          ]%

     Notes will also be redeemable, in whole or in part, at the option of the Company at any time
or from time to time, prior to [          , [     ]] at a price equal to 100% of the principal amount
of Notes to be redeemed, plus the Applicable Premium and accrued and unpaid interest and Special
Interest, if any, to, but not including, the Redemption Date, subject to the rights of the Holders
of the Notes on the relevant record date to receive interest and Special Interest, if any, due on
the relevant interest payment date.

     The notice of redemption with respect to the foregoing
redemption need not set forth the Applicable Premium but only the manner of calculation thereof.
The Company will notify the Trustee of the Applicable Premium with respect to any redemption
promptly after the calculation, and the Trustee shall not be responsible for such calculation.

     In addition, at any time and from time to time prior to [          , [     ]] the Company may redeem in
the aggregate up to 35% of the aggregate principal amount of the Notes (which includes Additional
Notes) with the net cash proceeds of one or more Equity Offerings received by the Company at a
redemption price (expressed as a percentage of principal amount) of [          ]% of the principal
amount plus accrued and unpaid interest and Special Interest, if any, to, but not including, the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an interest payment date that is on or prior to the Redemption Date); provided,
however, that (1) at least 65% of the aggregate principal amount of the Notes, including any
Additional Notes, remains outstanding after each such redemption and (2) each such redemption
occurs within 180 days of the date of closing of such Equity Offering.

     Notice of any redemption upon an Equity Offering may, at the Company’s discretion, be subject
to one or more conditions precedent, including completion of the related Equity Offering.

     If the optional Redemption Date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest and Special Interest, if any, will
be paid to the Person in whose name the Note is registered at the close of business on such record
date, and no additional interest will be payable to Holders whose Notes will be subject to
redemption by the Company.

     In the case of any partial redemption, selection of the Notes for redemption will be made by
the Trustee in compliance with the requirements of the principal national securities exchange, if
any, on which the Notes are listed or, if the Notes are not listed, then on a pro rata basis. No
Notes of $1,000 in original principal amount or less will be redeemed in part. If any Note is to
be redeemed in part only, the notice of redemption relating to such Note shall state the portion of

B-5 

 

the principal amount thereof to be redeemed. A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of
the original Note. Notes called for redemption become due on the Redemption Date. On and after the
Redemption Date, interest and Special Interest, if any, will cease to accrue on Notes or portions
thereof called for redemption unless the Company defaults in making the payments of funds for such
redemption.

6. Repurchase Provisions

     (a) Upon a Change of Control Triggering Event any Holder of Notes will have the right to cause
the Company to repurchase all or any part of the Notes of such Holder at a purchase price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid interest and Special
Interest, if any, to the date of repurchase (subject to the right of Holders of record on the
relevant record date to receive interest due on an interest payment date that is on or prior to the
date of repurchase) as provided in, and subject to the terms of, the Indenture. In the event that
Holders of not less than 90% of the aggregate principal amount of the outstanding Notes accept a
Change of Control Offer and the Company purchases all of the Notes held by such Holders, the
Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not
more than 30 days following the purchase pursuant to the Change of Control Offer described above,
to redeem all of the Notes that remain outstanding following such purchase at a purchase price
equal to the Change of Control Payment plus, to the extent not included in the Change of Control
Payment, accrued and unpaid interest and Special Interest, if any, on the Notes that remain
outstanding, to the date of redemption (subject to the right of Holders on the relevant record date
to receive interest due on the relevant interest payment date).

     (b) In the event of an Asset Disposition that requires the purchase of Notes pursuant to
Section 3.7(d) of the Indenture, the Company will be required to apply such Excess Proceeds
to the repayment of the Notes and any pari passu Indebtedness in accordance with the procedures set
forth in Section 3.7 of the Indenture.

7. Denominations; Transfer; Exchange

     The Notes are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register the transfer or exchange of (i) any Notes selected
for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not
to be redeemed) or (ii) any Notes for a period of 15 days before a selection of Notes to be
redeemed.

8. Persons Deemed Owners

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

9. Unclaimed Money

B-6 

 

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

10. Defeasance

     Subject to certain conditions set forth in the Indenture, the Company at any time may
terminate some or all of its obligations under the Notes and the Indenture if the Company deposits
with the Trustee money or non-callable Government Securities for the payment of principal, premium,
interest and Special Interest, if any, on the Notes to redemption or maturity, as the case may be.

11. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended with the written consent or electronic consent pursuant to the second paragraph of
Section 9.4 of the Indenture, as applicable, of the Holders of at least a majority in
principal amount of the then outstanding Notes and (ii) any default (other than with respect to
nonpayment or in respect of a provision that cannot be amended without the written consent of each
Holder affected) or noncompliance with any provision may be waived with the written consent or
electronic consent pursuant to the second paragraph of Section 9.4 of the Indenture, as
applicable, of the Holders of a majority in principal amount of the then outstanding Notes.
Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the
Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, defect or
inconsistency, or to comply with Article IV of the Indenture, or to provide for
uncertificated Notes in addition to or in place of certificated Notes, or to add guarantees with
respect to the Notes, to release a Guarantor in accordance with the Indenture or to secure the
Notes, or to provide additional rights or benefits to the Holders of the Notes, or surrender rights
and powers conferred on the Company, or to comply with any requirement of the SEC in connection
with maintaining the qualification of the Indenture under the Trust Indenture Act, or to make any
change that does not adversely affect the rights of any Holder, or to provide for the issuance of
Additional Notes or to evidence or provide for a successor trustee.

12. Defaults and Remedies

     Under the Indenture, Events of Default include in summary form: (i) default for 30 days in
payment of interest or Special Interest, if any, when due on the Notes; (ii) default in payment of
principal or premium, if any, on the Notes at Stated Maturity, upon required repurchase, upon
optional redemption pursuant to paragraphs 5 and 6 of the Notes, upon declaration or otherwise;
(iii) failure to comply with the provisions of
Sections 3.7, 3.9 or 4.1 of the
Indenture; (iv) the failure by the Company to comply for 60 days after notice with its other
agreements contained in the Indenture or under the Notes (other than those referred to in (i), (ii)
or (iii) above); (v) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists, or is
created after

B-7 

 

the Issue Date, if that default (a) is caused by a failure to pay principal of, or
interest or Special Interest or premium, if any, on such Indebtedness prior to the expiration of
the grace period provided in such Indebtedness (“Payment Default”) or (b) results in the
acceleration of such Indebtedness prior to its 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 $20.0 million or more; (vi) certain events of bankruptcy, insolvency or reorganization
of the Company or a Significant Subsidiary or group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary; (vii) failure by the Company or any of
Subsidiaries to pay final judgments entered by a court or courts of competent jurisdiction
aggregating in excess of $20.0 million, which judgments are not paid, discharged, stayed or fully
bonded for a period of 60 days, or (viii) any Note Guarantee shall be held in a judicial proceeding
to be not enforceable or valid or shall cease to be in full force and effect or any Guarantor or
other Person acting on its behalf shall deny or disaffirm its obligations under its Note Guarantee
(except pursuant to the release or termination of any such Note Guarantee in accordance with the
Indenture).

     If an Event of Default occurs and is continuing (other than an Event of Default described in
clause (vi) above), the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes may declare all the Notes to be due and payable. Certain events of bankruptcy or insolvency
are Events of Default which will result in the Notes being due and payable immediately upon the
occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Notes unless it receives reasonable indemnity or
security. Subject to certain limitations, Holders of a majority in principal amount of the Notes
then Outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders notice of any continuing Default or Event of Default (except a Default or
Event of Default in payment of principal or interest) if it determines that withholding notice is
in their interest.

13. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

     No director, manager, officer, employee, incorporator, member, partner, stockholder or other
owner of Capital Stock of the Company or any Guarantor, as such, shall have any liability for any
obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or
for any claim based on, in respect of, or by reason of, such obligations of their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes.

B-8 

 

15. Authentication

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Note.

16. Abbreviations

     Customary abbreviations may be used in the name of a Holders or an assignee, such as TEN COM
(= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).

17. CUSIP Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the
Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

18. Governing Law

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

     The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture, which has in it the text of this Note in larger type. Requests may be made
to:

Mariner Energy, Inc.

One BriarLake Plaza, Suite 2000

2000 West Sam Houston Parkway South,

Houston, Texas 77042

Attention: General Counsel

B-9 

 

ASSIGNMENT FORM

	 	 	 	 	 
	 

	 	To assign this Note, fill in the form below:	 	 
	 
	 	 	 	 
	 

	 	I or we assign and transfer this Note to	 	 
	 
	 	 	 	 
	 

	 	 

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

	 	 

(Insert assignee’s soc. see. or tax I.D. No.)
	 	 

and irrevocably appoint            agent to transfer this Note on the books of the Company.
The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 	 	 	 	 
	 	 	 	 	 
	(Signature must be guaranteed)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

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

The signatures) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

B-10 

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section
3.7 or Section 3.9 of the Indenture, check either box:

o                      o

3.7                      3.9

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 3.7 or Section 3.9 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature	 	 
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of the Note)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

B-11 

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE1

     The following increases or decreases in this Global Note have been made:

	 	 	 
	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of
	 	 	 	 	 	 	 	 	this Global Note	 	 	authorized
	 	 	Amount of decrease	 	 	Amount of increase	 	 	following such	 	 	signatory of
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	decrease or	 	 	Trustee or Notes
	Date of Exchange	 	of this Global Note	 	 	of this Global Note	 	 	increase	 	 	Custodian

 

1 Include
only if security is issued in global form.

B-12 

 

EXHIBIT C

FORM OF SUPPLEMENTAL INDENTURE 

     This Supplemental Indenture, dated as of            (this “Supplemental
Indenture” or “Note Guarantee”), among [name of future Guarantor] (the
“Guarantor”), Mariner Energy, Inc. (together with its successors and assigns, the
“Company”) and Wells Fargo Bank, N.A. as Trustee under the Indenture referred to below.

W I T N E S S E T H:

     WHEREAS, the Company, certain of its Domestic Subsidiaries (the “Guarantors”) and the
Trustee have heretofore executed and delivered an Indenture, dated as of     , 2007 (as
amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the
initial issuance of an aggregate principal amount of $[     ] million of [     ]% Senior Notes due
[___] of the Company (the “Notes”);

     WHEREAS, Section 3.10 of the Indenture provides that the Company is required to cause
Restricted Subsidiaries, to the extent set forth in the Indenture, to execute and deliver to the
Trustee a Note Guarantee pursuant to which such Guarantor will unconditionally Guarantee, on a
joint and several basis with the other Guarantors, the full and prompt payment of the principal of,
premium, interest and Special Interest, if any, on the Notes on a senior basis; and

     WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee and the Company are
authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the
consent of any Holder,

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

ARTICLE I

Definitions

     SECTION 1.1 Defined Terms. As used in this Note Guarantee, terms defined in the
Indenture or in the preamble or recital hereto are used herein as therein defined. The words
“herein,” “hereof’ and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

Agreement to be Bound, Note Guarantee

     SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the
Indenture as a Guarantor and as such will have all of the rights and be subject to all of the

C-1 

 

obligations and agreements of a Guarantor under the Indenture. The Guarantor agrees to be bound by
all of the provisions of the Indenture applicable to a Guarantor and to perform all of the
obligations and agreements of a Guarantor under the Indenture.

     SECTION 2.2 Note Guarantee. The Guarantor hereby fully, unconditionally and
irrevocably Guarantees, as primary obligor and not merely as surety, jointly and severally with
each Guarantor, to each Holder of the Notes and the Trustee, the full and punctual payment when
due, whether at maturity, by acceleration, by redemption or otherwise, of the Obligations pursuant
to Article X of the Indenture on a senior basis.

ARTICLE III

Miscellaneous

     SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be
given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to
the Company as provided in the Indenture for notices to the Company.

     SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the
Indenture or any provision herein or therein contained.

     SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

     SECTION 3.4 Severability Clause. In case any provision in this Supplemental Indenture
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby and such provision shall
be ineffective only to the extent of such invalidity, illegality or unenforceability.

     SECTION 3.5 Ratification of Indenture; Supplemental 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 Indenture shall form a part of the Indenture for all purposes, and every Holder of
Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes
no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

     SECTION 3.6 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.

     SECTION 3.7 Headings. The headings of the Articles and the sections in this Note
Guarantee are for convenience of reference only and shall not be deemed to alter or affect the
meaning or interpretation of any provisions hereof.

C-2 

 

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

	 	 	 	 	 	 	 
	 	 	[GUARANTOR],
	 	 	as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	MARINER ENERGY, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

C-3exv4w2

 

Exhibit 4.2

	CAVIUM Stock Certificate
COMMON STOCK COMMON STOCK NUMBER SHARES CAVM 001 CUSIP 14965A 10 1 INCORPORATED UNDER THE LAWS
OF THE STATE OF DELAWARE CAVIUM NETWORKS, INC. SEE REVERSE FOR CERTAIN DEFINITIONS THIS CERTIFIES
THAT SIGNATURE REGISTRAR AND is the record holder of LLC AGENT AUTHORIZED FULLY PAID AND
NON-ASSESSABLE SHARES OF COMMON STOCK, $0.001 PAR VALUE PER SHARE, OF TRANSFER CAVIUM NETWORKS,
INC. SERVICES transferable on the books of the Corporation in person or by duly authorized attorney
upon surrender of this Certificate properly endorsed. This Certificate REGISTERED: INVESTOR AND
MELLON COUNTERSIGNED BY

 

 

	CAVIUM NETWORKS, INC. The Corporation will furnish without charge to each stockholder who so
requests the powers, designations, preferences and relative, participating, optional, or other
special rights of each class of stock or series thereof and the qualifications, limitations or
restrictions of such preferences and/or rights. Such request shall be made to the Corporation’s
Secretary at the principal office of the Corporation. The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they were written out in
full according to applicable laws or regulations: TEN COM — as tenants in common UNIF GIFT MIN
ACT— Custodian TEN ENT — as tenants by the entireties (Cust) (Minor) JT TEN — as joint tenants
with right under Uniform Gifts to Minors —of survivorship and not as tenants in common Act (State)
UNIF TRF MIN ACT— Custodian (until age ) (Cust) under Uniform Transfers (Minor) to Minors Act
(State) Additional abbreviations may also be used though not in the above list. FOR VALUE RECEIVED,
hereby sell, assign and transfer(s) unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares of
the Common Stock represented by the within Certificate, and do(es) hereby irrevocably constitute
and appoint Attorney to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises. Dated X X NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER. SIGNATURES GUARANTEED: By THE
SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]