Document:

Unassociated Document

    Exhibit
4.2

    
      
        	 
      

      

    

     

    MAIDEN
HOLDINGS NORTH AMERICA, LTD.,

                                                                                                   Issuer

     

    MAIDEN
HOLDINGS, LTD.,

                                                                                                           Guarantor

     

    - and
-

     

    WILMINGTON
TRUST COMPANY,

                                                                                                     Trustee

     

    
      
        

      

    

     

    INDENTURE

    
       

      
        

      

    

     

    Dated as
of                         ,
2011

     

    Debt
Securities

    
      	 
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Reconciliation
and tie between

    Trust
Indenture Act of 1939 (the “Trust Indenture
Act”)

    and
Indenture

     

    
      	
              
                Trust Indenture

                Act Section

              

            	 
      	
              
                Indenture Section

              

            
	 	 	 
	
              §310(a)(1)

            	 
      	
              607

            
	
              (a)(2)

            	 
      	
              607

            
	
              (b)

            	 
      	
              608

            
	
              §312(a)

            	 
      	
              701

            
	
              (b)

            	 
      	
              702

            
	
              (c)

            	 
      	
              702

            
	
              §313(a)

            	 
      	
              703

            
	
              (b)(2)

            	 
      	
              703

            
	
              (c)

            	 
      	
              703

            
	
              (d)

            	 
      	
              703

            
	
              §314(a)

            	 
      	
              704

            
	
              (c)(1)

            	 
      	
              102

            
	
              (c)(2)

            	 
      	
              102

            
	
              (e)

            	 
      	
              102

            
	
              (f)

            	 
      	
              102

            
	
              §316(a)
      (last sentence)

            	 
      	
              101

            
	
              (a)(1)(A)

            	 
      	
              502,
      512

            
	
              (a)(1)(B)

            	 
      	
              513

            
	
              (b)

            	 
      	
              508

            
	
              §317(a)(1)

            	 
      	
              503

            
	
              (a)(2)

            	 
      	
              504

            
	
              (b)

            	 
      	
              1003

            
	
              §318(a)

            	 
      	
              108

            

    

      

    
      

    

     

    
      	
              Note:

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

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                	 
      	 
      	
                        Page

                      
	 	 	 
	
                        ARTICLE
      ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

                      	
                        1

                      
	 
      	 
      
	
                        Section
      101.

                      	
                        Definitions

                      	
                        1

                      
	
                        Section
      102.

                      	
                        Compliance Certificates and
      Opinions

                      	
                        12

                      
	
                        Section
      103.

                      	
                        Form of Documents Delivered to
      Trustee

                      	
                        12

                      
	
                        Section
      104.

                      	
                        Acts of
      Holders

                      	
                        13

                      
	
                        Section
      105.

                      	
                        Notices, etc. to Trustee,
      Company and Guarantor

                      	
                        14

                      
	
                        Section
      106.

                      	
                        Notice to Holders of
      Securities; Waiver

                      	
                        15

                      
	
                        Section
      107.

                      	
                        Language of
      Notices

                      	
                        15

                      
	
                        Section
      108.

                      	
                        Conflict with Trust Indenture
      Act

                      	
                        16

                      
	
                        Section
      109.

                      	
                        Effect of Headings and Table
      of Contents

                      	
                        16

                      
	
                        Section
      110.

                      	
                        Successors and
      Assigns

                      	
                        16

                      
	
                        Section
      111.

                      	
                        Separability
      Clause

                      	
                        16

                      
	
                        Section
      112.

                      	
                        Benefits of
      Indenture

                      	
                        16

                      
	
                        Section
      113.

                      	
                        Governing
      Law

                      	
                        16

                      
	
                        Section
      114.

                      	
                        Legal
      Holidays

                      	
                        16

                      
	
                        Section
      115.

                      	
                        Counterparts

                      	
                        17

                      
	
                        Section
      116.

                      	
                        Judgment
      Currency

                      	
                        17

                      
	
                        Section
      117.

                      	
                        Extension of Payment
      Dates.

                      	
                        17

                      
	
                        Section
      118.

                      	
                        Immunity
      of Stockholders, Directors, Officers and Agents of the Company and the
      Guarantor

                      	
                        18

                      
	
                        Section
      119.

                      	
                        Submission
      to Jurisdiction; Appointment of Agent for Service of Process; Waiver of
      Immunities

                      	
                        18

                      
	 
      	 
      	 
      
	
                        ARTICLE
      TWO SECURITIES FORMS

                      	
                        19

                      
	 
      	 
      
	
                        Section
      201.

                      	
                        Forms
      Generally

                      	
                        19

                      
	
                        Section
      202.

                      	
                        Form of Trustee’s Certificate
      of Authentication

                      	
                        19

                      
	
                        Section
      203.

                      	
                        Securities in Global
      Form

                      	
                        20

                      
	 
      	 
      	 
      
	
                        ARTICLE
      THREE THE SECURITIES

                      	
                        20

                      
	 
      	 
      
	
                        Section
      301.

                      	
                        Amount Unlimited; Issuable in
      Series

                      	
                        20

                      
	
                        Section
      302.

                      	
                        Currency;
      Denominations

                      	
                        25

                      
	
                        Section
      303.

                      	
                        Execution, Authentication,
      Delivery and Dating

                      	
                        25

                      
	
                        Section
      304.

                      	
                        Temporary
      Securities

                      	
                        27

                      
	
                        Section
      305.

                      	
                        Registration, Transfer and
      Exchange

                      	
                        27

                      
	
                        Section
      306.

                      	
                        Mutilated,
      Destroyed, Lost and Stolen Securities

                      	
                        31

                      
	
                        Section
      307.

                      	
                        Payment
      of Interest and Certain Additional Amounts; Rights to Interest
      and Certain Additional Amounts Preserved

                      	
                        32

                      

              

            

          

        

      

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Section
      308.

                	
                  Persons Deemed
      Owners

                	
                  34

                
	
                  Section
      309.

                	
                  Cancellation

                	
                  35

                
	
                  Section
      310.

                	
                  Computation of
      Interest

                	
                  35

                
	 
      	 
      	 
      
	
                  ARTICLE
      FOUR SATISFACTION AND DISCHARGE OF INDENTURE

                	
                  35

                
	 
      	 
      
	
                  Section
      401.

                	
                  Satisfaction and
      Discharge

                	
                  35

                
	
                  Section
      402.

                	
                  Defeasance and Covenant
      Defeasance

                	
                  37

                
	
                  Section
      403.

                	
                  Application of Trust
      Money

                	
                  41

                
	
                  Section
      404.

                	
                  Reinstatement

                	
                  41

                
	 
      	 
      	 
      
	
                  ARTICLE
      FIVE REMEDIES

                	
                  42

                
	 
      	 
      
	
                  Section
      501.

                	
                  Events of
      Default

                	
                  42

                
	
                  Section
      502.

                	
                  Acceleration
      of Maturity; Rescission and Annulment

                	
                  44

                
	
                  Section
      503.

                	
                  Collection of Indebtedness and
      Suits for Enforcement by Trustee

                	
                  45

                
	
                  Section
      504.

                	
                  Trustee May File Proofs of
      Claim

                	
                  46

                
	
                  Section
      505.

                	
                  Trustee May Enforce Claims
      without Possession of Securities or Coupons

                	
                  47

                
	
                  Section
      506.

                	
                  Application of Money
      Collected

                	
                  47

                
	
                  Section
      507.

                	
                  Limitations on
      Suits

                	
                  47

                
	
                  Section
      508.

                	
                  Unconditional Right of Holders
      to Receive Principal and any Premium, Interest and Additional
      Amounts

                	
                  48

                
	
                  Section
      509.

                	
                  Restoration of Rights and
      Remedies

                	
                  48

                
	
                  Section
      510.

                	
                  Rights and Remedies
      Cumulative

                	
                  49

                
	
                  Section
      511.

                	
                  Delay or Omission Not
      Waiver

                	
                  49

                
	
                  Section
      512.

                	
                  Control by Holders of
      Securities

                	
                  49

                
	
                  Section
      513.

                	
                  Waiver of Past
      Defaults

                	
                  49

                
	
                  Section
      514.

                	
                  Waiver of Usury, Stay or
      Extension Laws

                	
                  50

                
	
                  Section
      515.

                	
                  Undertaking
      for Costs

                	
                  50

                
	 
      	 
      	 
      
	
                  ARTICLE
      SIX THE TRUSTEE

                	
                  51

                
	 
      	 
      
	
                  Section
      601.

                	
                  Certain Rights of
      Trustee

                	
                  51

                
	
                  Section
      602.

                	
                  Notice of
      Defaults

                	
                  53

                
	
                  Section
      603.

                	
                  Not Responsible for Recitals
      or Issuance of Securities

                	
                  53

                
	
                  Section
      604.

                	
                  May Hold Securities;
      Transactions with the Company or the Guarantor

                	
                  53

                
	
                  Section
      605.

                	
                  Money Held in
      Trust

                	
                  53

                
	
                  Section
      606.

                	
                  Compensation and
      Reimbursement

                	
                  54

                
	
                  Section
      607.

                	
                  Corporate Trustee Required;
      Eligibility

                	
                  55

                
	
                  Section
      608.

                	
                  Resignation and Removal;
      Appointment of Successor

                	
                  55

                
	
                  Section
      609.

                	
                  Acceptance of Appointment by
      Successor

                	
                  56

                
	
                  Section
      610.

                	
                  Merger, Conversion,
      Consolidation or Succession to Business

                	
                  58

                
	
                  Section
      611.

                	
                  Appointment of Authenticating
      Agent

                	
                  58

                

        

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  ARTICLE
      SEVEN HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

                	
                  60

                
	 
      	 
      
	
                  Section
      701.

                	
                  Company to Furnish Trustee
      Names and Addresses of Holders

                	
                  60

                
	
                  Section
      702.

                	
                  Preservation of Information;
      Communications to Holders

                	
                  60

                
	
                  Section
      703.

                	
                  Reports by
      Trustee

                	
                  60

                
	
                  Section
      704.

                	
                  Reports by
      Company

                	
                  61

                
	 
      	 
      	 
      
	
                  ARTICLE
      EIGHT CONSOLIDATION, MERGER AND SALES

                	
                  62

                
	 
      	 
      
	
                  Section
      801.

                	
                  Company and Guarantor May
      Consolidate, Etc., Only on Certain Terms

                	
                  62

                
	
                  Section
      802.

                	
                  Successor Person Substituted
      for Company or Guarantor

                	
                  63

                
	 
      	 
      	 
      
	
                  ARTICLE
      NINE SUPPLEMENTAL INDENTURES

                	
                  64

                
	 
      	 
      
	
                  Section
      901.

                	
                  Supplemental Indentures
      without Consent of Holders

                	
                  64

                
	
                  Section
      902.

                	
                  Supplemental Indentures with
      Consent of Holders

                	
                  65

                
	
                  Section
      903.

                	
                  Execution of Supplemental
      Indentures

                	
                  67

                
	
                  Section
      904.

                	
                  Effect of Supplemental
      Indentures

                	
                  67

                
	
                  Section
      905.

                	
                  Reference in Securities to
      Supplemental Indentures

                	
                  67

                
	
                  Section
      906.

                	
                  Conformity with Trust
      Indenture Act

                	
                  68

                
	 
      	 
      	 
      
	
                  ARTICLE
      TEN COVENANTS

                	
                  68

                
	 
      	 
      
	
                  Section
      1001.

                	
                  Payment of Principal, Premium,
      Interest and Additional Amounts

                	
                  68

                
	
                  Section
      1002.

                	
                  Maintenance of Office or
      Agency

                	
                  68

                
	
                  Section
      1003.

                	
                  Money for Securities Payments
      to Be Held in Trust

                	
                  69

                
	
                  Section
      1004.

                	
                  Additional
      Amounts

                	
                  71

                
	
                  Section
      1005.

                	
                  Corporate
      Existence

                	
                  72

                
	
                  Section
      1006.

                	
                  Maintenance
      of Properties

                	
                  72

                
	
                  Section
      1007.

                	
                  Payment of Taxes and Other
      Claims

                	
                  73

                
	
                  Section
      1008.

                	
                  Company and Guarantor
      Statement as to Compliance

                	
                  73

                
	 
      	 
      	 
      
	
                  ARTICLE
      ELEVEN REDEMPTION OF SECURITIES

                	
                  73

                
	 
      	 
      
	
                  Section
      1101.

                	
                  Applicability of
      Article

                	
                  73

                
	
                  Section
      1102.

                	
                  Election to Redeem; Notice to
      Trustee

                	
                  74

                
	
                  Section
      1103.

                	
                  Selection by Trustee of
      Securities to be Redeemed

                	
                  74

                
	
                  Section
      1104.

                	
                  Notice of
      Redemption

                	
                  75

                
	
                  Section
      1105.

                	
                  Deposit of Redemption
      Price

                	
                  76

                
	
                  Section
      1106.

                	
                  Securities Payable on
      Redemption Date

                	
                  77

                
	
                  Section
      1107.   

                	
                  Securities Redeemed in
      Part

                	
                  77

                

        

      

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  ARTICLE
      TWELVE SINKING FUNDS

                	
                  78

                
	 
      	 
      
	
                  Section
      1201.

                	
                  Applicability of
      Article

                	
                  78

                
	
                  Section
      1202.

                	
                  Satisfaction of Sinking Fund
      Payments with Securities

                	
                  78

                
	
                  Section
      1203.

                	
                  Redemption of Securities for
      Sinking Fund

                	
                  79

                
	 
      	 
      	 
      
	
                  ARTICLE
      THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS

                	
                  79

                
	 
      	 
      
	
                  Section
      1301.

                	
                  Applicability of
      Article

                	
                  79

                
	 
      	 
      	 
      
	
                  ARTICLE
      FOURTEEN SECURITIES IN FOREIGN CURRENCIES

                	
                  80

                
	 
      	 
      
	
                  Section
      1401.

                	
                  Applicability of
      Article

                	
                  80

                
	 
      	 
      	 
      
	
                  ARTICLE
      FIFTEEN MEETINGS OF HOLDERS OF SECURITIES

                	
                  80

                
	 
      	 
      
	
                  Section
      1501.

                	
                  Purposes for Which Meetings
      May Be Called

                	
                  80

                
	
                  Section
      1502.

                	
                  Call, Notice and Place of
      Meetings

                	
                  80

                
	
                  Section
      1503.

                	
                  Persons Entitled to Vote at
      Meetings

                	
                  81

                
	
                  Section
      1504.

                	
                  Quorum;
      Action

                	
                  81

                
	
                  Section
      1505.

                	
                  Determination of Voting
      Rights; Conduct and Adjournment of Meetings

                	
                  82

                
	
                  Section
      1506.

                	
                  Counting Votes and Recording
      Action of Meetings

                	
                  83

                
	 
      	 
      	 
      
	
                  ARTICLE
      SIXTEEN GUARANTEE.

                	
                  83

                
	 
      	 
      
	
                  Section
      1601.

                	
                  Applicability of
      Article

                	
                  83

                
	
                  Section
      1602.

                	
                  Guarantee

                	
                  83

                
	
                  Section
      1603.

                	
                  Waiver

                	
                  84

                
	
                  Section
      1604.

                	
                  Guarantee of
      Payment

                	
                  85

                
	
                  Section
      1605.

                	
                  No Discharge or Diminishment
      of Guarantee

                	
                  85

                
	
                  Section
      1606.

                	
                  Defenses of Company
      Waived

                	
                  85

                
	
                  Section
      1607.

                	
                  Continued
      Effectiveness

                	
                  85

                
	
                  Section
      1608.

                	
                  Subrogation

                	
                  86

                
	
                  Section
      1609.

                	
                  Information

                	
                  86

                
	
                  Section
      1610.

                	
                  Subordination

                	
                  86

                
	
                  Section
      1611.

                	
                  Release of
      Guarantor

                	
                  87

                
	
                  Section
      1612.

                	
                  Limitation of Guarantor’s
      Liability

                	
                  87

                
	
                  Section
      1613.

                	
                  No Obligation to Take Action
      Against the Company

                	
                  87

                
	
                  Section
      1614.

                	
                  Execution and Delivery of the
      Guarantee

                	
                  88

                
	
                  Section
      1615.   

                	
                  Successor
      Guarantor

                	
                  88

                

        

      

    

     

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

     

    INDENTURE,
dated as
of                         ,
2011 (the “Indenture”),
among MAIDEN HOLDINGS NORTH AMERICA, LTD., a corporation duly organized and
existing under the laws of the State of Delaware (the “Company”), having its
principal executive office located at 6000 Midlantic Drive, Suite 200S, Mount
Laurel, New Jersey 08054; MAIDEN HOLDINGS, LTD., a company duly organized and
existing under the laws of Bermuda, as guarantor (the “Guarantor”), having its
principal executive office located at 131 Front Street, 2nd Floor,
Hamilton HM12 Bermuda; and WILMINGTON TRUST COMPANY, a banking corporation duly
organized and existing under the laws of the State of Delaware, as trustee (the
“Trustee”).

     

    RECITALS

     

    The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its senior unsecured debentures,
notes or other evidences of indebtedness (hereinafter called the “Securities”), unlimited as to
principal amount and which may be guaranteed by the Guarantor, to bear such
fixed or floating rates of interest, to mature at such time or times, to be
issued in one or more series and to have such other provisions as shall be fixed
as hereinafter provided.

     

    The
Company has duly authorized the execution and delivery of this
Indenture.  All things necessary to make this Indenture a valid
agreement of the Company, in accordance with its terms, have been
done.

     

    This
Indenture is subject to the provisions of the Trust Indenture Act (as herein
defined), and the rules and regulations of the Commission (as herein defined)
promulgated thereunder that are required to be part of this Indenture and, to
the extent applicable, shall be governed by such provisions.

     

    NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

     

    For and
in consideration of the premises and the purchase of the Securities by the
Holders (as herein defined) thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities or of any
series thereof and any Coupons (as herein defined) as follows:

     

    ARTICLE
ONE

     

    DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

     

    
      	
            	
              Section
      101.

            	
              Definitions.

            

    

     

    Except as
otherwise expressly provided in or pursuant to this Indenture or unless the
context otherwise requires, for all purposes of this Indenture:

     

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

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

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

     

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

     

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

     

    (5)      the word “or” is always used
inclusively (for example, the phrase “A or B” means “A or B or both”, not
“either A or B but not both”);

     

    (6)      provisions
apply to successive events and transactions;

     

    (7)      the
term “merger” includes a statutory share exchange and the terms “merge” and
“merged” have correlative meanings;

     

    (8)      the
masculine gender includes the feminine and the neuter; and

     

    (9)      references
to agreements and other instruments include subsequent amendments and
supplements thereto.

     

    Certain
terms used principally in certain Articles hereof are defined in those
Articles.

     

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

     

    “Additional Amounts” means any
additional amounts which are required by this Indenture or by any Security, or
by the terms of any Security established pursuant to Section 301, under
circumstances specified herein or therein, to be paid by the Company in respect
of certain taxes, duties, levies, imposts, assessments or other governmental
charges imposed on Holders specified herein or therein.

     

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

     

     “Authenticating Agent” means
any Person authorized by the Trustee pursuant to Section 611 to act on
behalf of the Trustee to authenticate Securities of one or more
series.

     

    “Authorized Agent” has the
meaning specified in Section 119.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Authorized Newspaper” means a
newspaper, in an official language of the place of publication or in the English
language, customarily published on each day that is a Business Day in the place
of publication, whether or not published on days that are not Business Days in
the place of publication, and of general circulation in each place in connection
with which the term is used or in the financial community of each such
place.  Where successive publications are required to be made in
Authorized Newspapers, the successive publications may be made in the same or in
different newspapers in the same place meeting the foregoing requirements and in
each case on any day that is a Business Day in the place of
publication.

     

    “Bearer Security” means any
Security in the form established pursuant to Section 201 which is payable to
bearer.

     

    “Board of Directors” means the
board of directors of the Company or the Guarantor, as the case may be, or any
committee of that board duly authorized to act generally or in any particular
respect for the Company or the Guarantor, as applicable,
hereunder.  The term “board of directors” means the board of directors
of the Company or the Guarantor, as the case may be, and does not include
committees of such board of directors.

     

    “Board Resolution” means a copy
of one or more resolutions, certified by the Secretary or an Assistant Secretary
of the Company or the Guarantor, as applicable, to have been duly adopted by the
Board of Directors of the Company or the Guarantor, as applicable, and to be in
full force and effect on the date of such certification, delivered to the
Trustee.

     

    “Business Day” means, unless
otherwise specified with respect to the Securities of any series pursuant to
Section 301, any day other than a Saturday, Sunday or other day on which banking
institutions in The City of New York are authorized or obligated by law,
regulation or executive order to close; provided that such term shall
mean, when used with respect to any payment of principal of, or premium or
interest, if any, on, or Additional Amounts with respect to, the Securities of
any series to be made at any Place of Payment for such Securities, unless
otherwise specified pursuant to Section 301 with respect to such Securities, any
day other than a Saturday, Sunday or other day on which banking institutions in
such Place of Payment are authorized or obligated by law, regulation or
executive order to close.

     

    “Capital Stock” of any Person
means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated) the
equity of such Person, including any preferred stock, partnership interests and
limited liability company membership interests, but excluding any debt
securities convertible into such equity.

     

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

     

    “Common Stock” includes any
stock of any class of the Company or the Guarantor, as the context requires,
which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of
the Company or the Guarantor, as applicable, and which is not subject to
redemption by the Company or the Guarantor, as applicable.

     

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

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Company Request” and “Company Order” mean,
respectively, a written request or order, as the case may be, signed in the name
of the Company by the Chairman, the Chief Executive Officer, the President or a
Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary, of the Company, and delivered to the
Trustee.

     

    “Conversion Event” means the
cessation of use of (i) a Foreign Currency both by the government of the
country or the confederation which issued such Foreign Currency and for the
settlement of transactions by a central bank or other public institutions of or
within the international banking community or (ii) any currency unit or
composite currency for the purposes for which it was established.

     

    “Corporate Trust Office” means
the principal corporate trust office of the Trustee in Wilmington, Delaware at
which at any particular time its corporate trust business shall be administered,
which office at the date of this Indenture is located at Rodney Square North,
1100 North Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust
Administration–Maiden Holdings.

     

    “Corporation” includes
corporations, partnerships, associations, limited liability companies and other
companies, and business trusts.  The term “corporation” means a
corporation and does not include partnerships, associations, limited liability
companies or other companies or business trusts.

     

    “Coupon” means any interest
coupon appertaining to a Bearer Security.

     

    “Currency”, with respect to any
payment, deposit or other transfer in respect of the principal of or any premium
or interest on or any Additional Amounts with respect to any Security, means
Dollars or the Foreign Currency, as the case may be, in which such payment,
deposit or other transfer is required to be made by or pursuant to the terms
hereof or such Security and, with respect to any other payment, deposit or
transfer pursuant to or contemplated by the terms hereof or such Security, means
Dollars.

     

    “CUSIP number” means the
alphanumeric designation assigned to a Security by Standard & Poor’s,
CUSIP Service Bureau.

     

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

     

    “Depository” means, with
respect to any Security issuable or issued in the form of one or more global
Securities, the Person designated as depository by the Company in or pursuant to
this Indenture, and, unless otherwise provided with respect to any Security, any
successor to such Person.  If at any time there is more than one such
Person, “Depository”
shall mean, with respect to any Securities, the depository which has been
appointed with respect to such Securities.

     

    “Dollars” or “$” means a dollar or other
equivalent unit of legal tender for payment of public or private debts in the
United States of America.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Equivalent Terms” has the
meaning specified in Section 1102.

     

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

     

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

     

    “Foreign Currency” means any
currency, currency unit or composite currency issued by the government of one or
more countries other than the United States of America or by any recognized
confederation or association of such government.

     

    “GAAP” and “generally accepted accounting
principles” mean, unless otherwise specified with respect to any series
of Securities pursuant to Section 301, such accounting principles as are
generally accepted in the United States of America as of the date or time of any
computation required hereunder.

     

    “Government Obligations” means
securities which are (i) direct obligations of the United States of America or
the other government or governments in the confederation which issued the
Foreign Currency in which the principal of or any premium or interest on the
relevant Security or any Additional Amounts in respect thereof shall be payable,
in each case where the payment or payments thereunder are supported by the full
faith and credit of such government or governments or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America or such other government or governments, in each
case where the timely payment or payments thereunder are unconditionally
guaranteed as a full faith and credit obligation by the United States of America
or such other government or governments, and which, in the case of (i) or (ii),
are not callable or redeemable at the option of the issuer or issuers thereof,
and shall also include a depository receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific payment
of interest on or principal of or other amount with respect to any such
Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as
required by law) such custodian is not authorized to make any deduction from the
amount payable to the holder of such depository receipt from any amount received
by the custodian in respect of the Government Obligation or the specific payment
of interest on or principal of or other amount with respect to the Government
Obligation evidenced by such depository receipt.

     

    “Guarantee” has the meaning
stated in Section 1602. The term “Guarantee” used as a verb has a corresponding
meaning.

     

    “Guarantor” means the Person
named as the “Guarantor” in the first paragraph of this instrument.

     

    “Holder”, in the case of any
Registered Security, means the Person in whose name such Security is registered
in the Security Register and, in the case of any Bearer Security, means the
bearer thereof and, in the case of any Coupon, means the bearer
thereof.

     

    “Indebtedness”, when used with
respect to any Person, and without duplication, unless otherwise specified with
respect to the Securities of any series pursuant to Section 301,
means:

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (1)           all
indebtedness, obligations and other liabilities (contingent or otherwise) of
such Person for borrowed money (including obligations in respect of overdrafts,
foreign exchange contracts, currency exchange agreements, Interest Rate
Protection Agreements, and any loans or advances from banks, whether or not
evidenced by notes or similar instruments) or evidenced by bonds, debentures,
notes or other instruments for the payment of money, or incurred in connection
with the acquisition of any property, services or assets (whether or not the
recourse of the lender is to the whole of the assets of such Person or to only a
portion thereof), other than any account payable or other accrued current
liability or obligation to trade creditors incurred in the ordinary course of
business in connection with the obtaining of materials or services;

     

    (2)           all
reimbursement obligations and other liabilities (contingent or otherwise) of
such Person with respect to letters of credit, bank guarantees, bankers’
acceptances, surety bonds, performance bonds or other guaranty of contractual
performance;

     

    (3)           all
obligations and liabilities (contingent or otherwise) in respect of (a) leases
of such Person required, in conformity with GAAP, to be accounted for as
capitalized lease obligations on the balance sheet of such Person and (b) any
lease or related documents (including a purchase agreement) in connection with
the lease of real property which provides that such Person is contractually
obligated to purchase or cause a third party to purchase the leased property and
thereby guarantee a minimum residual value of the leased property to the
landlord and the obligations of such Person under such lease or related document
to purchase or to cause a third party to purchase the leased
property;

     

    (4)           all
obligations of such Person (contingent or otherwise) with respect to an interest
rate or other swap, cap or collar agreement or other similar instrument or
agreement or foreign currency hedge, exchange, purchase or similar instrument or
agreement;

     

    (5)           all
direct or indirect guaranties or similar agreements by such Person in respect
of, and obligations or liabilities (contingent or otherwise) of such Person to
purchase or otherwise acquire or otherwise assure a creditor against loss in
respect of, indebtedness, obligations or liabilities of another Person of the
kind described in clauses (1) through (4);

     

    (6)           any
indebtedness or other obligations described in clauses (1) through (5) secured
by any mortgage, pledge, lien or other encumbrance existing on property which is
owned or held by such Person, regardless of whether the indebtedness or other
obligation secured thereby shall have been assumed by such Person;
and

     

    (7)           any
and all deferrals, renewals, extensions, refinancings, replacements,
restatements and refundings of, or amendments, modifications or supplements to,
any indebtedness, obligation or liability of the kind described in clauses (1)
through (6).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Indenture” means this
instrument as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof and, with respect to any Security, by the
terms and provisions of such Security and any Coupon appertaining thereto
established pursuant to Section 301 (as such terms and provisions may be
amended pursuant to the applicable provisions hereof), provided, however, that, if
at any time more than one Person is acting as Trustee under this instrument,
“Indenture” shall mean, with respect to any one or more series of Securities for
which such Person is Trustee, this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of those particular series of Securities for which
such Person is Trustee established pursuant to Section 301, exclusive,
however, of any provisions or terms which relate solely to other series of
Securities for which such Person is not Trustee, regardless of when such terms
or provisions were adopted.

     

    “Indexed Security” means a
Security the terms of which provide that the principal amount thereof payable at
Stated Maturity may be more or less than the principal face amount thereof at
original issuance.

     

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

     

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

     

    “Interest Rate Protection
Agreement” means, with respect to any Person, any interest rate swap
agreement, interest rate cap or collar agreement or other financial agreement or
arrangement designed to protect such Person against fluctuations in interest
rates, as in effect from time to time.

     

    “Judgment Currency” has the
meaning specified in Section 116.

     

    “Maturity”, with respect to any
Security, means the date on which the principal of such Security or an
installment of principal becomes due and payable as provided in or pursuant to
this Indenture or such Security, whether at the Stated Maturity, upon
acceleration, upon redemption at the option of the Company, upon repurchase or
repayment at the option of the Holder or otherwise, and includes a Redemption
Date for such Security and a date fixed for the repurchase or repayment of such
Security at the option of the Holder.

     

    “New York Banking Day” has the
meaning specified in Section 116.

     

    “Obligations” has the meaning
specified in Section 1602.

     

    “Office” or “Agency”, with respect to any
Securities, means an office or agency of the Company maintained or designated in
a Place of Payment for such Securities pursuant to Section 1002 or any other
office or agency of the Company maintained or designated for such Securities
pursuant to Section 1002 or, to the extent designated or required by Section
1002 in lieu of such office or agency, the Corporate Trust Office of the Trustee
(other than for Bearer Securities).

     

    “Officers’ Certificate” means a
certificate signed by the Chairman, the Chief Executive Officer, the President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary of the Company or the Guarantor, as applicable, that
complies with the requirements of Section 314(e) of the Trust Indenture Act and
is delivered to the Trustee.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Opinion of Counsel” means a
written opinion of counsel, who may be an employee of or counsel for the Company
or the Guarantor, as the case may be, or other counsel who shall be reasonably
acceptable to the Trustee, that, if required by the Trust Indenture Act,
complies with the requirements of Section 314(e) of the Trust Indenture
Act.

     

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

     

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

    
       

      
        	
                 
      

              	
                (a)

              	
                any such Security theretofore
      cancelled by the Trustee or the Security Registrar or delivered to the
      Trustee or the Security Registrar for
  cancellation;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any such Security for whose
      payment at the Maturity thereof money in the necessary amount (or, to the
      extent that such Security is payable at such Maturity in shares of Common
      Stock or other securities or property, Common Stock or such other
      securities or property in the necessary amount, together with, if
      applicable, cash in lieu of fractional shares or securities) has been
      theretofore deposited pursuant hereto (other than pursuant to Section 402)
      with the Trustee or any Paying Agent (other than the Company) in trust or
      set aside and segregated in trust by the Company (if the Company shall act
      as its own Paying Agent) for the Holders of such Securities and any
      Coupons appertaining thereto, provided that, if such Securities are to
      be redeemed, notice of such redemption has been duly given pursuant to
      this Indenture or provision therefor satisfactory to the Trustee has been
      made;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                any such Security with respect to
      which the Company has effected defeasance or covenant defeasance pursuant
      to Section 402, except to the extent provided in
      Section 402;

              

      

      

      
        
          	
                   
      

                	
                  (d)

                	
                  any such Security which has been
      paid pursuant to Section 306 or in exchange for or in lieu of which other
      Securities have been authenticated and delivered pursuant to this
      Indenture, unless there shall have been presented to the Trustee proof
      satisfactory to it that such Security is held by a bona fide purchaser in
      whose hands such Security is a valid obligation of the Company;
      and

                
	 	
                   

                	
                   

                
	 	(e)	
                  any
      such Security converted or exchanged as contemplated by this Indenture
      into Common Stock or other securities or property, if the terms of such
      Security provide for such conversion or exchange pursuant to Section
      301;

                

      

       

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    provided, however, that in
determining whether the Holders of the requisite principal amount of Outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or are present at a meeting of Holders of Securities
for quorum purposes, (i) the principal amount of an Original Issue Discount
Security that may be counted in making such determination and that shall be
deemed to be Outstanding for such purposes shall be equal to the amount of the
principal thereof that pursuant to the terms of such Original Issue Discount
Security would be due and payable upon acceleration thereof pursuant to Section
502 at the time of such determination, and (ii) the principal amount of any
Indexed Security that may be counted in making such determination and that shall
be deemed Outstanding for such purpose shall be equal to the principal amount of
such Indexed Security at original issuance, unless otherwise provided in or
pursuant to this Indenture, and (iii) the principal amount of a Security
denominated in a Foreign Currency that may be counted in making such
determination and that shall be deemed Outstanding for such purposes shall be
the Dollar equivalent, determined on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount
Security, the Dollar equivalent on the date of original issuance of such
Security of the amount determined as provided in (i) above) of such Security,
and (iv) Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in making any such determination or
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, the Trustee shall be entitled to conclusively rely on any such
request, demand, authorization, direction, notice, consent or waiver, but only
to the extent the Responsible Officer of the Trustee making such determination
does not have actual knowledge that such Securities are not so
owned.  Securities so owned which shall have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes in writing to
the satisfaction of the Trustee (A) the pledgee’s right so to act with respect
to such Securities and (B) that the pledgee is not the Company or any other
obligor upon the Securities or any Coupons appertaining thereto or an Affiliate
of the Company or such other obligor.

     

    “Paying Agent” means any Person
authorized by the Company to pay the principal of, or any premium or interest
on, or any Additional Amounts with respect to, any Security or any Coupon on
behalf of the Company.

     

     “Person” and “person” mean any individual,
Corporation, joint venture, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision
thereof.

     

    “Place of Payment”, with
respect to any Security, means the place or places where the principal of, or
any premium or interest on, or any Additional Amounts with respect to such
Security are payable as provided in or pursuant to this Indenture or such
Security.

     

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

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

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

     

    “Redemption Price”, with
respect to any Security or portion thereof to be redeemed, means the price at
which it is to be redeemed as determined by or pursuant to this Indenture or
such Security.

     

    “Registered Security” means any
Security established pursuant to Section 201 which is registered in the Security
Register.

     

    “Regular Record Date” for the
interest payable on any Registered Security on any Interest Payment Date
therefor means the date, if any, specified in or pursuant to this Indenture or
such Security as the regular record date for the payment of such
interest.

     

    “Required Currency” has the
meaning specified in Section 116.

     

    “Responsible Officer” means any
officer of the Trustee in its corporate trust department and also means, with
respect to a particular corporate trust matter, any other officer or employee of
the Trustee to whom such matter is referred because of his or her knowledge of
and familiarity with the particular subject.

     

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

     

    “Security” or “Securities” means any note or
notes, bond or bonds, debenture or debentures, or any other evidences of
indebtedness, as the case may be, authenticated and delivered under this
Indenture; provided,
however, that, if at any time there is more than one Person acting as
Trustee under this Indenture, “Securities”, with respect to any such Person,
shall mean Securities authenticated and delivered under this Indenture,
exclusive, however, of Securities of any series as to which such Person is not
Trustee.

     

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

     

    “Significant Subsidiary” means
any Subsidiary of the Company or the Guarantor, as the case may be, which is a
“significant subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated
by the Commission (as such rule is in effect on the date of this
Indenture).

     

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

     

    “Stated Maturity”, with respect
to any Security or any installment of principal thereof or interest thereon or
any Additional Amounts with respect thereto, means the date established by or
pursuant to this Indenture or such Security as the fixed date on which the
principal of such Security or such installment of principal or interest is, or
such Additional Amounts are, due and payable.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     “Subsidiary” means (1) any
corporation at least a majority of the total voting power of whose outstanding
Voting Stock is owned, directly or indirectly, at the date of determination by
the Company or the Guarantor, as the case may be, and/or one or more other
Subsidiaries, and (2) any other Person in which the Company or the
Guarantor, as the case may be, and/or one or more other Subsidiaries, directly
or indirectly, at the date of determination, (x) own at least a majority of
the outstanding ownership interests or (y) have the power to elect or
direct the election of, or to appoint or approve the appointment of, at least a
majority of the directors, trustees or managing members of, or other persons
holding similar positions with, such Person.

     

    “Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended, and any reference herein to the Trust
Indenture Act or a particular provision thereof shall mean such Act or
provision, as the case may be, as amended or replaced from time to time or as
supplemented from time to time by rules or regulations adopted by the Commission
under or in furtherance of the purposes of such Act or provision, as the case
may be.

     

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

     

    “United States”, means the
United States of America (including the states thereof and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction; and the term “United States of America”
means the United States of America.

     

    “United States Alien”, except
as otherwise provided in or pursuant to this Indenture or any Security, means
any Person who, for United States Federal income tax purposes, is a foreign
corporation, a non-resident alien individual, a non-resident alien fiduciary of
a foreign estate or trust, or a foreign partnership one or more of the members
of which is, for United States Federal income tax purposes, a foreign
corporation, a non-resident alien individual or a non-resident alien fiduciary
of a foreign estate or trust.

     

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

     

    “Voting Stock” means, with
respect to any corporation, any class or series of capital stock of such
corporation the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of, or to appoint or to approve
the appointment of, the directors of, or other persons holding similar positions
with, such corporation.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
            	
              Section
      102.

            	
              Compliance Certificates and
      Opinions.

            

    

     

    Except as
otherwise expressly provided in or pursuant to this Indenture, upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
or any of them is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.

     

    
      	
            	
              Section
      103.

            	
              Form of Documents Delivered to
      Trustee.

            

    

     

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

     

    Any
certificate or opinion of an officer of the Company or the Guarantor may be
based, insofar as it relates to legal matters, upon an Opinion of Counsel,
unless such officer knows, or in the exercise of reasonable care should know,
that the Opinion of Counsel with respect to the matters upon which his
certificate or opinion is based is erroneous.  Any such Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company or Guarantor, a governmental official or officers or any other Person or
Persons, stating that the information with respect to such factual matters is in
the possession of the Company or the Guarantor unless counsel rendering the
Opinion of Counsel knows, or in the exercise of reasonable care should know,
that the certificate, 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 or any Security, they may, but need not, be consolidated and form one
instrument.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
            	
              Section
      104.

            	
              Acts of
      Holders.

            

    

     

    (1)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by or pursuant to this Indenture to be made, given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing.  If, but only if, Securities of a series are
issuable as Bearer Securities, any request, demand, authorization, direction,
notice, consent, waiver or other action provided in or pursuant to this
Indenture to be made, given or taken by Holders of Securities of such series
may, alternatively, be embodied in and evidenced by the record of Holders of
Securities of such series voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities of
such series duly called and held in accordance with the provisions of Article
Fifteen, or a combination of such instruments and any such
record.  Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments or record or both are
delivered to the Trustee and, where it is hereby expressly required, to the
Company.  Such instrument or instruments and any such record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the
Holders signing such instrument or instruments or so voting at any such
meeting.  Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and (subject to Section 315 of
the Trust Indenture Act) conclusive in favor of the Trustee and the Company and
any agent of the Trustee or the Company, if made in the manner provided in this
Section.  The record of any meeting of Holders of Securities shall be
proved in the manner provided in Section 1506.

     

    Without
limiting the generality of this Section 104, unless otherwise provided in or
pursuant to this Indenture, a Holder, including a Depository that is a Holder of
a global Security, may make, give or take, by a proxy or proxies, duly appointed
in writing, any request, demand, authorization, direction, notice, consent,
waiver or other Act provided in or pursuant to this Indenture or the Securities
to be made, given or taken by Holders, and a Depository that is a Holder of a
global Security may provide its proxy or proxies to the beneficial owners of
interests in any such global Security through such Depository’s standing
instructions and customary practices.

     

    (2)           The
fact and date of the execution by any Person of any such instrument or writing
may be proved in any reasonable manner which the Trustee deems sufficient and in
accordance with such reasonable rules as the Trustee may determine; and the
Trustee may in any instance require further proof with respect to any of the
matters referred to in this Section.

     

    (3)           The
ownership, principal amount and serial numbers of Registered Securities held by
any Person, and the date of the commencement and the date of the termination of
holding the same, shall be proved by the Security Register.

     

    (4)           The
ownership, principal amount and serial numbers of Bearer Securities held by any
Person, and the date of the commencement and the date of the termination of
holding the same, may be proved by the production of such Bearer Securities or
by a certificate executed, as depositary, by any trust company, bank, banker or
other depositary reasonably acceptable to the Company, wherever situated, if
such certificate shall be deemed by the Company and the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on
deposit with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by the Company and the Trustee to be satisfactory in its sole
discretion.  The Trustee and the Company may assume that such
ownership of any Bearer Security continues until (1) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is
produced, or (2) such Bearer Security is produced to the Trustee by some other
Person, or (3) such Bearer Security is surrendered in exchange for a Registered
Security, or (4) such Bearer Security is no longer
Outstanding.  The ownership, principal amount and serial numbers of
Bearer Securities held by the Person so executing such instrument or writing and
the date of the commencement and the date of the termination of holding the same
may also be proved in any other manner which the Company and the Trustee deem
sufficient.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (5)           If
the Company shall solicit from the Holders of any Registered Securities any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may at its option (but is not obligated to), by Board Resolution,
fix in advance a record date for the determination of Holders of Registered
Securities entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act.  If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other
Act may be given before or after such record date, but only the Holders of
Registered Securities of record at the close of business on such record date
shall be deemed to be Holders for the purpose of determining whether Holders of
the requisite proportion of Outstanding Securities have authorized, agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided that no such
authorization, agreement or consent by the Holders of Registered Securities
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record
date.

     

    (6)           Any
request, demand, authorization, direction, notice, consent, waiver or other Act
by the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done or suffered to be done by the Trustee, any Security Registrar, any
Paying Agent or the Company in reliance thereon, whether or not notation of such
Act is made upon such Security.

     

    
      	
            	
              Section
      105.

            	
              Notices, etc. to Trustee,
      Company and Guarantor.

            

    

     

    Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

     

    (1)      the
Trustee by any Holder or the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee
at its Corporate Trust Office, or

     

    (2)      the Company by the Trustee or
any Holder shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to the Company addressed to the attention of its Chief Financial
Officer  at the address of its principal office specified in the first
paragraph of this instrument or at any other address previously furnished in
writing to the Trustee by the Company, or

     

    (3)      the
Guarantor by the Trustee or any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Guarantor addressed to the attention of its
Secretary at the address of its principal office specified in the first
paragraph of this instrument or at any other address previously furnished in
writing to the Trustee by the Guarantor.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
            	
              Section
      106.

            	
              Notice to Holders of
      Securities; Waiver.

            

    

     

    Except as
otherwise expressly provided in or pursuant to this Indenture, where this
Indenture provides for notice to Holders of Securities of any
event,

     

    (1)      such notice shall be
sufficiently given to Holders of Registered Securities if in writing and mailed,
first-class postage prepaid, to each Holder of a Registered Security affected by
such event, at his address as it appears in the Security Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice; and

     

    (2)      such
notice shall be sufficiently given to Holders of Bearer Securities, if any, if
published in an Authorized Newspaper in The City of New York and, if such
Securities are then listed on any stock exchange outside the United States, in
an Authorized Newspaper in such city as the Company shall advise the Trustee in
writing that such stock exchange so requires, on a Business Day at least twice,
the first such publication to be not earlier than the earliest date and the
second such publication not later than the latest date prescribed for the giving
of such notice.

     

    In any
case where notice to Holders of Registered Securities is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder of a Registered Security shall affect the sufficiency of such
notice with respect to other Holders of Registered Securities or the sufficiency
of any notice to Holders of Bearer Securities given as provided
herein.  Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given or
provided.  In the case by reason of the suspension of regular mail
service or by reason of any other cause it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of the
Trustee in its sole discretion shall constitute a sufficient notification for
every purpose hereunder.

     

    In case
by reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given with the
approval of the Trustee in its sole discretion shall constitute sufficient
notice to such Holders for every purpose hereunder.  Neither failure
to give notice by publication to Holders of Bearer Securities as provided above,
nor any defect in any notice so published, shall affect the sufficiency of any
notice mailed to Holders of Registered Securities as provided
above.

     

    Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders of Securities shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

     

    
      	
            	
              Section
      107.

            	
              Language of
      Notices.

            

    

     

    Any
request, demand, authorization, direction, notice, consent, waiver or other
action required or permitted under this Indenture shall be in the English
language, except that, if the Company so elects, any published notice may be in
an official language of the country of publication.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
            	
              Section
      108.

            	
              Conflict with Trust Indenture
      Act.

            

    

     

    If any
provision hereof limits, qualifies or conflicts with any duties under any
required provision of the Trust Indenture Act imposed hereon by Section 318(c)
thereof, such required provision shall control.

     

    
      	
            	
              Section
      109.

            	
              Effect of Headings and Table
      of Contents.

            

    

     

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

     

    
      	
            	
              Section
      110.

            	
              Successors and
      Assigns.

            

    

     

    All
covenants and agreements in this Indenture by the Company and the Guarantor
shall bind its successors and assigns, whether so expressed or not.

     

    
      	
            	
              Section
      111.

            	
              Separability
      Clause.

            

    

     

    In case
any provision in this Indenture, any Security or any Coupon shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not, to the fullest extent permitted by law, in any
way be affected or impaired thereby.

     

    
      	
            	
              Section
      112.

            	
              Benefits of
      Indenture.

            

    

     

    Nothing
in this Indenture, any Security or any Coupon, express or implied, shall give to
any Person, other than the parties hereto, any Security Registrar, any Paying
Agent and their successors hereunder and the Holders of Securities or Coupons,
any benefit or any legal or equitable right, remedy or claim under this
Indenture.

     

    
      	
            	
              Section
      113.

            	
              Governing
      Law.

            

    

     

    This
Indenture, the Securities, the Guarantee and any Coupons shall be governed by
and construed in accordance with the laws of the State of New York without
regard to conflicts of law principles of such State other than New York General
Obligations Law Section 5-1401.

     

    
      	
            	
              Section
      114.

            	
              Legal
      Holidays.

            

    

     

    Unless
otherwise specified in or pursuant to this Indenture or any Securities, in any
case where any Interest Payment Date, Stated Maturity or Maturity of, or any
other day on which a payment is due with respect to, any Security shall be a day
which is not a Business Day, then payment need not be made on such day, but such
payment may be made on the next succeeding day that is a relevant Business Day
with the same force and effect as if made on the Interest Payment Date, at the
Stated Maturity or Maturity or on any such other payment date, as the case may
be, and no interest shall accrue or be payable on such succeeding Business Day
for the period from and after such Interest Payment Date, Stated Maturity,
Maturity or other payment date, as the case may be, to such succeeding Business
Day.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    
      	
            	
              Section
      115.

            	
              Counterparts.

            

    

     

    This
Indenture may be executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same
instrument.

     

    
      	
            	
              Section
      116.

            	
              Judgment
      Currency.

            

    

     

    Each of
the Company and the Guarantor agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining
judgment in any court it is necessary to convert the sum due in respect of the
principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a
currency in which a judgment will be rendered (the “Judgment Currency”), the rate
of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the New York Banking Day preceding the
date on which a final unappealable judgment is given and (b) its obligations
under this Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment
(whether or not entered in accordance with clause (a)), in any currency other
than the Required Currency, except to the extent that such tender or recovery
shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii)
shall be enforceable as an alternative or additional cause of action for the
purpose of recovering in the Required Currency the amount, if any, by which such
actual receipt shall fall short of the full amount of the Required Currency so
expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.  For purposes of
the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday
in The City of New York or a day on which banking institutions in The City of
New York are authorized or obligated by law, regulation or executive order to be
closed. The provisions of this Section 116 shall not be applicable with respect
to any payment due on a Security which is payable in Dollars.

     

    
      	
            	
              Section
      117.

            	
              Extension of Payment
      Dates.

            

    

     

    In the
event that (i) the terms of any Security or Coupon appertaining thereto
established in or pursuant to this Indenture permit the Company or any Holder
thereof to extend the date on which any payment of principal of, or premium, if
any, or interest, if any, on, or Additional Amounts, if any, with respect to
such Security or Coupon is due and payable and (ii) the due date for any
such payment shall have been so extended, then all references herein to the
Stated Maturity of such payment (and all references of like import) shall be
deemed to refer to the date as so extended.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              Section
      118.

            	
              Immunity of Stockholders,
      Directors, Officers and Agents of the Company and the
      Guarantor.

            

    

     

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

     

    
      	
            	
              Section
      119.

            	
              Submission to Jurisdiction;
      Appointment of Agent for Service of Process; Waiver of
      Immunities.

            

    

     

    The
Guarantor hereby appoints CT Corporation System acting through its office at 111
8th
Avenue, 13th Floor,
New York, New York 10011, as its authorized agent (the “Authorized Agent”) upon which
process may be served in any legal action or proceeding against it with respect
to its obligations under this Indenture or the Securities of any series or any
Guarantee, as the case may be, instituted in any U.S. federal or state court in
the Borough of Manhattan, The City of New York by the Holder of any Security and
agrees that service of process upon such Authorized Agent, together with written
notice of said service to the Guarantor by the person serving the same,
addressed as provided in Section 105, shall be deemed in every respect effective
service of process upon the Guarantor in any such legal action or proceeding,
and the Guarantor hereby irrevocably submits to the non-exclusive jurisdiction
of any such court (assuming it is a court of competent jurisdiction) in respect
of any such legal action or proceeding, and waives any objection which it may
now or hereafter have to the laying of venue of any such proceeding or that such
court is an inconvenient forum.  Such appointment shall be irrevocable
until all Obligations due and to become due on or in respect of all the
Securities issued under this Indenture have been paid by the Issuer or the
Guarantor, as the case may be, to the Trustee pursuant to the terms hereof and
the Securities and the Guarantee.  Notwithstanding the foregoing, the
Guarantor reserves the right to appoint another Person located or with an office
in the Borough of Manhattan, The City of New York, selected in its discretion,
as a successor Authorized Agent, and upon acceptance of such appointment by such
a successor the appointment of the prior Authorized Agent shall
terminate.  If for any reason CT Corporation System ceases to be able
to act as the Authorized Agent or to have an address in the Borough of
Manhattan, The City of New York, the Guarantor shall appoint a successor
Authorized Agent in accordance with the preceding sentence. The Guarantor
further agrees to take any and all action, including the filing of any and all
documents and instruments as may be necessary to continue such designation and
appointment of such agent in full force and effect until this Indenture has been
satisfied and discharged in accordance with Article Four
hereof.  Service of process upon the Authorized Agent addressed to it
at the address set forth above, as such address may be changed within the
Borough of Manhattan, The City of New York by notice given by the Authorized
Agent to the Trustee, together with written notice of such service mailed or
delivered to the Guarantor shall be deemed, in every respect, effective service
of process on the Guarantor.

     

    To the
extent that the Guarantor has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service of
notice, attachment prior to judgment, attachment in aid of execution or
otherwise) with respect to itself or its property, the Guarantor hereby
irrevocably waive such immunity in respect of its Obligations under this
Indenture and the Securities, to the extent permitted by law.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    ARTICLE
TWO

     

    SECURITIES
FORMS

     

    
      	
            	
              Section
      201.

            	
              Forms
      Generally.

            

    

     

    Each
Registered Security, Bearer Security, Coupon and temporary or permanent global
Security issued pursuant to this Indenture shall be in the form established by
or pursuant to a Board Resolution of the Company and set forth in an Officers’
Certificate of the Company, or established in one or more indentures
supplemental hereto, shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by or pursuant
to this Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officer of the Company executing such Security or Coupon as evidenced by the
execution of such Security or Coupon.

     

    Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall be issuable in registered form without Coupons.

     

    Definitive
Securities and definitive Coupons shall be printed, lithographed or engraved or
produced by any combination of these methods on a steel engraved border or steel
engraved borders or may be produced in any other manner, all as determined by
the officer of the Company executing such Securities or Coupons, as evidenced by
the execution of such Securities or Coupons.

     

    
      	
            	
              Section
      202.

            	
              Form of Trustee’s Certificate
      of Authentication.

            

    

     

    Subject
to Section 611, the Trustee’s certificate of authentication shall be in
substantially the following form:

     

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

     

    
      
        
          
            
              
                	
                        WILMINGTON
      TRUST COMPANY,

                      
	
                                       as
      Trustee

                      
	 
      
	
                        By: 

                      	 
	 
      	
                        Authorized
      Signatory

                      

              

               

              
                
                  
                  

                

                
                  19

                  
                    

                  

                

                
                  
                  

                

              

               

            

          

        

      

    

    
      	
            	
              Section
      203.

            	
              Securities in Global
      Form.

            

    

     

    Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall not be issuable in global form.  If Securities of a
series shall be issuable in temporary or permanent global form, any such
Security may provide that it or any principal amount of such Securities shall
represent the aggregate amount of all Outstanding Securities of such series (or
such lesser principal amount as is permitted by the terms thereof) from time to
time endorsed thereon or reflected on the books and records of the Trustee and
may also provide that the aggregate principal amount of Outstanding Securities
represented thereby may from time to time be increased or reduced to reflect
exchanges.  Any endorsement of any Security in global form to reflect
the principal amount, or any increase or decrease in the principal amount, or
changes in the rights of Holders, of Outstanding Securities represented thereby
shall be made in such manner and by such Person or Persons as shall be specified
therein or pursuant to Section 301 with respect to such Security or in the
Company Order to be delivered pursuant to Section 303 or 304 with respect
thereto.  Subject to the provisions of Section 303 and, if applicable,
Section 304, the Trustee shall deliver and redeliver any Security in global form
in the manner and upon written instructions given by the Person or Persons
specified therein or pursuant to Section 301 with respect to such Security or in
the applicable Company Order.  If a Company Order pursuant to Section
303 or 304 has been, or simultaneously is, delivered, any instructions by the
Company with respect to a Security in global form shall be in writing but need
not be accompanied by or contained in an Officers’ Certificate of the Company
and need not be accompanied by an Opinion of Counsel.  Notwithstanding
the foregoing provisions of this paragraph, in the event a global Security is
exchangeable for definitive Securities as provided in Section 305, then,
unless otherwise provided in or pursuant to this Indenture with respect to the
Securities of such series, the Trustee shall deliver and redeliver such global
Security to the extent necessary to effect such exchanges, shall endorse such
global Security to reflect any decrease in the principal amount thereto
resulting from such exchanges and shall take such other actions, all as
contemplated by Section 305.

     

    Notwithstanding
the provisions of Section 307, payment of principal of, any premium and interest
on, and any Additional Amounts in respect of any Security in temporary or
permanent global form shall be made to the Person in whose name such Security is
registered.

     

    Notwithstanding
anything to the contrary, the Trustee and any agent of the Company, the
Guarantor and the Trustee shall treat as the Holder of the principal amount of
Outstanding Securities represented by a global Security (i) in the case of
a global Security in registered form, the Holder of such global Security in
registered form, or (ii) in the case of a global Security in bearer form, the
Person or Persons specified pursuant to Section 301.

       

    ARTICLE
THREE

     

    THE
SECURITIES

     

    
      	
            	
              Section
      301.

            	
              Amount Unlimited; Issuable in
      Series.

            

    

     

    The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series.

     

    With
respect to any Securities to be authenticated and delivered hereunder, there
shall be established in or pursuant to one or more Board Resolutions of the
Company and set forth in an Officers’ Certificate of the Company, or established
in one or more indentures supplemental hereto, prior to the issuance of any
Securities of a series,

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (1)          the
title of the Securities of such series;

     

    (2)          any
limit upon the aggregate principal amount of the Securities of such series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of such series pursuant to
Section 304, 305, 306, 905 or 1107, upon repayment in part of any Security
of such series pursuant to Article Thirteen or upon surrender in part of
any Security for conversion or exchange into Common Stock or other securities or
property pursuant to its terms);

     

    (3)          
if such Securities are to be issuable as Registered Securities, as Bearer
Securities or alternatively as Bearer Securities and Registered Securities, and
whether the Bearer Securities are to be issuable with Coupons, without Coupons
or both, and any restrictions applicable to the offer, sale or delivery of the
Bearer Securities and the terms, if any, upon which Bearer Securities may be
exchanged for Registered Securities and vice versa;

     

    (4)          if any
of such Securities are to be issuable in global form, when any of such
Securities are to be issuable in global form and (i) whether such Securities are
to be issued in temporary or permanent global form or both, (ii) whether
beneficial owners of interests in any such global Security may exchange such
interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such
exchanges may occur, if other than in the manner specified in Section 305, (iii)
the name of the Depository with respect to any such global Security and
(iv) if applicable and in addition to the Persons specified in
Section 305, the Person or Persons who shall be entitled to make any
endorsements on any such global Security and to give the instructions and take
the other actions with respect to such global Security contemplated by the first
paragraph of Section 203;

     

    (5)          if any
of such Securities are to be issuable as Bearer Securities, the date as of which
any such Bearer Security shall be dated (if other than the date of original
issuance of the first of such Securities to be issued);

     

    (6)          if any
of such Securities are to be issuable as Bearer Securities, whether interest in
respect of any portion of a temporary Bearer Security in global form payable in
respect of an Interest Payment Date therefor prior to the exchange, if any, of
such temporary Bearer Security for definitive Securities shall be paid to any
clearing organization with respect to the portion of such temporary Bearer
Security held for its account and, in such event, the terms and conditions
(including any certification requirements) upon which any such interest payment
received by a clearing organization will be credited to the Persons entitled to
interest payable on such Interest Payment Date;

     

    (7)          the
date or dates, or the method or methods, if any, by which such date or dates
shall be determined, on which the principal and premium, if any, of such
Securities is payable;

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (8)          the
rate or rates at which such Securities shall bear interest, if any, or the
method or methods, if any, by which such rate or rates are to be determined, the
date or dates, if any, from which such interest shall accrue or the method or
methods, if any, by which such date or dates are to be determined, the Interest
Payment Dates, if any, on which such interest shall be payable and the Regular
Record Date, if any, for the interest payable on Registered Securities on any
Interest Payment Date, the notice, if any, to Holders regarding the
determination of interest on a floating rate Security and the manner of giving
such notice, and the basis upon which interest shall be calculated if other than
that of a 360-day year of twelve 30-day months;

     

    (9)          whether
Securities of the series are entitled to any benefits of the Guarantee of the
Guarantor pursuant to this Indenture;

     

    (10)        if
in addition to or other than the Corporate Trust Office, the place or places
where the principal of, any premium and interest on or any Additional Amounts
with respect to such Securities shall be payable, any of such Securities that
are Registered Securities may be surrendered for registration of transfer or
exchange, any of such Securities may be surrendered for conversion or exchange
and notices or demands to or upon the Company in respect of such Securities and
this Indenture may be served;

     

    (11)        whether
any of such Securities are to be redeemable at the option of the Company and, if
so, the date or dates on which, the period or periods within which, the price or
prices at which and the other terms and conditions upon which such Securities
may be redeemed, in whole or in part, at the option of the Company;

     

    (12)        if
the Company is obligated to redeem or purchase any of such Securities pursuant
to any sinking fund or analogous provision or at the option of any Holder
thereof and, if so, the date or dates on which, the period or periods within
which, the price or prices at which and the other terms and conditions upon
which such Securities shall be redeemed or purchased, in whole or in part,
pursuant to such obligation, and any provisions for the remarketing of such
Securities so redeemed or purchased;

     

    (13)        the
denominations in which any of such Securities that are Registered Securities
shall be issuable if other than minimum denominations of $2,000 and any integral
multiple of $1,000 in excess thereof, and the minimum denominations in which any
of such Securities that are Bearer Securities shall be issuable if other than
the minimum denomination of $5,000;

     

    (14)        whether
such Securities will be convertible into and/or exchangeable for Common Stock or
other securities or property, and if so, the terms and conditions upon which
such Securities will be so convertible or exchangeable, and any deletions from
or modifications or additions to this Indenture to permit or to facilitate the
issuance of such convertible or exchangeable Securities or the administration
thereof;

     

    (15)        if
other than the principal amount thereof, the portion of the principal amount of
any of such Securities that shall be payable upon acceleration of the Maturity
thereof pursuant to Section 502 or the method by which such portion is to be
determined;

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (16)         if
other than Dollars, the Foreign Currency in which purchases of such Securities
must be made and the Foreign Currency in which payment of the principal of, any
premium or interest on or any Additional Amounts with respect to any of such
Securities shall be payable;

     

    (17)         if
the principal of, any premium or interest on or any Additional Amounts with
respect to any of such Securities are to be payable, at the election of the
Company or a Holder thereof or otherwise, in a Currency other than that in which
such Securities are stated to be payable, the date or dates on which, the period
or periods within which, and the other terms and conditions upon which, such
election may be made, and the time and manner of determining the exchange rate
between the Currency in which such Securities are stated to be payable and the
Currency in which such Securities or any of them are to be paid pursuant to such
election, and any deletions from or modifications of or additions to the terms
of this Indenture to provide for or to facilitate the issuance of Securities
denominated or payable, at the election of the Company or a Holder thereof or
otherwise, in a Foreign Currency;

     

    (18)         if
the amount of payments of principal of, any premium or interest on or any
Additional Amounts with respect to such Securities may be determined with
reference to an index, formula or other method or methods (which index, formula
or method or methods may be based, without limitation, on one or more
Currencies, commodities, equity indices or other indices), and, if so, the terms
and conditions upon which and the manner in which such amounts shall be
determined and paid or payable;

     

    (19)         any
deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to any of such Securities (whether or not
such Events of Default or covenants are consistent with the Events of Default or
covenants set forth herein);

     

    (20)         if
any one or more of Section 401 relating to satisfaction and
discharge,  Section 402(2) relating to defeasance or
Section 402(3) relating to covenant defeasance shall not be applicable to
such Securities, and any covenants in addition to or other than those specified
in Section 402(3) relating to such Securities which shall be subject to
covenant defeasance, and, if such Securities are subject to repurchase or
repayment at the option of the Holders thereof pursuant to
Article Thirteen, if the Company’s obligation to repurchase or repay such
Securities will be subject to satisfaction and discharge pursuant to Section 401
or to defeasance or covenant defeasance pursuant to Section 402, and, if the
Holders of such Securities have the right to convert or exchange such Securities
into Common Stock or other securities or property, if the right to effect such
conversion or exchange will be subject to satisfaction and discharge pursuant to
Section 401 or to defeasance or covenant defeasance pursuant to
Section 402, and any deletions from, or modifications or additions to, the
provisions of Article Four (including any modification which would permit
satisfaction and discharge, defeasance or covenant defeasance to be effected
with respect to less than all of the outstanding Securities of such series) in
respect of such Securities;

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (21)         if
any of such Securities are to be issuable upon the exercise of warrants, and the
time, manner and place for such Securities to be authenticated and
delivered;

     

    (22)         if
any of such Securities are issuable in global form and are to be issuable in
definitive form (whether upon original issue or upon exchange of a temporary
Security) only upon receipt of certain certificates or other documents or
satisfaction of other conditions, then the form and terms of such certificates,
documents or conditions;

     

    (23)         whether
and under what circumstances the Company will pay Additional Amounts on such
Securities to any holder who is a United States Alien in respect of any tax,
assessment or other government charge and, if so, whether the Company will have
the option to redeem such Securities rather than pay such Additional
Amounts;

     

    (24)         if
there is more than one Trustee, the identity of the Trustee that has any
obligations, duties and remedies with respect to such Securities and, if not the
Trustee, the identity of each Security Registrar, Paying Agent or Authenticating
Agent with respect to such Securities;

     

    (25)         the
manner in which, or the Person to whom, any interest on any Bearer Security of
such series shall be payable, if other than upon presentation and surrender of
the Coupons appertaining thereto as they severally mature, and the extent to
which, or the manner in which, any interest payable on a temporary global
Security will be paid if other than in the manner provided in this Indenture;
and

     

    (26)         any
other terms of such Securities and any deletions from or modifications or
additions to this Indenture in respect of such Securities.

     

    All
Securities of any one series and all Coupons, if any, appertaining to Bearer
Securities of such series shall be substantially identical except as to Currency
of payments due thereunder, denomination and the rate of interest, or method of
determining the rate of interest, if any, Maturity, and the date from which
interest, if any, shall accrue and except as may otherwise be provided by the
Company in or pursuant to the Board Resolution of the Company and set forth in
the Officers’ Certificate of the Company or in any indenture or indentures
supplemental hereto pertaining to such series of Securities.  The
Securities of any series shall be authenticated and delivered by the Trustee on
original issue from time to time upon receipt of an Officer’s Certificate,
Opinion of Counsel and Company Order pursuant to Section 303.

     

    All
Securities of any one series need not be issued at the same time and, unless
otherwise provided by the Company as contemplated by this Section 301, a series
may be reopened from time to time without the consent of any Holders for
issuances of additional Securities of such series or to establish additional
terms of such series of Securities.

     

     If
any of the terms of the Securities of any series shall be established by action
taken by or pursuant to Board Resolutions of the Company or the Guarantor (with
respect to the Guarantee), such Board Resolution(s) shall be delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate of the Company
setting forth the terms of such series.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              Section
      302.

            	
              Currency;
      Denominations.

            

    

     

    Unless
otherwise provided in or pursuant to this Indenture, the principal of, any
premium and interest on and any Additional Amounts with respect to the
Securities shall be payable in Dollars.  Unless otherwise provided in
or pursuant to this Indenture, Registered Securities denominated in Dollars
shall be issuable in registered form without Coupons in minimum denominations of
$2,000 and any integral multiple of $1,000 in excess thereof, and the Bearer
Securities denominated in Dollars shall be issuable in minimum denominations of
$5,000.  Securities not denominated in Dollars shall be issuable in
such denominations as are established with respect to such Securities in or
pursuant to this Indenture.

     

    
      	
            	
              Section
      303.

            	
              Execution, Authentication,
      Delivery and Dating.

            

    

     

    Securities
shall be executed on behalf of the Company by its Chairman, its President or one
of its Vice Presidents and by its Treasurer, one of its Assistant Treasurers,
its Secretary or one of its Assistant Secretaries and may (but need not) have
its corporate seal or a facsimile thereof reproduced thereon.  Coupons
shall be executed on behalf of the Company by the Chairman, the President or any
Vice President of the Company.  The signature of any of these officers
on the Securities or any Coupons appertaining thereto may be manual or
facsimile.

     

    The
notation of the Guarantee endorsed on any Securities shall be executed on behalf
of the Guarantor by its Chairman, its President, any of its Vice Presidents or
by its Treasurer. The signature of any of these officers on the Guarantee may be
manual or facsimile.

     

    Securities
and any Coupons appertaining thereto and the Guarantee bearing the manual or
facsimile signatures of individuals who were at any time the proper officers of
the Company or the Guarantor shall, to the fullest extent permitted by law, bind
the Company and the Guarantor, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities
or Coupons or the Guarantee.

     

    At any
time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Securities, together with any Coupons appertaining
thereto, executed by the Company, to the Trustee for authentication and, provided that the Board
Resolution and Officers’ Certificate of the Company or supplemental indenture or
indentures with respect to such Securities referred to in Section 301 and a
Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and
subject to the provisions hereof and of such Securities shall authenticate and
deliver such Securities.  In authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities and any Coupons appertaining thereto, the Trustee shall be
entitled to receive, and (subject to Sections 315(a) through 315(d) of the Trust
Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel
to the following effect, which Opinion of Counsel may contain such assumptions,
qualifications and limitations as such counsel and Trustee shall deem
appropriate:

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (a)           the
form or forms and terms of such Securities and Coupons, if any, have been
established in conformity with Sections 201 and 301 of this
Indenture;

     

    (b)           all
conditions precedent set forth in this Indenture to the authentication and
delivery of such Securities and Coupons, if any, appertaining thereto have been
complied with and that such Securities, and Coupons, when completed by
appropriate insertions (if applicable), executed by duly authorized officers of
the Company, delivered by duly authorized officers of the Company to the Trustee
for authentication pursuant to this Indenture, and authenticated and delivered
by the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms, and, if applicable, the Guarantee will constitute
valid and binding obligations of the Guarantor, except, in each case, as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other similar laws relating to or affecting
creditors’ rights generally or by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at
law).

     

    If all
the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Opinion of Counsel at the time of issuance of each
Security, but such opinion, with such modifications as counsel shall deem
appropriate, shall be delivered at or before the time of issuance of the first
Security of such series.  After any such first delivery, any separate
request by the Company that the Trustee authenticate Securities of such series
for original issue will be accompanied by (i) a certification by the Company
that all conditions precedent provided for in this Indenture relating to
authentication and delivery of such Securities continue to have been complied
with and (ii) a Company Order for the authentication and delivery of such
Securities.

     

    The
Trustee shall not be required to authenticate or to cause an Authenticating
Agent to authenticate any Securities if the issue of such Securities pursuant to
this Indenture will affect the Trustee’s own rights, duties or immunities under
the Securities and this Indenture or will otherwise be in a manner which is not
reasonably acceptable to the Trustee or if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken.

     

    Each
Registered Security shall be dated the date of its
authentication.  Each Bearer Security and any Bearer Security in
global form shall be dated as of the date specified in or pursuant to this
Indenture.

     

    No
Security or Guarantee thereof or Coupon appertaining thereto shall be entitled
to any benefit under this Indenture or be valid or obligatory for any purpose,
unless there appears on such Security a certificate of authentication
substantially in the form provided for in Section 202 or 611 executed by or on
behalf of the Trustee or by the Authenticating Agent by the manual signature of
one of its authorized signatories.  Such certificate upon any Security
shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder.  Except as permitted by
Section 306 or 307 or as may otherwise be provided in or pursuant to this
Indenture, the Trustee shall not authenticate and deliver any Bearer Security
unless all Coupons appertaining thereto then matured have been detached and
cancelled.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              Section
      304.

            	
              Temporary
      Securities.

            

    

     

    Pending
the preparation of definitive Securities, the Company may execute and deliver to
the Trustee and, upon Company Order, the Trustee shall authenticate and deliver,
in the manner provided in Section 303, temporary Securities in lieu thereof
which are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued, in registered form or,
if authorized in or pursuant to this Indenture, in bearer form with one or more
Coupons or without Coupons and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the Company executing such
Securities may determine, as conclusively evidenced by their execution of such
Securities.  Such temporary Securities may be in global
form.

     

    Except in
the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions set forth in this Indenture or the provisions
established pursuant to Section 301, if temporary Securities are issued, the
Company shall cause definitive Securities to be prepared without unreasonable
delay.  Except as otherwise provided in or pursuant to this Indenture,
after the preparation of definitive Securities of the same series and containing
terms and provisions that are identical to those of any temporary Securities,
such temporary Securities shall be exchangeable for such definitive Securities
upon surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof.  Except as otherwise
provided in or pursuant to this Indenture, upon surrender for cancellation of
any one or more temporary Securities (accompanied by any unmatured Coupons
appertaining thereto), the Company shall execute and, upon Company Order, the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and provided, further, that a
definitive Bearer Security shall be delivered in exchange for a temporary Bearer
Security only in compliance with the conditions set forth in or pursuant to this
Indenture.  Unless otherwise provided in or pursuant to this Indenture
with respect to a temporary global Security, until so exchanged the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

     

    
      	
            	
              Section
      305.

            	
              Registration, Transfer and
      Exchange.

            

    

     

    With
respect to the Registered Securities of each series, if any, the Company shall
cause to be kept a register (each such register being herein sometimes referred
to as the “Security
Register”) at an Office or Agency for such series in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for
the registration of the Registered Securities of such series and of transfers of
the Registered Securities of such series.  Such Office or Agency shall
be the “Security
Registrar” for that series of Securities.  Unless otherwise
specified in or pursuant to this Indenture or the Securities, the initial
Security Registrar for each series of Securities shall be as specified in the
last paragraph of Section 1002.  The Company shall have the right
to remove and replace from time to time the Security Registrar for any series of
Securities; provided
that no such removal or replacement shall be effective until a successor
Security Registrar with respect to such series of Securities shall have been
appointed by the Company and shall have accepted such appointment.  In
the event that the Trustee shall not be or shall cease to be Security Registrar
with respect to a series of Securities, it shall have the right to examine the
Security Register for such series at all reasonable times.  There
shall be only one Security Register for each series of Securities.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Except as
otherwise provided in or pursuant to this Indenture, upon surrender for
registration of transfer of any Registered Security of any series at any Office
or Agency for such series, the Company shall execute, and, upon Company Order,
the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Registered Securities of the same
series denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding
and containing identical terms and provisions and, if applicable, having the
notation of the Guarantee of the Guarantor endorsed thereon.

     

    Except as
otherwise provided in or pursuant to this Indenture, at the option of the
Holder, Registered Securities of any series may be exchanged for other
Registered Securities of the same series containing identical terms and
provisions, in any authorized denominations, and of a like aggregate principal
amount, upon surrender of the Securities to be exchanged at any Office or Agency
for such series.  Whenever any Registered Securities are so
surrendered for exchange, the Company shall execute, and, upon Company Order,
the Trustee shall authenticate and deliver, the Registered Securities which the
Holder making the exchange is entitled to receive together with, if applicable,
the notation of the Guarantee of the Guarantor endorsed thereon.

     

    If
provided in or pursuant to this Indenture, with respect to Securities of any
series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms,
denominated as authorized in or pursuant to this Indenture and in the same
aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons
and all matured Coupons in default thereto appertaining.  If the
Holder of a Bearer Security is unable to produce any such unmatured Coupon or
Coupons or matured Coupon or Coupons in default, such exchange may be effected
if the Bearer Securities are accompanied by payment in funds acceptable to the
Company and the Trustee in an amount equal to the face amount of such missing
Coupon or Coupons, or the surrender of such missing Coupon or Coupons may be
waived by the Company and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless.  If thereafter the Holder of such Bearer Security
shall surrender to any Paying Agent any such missing Coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; provided, however, that,
except as otherwise provided in Section 1002, interest represented by Coupons
shall be payable only upon presentation and surrender of those Coupons at an
Office or Agency for such series located outside the United
States.  Notwithstanding the foregoing, in case a Bearer Security of
any series is surrendered at any such Office or Agency for such series in
exchange for a Registered Security of such series and like tenor after the close
of business at such Office or Agency on (i) any Regular Record Date and before
the opening of business at such Office or Agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such Office or Agency on the related date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be (or, if
such Coupon is so surrendered with such Bearer Security, such Coupon shall be
returned to the Person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, shall not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    If
provided in or pursuant to this Indenture with respect to Securities of any
series, at the option of the Holder, Registered Securities of such series may be
exchanged for Bearer Securities upon such terms and conditions as may be
provided in or pursuant to this Indenture with respect to such
series.

     

    Whenever
any Securities are surrendered for exchange as contemplated by the immediately
preceding two paragraphs, the Company shall execute, and, upon Company Order,
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive together with, if applicable, the
notation of the Guarantee of the Guarantor endorsed thereon.

     

    Notwithstanding
the foregoing, except as otherwise provided in or pursuant to this Indenture,
the global Securities of any series shall be exchangeable for definitive
certificated Securities of such series only if (i) the Depository for such
global Securities notifies the Company that it is unwilling or unable to
continue as a Depository for such global Securities or at any time the
Depository for such global Securities ceases to be a clearing agency registered
as such under the Exchange Act, if so required by applicable law or regulation,
and no successor Depository for such Securities shall have been appointed by the
Company within 90 days of such notification or of the Company becoming
aware of the Depository’s ceasing to be so registered, as the case may be,
(ii) the Company, in its sole discretion, determines that the Securities of
such series shall no longer be represented by one or more global Securities and
executes and delivers to the Trustee a Company Order to the effect that such
global Securities shall be so exchangeable, or (iii) an Event of Default
has occurred and is continuing with respect to such Securities and the
Depository for such global Securities wishes to exchange such Securities for
definitive certificated Securities.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    If the
beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities as the result of an event described in
clause (i), (ii) or (iii) of the preceding paragraph, then without
unnecessary delay but in any event not later than the earliest date on which
such interests may be so exchanged, the Company shall deliver to the Trustee
definitive Securities in such form and denominations as are required by or
pursuant to this Indenture, and of the same series, containing identical terms
and in aggregate principal amount equal to the principal amount of such global
Security, executed by the Company.  On or after the earliest date on
which such interests may be so exchanged, such global Security shall be
surrendered from time to time by the Depository (or its custodian) as shall be
specified in the Company Order with respect thereto (which the Company agrees to
deliver), and in accordance with instructions given to the Trustee and the
Depository (which instructions shall be in writing but need not be contained in
or accompanied by an Officers’ Certificate of the Company or be accompanied by
an Opinion of Counsel), as shall be specified in the Company Order with respect
thereto to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or in part, for definitive Securities as described above
without charge.  The Trustee shall authenticate and make available for
delivery, in exchange for each portion of such surrendered global Security, a
like aggregate principal amount of definitive Securities of the same series of
authorized denominations and of like tenor as the portion of such global
Security to be exchanged, which (unless such Securities are not issuable both as
Bearer Securities and as Registered Securities, in which case the definitive
Securities exchanged for the global Security shall be issuable only in the form
in which the Securities are issuable, as provided in or pursuant to this
Indenture) shall be in the form of Bearer Securities or Registered Securities,
or any combination thereof, and which shall be in such denominations and, in the
case of Registered Securities, registered in such names, as shall be specified
by the Depository, but subject to the satisfaction of any certification or other
requirements to the issuance of Bearer Securities; provided, however, that no
such exchanges may occur during a period beginning at the opening of business 15
days before any selection of Securities of the same series to be redeemed and
ending on the relevant Redemption Date; and provided, further, that
(unless otherwise provided in or pursuant to this Indenture) no Bearer Security
delivered in exchange for a portion of a global Security shall be mailed or
otherwise delivered to any location in the United States.  Promptly
following any such exchange in part, such global Security shall be returned by
the Trustee to such Depository (or its custodian) or such other Depository (or
its custodian) referred to above in accordance with the instructions of the
Company referred to above, and the Trustee shall endorse such global Security to
reflect the decrease in the principal amount thereof resulting from such
exchange.  If a Registered Security is issued in exchange for any
portion of a global Security after the close of business at the Office or Agency
for such Security where such exchange occurs on or after (i) any Regular Record
Date for such Security and before the opening of business at such Office or
Agency on the next Interest Payment Date, or (ii) any Special Record Date for
such Security and before the opening of business at such Office or Agency on the
related proposed date for payment of interest or Defaulted Interest, as the case
may be, interest shall not be payable on such Interest Payment Date or proposed
date for payment, as the case may be, in respect of such Registered Security,
but shall be payable on such Interest Payment Date or proposed date for payment,
as the case may be, only to the Person to whom interest in respect of such
portion of such global Security shall be payable in accordance with the
provisions of this Indenture.

     

    
    

    All
Securities and the Guarantee, if applicable, the notation of which is endorsed
thereon issued upon any registration of transfer or exchange of Securities shall
be the valid obligations of the Company and, if applicable, the Guarantor
evidencing the same debt and entitling the Holders thereof to the same benefits
under this Indenture as the Securities surrendered upon such registration of
transfer or exchange.

     

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

     

    No
service charge shall be made for any registration of transfer or exchange of
Securities, or any redemption or repayment of Securities, or any conversion or
exchange of Securities for other types of securities or property, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Securities, other than exchanges pursuant to Section
304, 905 or 1107, upon repayment or repurchase in part of any Registered
Security pursuant to Article Thirteen, or upon surrender in part of any
Registered Security for conversion or exchange into Common Stock or other
securities or property pursuant to its terms, in each case not involving any
transfer.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Except as
otherwise provided in or pursuant to this Indenture, the Company shall not be
required (i) to issue, register the transfer of or exchange any Securities
during a period beginning at the opening of business 15 days before the day of
the selection for redemption of Securities of like tenor and terms and of the
same series under Section 1103 and ending at the close of business on the day of
such selection, or (ii) to register the transfer of or exchange any Registered
Security, or portion thereof, so selected for redemption, except in the case of
any Registered Security to be redeemed in part, the portion thereof not to be
redeemed, or (iii) to exchange any Bearer Security so selected for redemption
except, to the extent provided with respect to such Bearer Security, that such
Bearer Security may be exchanged for a Registered Security of like tenor and
terms and of the same series, provided that such Registered Security shall be
simultaneously surrendered for redemption with written instruction for payment
consistent with the provisions of this Indenture or (iv) to issue, register the
transfer of or exchange any Security which, in accordance with its terms, has
been surrendered for repayment at the option of the Holder pursuant to Article
Thirteen and not withdrawn, except the portion, if any, of such Security not to
be so repaid.

     

    Notwithstanding
anything contained herein to the contrary, neither the Trustee nor the Security
Registrar shall be responsible for ascertaining whether any issuance, exchange
or transfer of Securities complies with the registration provisions of or
exemptions from the Securities Act, applicable state securities laws, the U.S.
Employee Retirement Income Security Act of 1974 (or, in the case of a
governmental plan or a church plan (as described in Sections 3(32) and 3(33)
thereof, respectively), any substantially similar federal, state or local law),
the U.S. Internal Revenue Code of 1986 or the Investment Company Act of
1940.

     

    
      	
            	
              Section
      306.

            	
              Mutilated, Destroyed, Lost and
      Stolen Securities.

            

    

     

    If any
mutilated Security or a Security with a mutilated Coupon appertaining to it is
surrendered to the Trustee, subject to the provisions of this Section 306, the
Company shall execute and, upon Company Order, the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, having endorsed thereon a notation of the
Guarantee, if applicable, executed by the Guarantor, and with Coupons
appertaining thereto corresponding to the Coupons, if any, appertaining to the
surrendered Security.

     

    If there
be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or Coupon, and
(ii) such security or indemnity as may be reasonably required by them to save
each of them and any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security or Coupon has been
acquired by a bona fide purchaser, the Company shall execute and, upon the
Company’s written request the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Security or in exchange for the Security to which a destroyed, lost or stolen
Coupon appertains with all appurtenant Coupons not destroyed, lost or stolen, a
new Security of the same series containing identical terms and of like principal
amount and bearing a number not contemporaneously outstanding, having endorsed
thereon a notation of the Guarantee, if applicable, executed by the Guarantor,
and with Coupons corresponding to the Coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed,
lost or stolen Coupon appertains.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
the foregoing provisions of this Section 306, in case any mutilated, destroyed,
lost or stolen Security or Coupon has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security or Coupon; provided, however, that
payment of principal of, any premium or interest on or any Additional Amounts
with respect to any Bearer Securities shall, except as otherwise provided in
Section 1002, be payable only at an Office or Agency for such Securities located
outside the United States and, unless otherwise provided in or pursuant to this
Indenture, any interest on Bearer Securities and any Additional Amounts with
respect to such interest shall be payable only upon presentation and surrender
of the Coupons appertaining thereto.

     

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

     

    Every new
Security, together with the Guarantee, if applicable, the notation of which is
endorsed thereon by the Guarantor and any Coupons appertaining thereto issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security, or
in exchange for a Security to which a destroyed, lost or stolen Coupon
appertains shall constitute a separate obligation of the Company and the
Guarantor, whether or not the destroyed, lost or stolen Security and Coupons
appertaining thereto or the destroyed, lost or stolen Coupon shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of such
series and any Coupons, if any, duly issued hereunder.

     

    The
provisions of this Section, as amended or supplemented pursuant to this
Indenture with respect to particular Securities or generally, shall (to the
extent lawful) be exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities or Coupons.

     

    
      	
            	
              Section
      307.

            	
              Payment of Interest and
      Certain Additional Amounts; Rights to Interest and Certain Additional
      Amounts Preserved.

            

    

     

    Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, and are punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name such Security (or one or more
Predecessor Securities) is registered as of the close of business on the Regular
Record Date for such interest.  Unless otherwise provided in or
pursuant to this Indenture, in case a Bearer Security is surrendered in exchange
for a Registered Security after the close of business at an Office or Agency for
such Security on any Regular Record Date therefor and before the opening of
business at such Office or Agency on the next succeeding Interest Payment Date
therefor, such Bearer Security shall be surrendered without the Coupon relating
to such Interest Payment Date and interest shall not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such
Bearer Security, but shall be payable only to the Holder of such Coupon when due
in accordance with the provisions of this Indenture.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, but shall not be punctually paid or duly provided for, on any Interest
Payment Date for such Registered Security (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder thereof on the relevant Regular
Record Date by virtue of having been such Holder; and such Defaulted Interest
may be paid by the Company, at its election in each case, as provided in clause
(1) or (2) below:

     

    (1)          The
Company may elect to make payment of any Defaulted Interest to the Person in
whose name such Registered Security (or a Predecessor Security thereof) shall be
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following
manner.  The Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on such Registered Security and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the
proposed payment, such money when so deposited to be held in trust for the
benefit of the Person entitled to such Defaulted Interest as in this clause
provided.  Thereupon, the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15 days and
not less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to the Holder of such
Registered Security (or a Predecessor Security thereof) at his address as it
appears in the Security Register not less than 10 days prior to such Special
Record Date.  The Trustee may, in its discretion, in the name and at
the expense of the Company cause a similar notice to be published at least once
in an Authorized Newspaper of general circulation in the Borough of Manhattan,
The City of New York, but such publication shall not be a condition precedent to
the establishment of such Special Record Date.  Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Person in
whose name such Registered Security (or a Predecessor Security thereof) shall be
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).  In case a
Bearer Security is surrendered at the Office or Agency for such Security in
exchange for a Registered Security after the close of business at such Office or
Agency on any Special Record Date and before the opening of business at such
Office or Agency on the related proposed date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the Coupon relating to such
Defaulted Interest and Defaulted Interest shall not be payable on such proposed
date of payment in respect of the Registered Security issued in exchange for
such Bearer Security, but shall be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture;
and

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (2)          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 such
Security 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 payment shall be deemed practicable by the
Trustee.

     

    Unless
otherwise provided in or pursuant to this Indenture or the Securities of any
particular series, at the option of the Company, interest on Registered
Securities on any Interest Payment Date may be paid by mailing a check to the
address of the Person entitled thereto as such address shall appear in the
Security Register or by transfer to an account maintained by the payee with a
bank located in the United States of America.

     

    Subject
to the foregoing provisions of this Section and Section 305, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other
Security.

     

    
      	
            	
              Section
      308.

            	
              Persons Deemed
      Owners.

            

    

     

    Prior to
due presentment of a Registered Security for registration of transfer, the
Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor
or the Trustee may treat the Person in whose name such Registered Security is
registered in the Security Register as the owner of such Registered Security for
the purpose of receiving payment of principal of, any premium and (subject to
Sections 305 and 307) interest on and any Additional Amounts with respect to
such Registered Security and for all other purposes whatsoever, whether or not
any payment with respect to such Registered Security shall be overdue, and
neither the Company, the Guarantor, the Trustee or any agent of the Company, the
Guarantor or the Trustee shall be affected by notice to the
contrary.

     

    The
Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor
or the Trustee may treat the bearer of any Bearer Security or the bearer of any
Coupon as the absolute owner of such Security or Coupon for the purpose of
receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not any payment with respect to such Security or Coupon
shall be overdue, and neither the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be affected by notice
to the contrary.

     

    No owner
of any beneficial interest in any global Security held on its behalf by a
Depository shall have any rights under this Indenture with respect to such
global Security, and such Depository may be treated by the Company, the
Guarantor, the Trustee and any agent of the Company, the Guarantor or the
Trustee as the owner of such global Security for all purposes whatsoever. None
of the Company, the Guarantor, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    
    

    
      Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Guarantor, the
Trustee, any Paying Agent or the Security Registrar from giving effect to any
written certification, proxy or other authorization furnished by the applicable
Depository, as a Holder, with respect to a global Security or impair, as between
such Depository and the owners of beneficial interests in such global Security,
the operation of customary practices governing the exercise of the rights of
such Depository (or its nominee) as the Holder of such global
Security.

       

    

    
    

    
      	
            	
              Section
      309.

            	
              Cancellation.

            

    

     

    All
Securities and Coupons surrendered for payment, redemption, registration of
transfer, exchange or conversion or for credit against any sinking fund payment
shall, if surrendered to any Person other than the Trustee, be promptly
delivered to the Trustee, and any such Securities and Coupons, as well as
Securities and Coupons surrendered directly to the Trustee for any such purpose,
shall be cancelled promptly by the Trustee.  The Company may at any
time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be cancelled promptly
by the Trustee.  No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section, except as
expressly permitted by or pursuant to this Indenture.  All cancelled
Securities and Coupons held by the Trustee shall be destroyed by the Trustee,
unless by a Company Order the Company directs their return to it.

     

    
      	
            	
              Section
      310.

            	
              Computation of
      Interest.

            

    

     

    Except as
otherwise provided in or pursuant to this Indenture or in the Securities of any
series, interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months.

     

    ARTICLE
FOUR

     

    SATISFACTION
AND DISCHARGE OF INDENTURE

      

    
      	
            	
              Section
      401.

            	
              Satisfaction and
      Discharge.

            

    

     

    Unless,
pursuant to Section 301, the provisions of this Section 401 shall not be
applicable with respect to the Securities of any series, upon the direction of
the Company by a Company Order, this Indenture shall cease to be of further
effect with respect to any series of Securities specified in such Company Order,
the Guarantee (if applicable) thereon and any Coupons appertaining thereto, and
the Trustee, on receipt of a Company Order, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    (1)          either

     

    (a)           all
Securities of such series theretofore authenticated and delivered and all
Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer
Securities of such series surrendered in exchange for Registered Securities of
such series and maturing after such exchange whose surrender is not required or
has been waived as provided in Section 305, (ii) Securities and Coupons of such
series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306, (iii) Coupons appertaining to Securities of
such series called for redemption and maturing after the relevant Redemption
Date whose surrender has been waived as provided in Section 1106, and (iv)
Securities and Coupons of such series for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation;
or

     

    (b)           all
Securities of such series and, in the case of (i) or (ii) below, if applicable,
any Coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation

     

    (i)                 have
become due and payable, or

     

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

     

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

     

    and the
Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for such purpose, money in
the Currency in which such Securities are payable in an amount sufficient to pay
and discharge the entire indebtedness on such Securities and any Coupons
appertaining thereto not theretofore delivered to the Trustee for cancellation,
including the principal of, any premium and interest on, and, to the extent that
the Securities of such series provide for the payment of Additional Amounts
thereon and the amount of any such Additional Amounts which are or will be
payable with respect to the Securities of such series is at the time of deposit
determinable by the Company (in the exercise by the Company of its reasonable
discretion), any Additional Amounts with respect to, such Securities and any
Coupons appertaining thereto, to the date of such deposit (in the case of
Securities which have become due and payable) or to the Maturity thereof, as the
case may be;

     

    (2)          the
Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Outstanding Securities of such series (including
amounts payable to the Trustee pursuant to Section 606) and any Coupons
appertaining thereto; and

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

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

     

    In the
event there are Securities of two or more series Outstanding hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee, if in form and content
acceptable to the Trustee and if the other conditions thereto are
met.

     

    Notwithstanding
the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 606 and,
if money shall have been deposited with the Trustee pursuant to subclause (b) of
clause (1) of this Section, the obligations of the Company and the Trustee with
respect to the Securities of such series under Sections 305, 306, 403, 404,
1002, 1003 and, if applicable to the Securities of such series, 1004 (including,
without limitation, with respect to the payment of Additional Amounts, if any,
with respect to such Securities as contemplated by Section 1004, but only
to the extent that the Additional Amounts payable with respect to such
Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 401(1)(b)), any rights of Holders of the Securities of such
series (unless otherwise provided pursuant to Section 301 with respect to
the Securities of such series) to require the Company to repurchase or repay,
and the obligations of the Company to repurchase or repay, such Securities at
the option of the Holders pursuant to Article Thirteen hereof, and any rights of
Holders of the Securities of such series (unless otherwise provided pursuant to
Section 301 with respect to the Securities of such series) to convert or
exchange, and the obligations of the Company to convert or exchange, such
Securities into Common Stock or other securities or property, shall
survive.

     

    
      	
            	
              Section
      402.

            	
              Defeasance and Covenant
      Defeasance.

            

    

     

    (1)           Unless,
pursuant to Section 301, either or both of (i) defeasance of the Securities
of or within a series under clause (2) of this Section 402 or (ii) covenant
defeasance of the Securities of or within a series under clause (3) of this
Section 402 shall not be applicable with respect to the Securities of such
series, then such provisions, together with the other provisions of this Section
402 (with such modifications thereto as may be specified pursuant to Section 301
with respect to any Securities), shall be applicable to such Securities and any
Coupons appertaining thereto, and the Company may at its option by Board
Resolution, at any time, with respect to the Securities of or within such series
and any Coupons appertaining thereto, elect to have Section 402(2) or Section
402(3) be applied to such Outstanding Securities and any Coupons appertaining
thereto upon compliance with the conditions set forth below in this Section 402.
Unless otherwise specified pursuant to Section 301 with respect to the
Securities of any series, defeasance under clause (2) of this Section 402 and
covenant defeasance under clause (3) of this Section 402 may be effected only
with respect to all, and not less than all, of the Outstanding Securities of any
series.  To the extent that the terms of any Security or Coupon
appertaining thereto established in or pursuant to this Indenture permit the
Company or any Holder thereof to extend the date on which any payment of
principal of, or premium, if any, or interest, if any, on, or Additional
Amounts, if any, with respect to such Security or Coupon is due and payable,
then unless otherwise provided pursuant to Section 301, the right to extend such
date shall terminate upon defeasance or covenant defeasance, as the case may
be.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      (2)           Upon
the Company’s exercise of the above option applicable to this Section 402(2)
with respect to any Securities of or within a series, the Company shall be
deemed to have been discharged from its obligations with respect to such
Outstanding Securities and any Coupons appertaining thereto on the date the
conditions set forth in clause (4) of this Section 402 are satisfied
(hereinafter, “defeasance”).  For
this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by such Outstanding
Securities and any Coupons appertaining thereto, which shall thereafter be
deemed to be “Outstanding” only for the
purposes of clause (5) of this Section 402 and the other Sections of this
Indenture referred to in subclauses (i) through (iv) of this clause (2), and to
have satisfied all of its other obligations under such Securities and any
Coupons appertaining thereto and this Indenture insofar as such Securities and
any Coupons appertaining thereto are concerned (and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging the same), except
for the following which shall survive until otherwise terminated or discharged
hereunder:  (i) the rights of Holders of such Outstanding
Securities and any Coupons appertaining thereto to receive, solely (except as
provided in subclause (ii) below) from the trust fund described in clause (4)(a)
of this Section 402 and as more fully set forth in this Section 402 and 403,
payments in respect of the principal of (and premium, if any) and interest, if
any, on, and Additional Amounts, if any, with respect to, such Securities and
any Coupons appertaining thereto when such payments are due, (ii) the
obligations of the Company and the Trustee with respect to such Securities under
Sections 305, 306, 1002, 1003 and, if applicable to the Securities of such
series, 1004 (including, without limitation, with respect to the payment of
Additional Amounts, if any, with respect to such Securities as contemplated by
Section 1004, but only to the extent that the Additional Amounts payable with
respect to such Securities exceed the amount deposited in respect of such
Additional Amounts pursuant to clause (4)(a) of this Section 402)), any rights
of Holders of such Securities (unless otherwise provided pursuant to
Section 301 with respect to the Securities of such series) to require the
Company to repurchase or repay, and the obligations of the Company to repurchase
or repay, such Securities at the option of the Holders pursuant to Article
Thirteen hereof, and any rights of Holders of such Securities (unless otherwise
provided pursuant to Section 301 with respect to the Securities of such
series) to convert or exchange, and the obligations of the Company to convert or
exchange, such Securities into Common Stock or other securities or property,
(iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (iv) this Section 402 and Sections 403 and
404.  The Company may exercise its option under this
Section 402(2) notwithstanding the prior exercise of its option under
Section 402(3) with respect to such Securities and any Coupons appertaining
thereto.

       

    

    (3)           Upon
the Company’s exercise of the above option applicable to this Section 402(3)
with respect to any Securities of or within a series, each of the Company and
the Guarantor shall each be released from its obligations under clauses
(1)(ii)-(iii) and (2)(ii)-(iii), respectively, of Section 1005 and under
Sections 1006 and 1007 and, to the extent specified pursuant to
Section 301, any other covenant applicable to such Securities with respect
to such Securities and any Coupons appertaining thereto shall cease to be
applicable to such Securities on and after the date the conditions set forth in
clause (4) of this Section 402 are satisfied (hereinafter, “covenant defeasance”), and
such Securities and any Coupons appertaining thereto shall thereafter be deemed
to be 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 any such covenant, but shall continue to be deemed “Outstanding”
for all other purposes hereunder.  For this purpose, such covenant
defeasance means, with respect to such Outstanding Securities and any
Coupons appertaining thereto, each of the Company and the Guarantor may omit to
comply with, and shall have no liability in respect of, any term, condition or
limitation set forth in any such Section or any such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
Section or such other covenant or by reason of reference in any such Section or
such other covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a default or an Event of Default
under Section 501(5) or otherwise, as the case may be, but, except as specified
above, the remainder of this Indenture and such Securities and Coupons
appertaining thereto shall be unaffected thereby.

     

    (4)           The
following shall be the conditions to application of clause (2) or (3) of this
Section 402 to any Outstanding Securities of or within a series and any Coupons
appertaining thereto:

     

    (a)           The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 607 who shall
agree to comply with the provisions of this Section 402 applicable to it) as
trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the benefit of
the Holders of such Securities and any Coupons appertaining thereto, (1) an
amount in Dollars or in such Foreign Currency in which such Securities and any
Coupons appertaining thereto are then specified as payable at Stated Maturity
or, if such defeasance or covenant defeasance is to be effected in compliance
with subsection (f) below, on the relevant Redemption Date, as the case may
be, or (2) Government Obligations applicable to such Securities and Coupons
appertaining thereto (determined on the basis of the Currency in which such
Securities and Coupons appertaining thereto are then specified as payable at
Stated Maturity or, if such defeasance or covenant defeasance is to be effected
in compliance with subsection (f) below, on the relevant Redemption Date,
as the case may be) which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment of principal of (and
premium, if any) and interest, if any, on such Securities and any Coupons
appertaining thereto, money in an amount, or (3) a combination thereof, in any
case, in an amount, sufficient, without consideration of any reinvestment of
such principal and interest, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, (y) the
principal of (and premium, if any) and interest, if any, on, and, to the extent
that such Securities provide for the payment of Additional Amounts thereon and
the amount of any such Additional Amounts which are or will be payable with
respect to the Securities of such series is at the time of deposit determinable
by the Company (in the exercise by the Company of its reasonable discretion),
any Additional Amounts with respect to, such Outstanding Securities and any
Coupons appertaining thereto on the Maturity or Stated Maturity of such
principal or interest, and (z) any mandatory sinking fund payments or analogous
payments applicable to such Outstanding Securities and any Coupons appertaining
thereto on the day on which such payments are due and payable in accordance with
the terms of this Indenture and of such Securities and any Coupons appertaining
thereto.

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    (b)           Such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, this Indenture or any other material agreement or
instrument to which the Company, the Guarantor or any of their respective
Subsidiaries is a party or by which it is bound.

     

    (c)           No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities and any Coupons
appertaining thereto shall have occurred and be continuing on the date of such
deposit, and, solely in the case of defeasance under Section 402(2), no
Event of Default with respect to such Securities and any Coupons appertaining
thereto under clause (6) or (7) of Section 501 or event which with notice or
lapse of time or both would become an Event of Default with respect to such
Securities and any Coupons appertaining thereto under clause (6) or (7) of
Section 501 shall have occurred and be continuing at any time during the period
ending on and including the 91st day after the date of such deposit (it being
understood that this condition to defeasance under Section 402(2) shall not be
deemed satisfied until the expiration of such period).

     

    (d)           In
the case of defeasance pursuant to Section 402(2), the Company shall have
delivered to the Trustee an opinion of independent counsel reasonably acceptable
to the Trustee stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) since the date of
this Indenture there has been a change in applicable federal income tax law, in
either case to the effect that, and based thereon such opinion of independent
counsel shall confirm that, the Holders of such Outstanding Securities and any
Coupons appertaining thereto will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such defeasance and will be subject
to U.S. federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such defeasance had not occurred; or,
in the case of covenant defeasance pursuant to Section 402(3), the Company shall
have delivered to the Trustee an opinion of independent counsel reasonably
acceptable to the Trustee to the effect that the Holders of such Outstanding
Securities and any Coupons appertaining thereto will not recognize income, gain
or loss for U.S. federal income tax purposes as a result of such covenant
defeasance and will be subject to U.S. federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred.

     

    (e)           The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance
or covenant defeasance, as the case may be, under this Indenture have been
complied with.

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    (f)        
   If the monies or Government Obligations or combination
thereof, as the case may be, deposited under subclause (a) above are sufficient
to pay the principal of, and premium, if any, and interest, if any, on and, to
the extent provided in such subclause (a), Additional Amounts with respect to,
such Securities on a particular Redemption Date, the Company shall have given
the Trustee irrevocable instructions to redeem such Securities on such date and
to provide notice of such redemption to Holders as provided in or pursuant to
this Indenture.

     

    (g)           Notwithstanding
any other provisions of this Section 402(4), such defeasance or covenant
defeasance shall be effected in compliance with any additional or substitute
terms, conditions or limitations which may be imposed on the Company in
connection therewith pursuant to Section 301.

     

    (5)           Subject
to the provisions of the last paragraph of Section 1003, all money and
Government Obligations (or other property as may be provided pursuant to Section
301) (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee (collectively for purposes of this Section 402(5) and
Section 403, the “Trustee”)) pursuant to clause
(4)(a) of Section 402 in respect of any Outstanding Securities of any series and
any Coupons appertaining thereto shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and any Coupons
appertaining thereto and this Indenture, to the payment, either directly or
through any Paying Agent (other than the Company or any Subsidiary or Affiliate
of the Company acting as Paying Agent) as the Trustee may determine, to the
Holders of such Securities and any Coupons appertaining thereto of all sums due
and to become due thereon in respect of principal (and premium, if any) and
interest and Additional Amounts, if any, but such money need not be segregated
from other funds except to the extent required by law.

     

    Unless
otherwise specified in or pursuant to this Indenture or any Securities, if,
after a deposit referred to in Section 402(4)(a) has been made, (a) the Holder
of a Security in respect of which such deposit was made is entitled to, and
does, elect pursuant to Section 301 or the terms of such Security to receive
payment in a Currency other than that in which the deposit pursuant to Section
402(4)(a) has been made in respect of such Security, or (b) a Conversion Event
occurs in respect of the Foreign Currency in which the deposit pursuant to
Section 402(4)(a) has been made, the indebtedness represented by such Security
and any Coupons appertaining thereto shall be deemed to have been, and will be,
fully discharged and satisfied through the payment of the principal of (and
premium, if any), and interest, if any, on, and Additional Amounts, if any, with
respect to, such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security
into the Currency in which such Security becomes payable as a result of such
election or Conversion Event based on (x) in the case of payments made pursuant
to subclause (a) above, the applicable market exchange rate for such Currency in
effect on the second Business Day prior to each payment date, or (y) with
respect to a Conversion Event, the applicable market exchange rate for such
Foreign Currency in effect (as nearly as feasible) at the time of the Conversion
Event.

     

    The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited
pursuant to this Section 402 or the principal or 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 such Outstanding Securities and any Coupons
appertaining thereto.

     

    
      
         

      

      
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    Anything
in this Section 402 to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or
Government Obligations (or other property and any proceeds therefrom) held by it
as provided in clause (4)(a) of this Section 402 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect a
defeasance or covenant defeasance, as applicable, in accordance with this
Section 402.

     

    
      	  	
              Section
      403.

            	
              Application
      of Trust
Money.

            

    

     

    Subject
to the provisions of the last paragraph of Section 1003, all money and
Government Obligations deposited with the Trustee pursuant to Section 401 or 402
shall be held in trust and applied by it, in accordance with the provisions of
the Securities, the Coupons and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal, premium, interest and Additional Amounts for whose payment such money
has or Government Obligations have been deposited with or received by the
Trustee; but such money and Government Obligations need not be segregated from
other funds except to the extent required by law.

     

    
      	  	
              Section
      404.

            	
              Reinstatement.

            

    

     

    If the
Trustee (or other qualifying trustee appointed pursuant to Section 402(4)(a)) or
any Paying Agent is unable to apply any moneys or Government Obligations
deposited pursuant to Section 401(1) or 402(4)(a) to pay any principal of
or premium, if any, or interest, if any, on or Additional Amounts, if any, with
respect to the Securities of any series by reason of any legal proceeding or any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the Company’s obligations under
this Indenture and the Securities of such series shall be revived and reinstated
as though no such deposit had occurred, until such time as the Trustee (or other
qualifying trustee) or Paying Agent is permitted to apply all such moneys and
Government Obligations to pay the principal of and premium, if any, and
interest, if any, on and Additional Amounts, if any, in respect of the
Securities of such series as contemplated by Section 401 or 402 as the case
may be, and Section 403; provided, however, that if the Company
makes any payment of the principal of or premium, if any, or interest, if any,
on or Additional Amounts, if any, in respect of the Securities of such series
following the reinstatement of its obligations as aforesaid, the Company shall
be subrogated to the rights of the Holders of such Securities to receive such
payment from the funds held by the Trustee (or other qualifying trustee) or
Paying Agent.

     

    
      
        
        

      

      
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    ARTICLE
FIVE

     

    REMEDIES

     

    
      	  	
              Section
      501.

            	
              Events
      of Default.

            

    

     

    “Event of Default”, wherever
used herein with respect to Securities of any series, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body) unless such event is specifically
deleted or modified in or pursuant to the supplemental indenture, Board
Resolution or Officers’ Certificate of the Company establishing the terms of
such series pursuant to this Indenture:

     

    (1)    
  default in the payment of any interest on, or any Additional Amounts
payable in respect of any interest on, any of the Securities of such series or
any Coupon appertaining thereto when such interest or such Additional Amounts,
as the case may be, become due and payable, and continuance of such default for
a period of 30 days; or

     

    (2)        default
in the payment of any principal of or premium, if any, on, or any Additional
Amounts payable in respect of any principal of or premium, if any, on, any of
the Securities of such series when due (whether at Maturity, upon redemption or
exercise of a repurchase right or otherwise and whether payable in cash or in
shares of Common Stock or other securities or property); or

     

    (3)        default
in the deposit of any sinking fund payment or payment under any analogous
provision when due with respect to any of the Securities of such series;
or

     

    (4)        with
respect to any series of Securities to which the provisions of Article Sixteen
shall apply as contemplated by Section 301 hereof, the Guarantee ceases to be in
full force and effect or is declared to be null and void and unenforceable with
respect to the Securities of such series or the Guarantee is found to be invalid
or the Guarantor denies its liability under the Guarantee (other than by reason
of release of the Guarantor in accordance with the terms hereof) with respect to
the Securities of such series; 

     

    (5)        default
in the performance, or breach, of any covenant or warranty of the Company or the
Guarantor, as the case may be, in this Indenture or any of the Securities of
such series (other than a covenant or warranty for which the consequences of
breach or nonperformance are addressed elsewhere in this Section 501 or a
covenant or warranty which has expressly been included in this Indenture,
whether or not by means of a supplemental indenture, solely for the benefit of
Securities of a series other than such series), and continuance of such default
or breach (without such default or breach having been waived in accordance of
the provisions of this Indenture) for a period of 60 days after there has been
given, by registered or certified mail, to the Company or the Guarantor, as
applicable, by the Trustee or to the Company or the Guarantor, as applicable,
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of such series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or

     

    
      
         

      

      
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    (6)        the
entry by a court having jurisdiction in the premises of (A) a decree or
order for relief in respect of the Company, the Guarantor or any of their
respective Significant Subsidiaries in an involuntary case or proceeding under
any applicable bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company, the Guarantor or any of their
respective Significant Subsidiaries a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company, the Guarantor or any of their
respective Significant Subsidiaries under any applicable U.S. federal or state
law, or appointing a custodian, receiver, conservator, liquidator, assignee,
trustee, sequestrator or other similar official of the Company, the Guarantor or
any of their respective Significant Subsidiaries or of any substantial part of
the property of the Company, the Guarantor or any of their respective
Significant Subsidiaries, or ordering the winding up or liquidation of the
affairs of the Company, the Guarantor or any of their respective Significant
Subsidiaries, and the continuance of any such decree or order for relief
unstayed and in effect for a period of 60 consecutive days; or

     

    (7)        the
commencement by the Company, the Guarantor or any of their respective
Significant Subsidiaries of a voluntary case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the
Company, the Guarantor or any of their respective Significant Subsidiaries to
the entry of a decree or order for relief in respect of the Company, the
Guarantor or any of their respective Significant Subsidiaries in an involuntary
case or proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case
or proceeding against the Company, the Guarantor or any of their respective
Significant Subsidiaries, or the filing by the Company, the Guarantor or any of
their respective Significant Subsidiaries of a petition or answer or consent
seeking reorganization or relief under any applicable U.S. federal or state law,
or the consent by the Company, the Guarantor or any of their respective
Significant Subsidiaries to the filing of such petition or to the appointment of
or taking possession by a custodian, receiver, conservator, liquidator,
assignee, trustee, sequestrator or similar official of the Company, the
Guarantor or any of their respective Significant Subsidiaries or of any
substantial part of the property of the Company, the Guarantor or any of their
respective Significant Subsidiaries, or the making by the Company, the Guarantor
or any of their respective Significant Subsidiaries of an assignment for the
benefit of creditors, or the taking of corporate action by the Company, the
Guarantor or any of their respective Significant Subsidiaries in furtherance of
any such action; or

     

    (8)        any
other Event of Default provided in or pursuant to this Indenture with respect to
Securities of such series.

     

    
      
         

      

      
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              Section
      502.

            	
              Acceleration
      of Maturity; Rescission and
  Annulment.

            

    

     

    If an
Event of Default (other than an Event of Default specified in clause (6) or (7)
of Section 501 in respect of the Company or the Guarantor, as applicable) with
respect to Securities of any series occurs and is continuing, then either the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of such series may declare the principal of all the
Securities of such series, or such lesser amount as may be provided for in the
Securities of such series, and accrued and unpaid interest, if any, thereon to
be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by the Holders), and upon any such declaration such
principal or such lesser amount, as the case may be, and such accrued and unpaid
interest shall become immediately due and payable.  If an Event of
Default specified in clause (6) or (7) of Section 501 with respect to the
Securities of any series occurs in respect of the Company or the Guarantor, as
applicable, then the principal of all of the Securities of such series, or such
lesser amount as may be provided for in the Securities of such series, and
accrued an unpaid interest, if any, thereon shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder of the Securities of such series.

     

    At any
time after Securities of any series have been accelerated (whether by
declaration of the Trustee or the Holders or automatically) and before a
judgment or decree for payment of the money due has been obtained by the Trustee
as hereinafter in this Article provided, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of such series, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its
consequences if

     

    (1)        the Company has
paid or deposited, or cause to be paid or deposited, with the Trustee a sum of
money sufficient to pay (or, to the extent that the terms of the Securities of
such series established pursuant to Section 301 expressly provide for
payment to be made in shares of Common Stock or other securities or property,
shares of Common Stock or other securities or property, together with cash in
lieu of fractional shares or securities, sufficient to pay)

     

    (a)           all
overdue installments of any interest on any Securities of such series and any
Coupons appertaining thereto which have become due otherwise than by such
declaration of acceleration and any Additional Amounts with respect
thereto,

     

    (b)           the
principal of and any premium on any Securities of such series which have become
due otherwise than by such declaration of acceleration and any Additional
Amounts with respect thereto and, to the extent permitted by applicable law,
interest thereon at the rate or respective rates, as the case may be, provided
for in or with respect to such Securities, or, if no such rate or rates are so
provided, at the rate or respective rates, as the case may be, of interest borne
by such Securities,

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    (c)           to
the extent permitted by applicable law, interest upon installments of any
interest, if any, which have become due otherwise than by such declaration of
acceleration and any Additional Amounts with respect thereto at the rate or
respective rates, as the case may be, provided for in or with respect to such
Securities, or, if no such rate or rates are so provided, at the rate or
respective rates, as the case may be, of interest borne by such Securities,
and

     

    (d)           all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
all other amounts due the Trustee under Section 606; and

     

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

     

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

     

    
      	  	
              Section
      503.

            	
              Collection
      of Indebtedness and Suits for Enforcement by
      Trustee.

            

    

     

    The
Company covenants that if:

     

    (1)     
 default is made in the payment of any interest on, or any Additional
Amounts payable in respect of any interest on, any Security or any Coupon
appertaining thereto when such interest or Additional Amounts, as the case may
be, shall have become due and payable and such default continues for a period of
30 days, or

     

    (2)        default is made in
the payment of any principal of or premium, if any, on, or any Additional
Amounts payable in respect of any principal of or premium, if any, on, any
Security at its Maturity, or

     

    (3)        default
is made in the deposit of any sinking fund payment when due,

     

    the
Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit
of the Holders of such Securities and any Coupons appertaining thereto, the
whole amount of money then due and payable with respect to such Securities and
any Coupons appertaining thereto, with interest upon the overdue principal, any
premium and, to the extent permitted by applicable law, upon any overdue
installments of interest and Additional Amounts at the rate or respective rates,
as the case may be, provided for or with respect to such Securities or, if no
such rate or rates are so provided, at the rate or respective rates, as the case
may be, of interest borne by such Securities, and, in addition thereto, such
further amount of money as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel and all other amounts due to
the Trustee under Section 606.

     

    
      
         

      

      
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    If the
Company fails to pay the money it is required to pay the Trustee pursuant to the
preceding paragraph forthwith upon the demand of the Trustee, the Trustee, in
its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the money so due and unpaid, and may prosecute
such proceeding to judgment or final decree, and may enforce the same against
the Company or any other obligor upon such Securities and any Coupons
appertaining thereto and collect the monies adjudged or decreed to be payable in
the manner provided by law out of the property of the Company or any other
obligor upon such Securities and any Coupons appertaining thereto, wherever
situated.

     

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

     

    
      	  	
              Section
      504.

            	
              Trustee
      May File Proofs of
Claim.

            

    

     

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

     

    (1)        to file and prove a
claim for the whole amount, or such lesser amount as may be provided for in the
Securities of such series, of the principal and any premium, interest and
Additional Amounts owing and unpaid in respect of the Securities and any Coupons
appertaining thereto and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents or counsel) and of the Holders of Securities or any
Coupons allowed in such judicial proceeding, and

     

    (2)        to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

     

    and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder of Securities or any Coupons to make such payments to the Trustee and, in
the event that the Trustee shall consent in writing in its sole discretion to
the making of such payments directly to the Holders of Securities or any
Coupons, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel and any other amounts due the Trustee under Section
606.

     

    
      
         

      

      
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    Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder of a Security or any
Coupon any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or Coupons or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding.

     

    
      	  	
              Section
      505.

            	
              Trustee
      May Enforce Claims without Possession of Securities or
      Coupons.

            

    

     

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

     

    
      	  	
              Section
      506.

            	
              Application
      of Money
Collected.

            

    

     

    Any money
collected by the Trustee pursuant to this Article Five with respect to the
Securities of any series shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money on
account of principal, or any premium, interest or Additional Amounts, upon
presentation of such Securities or the Coupons, if any, appertaining thereto, or
both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

     

    FIRST:  To
the payment of all amounts due the Trustee and any predecessor Trustee under the
Indenture;

     

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

     

    THIRD:  The
balance, if any, to the Person or Persons entitled thereto.

     

    
      	  	
              Section
      507.

            	
              Limitations
      on Suits.

            

    

     

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

     

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

     

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

     

    
      
         

      

      
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    (3)        such
Holder or Holders have offered to the Trustee indemnity reasonably satisfactory
to it against the losses, damages, costs, expenses and liabilities, including
reasonable attorneys’ fees, costs and expenses and court costs, to be incurred
in compliance with such request;

     

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

     

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

     

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

     

    
      	  	
              Section
      508.

            	
              Unconditional
      Right of Holders to Receive Principal and any Premium, Interest and
      Additional
Amounts.

            

    

     

    Notwithstanding
any other provision in this Indenture, the Holder of any Security or Coupon
shall have the right, which is absolute and unconditional, to receive payment of
the principal of, any premium, if any, and (subject to Sections 305 and 307)
interest, if any, on and any Additional Amounts with respect to such Security or
such Coupon, as the case may be, on the respective Stated Maturity or Maturities
therefor specified in such Security or Coupon (or, in the case of redemption, on
the Redemption Date or, in the case of repayment pursuant to Article Thirteen
hereof at the option of such Holder if provided in or pursuant to this
Indenture, on the date such repayment is due) and, in the case of any Security
which is convertible into or exchangeable for other securities or property, to
convert or exchange, as the case may be, such Security in accordance with its
terms, and to institute suit for the enforcement of any such payment and any
such right to convert or exchange, and such right shall not be impaired without
the consent of such Holder.

     

    
      	  	
              Section
      509.

            	
              Restoration
      of Rights and
Remedies.

            

    

     

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

     

    
      
         

      

      
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              Section
      510.

            	
              Rights
      and Remedies
Cumulative.

            

    

     

    To the
extent permitted by applicable law and except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities
or Coupons in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to each and every Holder of a
Security or a Coupon is intended to be exclusive of any other right or remedy,
and every right and remedy, to the extent permitted by law, shall be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, to the
extent permitted by law, prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     

    
      	  	
              Section
      511.

            	
              Delay
      or Omission Not
Waiver.

            

    

     

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

     

    
      	  	
              Section
      512.

            	
              Control
      by Holders of
Securities.

            

    

     

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

     

    (1)        such
direction shall not be in conflict with any rule of law or with this Indenture
or with the Securities of any series,

     

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

     

    (3)        such
direction is not unduly prejudicial to the rights of the other Holders of
Securities of such series (or any other series) not joining in such
action.

     

    
      	  	
              Section
      513.

            	
              Waiver
      of Past
Defaults.

            

    

     

    The
Holders of a majority in aggregate principal amount of the Outstanding
Securities of any series on behalf of the Holders of all the Securities of such
series and any Coupons appertaining thereto may waive any past default hereunder
with respect to such series and its consequences, except

     

    (1)        a
default in the payment of the principal of, any premium or interest on, or any
Additional Amounts with respect to, any Security of such series or any Coupons
appertaining thereto, or

     

    
      
         

      

      
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    (2)        in
the case of any Securities which are convertible into or exchangeable for Common
Stock or other securities or property, a default in any such conversion or
exchange, or

     

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

     

    Upon any
such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

     

    
      	  	
              Section
      514.

            	
              Waiver
      of Usury, Stay or Extension
  Laws.

            

    

     

    Each of
the Company and the Guarantor covenants that (to the extent that it may lawfully
do so) it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
or any usury law or any other law wherever enacted, now or at any time hereafter
in force, which would prohibit or forgive the Company or the Guarantor (with
respect to the Guarantee) from paying all or any portion of the principal of or
premium, if any, or interest, if any on or Additional Amounts, if any, with
respect to any Securities as contemplated herein and therein or which may affect
the covenants or the performance of this Indenture or the Securities; and each
of the Company and the Guarantor (to the extent that it may lawfully do so)
expressly waives all benefit or advantage of any such law and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Trustee or the Holders, but will suffer and permit the execution of every
such power as though no such law had been enacted.

     

    
      	  	
              Section
      515.

            	
              Undertaking
      for Costs.

            

    

     

    All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
disbursements, against any party litigant in such suit having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 515 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of Outstanding Securities of any
series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium, if any) or interest, if any, on or
Additional Amounts, if any, with respect to any Security on or after the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date, and, in the case of repayment at
the option of the Holder pursuant to Article Thirteen hereof, on or after the
date for repayment) or for the enforcement of the right, if any, to convert or
exchange any Security into Common Stock or other securities or property in
accordance with its terms.

     

    
      
         

      

      
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    ARTICLE
SIX

     

    THE
TRUSTEE

     

    
      	  	
              Section
      601.

            	
              Certain
      Rights of
Trustee.

            

    

     

    Subject
to Sections 315(a) through 315(d) of the Trust Indenture Act:

     

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

     

    (2)        any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or a Company Order (in each case, other than delivery of any
Security, together with any Coupons appertaining thereto, to the Trustee for
authentication and delivery pursuant to Section 303 which shall be sufficiently
evidenced as provided therein) and any resolution of the Board of Directors may
be sufficiently evidenced by a Board Resolution;

     

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

     

    (4)        the Trustee may
consult with counsel and the written advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

     

    (5)        the Trustee shall
be under no obligation to exercise any of the rights or powers vested in it by
or pursuant to this Indenture at the request or direction of any of the Holders
of Securities of any series or any Coupons appertaining thereto pursuant to this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the losses, damages, costs, expenses and
liabilities, including reasonable attorneys’ fees, costs and expenses and court
costs, which might be incurred by it in compliance with such request or
direction;

     

    (6)        the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, coupon or other paper or
document, but the Trustee, in its sole discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine, during business hours and upon reasonable notice, the
books, records and premises of the Company, personally or by agent or
attorney;

     

    
      
         

      

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

     

    (8)        the
Trustee need perform only those duties that are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee.  The Trustee shall not be liable for
any action it takes or omits to take in good faith that it believes to be
authorized or within its rights or powers.  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. The permissive right
of the Trustee to take the actions permitted by this Indenture shall not be
construed as an obligation or duty to do so;

     

    (9)        the
Trustee agrees to accept and act upon instructions or directions pursuant to
this Indenture sent by unsecured e-mail, facsimile transmission or other similar
unsecured electronic methods, provided, however, that the
Company and the Guarantor, respectively, shall provide to the Trustee an
incumbency certificate listing designated persons with the authority to provide
such instructions, which incumbency certificate shall be amended whenever a
person is to be added or deleted from the listing.  If the Company or
the Guarantor elects to give the Trustee e-mail or facsimile transmission
instructions (or instructions by a similar electronic method) and the Trustee in
its sole and absolute discretion elects to act upon such instructions, the
Trustee’s understanding of such instructions shall be deemed
controlling.  The Trustee shall not be liable for any losses, damages,
costs, fees or expenses arising directly or indirectly from the Trustee’s
reliance upon and compliance with such instructions notwithstanding such
instructions conflict or inconsistency with a subsequent written
instruction.  The Company and the Guarantor, as applicable, agree to
assume all risks arising out of the use of such electronic methods to submit
instructions and directions to the Trustee, including, without limitation, the
risk of the Trustee acting on unauthorized instructions, and the risk of
interception by third parties; and

     

    (10)      for
all purposes under this Indenture, the Trustee shall not be deemed to have
notice or knowledge of any Event of Default unless a Trust Officer assigned to
and working in the Corporate Trust Office has actual knowledge thereof or unless
written notice of any event which is in fact such an Event of Default or such a
default, as the case may be, is received by the Trustee at the Corporate Trust
Office. For purposes of determining the Trustee’s responsibility and liability
hereunder, whenever reference is made in this Indenture to such an Event of
Default or such a default, as the case may be, such reference shall be construed
to refer only to such an Event of Default or such a default, as the case may be,
of which the Trustee is deemed to have notice as described in this Section
601(10).

     

    
      
         

      

      
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              Section
      602.

            	
              Notice
      of Defaults.

            

    

     

    Within 90
days after the Trustee has knowledge of the occurrence of any default hereunder
with respect to the Securities of any series, the Trustee shall transmit by mail
to all Holders of Securities of such series entitled to receive reports pursuant
to Section 703(3), notice of such default hereunder known to the Trustee, unless
such default shall have been cured or waived; provided, however, that,
except in the case of a default in the payment of the principal of (or premium,
if any), or interest, if any, on, or Additional Amounts or any sinking fund
installment with respect to, any Security of such series or in the conversion or
exchange of any Security of such series into Common Stock or other securities or
property in accordance with its terms, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the
best interest of the Holders of Securities and Coupons of such series; and provided, further, that in
the case of any default of the character specified in Section 501(5) with
respect to Securities of such series, no such notice to Holders shall be given
until at least 30 days after the occurrence thereof.  For the purpose
of this Section, the term “default” means any event which
is, or after notice or lapse of time or both would become, an Event of Default
with respect to Securities of such series.

     

    
      	  	
              Section
      603.

            	
              Not
      Responsible for Recitals or Issuance of
      Securities.

            

    

     

    The
recitals contained herein and in the Securities, except the Trustee’s
certificate of authentication, and in any Coupons shall be taken as the
statements of the Company and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness.  The Trustee makes
no representations as to the validity or sufficiency of this Indenture or of the
Securities or the Coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility on Form T-1 supplied to the Company are true and
accurate, subject to the qualifications set forth therein. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by
the Company of the Securities or the proceeds thereof.

     

    
      	  	
              Section
      604.

            	
              May
      Hold Securities; Transactions with the Company or the
      Guarantor.

            

    

     

    The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other Person that may be an agent of the Trustee or the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
or Coupons and, subject to Sections 310(b) and 311 of the Trust Indenture
Act, may otherwise deal with the Company or the Guarantor with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other Person; provided, however, that if
the Trustee acquires any conflicting interest relating to any of its duties with
respect to the Securities, it must either eliminate such conflict or resign as
Trustee.

     

    
      	  	
              Section
      605.

            	
              Money
      Held in Trust.

            

    

     

    Except as
provided in Section 403 and Section 1003, money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law and shall be held uninvested.  The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed in writing with the Company.

     

    
      
         

      

      
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              Section
      606.

            	
              Compensation
      and
Reimbursement.

            

    

     

    The
Company agrees:

     

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

     

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

     

    (3)        to indemnify the
Trustee, its directors, officers, employees and its agents for, and to hold them
harmless against, any loss, claim, cause of action, damage, liability or
reasonable cost or expense (including, without limitation, the reasonable fees
and disbursements of the Trustee’s agents, legal counsel, accountants and
experts), arising out of or in connection with this Indenture or the acceptance
or administration of the trust or trusts hereunder, including the reasonable
costs and expenses of defending themselves against any claim or liability in
connection with the exercise or performance of any of their powers or duties
hereunder, except to the extent that any such loss, claim, cause of action,
damage, liability or expense was due to the Trustee’s negligence or bad
faith.

     

    The
foregoing payment obligations and indemnities shall survive the termination of
this Indenture and the resignation or removal of the Trustee.

     

    As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a lien prior to the Securities of any series
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the payment of principal of, or premium or interest on
or any Additional Amounts with respect to Securities or any Coupons appertaining
thereto.

     

    Any
compensation or expense incurred by the Trustee after a default specified by
Section 501(6) or (7) is intended to constitute an expense of
administration under any then applicable bankruptcy or insolvency
law.  “Trustee” for purposes of this
Section 606 shall include any predecessor Trustee but the negligence or bad
faith of any Trustee shall not affect the rights of any other Trustee under this
Section 606.  The provisions of this Section 606 shall, to the extent
permitted by law, survive any termination or expiration of this Indenture
(including, without limitation, termination pursuant to any Bankruptcy Laws) and
the resignation or removal of the Trustee.

     

    
      
         

      

      
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              Section
      607.

            	
              Corporate
      Trustee Required;
  Eligibility.

            

    

     

    There shall at all times be a Trustee hereunder that is a Corporation,
organized and doing business under the laws of the United States of America, any
state thereof or the District of Columbia, eligible under Section 310(a)(1) of
the Trust Indenture Act to act as trustee under an indenture qualified under the
Trust Indenture Act and that has a combined capital and surplus (computed in
accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$50,000,000 subject to supervision or examination by Federal or state
authority.  If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

     

    
      	  	
              Section
      608.

            	
              Resignation
      and Removal; Appointment of
  Successor.

            

    

     

    (1)           No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee pursuant to Section 609.

     

    (2)           The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company.  If the
instrument of acceptance by a successor Trustee required by Section 609 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to such
series.

     

    (3)           The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and the
Company.

     

    (4)           If
at any time:

     

    (a)           the
Trustee shall fail to comply with the obligations imposed upon it under Section
310(b) of the Trust Indenture Act with respect to Securities of any series after
written request therefor by the Company or any Holder of a Security of such
series who has been a bona fide Holder of a Security of such series for at least
six months, or

     

    (b)           the
Trustee shall cease to be eligible under Section 607 and shall fail to resign
after written request therefor by the Company or any such Holder,
or

     

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

     

    then, in
any such case, (i) the Company, by or pursuant to a Board Resolution, may remove
the Trustee with respect to all Securities or the Securities of such series, or
(ii) subject to Section 315(e) of the Trust Indenture Act, any Holder of a
Security who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with
respect to all Securities of such series and the appointment of a successor
Trustee or Trustees.

     

    
      
         

      

      
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    (5)           If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by or pursuant to a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 609.  If, within one year after
such resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
609, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the
Company.  If no successor Trustee with respect to the Securities of
any series shall have been so appointed by the Company or the Holders of
Securities and accepted appointment in the manner required by Section 609, any
Holder of a Security who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

     

    (6)           The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a successor
Trustee with respect to the Securities of any series by mailing written notice
of such event by first-class mail, postage prepaid, to the Holders of Registered
Securities, if any, of such series as their names and addresses appear in the
Security Register and, if Securities of such series are issued as Bearer
Securities, by publishing notice of such event once in an Authorized Newspaper
in each Place of Payment located outside the United States.  Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust
Office.

     

    
      	  	
              Section
      609.

            	
              Acceptance
      of Appointment by
  Successor.

            

    

     

    (1)           Upon
the appointment hereunder of any successor Trustee with respect to all
Securities, such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties hereunder of the retiring Trustee; but, on the request of the Company or
such successor Trustee, such retiring Trustee, upon payment of its charges,
shall execute and deliver an instrument transferring to such successor Trustee
all the rights, powers and trusts of the retiring Trustee and, subject to
Section 1003, shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder, subject
nevertheless to its claim, if any, provided for in Section 606.

     

    
      
         

      

      
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    (2)           Upon
the appointment hereunder of any successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and such successor Trustee shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment
and which (1) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, such successor Trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees, that each such Trustee shall be separate and apart from any other
such Trustee and that no Trustee shall be responsible for any notice given to,
or received by, or any act or failure to act on the part of any other Trustee
hereunder, and, upon the execution and delivery of such supplemental indenture,
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein, such retiring Trustee shall have no further
responsibility for the exercise of rights and powers or for the performance of
the duties and obligations vested in the Trustee under this Indenture with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates other than as hereinafter expressly set forth,
and such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but, on request of the Company or
such successor Trustee, such retiring Trustee, upon payment of its charges with
respect to the Securities of that or those series to which the appointment of
such successor relates and subject to Section 1003 shall duly assign, transfer
and deliver to such successor Trustee, to the extent contemplated by such
supplemental indenture, the property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, subject to its claim, if any,
provided for in Section 606.

     

    (3)           Upon
request of any Person appointed hereunder as a successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts
referred to in paragraph (1) or (2) of this Section, as the case may
be.

     

    (4)           No
Person shall accept its appointment hereunder as a successor Trustee unless at
the time of such acceptance such successor Person shall be qualified and
eligible under this Article.

     

    
      
         

      

      
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              Section
      610.

            	
              Merger,
      Conversion, Consolidation or Succession to
      Business.

            

    

     

    Any
Corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder (provided that such
Corporation shall otherwise be qualified and eligible under this Article),
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.  In case any Securities shall have been
authenticated but not delivered by the Trustee then in office, any such
successor to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities. In case any
Securities shall not have been authenticated by such predecessor Trustee, any
such successor Trustee may authenticate and deliver such Securities in either
its own name or that of its predecessor Trustee.

     

    
      	  	
              Section
      611.

            	
              Appointment
      of Authenticating
Agent.

            

    

     

    The
Trustee may appoint one or more Authenticating Agents acceptable to the Company
with respect to one or more series of Securities which shall be authorized to
act on behalf of the Trustee to authenticate Securities of that or those series
issued upon original issue, exchange, registration of transfer, partial
redemption, partial repayment, partial conversion or exchange for Common Stock
or other securities or property, or pursuant to Section 306, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder.  Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent.

     

    Each
Authenticating Agent shall be acceptable to the Company and, except as provided
in or pursuant to this Indenture, shall at all times be a Corporation that would
be permitted by the Trust Indenture Act to act as trustee under an indenture
qualified under the Trust Indenture Act, is authorized under applicable law and
by its charter to act as an Authenticating Agent and has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000.  If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect specified in this
Section.

     

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

     

    
      
         

      

      
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    An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and the Company.  The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and the Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized
Newspaper in the place where such successor Authenticating Agent has its
principal office if such office is located outside the United
States.  Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent.  No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

     

    The
Company agrees to pay each Authenticating Agent from time to time reasonable
compensation for its services under this Section.  If the Trustee
makes such payments, it shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 606.

     

    The
provisions of Sections 308, 603 and 604 shall be applicable to each
Authenticating Agent.

     

    If an
Authenticating Agent is appointed with respect to one or more series of
Securities pursuant to this Section, the Securities of such series may have
endorsed thereon, in addition to or in lieu of the Trustee’s certificate of
authentication, an alternate certificate of authentication in substantially the
following form:

     

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

     

    
      
        	 
      	
                WILMINGTON
      TRUST COMPANY,

              
	 
      	
                As
      Trustee

              
	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                  As
      Authenticating Agent

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                  Authorized
      Signatory

              

      

    

    

    If all of
the Securities of any series may not be originally issued at one time, and if
the Trustee does not have an office capable of authenticating Securities upon
original issuance located in a Place of Payment where the Company wishes to have
Securities of such series authenticated upon original issuance, the Trustee, if
so requested in writing (which writing need not be accompanied by or contained
in an Officers’ Certificate of the Company), shall appoint in accordance with
this Section an Authenticating Agent having an office in a Place of Payment
designated by the Company with respect to such series of
Securities.

     

    
      
         

      

      
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    ARTICLE
SEVEN

    
    

    HOLDERS
LISTS AND REPORTS BY TRUSTEE AND COMPANY

      

    
      	 	
              Section
      701.

            	
              Company to
      Furnish Trustee Names and Addresses of
  Holders.

            

    

     

    In
accordance with Section 312(a) of the Trust Indenture Act, the Company shall
furnish or cause to be furnished to the Trustee

     

    (1)          semi-annually
with respect to Securities of each series not later than May 1 and November 1 of
the year or upon such other dates as are set forth in or pursuant to the Board
Resolution or indenture supplemental hereto authorizing such series, a list, in
each case in such form as the Trustee may reasonably require, of the names and
addresses of Holders as of the applicable date, and

     

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

     

    provided, however, that so
long as the Trustee is the Security Registrar no such list shall be required to
be furnished.

     

    
      	 	
              Section
      702.

            	
              Preservation of Information;
      Communications to Holders.

            

    

     

    The
Trustee shall comply with the obligations imposed upon it pursuant to Section
312 of the Trust Indenture Act.

     

    Every
Holder of Securities or Coupons, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company, the Trustee, any Paying
Agent or any Security Registrar shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
of Securities in accordance with Section 312(c) of the Trust Indenture Act,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under Section 312(b) of the Trust Indenture Act.

     

    
      	 	
              Section
      703.

            	
              Reports by
      Trustee.

            

    

     

    (1)           Within
60 days after May 15 of each year commencing with the first May 15
following the first issuance of Securities pursuant to Section 301, if required
by Section 313(a) of the Trust Indenture Act, the Trustee shall transmit,
pursuant to Section 313(c) of the Trust Indenture Act, a brief report dated as
of such May 15 with respect to any of the events specified in said Sections
313(a) and 313(b)(2) which may have occurred since the later of the immediately
preceding May 15 and the date of this Indenture.

     

    (2)           The
Trustee shall transmit the reports required by Section 313(a) of the Trust
Indenture Act at the times specified therein.

    
      
         

      

      
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    (3)           Reports
pursuant to this Section shall be transmitted in the manner and to the Persons
required by Sections 313(c) and 313(d) of the Trust Indenture
Act.

     

    
      	 	
              Section
      704.

            	
              Reports by
      Company.

            

    

     

    Each of
the Company and the Guarantor, pursuant to Section 314(a) of the Trust Indenture
Act, shall:

     

    (1)          file
with the Trustee, within 15 days after the Company and/or the Guarantor is
required to file the same with the Commission, copies of the annual reports and
of the information, documents and other reports (or copies of such portions of
any of the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Company and/or the Guarantor is required to
file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act; or, if the Company and/or the Guarantor is not required to file
information, documents or reports pursuant to either of said Sections, then it
shall file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations;

     

    (2)          file
with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company and/or the
Guarantor, with the conditions and covenants of this Indenture as may be
required from time to time by such rules and regulations; and

     

    (3)          transmit
within 30 days after the filing thereof with the Trustee, in the manner and to
the extent provided in Section 313(c) of the Trust Indenture Act, such summaries
of any information, documents and reports required to be filed by the Company
and/or the Guarantor pursuant to paragraphs (1) and (2) of this Section as may
be required by rules and regulations prescribed from time to time by the
Commission.

     

    The
Trustee agrees that any quarterly or annual report or other information,
document or other report that the Company and/or the Guarantor files with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act on the
Commission’s EDGAR system shall be deemed to constitute delivery of such filing
to the Trustee.

    
      
         

      

      
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    ARTICLE
EIGHT

     

    CONSOLIDATION,
MERGER AND SALES

      

    
      	 	
              Section
      801.

            	
              Company and
      Guarantor May Consolidate, Etc., Only on Certain
    Terms.

            

    

     

    (1)           The
Company shall not, in any transaction or series of related transactions,
consolidate or
amalgamate with or merge into any Person or sell, assign, transfer, lease
or otherwise convey all or substantially all its properties and assets to any
Person, unless:

     

    (A)        
    either (i) the Company shall be the continuing Person
(in the case of a merger), or (ii) the successor Person (if other than the
Company) formed by or
resulting from such consolidation or
amalgamation or into which the Company is merged or to which such
sale, assignment, transfer, lease or other conveyance of all or substantially
all of the properties and assets of the Company is made, shall be a corporation
organized and existing under the laws of the United States or Bermuda, and such
successor Person shall expressly assume, by an indenture (or indentures, if at
such time there is more than one Trustee) supplemental hereto, executed by such
successor corporation and delivered to the Trustee, in form satisfactory to the
Trustee, the due and punctual payment of the principal of, any premium and
interest on, and any Additional Amounts with respect to, all the Outstanding
Securities and the due and punctual performance and observance of every
obligation in this Indenture and the Outstanding Securities on the part of the
Company to be performed or observed, and which supplemental indenture shall
provide for conversion or exchange rights in accordance with the provisions of
the Securities of any series that are convertible or exchangeable into Common
Stock or other securities or property;

     

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

     

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

     

    (2)           The
Guarantor shall not, in any transaction or series of related transactions,
consolidate or
amalgamate with or merge into any Person or sell, assign, transfer, lease
or otherwise convey all or substantially all its properties and assets to any
Person, unless:

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    (A)     
      either (i) the Guarantor shall be the
continuing Person (in the case of a merger), or (ii) the successor Person (if
other than the Guarantor) formed by or
resulting from such consolidation or
amalgamation or into which the Guarantor is merged or to which such
sale, assignment, transfer, lease or other conveyance of all or substantially
all of the properties and assets of the Guarantor is made, shall be a
corporation organized and existing under the laws of the United States or
Bermuda, and such successor Person shall expressly assume, by an indenture (or
indentures, if at such time there is more than one Trustee) supplemental hereto,
executed by such successor corporation and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual performance and observance of
every obligation in this Indenture and the Outstanding Securities on the part of
the Guarantor to be performed or observed;

     

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

     

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

     

    For
purposes of the foregoing, any sale, assignment, transfer, lease or other
conveyance of all or any of the properties and assets of one or more
Subsidiaries of the Company or the Guarantor (other than to the Company, the
Guarantor or another Subsidiary), which, if such properties and assets were
owned by the Company or the Guarantor, as the case may be, would constitute all
or substantially all of the Company’s or the Guarantor’s, as applicable,
properties and assets, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company or the Guarantor,
as applicable.

     

    
      	 	
              Section
      802.

            	
              Successor
      Person Substituted for Company or
  Guarantor.

            

    

     

    Upon any
consolidation or
amalgamation by the Company or the Guarantor with or merger of the
Company or the Guarantor into any other Person or any sale, assignment,
transfer, lease or conveyance of all or substantially all of the properties and
assets of the Company or the Guarantor to any Person in accordance with Section
801, the successor Person formed by such consolidation or
amalgamation or into which the Company or the Guarantor is merged or
to which such sale, assignment, transfer, lease or other conveyance is made
shall succeed to, and be substituted for, and may exercise every right and power
of, the Company or the Guarantor, as applicable, under this Indenture with the
same effect as if such successor Person had been named as the Company or the
Guarantor, as applicable, herein; and thereafter, except in the case of a lease,
the predecessor Person shall be released from all obligations and covenants
under this Indenture, the Securities and the Coupons.

    
      
         

      

      
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    ARTICLE
NINE

     

    SUPPLEMENTAL
INDENTURES

       

    
      	 	
              Section
      901.

            	
              Supplemental
      Indentures without Consent of
Holders.

            

    

     

    Without
the consent of any Holders of Securities or Coupons, the Company (when
authorized by or pursuant to a Board Resolution), the Guarantor (if applicable)
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto for any of the following purposes:

     

    (1)          to
evidence the succession of another Person to the Company, and the assumption by
any such successor of the covenants of the Company contained herein and in the
Securities; or

     

    (2)          to add
to the covenants of the Company or the Guarantor for the benefit of the Holders
of all or any series of Securities (as shall be specified in such supplemental
indenture or indentures) or to surrender any right or power herein conferred
upon the Company or the Guarantor with respect to all or any series of
Securities issued under this Indenture (as shall be specified in such
supplemental indenture or indentures); or

     

    (3)          to add
to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of, any premium or interest on or any
Additional Amounts with respect to Securities, to permit Bearer Securities to be
issued in exchange for Registered Securities, to permit Bearer Securities to be
exchanged for Bearer Securities of other authorized denominations or to permit
or facilitate the issuance of Securities in uncertificated or global form, provided any such action
shall not adversely affect the interests of the Holders of Securities of any
series or any Coupons appertaining thereto; or

     

    (4)          to
establish the form or terms of Securities of any series and any Coupons
appertaining thereto as permitted by Sections 201 and 301, including, without
limitation, any conversion or exchange provisions applicable to Securities which
are convertible into or exchangeable for other securities or property, and any
deletions from or additions or changes to this Indenture in connection therewith
(provided that any such
deletions, additions and changes shall not be applicable to any other series of
Securities then Outstanding); or

     

    (5)          to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 609; or

     

    
      
         

      

      
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    (6)          to cure
any ambiguity or to correct or supplement any provision herein which may be
defective or which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under
this Indenture, or to make any change necessary to comply with any requirement
of the Commission in connection with the Indenture under the Trust Indenture
Act, in each case which shall not adversely affect the interests of the Holders
of Securities of any series then Outstanding or any Coupons appertaining
thereto; or

     

    (7)          to add
any additional Events of Default with respect to all or any series of Securities
(as shall be specified in such supplemental indenture); or

     

    (8)          to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance, covenant defeasance and/or
satisfaction and discharge of any series of Securities pursuant to Article Four,
provided that any such
action shall not adversely affect the interests of any Holder of a Security of
such series and any Coupons appertaining thereto or any other Security or
Coupon; or

     

    (9)          to
secure the Securities or to add guarantees for the benefit of the Securities;
or

     

    (10)        to
amend or supplement any provision contained herein or in any supplemental
indenture or in any Securities (which amendment or supplement may apply to one
or more series of Securities or to one or more Securities within any series as
specified in such supplemental indenture or indentures), provided that such amendment
or supplement does not apply to any Outstanding Security issued prior to the
date of such supplemental indenture and entitled to the benefits of such
provision; or

     

    (11)        in
the case of any series of Securities which are convertible into or exchangeable
for Common Stock or other securities or property, to safeguard or provide for
the conversion or exchange rights, as the case may be, of such Securities in the
event of any reclassification or change of outstanding shares of Common Stock or
any merger, consolidation, statutory share exchange or combination of the
Company with or into another Person or any sale, lease, assignment, transfer,
disposition or other conveyance of all or substantially all of the properties
and assets of the Company to any other Person or other similar transactions, if
expressly required by the terms of such series of Securities established
pursuant to Section 301; or

     

    (12)        to
conform the terms of the Indenture or the Securities of a series or the
Guarantee to the description thereof contained in any prospectus or other
offering document or memorandum relating to the offer and sale of such
Securities.

     

    
      	 	
              Section
      902.

            	
              Supplemental
      Indentures with Consent of
Holders.

            

    

     

    With the
consent of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of each series affected by such supplemental indenture
(voting as separate classes), by Act of said Holders delivered to the Company
and the Trustee, the Company (when authorized by or pursuant to a Board
Resolution), the Guarantor and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of the Securities of such series or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, that no such
supplemental indenture, without the consent of the Holder of each Outstanding
Security affected thereby, shall

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    (1)          change
the Stated Maturity of the principal of, or premium, if any, or any installment
of interest, if any, on, or any Additional Amounts, if any, with respect to, any
Security, or reduce the principal amount thereof or the premium, if any, thereon
or the rate (or modify the calculation of such rate) of interest thereon, or
reduce the amount payable upon redemption thereof at the option of the Company
or repayment or repurchase thereof at the option of the Holder, or reduce any
Additional Amounts payable with respect thereto, or change the obligation of the
Company to pay Additional Amounts pursuant to Section 1004 (except as
contemplated by Section 801(1)(A) or 801(2)(A) and permitted by Section 901(1)),
or reduce the amount of the principal of any Original Issue Discount Security
that would be due and payable upon acceleration of the Maturity thereof pursuant
to Section 502 or the amount thereof provable in bankruptcy pursuant to Section
504, or adversely affect the right of repayment or repurchase at the option of
any Holder as contemplated by Article Thirteen, or change the Place of Payment
where or the Currency in which the principal of, any premium or interest on, or
any Additional Amounts with respect to any Security is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or, in the case of repayment or repurchase pursuant to Article
Thirteen at the option of the Holder, on or after the date for repayment or
repurchase) in each case as such Stated Maturity, Redemption Date or date for
repayment or repurchase may, if applicable, be extended in accordance with the
terms of such Security or any Coupon appertaining thereto, or in the case of any
Security which is convertible into or exchangeable for shares of Common Stock or
other securities or property, impair the right to institute suit to enforce the
right to convert or exchange such Security in accordance with its terms, or in
the case of any Security to which the provisions of Article Sixteen apply as
contemplated by Section 301, release the Guarantor from the Guarantee other than
as provided in this Indenture, or

     

    (2)          reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in Section 513 of this Indenture, or reduce the
requirements of Section 1504 for quorum or voting, or

     

    (3)          modify
any of the provisions of this Section or Section 513, except to increase any
such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby, or

     

    (4)          make
any change that adversely affects the right, if any, to convert or exchange any
Security for shares of Common Stock or other securities or property in
accordance with its terms.

    
      
         

      

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

     

    Anything
in this Indenture to the contrary notwithstanding, if more than one series of
Securities is Outstanding, the Company and the Guarantor shall be entitled to
enter into a supplemental indenture under this Section 902 with respect to any
one or more series of Outstanding Securities without entering into a
supplemental indenture with respect to any other series of Outstanding
Securities.

     

    It shall
not be necessary for any Act of Holders of Securities under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

     

    
      	 	
              Section
      903.

            	
              Execution of
      Supplemental Indentures.

            

    

     

    As a
condition to executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trust created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall
be fully protected in relying upon, an Officers’ Certificate and an Opinion of
Counsel of each of the Company and the Guarantor to the effect that the
execution of such supplemental indenture is authorized or permitted by this
Indenture and that such supplemental indenture has been duly authorized,
executed and delivered by, and is a valid, binding and enforceable obligation
of, each of the Company and the Guarantor, respectively, subject to customary
exceptions.  The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

     

    
      	 	
              Section
      904.

            	
              Effect of
      Supplemental Indentures.

            

    

     

    Upon the
execution of any supplemental indenture under this Article, this Indenture shall
be modified in accordance therewith, and such supplemental indenture shall form
a part of this Indenture for all purposes; and every Holder of a Security
theretofore or thereafter authenticated and delivered hereunder and of any
Coupon appertaining thereto shall be bound thereby.

     

    
      	 	
              Section
      905.

            	
              Reference in
      Securities to Supplemental
Indentures.

            

    

     

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

    
      
         

      

      
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              Section
      906.

            	
              Conformity
      with Trust Indenture Act.

            

    

     

    Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

     

    ARTICLE
TEN

     

    COVENANTS

      

    
      	 	
              Section
      1001.

            	
              Payment of
      Principal, Premium, Interest and Additional
  Amounts.

            

    

     

    The
Company covenants and agrees for the benefit of the Holders of the Securities of
each series that it will duly and punctually pay the principal of, any premium
and interest on and any Additional Amounts with respect to the Securities of
such series, whether payable in cash, shares of Common Stock or other securities
or property, in accordance with the terms thereof, any Coupons appertaining
thereto and this Indenture.  Any interest due on any Bearer Security
on or before the Maturity thereof, and any Additional Amounts payable with
respect to such interest, shall be payable only upon presentation and surrender
of the Coupons appertaining thereto for such interest as they severally
mature.

     

    
      	 	
              Section
      1002.

            	
              Maintenance
      of Office or Agency.

            

    

     

    The
Company shall maintain in each Place of Payment for any series of Securities an
Office or Agency where Securities of such series (but not Bearer Securities,
except as otherwise provided below, unless such Place of Payment is located
outside the United States) may be presented or surrendered for payment, where
Securities of such series may be surrendered for registration of transfer or
exchange, where Securities of such series that are convertible or exchangeable
may be surrendered for conversion or exchange, and where notices and demands to
or upon the Company in respect of the Securities of such series relating thereto
and this Indenture may be served.  If Securities of a series are
issuable as Bearer Securities, the Company shall maintain, subject to any laws
or regulations applicable thereto, an Office or Agency in a Place of Payment for
such series which is located outside the United States where Securities of such
series and any Coupons appertaining thereto may be presented and surrendered for
payment; provided,
however, that if the Securities of such series are listed on the London
Stock Exchange or the Luxembourg Stock Exchange or any other stock exchange
located outside the United States and such stock exchange shall so require, the
Company shall maintain a Paying Agent in London, Luxembourg or any other
required city located outside the United States, as the case may be, so long as
the Securities of such series are listed on such exchange.  The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such Office or Agency.  If at any time the
Company shall fail to maintain any such required Office or Agency or shall fail
to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, except that Bearer Securities of such series and any Coupons
appertaining thereto may be presented and surrendered for payment at the place
specified for the purpose with respect to such Securities as provided in or
pursuant to this Indenture, and the Company hereby appoints the Trustee as its
agent to receive all such presentations, surrenders, notices and demands (other
than with respect to Bearer Securities).  In no event shall the
Trustee be required to maintain a Corporate Trust Office other than in
Wilmington, Delaware.

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    Except as
otherwise provided in or pursuant to this Indenture, no payment of principal,
premium, interest or Additional Amounts with respect to Bearer Securities shall
be made at any Office or Agency in the United States or by check mailed to any
address in the United States or by transfer to an account maintained with a bank
located in the United States; provided, however, if amounts
owing with respect to any Bearer Securities shall be payable in Dollars, payment
of principal of, any premium or interest on and any Additional Amounts with
respect to any such Security may be made at the Corporate Trust Office of the
Trustee or any Office or Agency designated by the Company in the Borough of
Manhattan, The City of New York, if (but only if) payment of the full amount of
such principal, premium, interest or Additional Amounts at all offices outside
the United States maintained for such purpose by the Company in accordance with
this Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions.

     

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

     

    Unless
otherwise provided in or pursuant to this Indenture, the Company hereby
designates Wilmington, Delaware as a Place of Payment for each series of
Securities, initially appoints the Corporate Trust Office of the Trustee in
Wilmington, Delaware as the Company’s Office or Agency in Wilmington, Delaware
for such purpose and initially appoints the Trustee as the  Security
Registrar for each series of Securities and, if the Securities of any series are
convertible into or exchangeable for Common Stock or other securities or
property, initially appoints the Trustee as conversion or exchange agent, as the
case may be, for the Securities of such series. The Company may subsequently
appoint a different Office or Agency in Wilmington, Delaware, or any other
location and, as provided in Section 305, may remove and replace from time to
time the Security Registrar.

     

    
      	 	
              Section
      1003.

            	
              Money for
      Securities Payments to Be Held in
Trust.

            

    

     

    If the
Company shall at any time act as its own Paying Agent with respect to any series
of Securities, it shall, on or before each due date of the principal of, any
premium or interest on, or any Additional Amounts with respect to any of the
Securities of such series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum in the Currency or Currencies in which the
Securities of such series are payable sufficient to pay the principal, any
premium, interest and Additional Amounts, as the case may be, so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided, and shall promptly notify the Trustee of its action or failure so to
act.

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    Whenever
the Company shall have one or more Paying Agents for any series of Securities,
it shall, on or prior to each due date of the principal of, or any premium or
interest on or any Additional Amounts with respect to, any Securities of such
series, deposit with any Paying Agent a sum (in the Currency or Currencies
described in the preceding paragraph) sufficient to pay the principal, premium,
interest and Additional Amounts, as the case may be, so becoming due, such sum
to be held in trust for the benefit of the Persons entitled thereto, and (unless
such Paying Agent is the Trustee) the Company will promptly notify the Trustee
of its action or failure so to act.

     

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

     

    (1)          hold
all sums held by it for the payment of the principal of, any premium or interest
on or any Additional Amounts with respect to Securities of such series in trust
for the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as provided in or pursuant to this
Indenture;

     

    (2)          give
the Trustee written notice of any default by the Company (or any other obligor
upon the Securities of such series) in the making of any payment of principal,
any premium or interest on or any Additional Amounts with respect to the
Securities of such series; and

     

    (3)          at any
time during the continuance of any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
Agent.

     

    To the
extent that the terms of any Securities established pursuant to Section 301
provide that any principal of, or premium or interest, if any, on or any
Additional Amounts with respect to any such Securities is or may be payable in
shares of Common Stock or other securities or property, then the provisions of
this Section 1003 shall apply, mutatis mutandis, to such
shares of Common Stock or other securities or property.

     

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

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    Except as
otherwise provided herein or pursuant hereto, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, any premium or interest on or any Additional
Amounts with respect to any Security of any series or any Coupon appertaining
thereto and remaining unclaimed for two years after such principal or such
premium or interest or Additional Amount shall have become due and payable shall
be paid to the Company on Company Request, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security or any
Coupon appertaining thereto shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may, not later than 30 days after the Company’s request for such repayment, at
the expense of the Company cause to be published once, in an Authorized
Newspaper in each Place of Payment for such series or to be mailed to Holders of
Registered Securities of such series, or both, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication or mailing nor shall it be earlier
than two years after such principal and any premium or interest or Additional
Amounts shall have become due and payable, any unclaimed balance of such money
then remaining will be repaid to the Company.

     

    
      	 	
              Section
      1004.

            	
              Additional
      Amounts.

            

    

     

    If any
Securities of a series provide for the payment of Additional Amounts, the
Company agrees to pay to the Holder of any such Securities or any Coupon
appertaining thereto Additional Amounts as provided in or pursuant to this
Indenture or such Securities.  Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon, such
mention shall be deemed to include mention of the payment of Additional Amounts
provided by the terms of such series established hereby or pursuant hereto to
the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

     

    Except as
otherwise provided in or pursuant to this Indenture or the Securities of any
series, if the Securities of a series provide for the payment of Additional
Amounts, at least 10 days prior to the first Interest Payment Date with
respect to such series of Securities (or if the Securities of such series shall
not bear interest prior to Maturity, the first day on which a payment of
principal is made), and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Company shall
furnish to the Trustee and the Paying Agent or Paying Agents, if other than the
Trustee, an Officers’ Certificate instructing the Trustee and such Paying Agent
or Paying Agents whether such payment of principal of and premium, if any, or
interest, if any, on the Securities of such series shall be made to Holders of
Securities of such series or the Coupons appertaining thereto who are United
States Aliens without withholding or deduction for or on account of any tax,
assessment or other governmental charge described in the Securities of such
series or pursuant to Section 301 with respect to the Securities of such
series.  If any such withholding or deduction shall be required, then
such Officers’ Certificate shall specify by country the amount, if any, required
to be withheld on or deducted from such payments to such Holders of Securities
or Coupons, and the Company agrees to pay to the Trustee or such Paying Agent
the Additional Amounts required by the terms of such Securities.  The
Company covenants to indemnify the Trustee and any Paying Agent for, and to hold
them harmless against, any loss, damage, liability, cost or expense, including
attorneys’ fees, costs and expenses, reasonably incurred without negligence or
bad faith on their part arising out of or in connection with actions taken or
omitted by any of them in reliance on any Officers’ Certificate furnished
pursuant to this Section.  Nothing in this Section 1004 or elsewhere
in this Indenture shall limit the obligation of the Company to pay Additional
Amounts with respect to the Securities of any series pursuant to the terms, if
any, established pursuant to Section 301 with respect to the Securities of such
series.

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    
      	 	
              Section
      1005.

            	
              Corporate
      Existence.

            

    

     

    Subject
to Article Eight:

     

    (1)           the
Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect (i) the corporate existence of the Company, (ii) the
existence (corporate or other) of each Significant Subsidiary of the Company and
(iii) the rights (charter and statutory), licenses and franchises of the Company
and each of its Significant Subsidiaries; provided, however, that the
Company shall not be required to preserve the existence (corporate or other) of
any of its Significant Subsidiaries or any such right, license or franchise of
the Company or any of its Significant Subsidiaries if the Board of Directors of
the Company determines that the preservation thereof is no longer desirable in
the conduct of the business of the Company and its Significant Subsidiaries
taken as a whole and that the loss thereof will not be disadvantageous in any
material respect to the Holders; and

     

    (2)           the
Guarantor shall do or cause to be done all things necessary to preserve and keep
in full force and effect (i) the corporate existence of the Guarantor, (ii) the
existence (corporate or other) of each Significant Subsidiary of the Guarantor
and (iii) the rights (charter and statutory), licenses and franchises of the
Guarantor and each of its Significant Subsidiaries; provided, however, that the
Guarantor shall not be required to preserve the existence (corporate or other)
of any of its Significant Subsidiaries or any such right, license or franchise
of the Guarantor or any of its Significant Subsidiaries if the Board of
Directors of the Guarantor determines that the preservation thereof is no longer
desirable in the conduct of the business of the Guarantor and its Significant
Subsidiaries taken as a whole and that the loss thereof will not be
disadvantageous in any material respect to the Holders.

     

    
      	 	
              Section
      1006.

            	
              Maintenance
      of Properties.

            

    

     

    (1)           The
Company will, and will cause each Significant Subsidiary of the Company to,
cause all its properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and will cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however, that
nothing in this Section shall prevent the Company or any Significant Subsidiary
of the Company from discontinuing the operation and maintenance of any of their
respective properties if such discontinuance is, in the judgment of the Board of
Directors of the Company or of any Significant Subsidiary of the Company, as the
case may be, desirable in the conduct of its business.

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    (2)           The
Guarantor will, and will cause each Significant Subsidiary of the Guarantor to,
cause all its properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and will cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Guarantor may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however, that
nothing in this Section shall prevent the Guarantor or any Significant
Subsidiary of the Guarantor from discontinuing the operation and maintenance of
any of their respective properties if such discontinuance is, in the judgment of
the Board of Directors of the Guarantor or of any Significant Subsidiary of the
Guarantor, as the case may be, desirable in the conduct of its
business.

     

    
      	 	
              Section
      1007.

            	
              Payment of
      Taxes and Other
Claims.

            

    

     

    Each of
the Company and the Guarantor will, and will cause each of their respective
Significant Subsidiaries to, pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (1) all material taxes,
assessments and governmental charges levied or imposed upon it or upon its
income, profits or property, and (2) all lawful claims for labor, materials
and supplies which, if unpaid, might by law become a lien upon its property;
provided, however, that
none of the Company, the Guarantor and any of their respective Significant
Subsidiaries shall be required to pay or discharge or cause to be paid or
discharged any such material tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

     

    
      	 	
              Section
      1008.

            	
              Company and
      Guarantor Statement as to
Compliance.

            

    

     

    Each of the Company and the Guarantor shall deliver to the Trustee,
within 120 days after the end of each fiscal year, a written statement (which
need not be contained in or accompanied by an Officers’ Certificate) signed by
the principal executive officer, the principal financial officer or the
principal accounting officer of the Company or the Guarantor, as applicable,
stating whether or not, to the best of his or her knowledge, the Company or the
Guarantor, as applicable, is in default in the performance and observance of any
of the terms, provisions and conditions of this Indenture (without regard to
notice requirements or periods of grace) and if the Company or the Guarantor, as
applicable, shall be in default, specifying all such defaults and the nature and
status thereof of which he or she may have knowledge.

     

    ARTICLE
ELEVEN

     

    REDEMPTION
OF SECURITIES

      

    
      	 	
              Section
      1101.

            	
              Applicability
      of Article.

            

    

     

    Redemption
of Securities of any series at the option of the Company as permitted or
required by the terms of such Securities shall be made in accordance with the
terms of such Securities and (except as otherwise provided herein or pursuant
hereto) this Article.

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    
      	 	
              Section
      1102.

            	
              Election to
      Redeem; Notice to Trustee.

            

    

     

    The
election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution.  In case of any redemption at the
election of the Company, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee and agreed upon in writing by the Trustee), notify
the Trustee of such Redemption Date and of the principal amount of Securities of
such series to be redeemed and, in the event that the Company shall determine
that the Securities of any series to be redeemed shall be selected from
Securities of such series having the same issue date, interest rate or interest
rate formula, Stated Maturity and other terms (the “Equivalent Terms”), the
Company shall notify the Trustee of such Equivalent Terms.

     

    In the
case of any redemption of Securities (A) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture or (B) pursuant to an election of the Company
which is subject to a condition specified in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate and Opinion of Counsel evidencing compliance with such
restriction or condition.

     

    
      	 	
              Section
      1103.

            	
              Selection by
      Trustee of Securities to be
Redeemed.

            

    

     

    If less
than all of the Securities of any series are to be redeemed or if less than all
of the Securities of any series with Equivalent Terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee from the Outstanding Securities of
such series or from the Outstanding Securities of such series with Equivalent
Terms, as the case may be, not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions of the principal amount of Registered
Securities of such series; provided, however, that no
such partial redemption shall reduce the portion of the principal amount of a
Security of such series not redeemed to less than the minimum denomination for a
Security of such series established herein or pursuant hereto.

     

    The
Trustee shall promptly notify the Company and the Security Registrar (if other
than itself) in writing of the Securities selected for redemption and, in the
case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

     

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

     

    Unless
otherwise specified in or pursuant to this Indenture or the Securities of any
series, if any Security selected for partial redemption is converted or
exchanged for Common Stock or other securities or property in part before
termination of the conversion or exchange right with respect to the portion of
the Security so selected, the converted or exchanged portion of such Security
shall be deemed (so far as may be) to be the portion selected for
redemption.  Securities which have been converted or exchanged during
a selection of Securities to be redeemed shall be treated by the Trustee as
Outstanding for the purpose of such selection.

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    
      	 	
              Section
      1104.

            	
              Notice of
      Redemption.

            

    

     

    Notice of
redemption shall be given in the manner provided in Section 106, not less than
30 nor more than 60 days prior to the Redemption Date, unless a shorter period
is specified in the Securities to be redeemed, to the Holders of Securities to
be redeemed.  Failure to give notice by mailing in the manner herein
provided to the Holder of any Registered Securities designated for redemption as
a whole or in part, or any defect in the notice to any such Holder, shall not
affect the validity of the proceedings for the redemption of any other
Securities or portions thereof.

     

    Any
notice that is mailed to the Holder of any Registered Securities in the manner
herein provided shall be conclusively presumed to have been duly given, whether
or not such Holder receives the notice.

     

    All
notices of redemption shall state:

     

    (1)          the
Redemption Date,

     

    (2)          the
Redemption Price,

     

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

     

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

     

    (5)          that,
on the Redemption Date, the Redemption Price shall become due and payable upon
each such Security or portion thereof to be redeemed, together (if applicable)
with accrued and unpaid interest, if any, thereon (subject, if applicable, to
the provisos to the first paragraph of Section 1106), and, if applicable,
that interest thereon shall cease to accrue on and after said
date,

     

    (6)          the
place or places where such Securities, together (in the case of Bearer
Securities) with all Coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and
any accrued interest and Additional Amounts pertaining thereto,

     

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

     

    (8)          that,
unless otherwise specified in such notice, Bearer Securities of any series, if
any, surrendered for redemption must be accompanied by all Coupons maturing
subsequent to the date fixed for redemption or the amount of any such missing
Coupon or Coupons will be deducted from the Redemption Price, unless security or
indemnity satisfactory to the Company, the Trustee and any Paying Agent is
furnished,

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    (9)          if
Bearer Securities of any series are to be redeemed and any Registered Securities
of such series are not to be redeemed, and if such Bearer Securities may be
exchanged for Registered Securities not subject to redemption on the Redemption
Date pursuant to Section 305 or otherwise, the last date, as determined by the
Company, on which such exchanges may be made,

     

    (10)        in the case of
Securities of any series that are convertible or exchangeable into shares of
Common Stock or other securities or property, the then current conversion or
exchange price or rate, the date or dates on which the right to convert or
exchange the principal of the Securities of such series to be redeemed will
commence or terminate, as applicable, and the place or places where and the
Persons to whom such Securities may be surrendered for conversion or exchange,
and

     

    (11)        the CUSIP number,
Common Code or ISIN number of such Securities, if any (or any other numbers used
by a Depository to identify such Securities).

     

    A notice
of redemption published as contemplated by Section 106 need not identify
particular Registered Securities to be redeemed.

     

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

     

    
      	 	
              Section
      1105.

            	
              Deposit of
      Redemption Price.

            

    

     

    On or
prior to noon (local time in New York City) on any Redemption Date, the Company
shall deposit, with respect to the Securities of any series called for
redemption pursuant to Section 1104, with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 1003) an amount of money in the applicable Currency
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date, unless otherwise specified pursuant to
Section 301 for or in the Securities of such series) any accrued interest on and
Additional Amounts with respect to, all such Securities or portions thereof
which are to be redeemed on that date.

    
      
         

      

      
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              Section
      1106.

            	
              Securities
      Payable on Redemption Date.

            

    

     

    Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, together with (unless otherwise provided with respect to the
Securities of such series pursuant to Section 301) accrued and unpaid
interest, if any, thereon and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest, if any)
such Securities shall cease to bear interest and the Coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent
provided below, shall be void.  Upon surrender of any such Security
for redemption in accordance with said notice, together with all Coupons, if
any, appertaining thereto maturing after the Redemption Date, such Security
shall be paid by the Company at the Redemption Price, together with, unless
otherwise provided in or pursuant to this Indenture, any accrued and unpaid
interest thereon and Additional Amounts with respect thereto to but excluding
the Redemption Date; provided,
however, that, except as otherwise provided in or pursuant to this
Indenture or the Bearer Securities of such series,  installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only upon presentation and surrender of Coupons
for such interest (at an Office or Agency located outside the United States
except as otherwise provided in Section 1002), and provided, further, that,
except as otherwise specified in or pursuant to this Indenture or the Registered
Securities of such series, installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the Regular Record Dates therefor
according to their terms and the provisions of Section 307.

     

    If any
Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant Coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price or, at the option of the Company,
after payment to the Trustee for the benefit of the Company of, an amount equal
to the face amount of all such missing Coupons, or the surrender of such missing
Coupon or Coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless.  If thereafter the Holder of such
Security shall surrender to the Trustee or any Paying Agent any such missing
Coupon in respect of which a deduction shall have been made from the Redemption
Price, such Holder shall be entitled to receive the amount so deducted; provided, however, that any
interest or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such
Security located outside of the United States except as otherwise provided in
Section 1002.

     

    If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium, until paid, shall bear interest from
the Redemption Date at the rate prescribed therefor in the Security or, if no
rate is prescribed therefor in the Security, at the rate of interest, if any,
borne by such Security.

     

    
      	 	
              Section
      1107.

            	
              Securities
      Redeemed in Part.

            

    

     

    Any
Registered Security which is to be redeemed only in part shall be surrendered at
any Office or Agency for such Security (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing) and the Company shall execute and
the Trustee shall authenticate and deliver, upon Company Order, to the Holder of
such Security without service charge, a new Registered Security or Securities of
the same series, containing identical terms and provisions, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered and, if applicable, having the notation of the Guarantee of the
Guarantor endorsed thereon.  If a Security in global form is so
surrendered, the Company shall execute, and the Trustee shall authenticate and
deliver, upon Company Order, to the Depository for such Security in global form
as shall be specified in the Company Order with respect thereto to the Trustee,
without service charge, a new Security in global form in a denomination equal to
and in exchange for the unredeemed portion of the principal of the Security in
global form so surrendered.

    
      
         

      

      
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    ARTICLE
TWELVE

     

    SINKING
FUNDS

     

    
      	 	
              Section
      1201.

            	
              Applicability
      of Article.

            

    

     

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

     

    The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment”, and any payment in excess of such minimum amount provided for
by the terms of Securities of such series is herein referred to as an “optional sinking fund
payment”.  If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 1202.  Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series and this Indenture.

     

    
      	 	
              Section
      1202.

            	
              Satisfaction
      of Sinking Fund Payments with
Securities.

            

    

     

    The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any series to be made pursuant to the terms of such
Securities (1) deliver Outstanding Securities of such series (other than any of
such Securities previously called for redemption or any of such Securities in
respect of which cash shall have been released to the Company), together in the
case of any Bearer Securities of such series with all unmatured Coupons
appertaining thereto, and (2) apply as a credit Securities of such series which
have been redeemed either at the election of the Company pursuant to the terms
of such series of Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, provided that such Securities
have not been previously so credited.  Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced
accordingly.  If as a result of the delivery or credit of Securities
of any series in lieu of cash payments pursuant to this Section 1202, the
principal amount of Securities of such series to be redeemed in order to exhaust
the aforesaid cash payment shall be less than $100,000, the Trustee need not
call Securities of such series for redemption, except upon Company Request, and
such cash payment shall be held by the Trustee or a Paying Agent and applied to
the next succeeding sinking fund payment, provided, however, that the
Trustee or such Paying Agent shall at the written request of the Company from
time to time pay over and deliver to the Company any cash payment so being held
by the Trustee or such Paying Agent upon delivery by the Company to the Trustee
of Securities of that series purchased by the Company having an unpaid principal
amount equal to the cash payment requested to be released to the
Company.

    
      
         

      

      
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              Section
      1203.

            	
              Redemption of
      Securities for Sinking Fund.

            

    

     

    Not less
than 75 days prior to each sinking fund payment date for any series of
Securities, the Company shall deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
series pursuant to Section 1202, and the optional amount, if any, to be added in
cash to the next ensuing mandatory sinking fund payment, and will also deliver
to the Trustee any Securities to be so credited and not theretofore
delivered.  If such Officers’ Certificate shall specify an optional
amount to be added in cash to the next ensuing mandatory sinking fund payment,
the Company shall thereupon be obligated to pay the amount therein
specified.  Not less than 60 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104.  Such notice
having been duly given, the redemption of such Securities shall be made upon the
terms and in the manner stated in Sections 1106 and 1107.

     

    ARTICLE
THIRTEEN

     

    REPAYMENT
AT THE OPTION OF HOLDERS

      

    
      	 	
              Section
      1301.

            	
              Applicability
      of Article.

            

    

     

    Securities
of any series which are repayable at the option of the Holders thereof before
their Stated Maturity shall be repaid in accordance with the terms of the
Securities of such series. The repayment of any principal amount of Securities
pursuant to such option of the Holder to require repayment of Securities before
their Stated Maturity, for purposes of Section 309, shall not operate as a
payment, redemption or satisfaction of the indebtedness represented by such
Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. If specified with respect to the Securities of a series as
contemplated by Section 301, in connection with any repayment of Securities, the
Company may arrange for the purchase of any Securities by an agreement with one
or more investment bankers or other purchasers to purchase such Securities by
paying to the Holders of such Securities on or before the applicable repayment
date an amount not less than the repayment price payable by the Company on
repayment of such Securities, and the obligation of the Company to pay the
repayment price of such Securities shall be satisfied and discharged to the
extent such payment is so paid by such purchasers.

     

    Unless
otherwise expressly stated in this Indenture or pursuant to Section 301 with
respect to the Securities of any series or unless the context otherwise
requires, all references in this Indenture to the repayment of Securities at the
option of the Holders thereof (and all references of like import) shall be
deemed to include a reference to the repurchase of Securities at the option of
the Holders thereof.

    
      
         

      

      
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    ARTICLE
FOURTEEN

     

    SECURITIES
IN FOREIGN CURRENCIES

       

    
      	 	
              Section
      1401.

            	
              Applicability
      of Article.

            

    

     

    Whenever
this Indenture provides for (i) any action by, or the determination of any
of the rights of, Holders of Securities of any series in which not all of such
Securities are denominated in the same Currency or (ii) any distribution to
Holders of Securities of any series in which not all of such Securities are
denominated in the same Currency, in the absence of any provision to the
contrary in or pursuant to this Indenture or the Securities of such series, any
amount in respect of any Security denominated in a Currency other than Dollars
shall be treated for any such action, determination or distribution as that
amount of Dollars that could be obtained for such amount on such reasonable
basis of exchange and as of the record date with respect to Registered
Securities of such series (if any) for such action, determination or
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such distribution) as the Company may
specify in a written notice to the Trustee.

     

    ARTICLE
FIFTEEN

     

    MEETINGS
OF HOLDERS OF SECURITIES

       

    
      	 	
              Section
      1501.

            	
              Purposes for
      Which Meetings May Be
Called.

            

    

     

    A meeting
of Holders of Securities of any series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other Act provided by this
Indenture to be made, given or taken by Holders of Securities of such
series.

     

    
      	 	
              Section
      1502.

            	
              Call, Notice
      and Place of Meetings.

            

    

     

    (1)           The
Trustee may at any time call a meeting of Holders of Securities of any series
for any purpose specified in Section 1501, to be held at such time and at such
place in the Borough of Manhattan, The City of New York, or, if Securities of
such series have been issued in whole or in part as Bearer Securities, in London
or in such place outside the United States as the Trustee shall
determine.  Notice of every meeting of Holders of Securities of any
series, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be given, in the
manner provided in Section 106, not less than 21 nor more than 180 days prior to
the date fixed for the meeting.

    
      
         

      

      
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    (2)           In
case at any time the Company (by or pursuant to a Board Resolution) or the
Holders of at least 10% in aggregate principal amount of the Outstanding
Securities of any series shall have requested the Trustee to call a meeting of
the Holders of Securities of such series for any purpose specified in Section
1501, by written request setting forth in reasonable detail the action proposed
to be taken at the meeting, and the Trustee shall not have mailed notice of or
made the first publication of the notice of such meeting within 21 days after
receipt of such request (whichever shall be required pursuant to Section 106) or
shall not thereafter proceed to cause the meeting to be held as provided herein,
then the Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York, or, if Securities of such series are
to be issued as Bearer Securities, in London for such meeting and may call such
meeting for such purposes by giving notice thereof as provided in clause (1) of
this Section.

     

    
      	 	
              Section
      1503.

            	
              Persons
      Entitled to Vote at
Meetings.

            

    

     

    To be
entitled to vote at any meeting of Holders of Securities of any series, a Person
shall be (1) a Holder of one or more Outstanding Securities of such series, or
(2) a Person appointed by an instrument in writing as proxy for a Holder or
Holders of one or more Outstanding Securities of such series by such Holder or
Holders.  The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company, the Guarantor
and their respective counsel.

     

    
      	 	
              Section
      1504.

            	
              Quorum;
      Action.

            

    

     

    The
Persons entitled to vote a majority in aggregate principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting or
duly reconvened meeting of Holders of Securities of such series; provided, however, that if
any action is to be taken at such meeting with respect to a consent or waiver
which this Indenture expressly provides may be given by the Holders of a
supermajority in aggregate principal amount of the Outstanding Securities of a
series, the Persons entitled to vote the specified supermajority in aggregate
principal amount of the Outstanding Securities of such series shall constitute a
quorum.  In the absence of a quorum within 30 minutes after the time
appointed for any such meeting, the meeting shall, if convened at the request of
Holders of Securities of such series, be dissolved.  In any other case
the meeting may be adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such
meeting.  In the absence of a quorum at any such adjourned meeting,
such adjourned meeting may be further adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such adjourned meeting.  Notice of the reconvening of any adjourned
meeting shall be given as provided in Section 1502(1), except that such notice
need be given only once not less than five days prior to the date on which the
meeting is scheduled to be reconvened.  Notice of the reconvening of
an adjourned meeting shall state expressly the percentage, as provided above, of
the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

    
      
         

      

      
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    Except as
limited by the proviso to Section 902, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may
be adopted only by the affirmative vote of the Holders of a majority in
principal amount of the Outstanding Securities of that series; provided, however, that,
except as limited by the proviso to Section 902, any resolution with respect to
any request, demand, authorization, direction, notice,
consent,  waiver or other Act which this Indenture expressly provides
may be made, given or taken by the Holders of a supermajority in aggregate
principal amount of the Outstanding Securities of a series may be adopted at a
meeting or an adjourned meeting duly convened and at which a quorum is present
as aforesaid only by the affirmative vote of the Holders of the specified
supermajority in aggregate principal amount of the Outstanding Securities of
that series; and provided,
further, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Securities of a series
may be adopted at a meeting or an adjourned meeting duly reconvened and at which
a quorum is present as aforesaid by the affirmative vote of the Holders of such
lesser specified percentage in aggregate principal amount of the Outstanding
Securities of such series.

     

    Any
resolution passed or decision taken at any meeting of Holders of Securities of
any series duly held in accordance with this Section shall be binding on all the
Holders of Securities of such series and the Coupons appertaining thereto,
whether or not such Holders were present or represented at the
meeting.

     

    
      Section
1505.   Determination of Voting Rights;
Conduct and Adjournment of Meetings.

    

     

    (1)           Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities of
such series in regard to proof of the holding of Securities of such series and
of the appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate.  Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities.  Such regulations may
provide that written instruments appointing proxies, regular on their face, may
be presumed valid and genuine without the proof specified in Section 104 or
other proof.

     

    (2)           The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders
of Securities as provided in Section 1502(2), in which case the Company or the
Holders of Securities of the series calling the meeting, as the case may be,
shall in like manner appoint a temporary chairman.  A permanent
chairman and a permanent secretary of the meeting shall be elected by vote of
the Persons entitled to vote a majority in principal amount of the Outstanding
Securities of such series represented at the meeting.

     

    (3)           At
any meeting, each Holder of a Security of such series or proxy shall be entitled
to one vote for each $1,000 principal amount of Securities of such series held
or represented by him; provided, however, that no
vote shall be cast or counted at any meeting in respect of any Security
challenged as not Outstanding and ruled by the chairman of the meeting to be not
Outstanding.  If the Securities of such series are issuable in minimum
denominations of less than $1,000, then a Holder of such a Security in a
principal amount of less than $1,000 shall be entitled to a fraction of one vote
which is equal to the fraction that the principal amount of such Security bears
to $1,000.  The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or proxy.

     

    
      
         

      

      
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    (4)           Any
meeting of Holders of Securities of any series duly called pursuant to
Section 1502 at which a quorum is present may be adjourned from time to
time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

     

    
      Section
1506.  Counting Votes and Recording Action
of Meetings.

    

     

    The vote
upon any resolution submitted to any meeting of Holders of Securities of any
series shall be by written ballots on which shall be subscribed the signatures
of the Holders of Securities of such series or of their representatives by proxy
and the principal amounts and serial numbers of the Outstanding Securities of
such series held or represented by them.  The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast
at the meeting for or against any resolution and who shall make and file with
the secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting.  A record, at least in triplicate, of the
proceedings of each meeting of Holders of Securities of any series shall be
prepared by the secretary of the meeting and there shall be attached to said
record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said
notice was given as provided in Section 1502 and, if applicable, Section
1504.  Each copy shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one such copy shall be
delivered to the Company, and another to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the
meeting.  Any record so signed and verified shall be conclusive
evidence of the matters therein stated.

     

    ARTICLE
SIXTEEN

     

    GUARANTEE

     

    
      Section
1601.  Applicability of
Article.

    

     

    The
provisions of this Article Sixteen shall be applicable only to, and inure
solely to the benefit of, the Securities of any series designated, pursuant to
Section 301, as being entitled to the benefits of the Guarantee of the
Guarantor.  For purposes of this Article Sixteen, the term “Securities” means, with
respect to the Securities of a series to which the provisions of this Article
Sixteen shall be applicable, the Securities of such series.

     

    
      Section
1602.  Guarantee.

    

     

    (1)           For
value received, the Guarantor hereby fully and unconditionally guarantees (the
“Guarantee”) to each
Holder of a Security authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture or the Securities or the obligations of the
Company to the Holders or the Trustee hereunder or thereunder,
that:

     

    
      
         

      

      
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    (a)           the
principal of, premium, if any, and interest on the Securities will be duly and
promptly paid in full when due, whether at Stated Maturity, upon redemption, by
acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest, if any, on the Securities and all other
obligations of the Company to the Holders of or the Trustee hereunder or
thereunder (including fees, expenses or others) (collectively, the “Obligations”) will be promptly
paid in full or performed, all in accordance with the terms hereof and thereof;
and

     

    (b)           in
case of any extension of time of payment or renewal of any Obligations (with or
without notice to the Guarantor), the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise.

     

    If the
Company shall fail to pay when due, or to perform, any Obligations, for whatever
reason, the Guarantor shall be obligated to pay in cash, or to perform or cause
the performance of, the same promptly. An Event of Default under this Indenture
or the Securities shall entitle the Holders of the Securities to accelerate the
Obligations of the Guarantor hereunder in the same manner and to the same extent
as the Obligations of the Company.

     

    (2)           The
Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Securities or
this Indenture, the absence of any action to enforce the same, any waiver or
consent by any Holder of the Securities with respect to any provisions of this
Indenture or the Securities, the recovery of any judgment against the Company,
any action to enforce the same, whether or not the Guarantee is affixed to any
particular Security, or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of the Guarantor.

     

    (3)           The
Guarantor further agrees that, as between it, on the one hand, and the Holders
of the Securities and the Trustee, on the other hand,

     

    (a)           the
maturity of the Obligations guaranteed hereby may be accelerated as provided in
Article Five of this Indenture for the purposes of the Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations, and

     

    (b)           in
the event of any acceleration of such Obligations as provided in Article Five of
this Indenture, such Obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor for the purposes of the
Guarantee.

     

    Section
1603. Waiver.

     

    To the
fullest extent permitted by applicable law, the Guarantor waives diligence,
presentment, demand of, payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands whatsoever and covenants
that the Guarantee will not be discharged except by complete performance of the
Obligations contained in the Securities and this Indenture.

     

    
      
         

      

      
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    Section
1604. Guarantee of
Payment.

     

    The
Guarantor further agrees that the Guarantee constitutes a guarantee of payment,
performance and compliance when due and not a guarantee of collection, and
waives any right to require that any resort be had by the Trustee or any Holder
of the Securities to the security, if any, held for payment of the
Obligations.

     

    Section
1605. No Discharge or
Diminishment of Guarantee.

     

    Subject
to Section 1611 of this Indenture, the obligations of the Guarantor hereunder
shall not be subject to any reduction, limitation, termination, impairment or
for any reason (other than the payment in full in cash of the Obligations),
including any claim of waiver, release, surrender, alteration or compromise of
any of the Obligations, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without limiting
the generality of the foregoing, the obligations of the Guarantor hereunder
shall not be discharged or impaired or otherwise affected by the failure of the
Trustee or any Holder of the Securities to assert any claim or demand or to
enforce any remedy under this Indenture or the Securities, any other guarantee
or any other agreement, by any waiver or modification of any provision thereof,
by any default, failure or delay, willful or otherwise, in the performance of
the Obligations, or by any other act or omission or delay to do any other act
that may or might in any manner or to any extent vary the risk of the Guarantor
or that would otherwise operate as a discharge of the Guarantor as a matter of
law or equity (other than the payment in full in cash of all the
Obligations).

     

    Section
1606. Defenses of Company
Waived.

     

    To the
extent permitted by applicable law, the Guarantor waives any defense based on or
arising out of any defense of the Company or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of the Company, other than final payment in full in cash of the
Obligations. The Guarantor waives any defense arising out of any such election
even though such election operates to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of the Guarantor against
the Company or any security.

     

    Section
1607. Continued
Effectiveness.

     

    Subject
to Section 1611 of this Indenture, the Guarantor further agrees that the
Guarantee hereunder 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
on any Obligation is rescinded or must otherwise be restored by the Trustee or
any Holder of the Securities upon the bankruptcy or reorganization of the
Company or otherwise.

     

    
      
         

      

      
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    Section
1608.   Subrogation.

     

    In
furtherance of the foregoing and not in limitation of any other right of the
Guarantor by virtue hereof, upon the failure of the Company to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, the Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee or any
Holder of the Securities, forthwith pay, or cause to be paid, to the Holders in
cash the amount of such unpaid Obligations, and thereupon the Holders shall,
assign (except to the extent that such assignment would render the Guarantor a
“creditor” of the Company within the meaning of Section 547 of Title 11 of
the United States Code as now in effect or hereafter amended or any comparable
provision of any successor statute) the amount of the Obligations owed to it and
paid by the Guarantor pursuant to this Guarantee to the Guarantor, such
assignment to be pro rata to the extent the Obligations in question were
discharged by the Guarantor, or make such other disposition thereof as the
Guarantor shall direct (all without recourse to the Holders, and without any
representation or warranty by the Holders). If

     

    (1)           the
Guarantor shall make payment to the Holders of all or any part of the
Obligations, and

     

    (2)           all
the Obligations and all other amounts payable under this Indenture shall be paid
in full,

     

    the
Trustee will, at the Guarantor’s written request and expense, execute and
deliver to the Guarantor appropriate documents prepared by the Guarantor,
without recourse and without representation or warranty, necessary to evidence
the transfer by subrogation to the Guarantor of an interest in the Obligations
resulting from such payment by the Guarantor.

     

    Section
1609.   Information.

     

    The
Guarantor assumes all responsibility for being and keeping itself informed of
the Company’s financial condition and assets, and of all other circumstances
bearing upon the risk of nonpayment of the Obligations and the nature, scope and
extent of the risks that the Guarantor assumes and incurs hereunder, and agrees
that the Trustee and the Holders of the Securities will have no duty to advise
the Guarantor of information known to it or any of them regarding such
circumstances or risks.

     

    Section
1610.   Subordination.

     

    Upon
payment by the Guarantor of any sums to the Holders, as provided above, all
rights of the Guarantor against the Company, arising as a result thereof by way
of right of subrogation or otherwise, shall in all respects be subordinated and
junior in right of payment to the prior payment in full in cash of all the
Obligations to the Trustee; provided, however, that any right of
subrogation that the Guarantor may have pursuant to this Indenture is subject to
Section 1608 hereof.

     

    
      
         

      

      
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    Section
1611.  Release of
Guarantor.

     

    (1)           The
Guarantor shall be automatically and unconditionally released and discharged
from all obligations under this Indenture and the Guarantee without any action
required on the part of the Trustee or any Holder:

     

    (a)           upon
the sale, transfer or disposition of all or substantially all of the equity
interests or assets of the Guarantor to another Person (other than to the
Company or any of its Subsidiaries or Affiliates); or

     

    (b)           otherwise
to the extent specified with respect to the Securities in the designation of the
terms thereof pursuant to Section 301 hereof.

     

    (2)           The
Guarantor shall be automatically and unconditionally released and discharged
from all obligations under this Indenture and the Guarantee without any action
required on the part of the Trustee or any Holder upon any defeasance with
respect to the Securities in accordance with the provisions of Section 402(2)
hereof.

     

    (3)           The
Trustee shall execute and deliver an appropriate instrument (prepared by the
Company) evidencing such release upon receipt of a written request of the
Company accompanied by an Officers’ Certificate certifying as to the compliance
with this Section. Unless released, the Guarantor will remain liable for the
full amount of the principal of, premium, if any, and interest on the Securities
provided with respect to such Securities in accordance with the terms thereof
designated pursuant to Section 301 hereof.

     

    Section
1612.  Limitation of
Guarantor’s Liability.

     

    The
Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is
the intention of all such parties that the Guarantee not constitute a fraudulent
transfer or conveyance for purposes of Title 11 of the United States Code, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to the Guarantor. To
effectuate the foregoing intention, the Holders and the Guarantor hereby
irrevocably agree that the obligations of the Guarantor under this Indenture and
the Guarantee shall be limited to the maximum aggregate amount which, after
giving effect to all other contingent and fixed liabilities of the Guarantor,
will result in the obligations of the Guarantor under the Guarantee not
constituting such fraudulent transfer or conveyance.

     

    Section
1613.  No Obligation
to Take Action Against the Company.

     

    Neither
the Trustee, any Holder nor any other Person shall have any obligation to
enforce or exhaust any rights or remedies or take any other steps under any
security for the Obligations or against the Company or any other Person or any
Property of the Company or any other Person before the Trustee, such Holder or
such other Person is entitled to demand payment and performance by the Guarantor
of its liabilities and obligations under the Guarantee.

     

    
      
         

      

      
        87

        
          

        

      

      
         

      

    

    Section
1614.  Execution and
Delivery of the Guarantee.

     

    (1)           To
further evidence the Guarantee set forth in this Article Sixteen, the Guarantor
hereby agrees that a notation of such Guarantee in the form set forth in Annex A hereto shall
be endorsed on each Security authenticated and delivered by the Trustee and
executed by either manual or facsimile signature of an officer, manager or
member, as applicable, of the Guarantor.

     

    (2)           The
Guarantor hereby agrees that the Guarantee set forth in this Article Sixteen
shall remain in full force and effect notwithstanding any failure to endorse on
each Security a notation of the Guarantee.

     

    (3)           The
delivery of any Security by the Trustee, after the authentication thereof
hereunder, shall constitute due and valid delivery of the Guarantee designated
with respect to the Securities pursuant to Section 301 hereof on behalf of the
Guarantor.

     

    Section
1615. Successor
Guarantor.

     

    Unless
otherwise released and discharged from its obligations in accordance with the
provisions of this Article Sixteen and any other terms applicable with respect
to the Securities designated pursuant to Section 301 hereof, upon any
consolidation or merger by the Guarantor with or into any other Person, the
successor Person formed by such consolidation or merger shall execute an
indenture supplemental hereto and guarantee and succeed to, and be substituted
for, and may exercise every right and power of, the Guarantor under this
Indenture and the Securities with the same force and effect as if such successor
Person had been named as the Guarantor herein, and thereafter the predecessor
Person shall be relieved of all obligations and covenants under the Indenture
and the Securities (to the extent the Guarantor was the predecessor
Person).

     

    
      
         

      

      
        88

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              	 
      	
                      MAIDEN
      HOLDINGS NORTH AMERICA, LTD.,

                    
	 
      	 
      
	 
      	
                      as
      Issuer

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      MAIDEN
      HOLDINGS, LTD.,

                    
	 
      	 
      
	 
      	
                      as
      Guarantor

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      WILMINGTON
      TRUST COMPANY,

                    
	 
      	 
      
	 
      	
                      as
      Trustee

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    

            

          

        

      

    

     

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    
       

      Annex
A

    

    

    NOTATION
OF GUARANTEE

     

    For value
received, the undersigned Guarantor (which term includes any successor Person
under the Indenture) has fully and unconditionally guaranteed, to the extent set
forth in the Indenture, by and among the Company, the Guarantor and the Trustee,
and subject to the provisions in the Indenture and the terms of the Securities,
(a) the due and punctual payment in full when due of the principal of,
premium, if any, and interest on the Securities and all other amounts due and
payable under the Indenture and the Securities by the Company and (b) in
case of any extension of time of payment or renewal of any Obligations (with or
without notice to the Guarantor), that the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise. The obligations of the
Guarantor to the Holders of Securities and to the Trustee pursuant to the
Guarantee and the Indenture are expressly set forth in Article Sixteen of
the Indenture and reference is hereby made to the Indenture for the precise
terms of the Guarantee, including provisions for the release thereof. Each
Holder of a Security, by accepting the same, (a) agrees to and shall be
bound by such provisions and (b) appoints the Trustee attorney-in-fact of
such Holder for the purpose of such provisions.

     

    
      
        
          
            	 
      	
                    MAIDEN
      HOLDINGS, LTD.

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:AMENDED
AND RESTATED CREDIT AGREEMENT

    

    BETWEEN

    

    CROSS
BORDER RESOURCES, INC.

    

    AND

    

    TEXAS
CAPITAL BANK, N.A.

    

    January
31, 2011

     

    
      
        

      

    REVOLVING
LINE OF CREDIT AND LETTER

    OF CREDIT
FACILITY OF UP TO $25,000,000 

       

      
        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	 
      	 
      	 
      	
                                        Page

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      I	
                                        DEFINITIONS
      AND INTERPRETATION

                                      	 
      	
                                        2

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                        1.1

                                      	 
      	
                                        Terms
      Defined Above

                                      	 
      	
                                        2

                                      
	 
      	
                                        1.2

                                      	 
      	
                                        Additional
      Defined Terms

                                      	 
      	
                                        2

                                      
	 
      	
                                        1.3

                                      	 
      	
                                        Undefined
      Financial Accounting Terms

                                      	 
      	
                                        14

                                      
	 
      	
                                        1.4

                                      	 
      	
                                        References

                                      	 
      	
                                        14

                                      
	 
      	
                                        1.5

                                      	 
      	
                                        Articles
      and Sections

                                      	 
      	
                                        14

                                      
	 
      	
                                        1.6

                                      	 
      	
                                        Number
      and Gender

                                      	 
      	
                                        14

                                      
	 
      	
                                        1.7

                                      	 
      	
                                        Incorporation
      of Schedules and Exhibits

                                      	 
      	
                                        15

                                      
	 
      	
                                        1.8

                                      	 
      	
                                        Negotiated
      Transaction

                                      	 
      	
                                        15

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      II	
                                        TERMS
      OF FACILITIES

                                      	 
      	
                                        15

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                        2.1

                                      	 
      	
                                        Revolving
      Line of Credit

                                      	 
      	
                                        15

                                      
	 
      	
                                        2.2

                                      	 
      	
                                        Letter
      of Credit Facility

                                      	 
      	
                                        16

                                      
	 
      	
                                        2.3

                                      	 
      	
                                        Additional
      Provisions Applicable to Letters of Credit

                                      	 
      	
                                        16

                                      
	 
      	
                                        2.4

                                      	 
      	
                                        Use
      of Loan Proceeds and Letters of Credit

                                      	 
      	
                                        17

                                      
	 
      	
                                        2.5

                                      	 
      	
                                        Interest

                                      	 
      	
                                        17

                                      
	 
      	
                                        2.6

                                      	 
      	
                                        Repayment
      of Loans and Interest

                                      	 
      	
                                        18

                                      
	 
      	
                                        2.7

                                      	 
      	
                                        Outstanding
      Amounts

                                      	 
      	
                                        18

                                      
	 
      	
                                        2.8

                                      	 
      	
                                        Taxes
      and Time, Place, and Method of Payments

                                      	 
      	
                                        18

                                      
	 
      	
                                        2.9

                                      	 
      	
                                        Borrowing
      Base and Monthly Reduction Amount

                                      	 
      	
                                        20

                                      
	 
      	
                                        2.10

                                      	 
      	
                                        Mandatory
      Prepayments

                                      	 
      	
                                        21

                                      
	 
      	
                                        2.11

                                      	 
      	
                                        Voluntary
      Prepayments

                                      	 
      	
                                        21

                                      
	 
      	
                                        2.12

                                      	 
      	
                                        Engineering
      Fees and Expenses

                                      	 
      	
                                        21

                                      
	 
      	
                                        2.13

                                      	 
      	
                                        Commitment
      Fees

                                      	 
      	
                                        21

                                      
	 
      	
                                        2.14

                                      	 
      	
                                        Additional
      Fees

                                      	 
      	
                                        22

                                      
	 
      	
                                        2.15

                                      	 
      	
                                        Loans
      to Satisfy Obligations

                                      	 
      	
                                        22

                                      
	 
      	
                                        2.16

                                      	 
      	
                                        General
      Provisions Relating to Interest

                                      	 
      	
                                        22

                                      
	 
      	
                                        2.17

                                      	 
      	
                                        Yield
      Protection

                                      	 
      	
                                        23

                                      
	 
      	
                                        2.18

                                      	 
      	
                                        Letters
      in Lieu of Transfer Orders or Division Orders

                                      	 
      	
                                        24

                                      
	 
      	
                                        2.19

                                      	 
      	
                                        Power
      of Attorney

                                      	 
      	
                                        24

                                      
	 
      	
                                        2.20

                                      	 
      	
                                        Security
      Interest in Accounts; Right of Offset

                                      	 
      	
                                        25

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      III	
                                        CONDITIONS

                                      	 
      	
                                        25

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                        3.1

                                      	 
      	
                                        Receipt
      of Loan Documents and Other Items

                                      	 
      	
                                        25

                                      
	 
      	
                                        3.2

                                      	 
      	
                                        Each
      Loan

                                      	 
      	
                                        28

                                      
	 
      	
                                        3.3

                                      	 
      	
                                        Issuance
      of Letters of Credit

                                      	 
      	
                                        29

                                      
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      IV	
                                        REPRESENTATIONS
      AND WARRANTIES

                                      	 
      	
                                        30

                                      
	 
      	
                                        4.1

                                      	 
      	
                                        Due
      Authorization

                                      	 
      	
                                        30

                                      
	 
      	
                                        4.2

                                      	 
      	
                                        Existence

                                      	 
      	
                                        30

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        - i
-

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	 
      	
                      4.3

                    	 
      	
                      Valid
      and Binding Obligations

                    	 
      	
                      30

                    
	 
      	
                      4.4

                    	 
      	
                      Security
      Documents

                    	 
      	
                      30

                    
	 
      	
                      4.5

                    	 
      	
                      Title
      to Oil and Gas Properties

                    	 
      	
                      30

                    
	 
      	
                      4.6

                    	 
      	
                      Scope
      and Accuracy of Financial Statements

                    	 
      	
                      31

                    
	 
      	
                      4.7

                    	 
      	
                      No
      Material Adverse Effect or Default

                    	 
      	
                      31

                    
	 
      	
                      4.8

                    	 
      	
                      No
      Material Misstatements

                    	 
      	
                      31

                    
	 
      	
                      4.9

                    	 
      	
                      Liabilities,
      Litigation and Restrictions

                    	 
      	
                      31

                    
	 
      	
                      4.10

                    	 
      	
                      Authorizations;
      Consents

                    	 
      	
                      31

                    
	 
      	
                      4.11

                    	 
      	
                      Compliance
      with Laws

                    	 
      	
                      31

                    
	 
      	
                      4.12

                    	 
      	
                      ERISA

                    	 
      	
                      31

                    
	 
      	
                      4.13

                    	 
      	
                      Environmental
      Laws

                    	 
      	
                      32

                    
	 
      	
                      4.14

                    	 
      	
                      Compliance
      with Federal Reserve Regulations

                    	 
      	
                      32

                    
	 
      	
                      4.15

                    	 
      	
                      Investment
      Company Act

                    	 
      	
                      32

                    
	 
      	
                      4.16

                    	 
      	
                      Proper
      Filing of Tax Returns; Payment of Taxes Due

                    	 
      	
                      32

                    
	 
      	
                      4.17

                    	 
      	
                      Refunds

                    	 
      	
                      32

                    
	 
      	
                      4.18

                    	 
      	
                      Gas
      Contracts

                    	 
      	
                      32

                    
	 
      	
                      4.19

                    	 
      	
                      Intellectual
      Property

                    	 
      	
                      33

                    
	 
      	
                      4.20

                    	 
      	
                      Casualties
      or Taking of Property

                    	 
      	
                      33

                    
	 
      	
                      4.21

                    	 
      	
                      Principal
      Location

                    	 
      	
                      33

                    
	 
      	
                      4.22

                    	 
      	
                      Subsidiaries

                    	 
      	
                      33

                    
	 
      	
                      4.23

                    	 
      	
                      Compliance
      with Anti-Terrorism Laws

                    	 
      	
                      33

                    
	 
      	
                      4.24

                    	 
      	
                      Identification
      Numbers

                    	 
      	
                      34

                    
	 
      	
                      4.25

                    	 
      	
                      Solvency

                    	 
      	
                      34

                    
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      V	
                      AFFIRMATIVE
      COVENANTS

                    	 
      	
                      35

                    
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      5.1

                    	 
      	
                      Maintenance
      and Access to Records

                    	 
      	
                      35

                    
	 
      	
                      5.2

                    	 
      	
                      Quarterly
      Financial Statements and Compliance Certificates

                    	 
      	
                      35

                    
	 
      	
                      5.3

                    	 
      	
                      Annual
      Financial Statements and Compliance Certificate

                    	 
      	
                      35

                    
	 
      	
                      5.4

                    	 
      	
                      Oil
      and Gas Reserve Reports and Production Reports

                    	 
      	
                      36

                    
	 
      	
                      5.5

                    	 
      	
                      Title
      Opinions; Title Defects; Mortgaged Properties

                    	 
      	
                      36

                    
	 
      	
                      5.6

                    	 
      	
                      Notices
      of Certain Events

                    	 
      	
                      37

                    
	 
      	
                      5.7

                    	 
      	
                      Letters
      in Lieu of Transfer Orders or Division Orders

                    	 
      	
                      37

                    
	 
      	
                      5.8

                    	 
      	
                      Commodity
      Hedging

                    	 
      	
                      38

                    
	 
      	
                      5.9

                    	 
      	
                      Joinder
      of New Domestic Subsidiaries

                    	 
      	
                      38

                    
	 
      	
                      5.10

                    	 
      	
                      Additional
      Information

                    	 
      	
                      38

                    
	 
      	
                      5.11

                    	 
      	
                      Compliance
      with Laws

                    	 
      	
                      38

                    
	 
      	
                      5.12

                    	 
      	
                      Payment
      of Assessments and Charges

                    	 
      	
                      38

                    
	 
      	
                      5.13

                    	 
      	
                      Maintenance
      of Existence or Qualification and Good Standing

                    	 
      	
                      38

                    
	 
      	
                      5.14

                    	 
      	
                      Payment
      of Note; Performance of Obligations

                    	 
      	
                      39

                    
	 
      	
                      5.15

                    	 
      	
                      Further
      Assurances

                    	 
      	
                      39

                    
	 
      	
                      5.16

                    	 
      	
                      Initial
      Expenses of Lender

                    	 
      	
                      39

                    
	 
      	
                      5.17

                    	 
      	
                      Subsequent
      Expenses of Lender

                    	 
      	
                      39

                    
	 
      	
                      5.18

                    	 
      	
                      Operation
      of Oil and Gas Properties

                    	 
      	
                      39

                    
	 
      	
                      5.19

                    	 
      	
                      Maintenance
      and Inspection of Properties

                    	 
      	
                      40

                    
	 
      	
                      5.20

                    	 
      	
                      Maintenance
      of Insurance

                    	 
      	
                      40

                    
	 
      	
                      5.21

                    	 
      	
                      Environmental
      Indemnification

                    	 
      	
                      41

                    

            

          

        

      

    

    
      
         

      

      
        - ii
-

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                5.22

                              	 
      	
                                General
      Indemnification

                              	 
      	
                                41

                              
	 
      	
                                5.23

                              	 
      	
                                Evidence
      of Compliance with Anti-Terrorism Laws

                              	 
      	
                                42

                              
	 
      	
                                5.24

                              	 
      	
                                Deposit
      Accounts

                              	 
      	
                                42

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      VI	
                                NEGATIVE
      COVENANTS

                              	 
      	
                                42

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                6.1

                              	 
      	
                                Indebtedness

                              	 
      	
                                42

                              
	 
      	
                                6.2

                              	 
      	
                                Contingent
      Obligations

                              	 
      	
                                43

                              
	 
      	
                                6.3

                              	 
      	
                                Liens

                              	 
      	
                                43

                              
	 
      	
                                6.4

                              	 
      	
                                Sales
      of Assets

                              	 
      	
                                43

                              
	 
      	
                                6.5

                              	 
      	
                                Leasebacks

                              	 
      	
                                43

                              
	 
      	
                                6.6

                              	 
      	
                                Sale
      or Discount of Receivables

                              	 
      	
                                43

                              
	 
      	
                                6.7

                              	 
      	
                                Loans
      or Advances

                              	 
      	
                                43

                              
	 
      	
                                6.8

                              	 
      	
                                Investments

                              	 
      	
                                43

                              
	 
      	
                                6.9

                              	 
      	
                                Dividends,
      Distributions and Certain Payments

                              	 
      	
                                44

                              
	 
      	
                                6.10

                              	 
      	
                                Issuance
      of Equity; Changes in Corporate Structure

                              	 
      	
                                44

                              
	 
      	
                                6.11

                              	 
      	
                                Transactions
      with Affiliates

                              	 
      	
                                44

                              
	 
      	
                                6.12

                              	 
      	
                                Lines
      of Business

                              	 
      	
                                44

                              
	 
      	
                                6.13

                              	 
      	
                                Plan
      Obligation

                              	 
      	
                                44

                              
	 
      	
                                6.14

                              	 
      	
                                Current
      Ratio

                              	 
      	
                                45

                              
	 
      	
                                6.15

                              	 
      	
                                Total
      Funded Indebtedness to EBITDA Ratio

                              	 
      	
                                45

                              
	 
      	
                                6.16

                              	 
      	
                                Interest
      Coverage Ratio

                              	 
      	
                                45

                              
	 
      	
                                6.17

                              	 
      	
                                Anti-Terrorism
      Laws

                              	 
      	
                                45

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      VII	
                                EVENTS
      OF DEFAULT

                              	 
      	
                                46

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                7.1

                              	 
      	
                                Enumeration
      of Events of Default

                              	 
      	
                                46

                              
	 
      	
                                7.2

                              	 
      	
                                Remedies

                              	 
      	
                                48

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	ARTICLE
      VIII	
                                MISCELLANEOUS

                              	 
      	
                                49

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                8.1

                              	 
      	
                                Assignments;
      Participations

                              	 
      	
                                49

                              
	 
      	
                                8.2

                              	 
      	
                                Survival
      of Representations, Warranties, and Covenants

                              	 
      	
                                50

                              
	 
      	
                                8.3

                              	 
      	
                                Notices
      and Other Communications

                              	 
      	
                                50

                              
	 
      	
                                8.4

                              	 
      	
                                Parties
      in Interest

                              	 
      	
                                51

                              
	 
      	
                                8.5

                              	 
      	
                                Renewals;
      Extensions

                              	 
      	
                                51

                              
	 
      	
                                8.6

                              	 
      	
                                Rights
      of Third Parties

                              	 
      	
                                51

                              
	 
      	
                                8.7

                              	 
      	
                                No
      Waiver; Rights Cumulative

                              	 
      	
                                51

                              
	 
      	
                                8.8

                              	 
      	
                                Survival
      Upon Unenforceability

                              	 
      	
                                51

                              
	 
      	
                                8.9

                              	 
      	
                                Amendments;
      Waivers

                              	 
      	
                                52

                              
	 
      	
                                8.10

                              	 
      	
                                Controlling
      Agreement

                              	 
      	
                                52

                              
	 
      	
                                8.11

                              	 
      	
                                Disposition
      of Collateral

                              	 
      	
                                52

                              
	 
      	
                                8.12

                              	 
      	
                                Governing
      Law

                              	 
      	
                                52

                              
	 
      	
                                8.13

                              	 
      	
                                Waiver
      of Rights to Jury Trial

                              	 
      	
                                52

                              
	 
      	
                                8.14

                              	 
      	
                                Jurisdiction
      and Venue

                              	 
      	
                                52

                              
	 
      	
                                8.15

                              	 
      	
                                Integration

                              	 
      	
                                53

                              
	 
      	
                                8.16

                              	 
      	
                                Waiver
      of Punitive and Consequential Damages

                              	 
      	
                                53

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        - iii
-

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  8.17

                	 
      	
                  Counterparts

                	 
      	
                  53

                
	 
      	
                  8.18

                	 
      	
                  USA
      Patriot Act Notice

                	 
      	
                  53

                
	 
      	
                  8.19

                	 
      	
                  Tax
      Shelter Regulations

                	 
      	
                  53

                
	 
      	
                  8.20

                	 
      	
                  Contribution
      and Indemnification

                	 
      	
                  54

                

        

      

    

     

    LIST OF
SCHEDULES

     

    
      
        
          
            
              
                	
                        Schedule
      4.9

                      	
                        -

                      	
                        Liabilities
      and Litigation

                      	 
	
                        Schedule
      4.13

                      	
                        -

                      	
                        Environmental
      Matters

                      	 
	
                        Schedule
      4.17

                      	
                        -

                      	
                        Refunds

                      	 
	
                        Schedule
      4.18

                      	
                        -

                      	
                        Gas
      Contracts

                      	 
	
                        Schedule
      4.20

                      	
                        -

                      	
                        Casualties

                      	 
	
                        Schedule
      4.24

                      	
                        -

                      	
                        Taxpayer
      ID and Organizational Numbers

                      	 
	 
      	 
      	 
      	 
	
                        LIST OF EXHIBITS

                      	 
	 
      	 
      	 
      	 
	
                        Exhibit
      I

                      	
                        -

                      	
                        Form
      of Note

                      	 
	
                        Exhibit
      II

                      	
                        -

                      	
                        Form
      of Borrowing Request

                      	 
	
                        Exhibit
      III

                      	
                        -

                      	
                        Form
      of Compliance Certificate

                      	 
	
                        Exhibit
      IV

                      	
                        -

                      	
                        Form
      of Opinion of Counsel

                      	 
	
                        Exhibit
      V

                      	
                        -

                      	
                        Form
      of Opinion of Texas Counsel

                      	 

              

            

          

        

      

    

    
      
         

      

      
        - iv
-

        
          

        

      

      
         

      

    

    AMENDED AND RESTATED CREDIT
AGREEMENT

     

    This
AMENDED AND RESTATED CREDIT AGREEMENT is made and entered into this 31st day of
January, 2011, by and between CROSS BORDER RESOURCES, INC., a Nevada corporation
(the “Borrower”), and TEXAS CAPITAL BANK, N.A., a national banking association
(the “Lender”).

     

    WITNESSETH:

     

    WHEREAS,
Pure Energy Partners II, L.P., a Texas limited liability partnership (“Pure Energy”), and
the Lender entered into that certain Credit Agreement dated August 4, 2006 (as
amended to the date hereof, the “Existing Credit
Agreement”);

     

    WHEREAS,
all obligations of Pure Energy under the Existing Credit Agreement and the other
Loan Documents (as such term is defined in the Existing Credit Agreement) were
assumed and ratified by its General Partner, Pure Gas Group, Inc., a Texas
corporation (“Pure
Gas”), pursuant to the following documents:

     

    Assignment,
Bill of Sale and Assumption Agreement dated December 27, 2010, to be effective
January 1, 2011 by Pure Energy in favor of Pure Gas filed December 29, 2010
under Reception No. 101331 and recorded in Book 838, Pages 945 et. seq.,
Official Public Records of Eddy County, New Mexico; and

     

    Assignment,
Bill of Sale and Assumption Agreement dated December 27, 2010, to be effective
January 1, 2011 by Pure Energy in favor of Pure Gas filed December 29, 2010 as
Document No. 25850 and recorded in Book 1710, Pages 758 et seq., Official Public
Records of Lea County, New Mexico;

     

    WHEREAS,
Pure Gas has been merged with and into Doral Acquisition Corp., a Nevada
corporation (“Doral
Acquisition”);

     

    WHEREAS,
Doral Acquisition has been merged with and into the Borrower, which, prior to
such merger, was known as Doral Energy Corp.; and

     

    WHEREAS,
the Borrower and the Lender desire to amend and restate in its entirety the
Existing Credit Agreement by entering into this Amended and Restated Credit
Agreement;

     

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained, the parties hereto hereby agree as follows,
restating in its entirety the Existing Credit Agreement:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ARTICLE
I

    DEFINITIONS AND
INTERPRETATION

     

    1.1           Terms Defined
Above.  As used in this Amended and Restated Credit Agreement,
each of the terms “Borrower,” “Doral Acquisition,”
“Existing Credit
Agreement,” “Lender,” “Pure Energy” and
“Pure Gas”
shall have the meaning assigned to such term hereinabove.

     

    1.2           Additional Defined
Terms.  As used in this Amended and Restated Credit Agreement,
each of the following terms shall have the meaning assigned thereto in this
Section 1.2 or in Sections referred to in this Section 1.2, unless
the context otherwise requires:

     

    “Additional Amount”
shall have the meaning assigned to such term in Section
2.8.

     

    “Adjusted Base Rate”
shall mean, for any Loan, an interest rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) determined by the Lender to be the
greater of (a) the Base Rate and (b) the Federal Funds Rate.

     

    “Affiliate” shall
mean, as to any Person, any other Person directly or indirectly, controlling, or
under common control with, such Person and includes any “affiliate” of such
Person within the meaning of Rule 12b-2 promulgated by the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, with
“control,” as used in this definition, meaning possession, directly or
indirectly, of the power to direct or cause the direction of management,
policies or action through ownership of voting securities, contract, voting
trust, or membership in management or in the group appointing or electing
management or otherwise through formal or informal arrangements or business
relationships; provided, however, that in no event shall the Lender be deemed an
Affiliate of the Borrower or any of the Guarantors.

     

    “Agreement” shall mean
this Amended and Restated Credit Agreement, as it may be amended, supplemented,
restated or otherwise modified from time to time.

     

    “Anti-Terrorism Laws”
shall mean any laws relating to terrorism or money laundering, including
Executive Order No. 13224 and the USA Patriot Act.

     

    “Approved Fund” shall
mean any (a) investment company, fund, trust, securitization vehicle or conduit
that is (or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit in the ordinary
course of its business or (b) any Person (other than a natural person) which
temporarily warehouses loans for the Lender or any entity described in the
preceding clause (a) and that, with respect to each of the preceding clauses (a)
and (b), is administered or managed by (i) the Lender, (ii) an Affiliate of the
Lender or (iii) a Person (other than a natural person) or an Affiliate of a
Person (other than a natural person) that administers or manages the
Lender.

     

    “Approved Hedge
Counterparty” shall mean the Lender or an Affiliate of the
Lender.

    
      
         

      

      
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    “Available Commitment”
shall mean, at any time, an amount equal to the remainder, if any, of (a) the
sum of the Revolving Commitment Amount in effect at such time minus (b) the sum of
the Loan Balance at such time plus the L/C Exposure at such time.

     

    “Base Rate” shall mean
the interest rate announced by the Lender from time to time as its prime rate or
its general reference rate of interest, which Base Rate shall change upon any
change in such announced or published general reference interest rate and which
Base Rate may not be the lowest interest rate charged by the
Lender.

     

    “Blocked Person” shall
have the meaning assigned to such term in Section
4.23.

     

    “Borrowing Base” shall
mean, at any time, the amount stated in Section 2.9(a) and
each other amount established and in effect from time to time in accordance with
the provisions of Section
2.9.

     

    “Borrowing Request”
shall mean each written request, substantially in the form attached hereto as
Exhibit II, by
the Borrower to the Lender for a borrowing pursuant to Section 2.1, each of
which shall:

     

    (a)           be
signed by a Responsible Officer of the Borrower;

     

    (b)           specify
the amount of the Loan requested and the date of the borrowing (which shall be a
Business Day); and

     

    (c)           be
delivered to the Lender no later than 2:00 p.m., Central Standard or Central
Daylight Savings Time, as the case may be, on the Business Day preceding the
requested date of the borrowing

     

    “Business Day” shall
mean a day other than a Saturday, Sunday, legal holiday for commercial banks
under the laws of the State of Texas, or any other day when banking is suspended
in the State of Texas.

     

    “Business Entity”
shall mean a corporation, partnership, joint venture, limited liability company,
joint stock association, business trust, or other business entity.

     

    “Closing” shall mean
the establishment of the Facilities.

     

    “Closing Date” shall
mean the  date of this Agreement.

     

    “Collateral” shall
mean the Mortgaged Properties and any other Property now or at any time pledged
to the Lender by the Borrower or any of the Guarantors as security for the
payment or performance of all or any portion of the Obligations, including any
Property that was considered in determining or redetermining the Borrowing Base
and expressly including “as extracted collateral” as defined in the UCC or the
Uniform Commercial Code of any other applicable state.

    
      
         

      

      
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    “Commitment” shall
mean the obligation of the Lender to make Loans to or for the benefit of the
Borrower and to issue Letters of Credit pursuant to applicable provisions of
this Agreement.

     

    “Commitment Fees”
shall mean the fees payable to the Lender by the Borrower pursuant to the
provisions of Section
2.13.

     

    “Commitment Period”
shall mean the period from and including the Closing Date to, but not including,
the Commitment Termination Date.

     

    “Commitment Termination
Date” shall mean the earlier of (a) January 31, 2014 and (b) the date the
Commitment is terminated pursuant to the provisions of Section
7.2.

     

    “Commodity Hedge
Agreements” shall mean crude oil, natural gas, or other hydrocarbon
floor, collar, cap, price protection or hedge agreements.

     

    “Commonly Controlled
Entity” shall mean any Person which is under common control with the
Borrower or any of the Guarantors within the meaning of Section 4001 of
ERISA.

     

    “Compliance
Certificate” shall mean each certificate, substantially in the form
attached hereto as Exhibit III, executed
by a Responsible Officer of the Borrower and furnished to the Lender from time
to time in accordance with the provisions of Section 5.2 or Section 5.3, as the
case may be.

     

    “Contingent
Obligation” shall mean, as to any Person, any obligation of such Person
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends, or
other obligations of any other Person (for purposes of this definition, a “primary obligation”)
in any manner, whether directly or indirectly, including any obligation of such
Person, regardless of whether such obligation is contingent, (a) to purchase any
primary obligation or any Property constituting direct or indirect security
therefor, (b) to advance or supply funds (i) for the purchase or payment of any
primary obligation, or (ii) to maintain working or equity capital of any other
Person in respect of any primary obligation, or otherwise to maintain the net
worth or solvency of any other Person, (c) to purchase Property, securities or
services primarily for the purpose of assuring the owner of any primary
obligation of the ability of the Person primarily liable for such primary
obligation to make payment thereof, or (d) otherwise to assure or hold harmless
the owner of any such primary obligation against loss in respect thereof, with
the amount of any Contingent Obligation being deemed to be equal to the stated
or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof  as determined by
such Person in good faith.

     

    “Contribution
Percentage” shall mean, for each party obligated to make a payment due
pursuant to the provisions of Section 8.20, the
percentage obtained by dividing such party’s Obtained Benefit by the aggregate
Obtained Benefits of all of the Guarantors.

    
      
         

      

      
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    “Current Assets” shall
mean all assets which would, in accordance with GAAP, be included as current
assets on a consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as of the date of calculation, after deducting adequate reserves in
each case in which a reserve is proper in accordance with GAAP, plus the then
current Available Commitment and, if not already included, the amount of any
cash on deposit with the Lender in accordance with the provisions of Section 5.24, but
excluding non-cash derivative current assets arising from Commodity Hedge
Agreements.

     

    “Current Liabilities”
shall mean all liabilities which would, in accordance with GAAP, be included as
current liabilities on a consolidated balance sheet of the Borrower and its
consolidated Subsidiaries, but excluding current maturities in respect of the
Obligations, both principal and interest, and non-cash derivative current
liabilities arising from Commodity Hedge Agreements.

     

    “Default” shall mean
any event or occurrence which with the lapse of time or the giving of notice or
both would become an Event of Default.

     

    “Default Rate” shall
mean a daily interest rate equal to the per annum interest rate equal to the
Adjusted Base Rate for each relevant day plus three percent (3%) converted to a
daily rate on the basis of a year of 365 or 366 days, as the case may be, and
the rate so determined for each relevant day being applied on the basis of
actual days elapsed (including the first day, but excluding the last day) during
the period for which interest is payable at the Default Rate, but in no event
shall the Default Rate exceed the Highest Lawful Rate.

     

    “Deficiency” shall
have the meaning assigned to such term in Section
2.10.

     

    “Dollars” and “$” shall mean dollars
in lawful currency of the United States of America.

     

    “Domestic Subsidiary”
shall mean any Subsidiary of the Borrower that is organized under the laws of
the United States of America or any state thereof or the District of
Columbia.

     

    “EBITDA” shall mean,
for any period for which the amount thereof is to be determined and on a
consolidated basis for the Borrower and its consolidated Subsidiaries, Net
Income for such period, but excluding (i) unrealized gains or losses or charges
in respect of Commodity Hedge Agreements (including those under GAAP arising
from the application of FAS 133), (ii) extraordinary or non-recurring income
items and, to the extent acceptable to the Lender, expense items and (iii)
deferred financing costs written off, including equity discounts, and premiums
paid in connection with any early extinguishment of Indebtedness permitted
pursuant to this Agreement, including the refinancing of the senior secured
Indebtedness of the Borrower outstanding prior to the Closing Date), plus, in
each case to the extent deducted in the determination of Net Income for such
period and without duplication of any item in more than one category, each of
the following for such period: (a) Interest Expense, (b) Taxes, (c)
depreciation, depletion and amortization expenses, (d) intangible drilling and
completion costs and (e) other non-cash expenses, including write-downs of
non-current assets and unrealized non-cash losses resulting from foreign
currency balance sheet adjustments required under GAAP, and minus, to the extent
credited in the determination of Net Income for such period, non-cash credits
for such period.

    
      
         

      

      
        - 5
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    “Environmental
Complaint” shall mean any written or oral complaint, order, directive,
claim, citation, notice of environmental report or investigation, or other
notice by any Governmental Authority or any other Person with respect to (a) air
emissions, (b) spills, releases, or discharges to soils, any improvements
located thereon, surface water, groundwater, or the sewer, septic, waste
treatment, storage, or disposal systems servicing any Property of the Borrower
or any of the Guarantors, (c) solid or liquid waste disposal, (d) the use,
generation, storage, transportation, or disposal of any Hazardous Substance, or
(e) other environmental, health, or safety matters affecting any Property of the
Borrower or any of the Guarantors or the business conducted
thereon.

     

    “Environmental Laws”
shall mean (a) the following federal laws as they may be cited, referenced, and
amended from time to time:  the Clean Air Act, the Clean Water Act,
the Safe Drinking Water Act, the Comprehensive Environmental Response,
Compensation and Liability Act, the Endangered Species Act, the Resource
Conservation and Recovery Act, the Hazardous Materials Transportation Act, the
Occupational Safety and Health Act, the Oil Pollution Act, the Resource
Conservation and Recovery Act, the Superfund Amendments and Reauthorization Act,
and the Toxic Substances Control Act; (b) any and all equivalent environmental
statutes of any state in which Property of the Borrower or any of the Guarantors
is situated, as they may be cited, referenced and amended from time to time; (c)
any rules or regulations promulgated under or adopted pursuant to the above
federal and state laws; and (d) any other equivalent federal, state, or local
statute or any requirement, rule, regulation, code, ordinance, or order adopted
pursuant thereto, including those relating to the generation, transportation,
treatment, storage, recycling, disposal, handling, or release of Hazardous
Substances.

     

    “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, and the regulations thereunder
and interpretations thereof.

     

    “Event of Default”
shall mean any of the events specified in Section
7.1.

     

    “Excess Payments”
shall have the meaning assigned to such term in Section
8.20.

     

    “Excluded Taxes” shall
mean, with respect to any and all payments to the Lender or any other recipient
of any payment to be made by or on account of any Obligation, net income taxes,
branch profits taxes, franchise and excise taxes (to the extent imposed in lieu
of net income taxes), and all interest, penalties and liabilities with respect
thereto, imposed on the Lender.

     

    “Executive Order No.
13224” shall mean Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001, as the same has been, or shall hereafter be,
renewed, extended, amended or replaced.

     

    “Facility Amount”
shall mean $10,000,000, as modified from time to time pursuant to the terms
hereof; provided, however, upon
delivery by the Borrower to the Lender of a written consent of the Trustee under
the Trust Indenture, pursuant to the provisions of the Trust Indenture, to such
increase, such term shall mean $25,000,000, as modified from time to time
pursuant to the terms hereof.

    
      
         

      

      
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    “Federal Funds Rate”
shall mean, for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers on such day, as published by the Federal Reserve Bank
of Dallas, Texas, on the Business Day next succeeding such day; provided that
(a) if the day for which such rate is to be determined is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if such rate is not so published for any day, the Federal Funds
Rate for such day shall be the average rate charged to the Lender on such day on
such transactions as determined by the Lender.

     

    “Financial Statements”
shall mean consolidated and consolidating financial statements of the Borrower
and its consolidated Subsidiaries as at the point in time and for the period
indicated, including all notes thereto, and consisting of at least a balance
sheet and related statements of operations, members’, shareholders’ or partners’
equity, and cash flows and, when required by applicable provisions of this
Agreement to be audited, accompanied by the unqualified certification of a
nationally-recognized or regionally-recognized firm of independent certified
public accountants or other independent certified public accountants acceptable
to the Lender and footnotes to any of the foregoing, all of which, unless
otherwise indicated, shall be prepared in accordance with GAAP consistently
applied and in comparative form with respect to the corresponding period of the
preceding fiscal year.

     

    “GAAP” shall mean
generally accepted accounting principles established by the Financial Accounting
Standards Board or the American Institute of Certified Public Accountants and in
effect in the United States from time to time.

     

    “Governmental
Authority” shall mean any nation, country, commonwealth, territory,
government, state, county, parish, municipality, or other political subdivision
and any entity exercising executive, legislative, judicial, regulatory, or
administrative functions of or pertaining to government.

     

    “Guaranties” shall
mean, collectively, guarantees of payment and performance of the Obligations, in
form and substance acceptable to the Lender, provided from time to time by the
Guarantors in compliance with the provisions of Section
5.9.

     

    “Guarantors” shall
mean, collectively, any and all Domestic Subsidiaries of the Borrower formed or
acquired subsequent to the Closing Date.

     

    “Hazardous Substances”
shall mean flammables, explosives, radioactive materials, hazardous wastes,
asbestos, or any material containing asbestos, polychlorinated biphenyls (PCBs),
toxic substances or related materials, petroleum, petroleum products, associated
oil or natural gas exploration, production, and development wastes, or any
substances defined as “hazardous substances,” “hazardous materials,” “hazardous
wastes,” or “toxic substances” under the Comprehensive Environmental Response,
Compensation and Liability Act, the Superfund Amendments and Reauthorization
Act, the Hazardous Materials Transportation Act, the Resource Conservation and
Recovery Act, the Toxic Substances Control Act, or any other Requirement of
Law.

     

    “Highest Lawful Rate”
shall mean the maximum non-usurious interest rate, if any (or, if the context so
requires, an amount calculated at such rate), that at any time or from time to
time may be contracted for, taken, reserved, charged or received under laws
applicable to the Lender, as such laws are presently in effect or, to the extent
allowed by applicable law, as such laws may hereafter be in effect and which
allow a higher maximum non-usurious interest rate than such laws now
allow.

    
      
         

      

      
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    “Indebtedness” shall
mean, as to any Person, without duplication, (a) all liabilities (excluding
capital, surplus, reserves for deferred income taxes, deferred compensation
liabilities, other deferred liabilities and credits and asset retirement
obligations) which in accordance with GAAP would be included in determining
total liabilities as shown on the liability side of a balance sheet, (b) all
obligations of such Person evidenced by bonds, debentures, promissory notes, or
similar evidences of indebtedness, (c) all other indebtedness of such Person for
borrowed money, (d) all obligations of others, to the extent any such obligation
is secured by a Lien on the assets of such Person (whether or not such Person
has assumed or become liable for the obligation secured by such
Lien),  (e) all direct or contingent obligations of such Person under
letters of credit, banker’s acceptances, surety bonds, and similar instruments
and (f) net obligations of such Person under any Commodity Hedge Agreements or
Interest Rate Hedge Agreements.

     

    “Indemnified Taxes”
shall mean Taxes other than Excluded Taxes.

     

    “Indemnitee” shall
have the meaning assigned to such term in Section
5.21.

     

    “Insolvency
Proceeding” shall mean application (whether voluntary or instituted by
another Person) for or the consent to the appointment of a receiver, trustee,
conservator, custodian, or liquidator of any Person or of all or a substantial
part of the Property of such Person, or the filing of a petition (whether
voluntary or instituted by another Person) commencing a case under Title 11 of
the United States Code, seeking liquidation, reorganization, or rearrangement or
taking advantage of any bankruptcy, insolvency, debtor’s relief, or other
similar law of the United States, the State of Texas, or any other
jurisdiction.

     

    “Intellectual
Property” shall mean patents, patent applications, trademarks,
tradenames, copyrights, technology, know how, and processes.

     

    “Interest Expense”
shall mean, for any period for which the amount thereof is to be determined, any
and all expenses relating to the accrual of interest on Indebtedness of the
Borrower, on a consolidated basis with its consolidated Subsidiaries, including
interest expense attributable to capitalized leases.

     

    “Interest Rate Hedge
Agreements” shall mean interest rate floor, collar, cap, rate protection
or hedge agreements.

     

    “Investment” in any
Person shall mean any stock, bond, note, or other evidence of Indebtedness, or
any other security (other than current trade and customer accounts) of,
investment or partnership interest in or loan to, such Person.

     

    “Joinder Agreement”
shall mean each agreement, in form and substance acceptable to the Lender,
pursuant to which a Domestic Subsidiary of the Borrower formed or acquired
subsequent to the Closing Date agrees to become a party to and bound by this
Agreement.

    
      
         

      

      
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    “L/C Exposure” shall
mean, at any time, the sum of (a) the then aggregate maximum amount available to
be drawn under outstanding Letters of Credit plus (b) prior to the making of any
related Letter of Credit Payments in respect of such Letters of Credit, the
aggregate of all unpaid reimbursement obligations in respect of such Letters of
Credit.

     

    “L/C Sublimit” shall
mean $500,000.

     

    “Letter of Credit”
shall mean any standby letter of credit issued for the account of the Borrower
pursuant to Section
2.2.

     

    “Letter of Credit
Application” shall mean the standard letter of credit application
employed by the Lender, as the issuer of the Letters of Credit, from time to
time in connection with its issuance of letters of credit.

     

    “Letter of Credit
Payment” shall mean any payment made by the Lender under a Letter of
Credit, to the extent that such payment has not been repaid by the
Borrower.

     

    “Lien” shall mean any
interest in Property securing an obligation owed to, or a claim by, a Person
other than the owner of such Property, whether such interest is based on common
law, statute, or contract, and including, but not limited to, the lien or
security interest arising from a mortgage, ship mortgage, encumbrance, pledge,
security agreement, conditional sale or trust receipt, or a lease, consignment,
or bailment for security purposes (other than true leases or true consignments),
liens of mechanics, materialmen, and artisans, maritime liens and reservations,
exceptions, encroachments, easements, rights of way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting
Property which secure an obligation owed to, or a claim by, a Person other than
the owner of such Property (for the purpose of this Agreement, the Borrower and
each of the Guarantors shall be deemed to be the owner of any Property which it
has acquired or holds subject to a conditional sale agreement, financing lease,
or other arrangement pursuant to which title to the Property has been retained
by or vested in some other Person for security purposes).

     

    “Limitation Period”
shall mean any period while any amount remains owing on the Note and interest on
such amount, calculated at the applicable interest rate, plus any fees or other
sums payable to the Lender under any Loan Document and deemed to be interest
under applicable law, would exceed the amount of interest which would accrue at
the Highest Lawful Rate.

     

    “Loan” shall mean any
loan made by the Lender to or for the benefit of the Borrower pursuant to this
Agreement and any payment made by the Lender under a Letter of
Credit.

     

    “Loan Balance” shall
mean, at any point in time, the aggregate outstanding principal balance of the
Note at such time.

     

    “Loan Documents” shall
mean this Agreement, the Note, all of the documents in effect under the terms of
the Existing Credit Agreement, the Letter of Credit Applications, the Letters of
Credit, the Security Documents, any Joinder Agreements and all other documents
and instruments now or hereafter delivered pursuant to the terms of or in
connection with this Agreement, the Note, any of the documents in effect under
the terms of the Existing Credit Agreement, the Letter of Credit Applications,
the Letters of Credit, the Security Documents or any Joinder Agreement, and all
renewals and extensions of, amendments and supplements to, and restatements of,
any or all of the foregoing from time to time in effect.

    
      
         

      

      
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    “Material Adverse
Effect” shall mean (a) any material and adverse effect on the business,
operations, assets, properties, liabilities (actual or contingent) or financial
condition of the Borrower, on a consolidated basis with its consolidated
Subsidiaries, (b) any material and adverse effect upon the Collateral, including
any material and adverse effect upon the value or impairment of the Borrower or
its Subsidiary’s ownership of the Collateral, (c) any material adverse effect on
the validity or enforceability of any Loan Document or (d) any material adverse
effect on the rights or remedies of the Lender or any Approved Hedge
Counterparty under any Loan Document.

     

    “Monthly Reduction
Amount” shall mean, at any time, the amount determined as such by the
Lender and then in effect in accordance with the provisions of Section
2.9.

     

    “Mortgaged Properties”
shall mean all Oil and Gas Properties of the Borrower and its Domestic
Subsidiaries subject to a perfected first priority Lien (subject only to
Permitted Liens) in favor of the Lender, as security for the
Obligations.

     

    “Net Income” shall
mean, for any relevant period, the net income of the Borrower, on a consolidated
basis with its consolidated Subsidiaries, during such period, determined in
accordance with GAAP.

     

    “Note” shall mean the
promissory note of the Borrower payable to the Lender in the face amount of up
to the Aggregate Facility Amount in the form attached hereto as Exhibit I with all
blanks in such form completed appropriately, together with all renewals,
extensions for any period, increases and rearrangements thereof.

     

    “Obligations” shall
mean, without duplication of the same amount in more than one category, (a) all
Indebtedness of the Borrower evidenced by the Note, (b) the obligation of the
Borrower to provide to or reimburse the Lender, as the issuer of the Letters of
Credit, as the case may be, for amounts payable, paid or incurred with respect
to Letters of Credit, (c) the undrawn, unexpired amount of all outstanding
Letters of Credit, (d) Indebtedness of the Borrower in respect of Commodity
Hedge Agreements or Interest Rate Hedge Agreements with Approved Hedge
Counterparties, so long as in compliance with the provisions of Section 6.1 (which it
is agreed shall rank pari passu with all other items listed in this definition),
(e) the obligation of the Borrower for the payment of Commitment Fees and other
fees pursuant to the provisions of this Agreement and (f) all other obligations
and liabilities of the Borrower to the Lender, now existing or hereafter
incurred, under, arising out of or in connection with any Loan Document or any
Commodity Hedge Agreement or Interest Rate Hedge Agreement with an Approved
Hedge Counterparty and in compliance with the provisions of Section 6.1, and to
the extent that any of the foregoing includes or refers to the payment of
amounts deemed or constituting interest, only so much thereof as shall have
accrued, been earned and which remains unpaid at each relevant time of
determination.

     

    
      
        
           

        

        
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    “Obtained Benefit”
shall mean the aggregate amount of benefits, both direct and indirect, obtained
by any of the Borrower and the Guarantors from the extension of credit to the
Borrower under this Agreement and not repaid by the Borrower or one of the
Guarantors.

     

    “OFAC” shall mean the
Office of Foreign Assets Control of the United States Department of the
Treasury, or any successor Governmental Authority.

     

    “Oil and Gas
Properties” shall mean fee, leasehold, or other interests in or under
mineral estates or oil, gas, and other liquid or gaseous hydrocarbon leases,
including undivided interests in any such property rights owned jointly with
others, with respect to Properties situated in the United States or offshore
from any State of the United States, including overriding royalty and royalty
interests, leasehold estate interests, net profits interests, production payment
interests, and mineral fee interests, together with contracts executed in
connection therewith and all tenements, hereditaments, appurtenances, and
Properties appertaining, belonging, affixed, or incidental thereto.

     

    “Other Taxes” shall
mean any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made under any Loan Document or from the execution, delivery or enforcement of,
or otherwise with respect to, any Loan Document.

     

    “Permitted Liens”
shall mean (a) Liens for taxes, assessments, or other governmental charges or
levies not yet due or which (if foreclosure, distraint, sale, or other similar
proceedings shall not have been initiated) are being contested in good faith by
appropriate proceedings, and such reserve as may be required by GAAP shall have
been made therefor, (b) Liens in connection with workers’ compensation,
unemployment insurance or other social security (other than Liens created by
Section 4068 of ERISA), old age pension, employee benefits, or public liability
obligations which are not yet due or which are being contested in good faith by
appropriate proceedings, if such reserve as may be required by GAAP shall have
been made therefor, (c) Liens in favor of vendors, carriers, warehousemen,
repairmen, mechanics, workmen, materialmen, constructors, laborers, landlords or
similar Liens arising by operation of law in the ordinary course of business in
respect of obligations that are not yet due or which are being contested in good
faith by appropriate proceedings, if such reserve as may be required by GAAP
shall have been made therefor, (d) Liens in favor of operators and non-operators
under joint operating agreements or similar contractual arrangements arising in
the ordinary course of the business of the Borrower to secure amounts owing,
which amounts are not yet due or are being contested in good faith by
appropriate proceedings, if such reserve as may be required by GAAP shall have
been made therefor, (e) Liens under production sales agreements, division
orders, operating agreements, and other agreements customary in the oil and gas
business for processing, producing, and selling hydrocarbons securing
obligations not constituting Indebtedness and provided that such Liens do not
secure obligations to deliver hydrocarbons at some future date without receiving
full payment therefor within 90 days of delivery, (f) covenants, liens, rights,
easements, rights of way, restrictions and other similar encumbrances , and
minor defects in the chain of title which are customarily accepted in the oil
and gas financing industry, none of which interfere with the ordinary conduct of
the business of the Borrower or materially detract from the value or use of the
Property to which they apply, (g) Liens securing the purchase price of Property,
including vehicles and equipment, acquired by the Borrower in the ordinary
course of business (including Liens existing under conditional sale or title
retention contracts), provided that such Liens cover only the acquired Property
and the aggregate unpaid purchase price secured by such Liens does not exceed
$250,000, (h) Liens securing leases of equipment, provided that, as to any
particular lease, the Lien covers only the relevant leased equipment and secures
only amounts which are not yet due and payable under the relevant lease or are
being contested in good faith by appropriate proceedings and such reserve as may
be required by GAAP shall have been made therefor , (i) Liens in favor or for
the benefit of Secured Third Party Hedge Counterparties securing Indebtedness of
the Borrower in respect of Commodity Hedge Agreements and Interest Rate Hedge
Agreements (other than such as constitute a portion of the Obligations)
permitted pursuant to the provisions of Section 6.1, (j)
Liens in favor or for the benefit of the Lender, (k) Liens securing the
Subordinated Debt pursuant to the Trust Indenture, so long as subordinated to
the Liens in favor or for the benefit of the Lender securing the Obligations and
(l) other Liens expressly permitted hereunder or in the Security
Documents.

    
      
         

      

      
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    “Person” shall mean an
individual, Business Entity, trust, unincorporated organization, Governmental
Authority or any other form of entity.

     

    “Plan” shall mean, at
any time, any employee benefit plan which is covered by Title IV of ERISA and in
respect of which the Borrower, any of the Guarantors or any Commonly Controlled
Entity of any is (or, if such plan were terminated at such time, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA.

     

    “Principal Office”
shall mean the office of the Lender in Houston, Texas  located at One
Riverway, Suite 2100, Houston, Texas 77056 or such other office as the Lender
may designate in writing to the Borrower from time to time.

     

    “Property” shall mean
any interest in any kind of property or asset, whether real, personal or mixed,
tangible or intangible.

     

    “Regulation D” shall
mean Regulation D of the Board of Governors of the Federal Reserve System (or
any successor).

     

    “Regulatory Change”
shall mean, with respect to the Lender, the passage, adoption, institution or
amendment of any federal, state, local, or foreign Requirement of Law (including
Regulation D), or any interpretation, directive, or request (whether or not
having the force of law) of any Governmental Authority or monetary authority
charged with the enforcement, interpretation, or administration thereof,
occurring after the Closing Date and applying to a class of lenders including
the Lender or its lending office.

     

    “Release of Hazardous
Substances” shall mean any emission, spill, release, disposal, or
discharge, except in accordance with a valid permit, license, certificate, or
approval of the relevant Governmental Authority, of any Hazardous Substance into
or upon (a) the air, (b) soils or any improvements located thereon, (c) surface
water or groundwater, or (d) the sewer or septic system, or the waste treatment,
storage, or disposal system servicing any Property of the Borrower or any of the
Guarantors.

    
      
         

      

      
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    “Requirement of Law”
shall mean, as to any Person, the certificate or articles of incorporation and
by-laws, the certificate or articles of organization and regulations, operating
agreement or limited liability company agreement, the agreement of limited
partnership, the partnership agreement, or other organizational or governing
documents of such Person, and any applicable law, treaty, ordinance, order,
judgment, rule, decree, regulation, or determination of an arbitrator, court, or
other Governmental Authority, including rules, regulations, orders, and
requirements for permits, licenses, registrations, approvals, or authorizations,
in each case as such now exist or may be hereafter amended and are applicable to
or binding upon such Person or any of its Property or to which such Person or
any of its Property is subject.

     

    “Reserve Report” shall
mean each report delivered to the Lender pursuant to the provisions of Section
5.4.

     

    “Responsible Officer”
shall mean, as to any Business Entity, its President, any Vice President or any
other Person duly authorized in accordance with the applicable organizational
documents, bylaws, regulations or resolutions to act on behalf of such Business
Entity.

     

    “Revolving Commitment
Amount” shall mean, subject to the applicable provisions of this
Agreement and the right of the Borrower to reduce such amount on an irrevocable
basis by written notice to the Lender, at any time (provided, however, the Borrower
shall not be entitled to any reduction to an amount less than the sum of the
then existing Loan Balance and L/C Exposure), the lesser of (a) the Facility
Amount and (b) the Borrowing Base in effect at such time.

     

    “Revolving Facility”
shall mean the credit facility provided to the Borrower pursuant to the
provisions of Section
2.1.

     

    “Secured Third Party Hedge
Counterparty” shall mean any counterparty of the Borrower to a Commodity
Hedge Agreement or Interest Rate Hedge Agreement that is party to an
intercreditor agreement with the Lender, in form and substance reasonably
satisfactory to the Lender and such counterparty.

     

    “Security Documents”
shall mean the security documents executed and delivered in satisfaction of the
condition set forth in Section 3.1(f), any
existing security documents assigned or amended by any of such documents set
forth in Section
3.1(f) and all other documents and instruments at any time executed as
security for all or any portion of the Obligations, as such instruments may be
amended, supplemented, restated, or otherwise modified from time to
time.

     

    “Subordinated Debt”
shall mean the debt described in the Trust Indenture.

     

    “Subsidiary” shall
mean, as to any Person, any Business Entity of which shares of stock or other
equity interests having ordinary voting power (other than stock or other equity
interests having such power only by reason of the happening of a contingency) to
elect a majority of the board of directors or other governing body or other
managers of such Business Entity are at the time owned, or the management of
which is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person.

     

    “Superfund Site” shall
mean those sites listed on the Environmental Protection Agency National Priority
List and eligible for remedial action or any comparable state registry or list
in any state of the United States.

    
      
         

      

      
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    “Taxes” shall mean any
and all present or future taxes, levies, imposts, duties, fees, deductions,
charges or withholdings imposed by any Governmental Authority.

     

    “Trust Indenture”
shall mean the Trust Indenture dated as of March 1, 2005, from Pure Energy and
Pure Gas, as Issuer, to First Security Bank, as Trustee and Paying
Agent.

     

    “UCC” shall mean the
Uniform Commercial Code as from time to time in effect in the State of
Texas.

     

    “USA Patriot Act”
shall mean the Uniting and Strengthening America by Providing Appropriate Tools
required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56,
115 Stat. 272 (2001), as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

     

    1.3           Undefined Financial
Accounting Terms.  Financial accounting terms used in this
Agreement without definition are used herein with the respective meanings
assigned thereto in accordance with GAAP at the time in effect.

     

    1.4           References.  References
in this Agreement to Schedule, Exhibit, Article or Section numbers shall be to
Schedules, Exhibits, Articles or Sections of this Agreement, unless expressly
stated to the contrary.  References in this Agreement to “hereby,”
“herein,” “hereinafter,” “hereinabove,” “hereinbelow,” “hereof,” “hereunder” and
words of similar import shall be to this Agreement in its entirety and not only
to the particular Schedule, Exhibit, Article, or Section in which such reference
appears.  Specific enumeration herein shall not exclude the general
and, in such regard, the terms “includes” and “including” used herein shall mean
“includes, without limitation,” or “including, without limitation,” as the case
may be, where appropriate.  Except as otherwise indicated, references
in this Agreement to statutes, sections, or regulations are to be construed as
including all statutory or regulatory provisions consolidating, amending,
replacing, succeeding, or supplementing the statute, section, or regulation
referred to.  References in this Agreement to “writing” include
printing, typing, lithography, facsimile reproduction, and other means of
reproducing words in a tangible visible form.  References in this
Agreement to agreements and other contractual instruments shall be deemed to
include all exhibits and appendices attached thereto and all subsequent
amendments and other modifications to such instruments, but only to the extent
such amendments and other modifications are not prohibited by the terms of this
Agreement.  References in this Agreement to Persons include their
respective successors and permitted assigns.

     

    1.5           Articles and
Sections.  This Agreement, for convenience only, has been
divided into Articles and Sections; and it is understood that the rights and
other legal relations of the parties hereto shall be determined from this
instrument as an entirety and without regard to the aforesaid division into
Articles and Sections and without regard to headings prefixed to such Articles
or Sections.

     

    1.6           Number and
Gender.  Whenever the context requires, reference herein made
to the single number shall be understood to include the plural; and likewise,
the plural shall be understood to include the singular.  Definitions
of terms defined in the singular or plural shall be equally applicable to the
plural or singular, as the case may be, unless otherwise
indicated.  Words denoting sex shall be construed to include the
masculine, feminine and neuter, when such construction is appropriate; and
specific enumeration shall not exclude the general but shall be construed as
cumulative.

    
      
         

      

      
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    1.7           Incorporation of Schedules
and Exhibits.  The Schedules and Exhibits attached to this
Agreement are incorporated herein and shall be considered a part of this
Agreement for all purposes.

     

    1.8           Negotiated
Transaction.  Each party to this Agreement affirms to the
others that it has had the opportunity to consult, and discuss the provisions of
this Agreement with, independent counsel and fully understands the legal effect
of each provision.

     

    ARTICLE
II

     

    TERMS OF
FACILITIES

     

    2.1           Revolving Line of
Credit.

     

    (a)           Upon
the terms and conditions (including the right of the Lender to decline to make
any Loan, other than a Letter of Credit Payment, so long as any condition to the
making of such Loan set forth in Section 3.2 has not been satisfied) and relying
on the representations and warranties contained in this Agreement, the Lender
agrees to make Loans during the Commitment Period to or for the benefit of the
Borrower in an aggregate outstanding principal amount not to exceed at any time
the Revolving Commitment Amount minus the then existing L/C
Exposure.  Loans shall be made from time to time on any Business Day
designated in a Borrowing Request.

     

    (b)           Subject
to the provisions of this Agreement, during the Commitment Period, the Borrower
may borrow, repay and reborrow Loans.  Each borrowing of principal of
Loans shall be in an amount at least equal to $50,000 and a whole multiple of
$10,000.  Except for prepayments made pursuant to the provisions of
Section 2.10,
each prepayment of principal shall be in an amount at least equal to $50,000 and
a whole multiple of $10,000.  Each borrowing or prepayment of a Loan
shall be deemed a separate borrowing and prepayment for purposes of the
foregoing.

     

    (c)           Proceeds
of borrowings requested by the Borrower shall, subject to the terms and
conditions hereof, be made available to the Borrower in immediately available
funds at the Principal Office.  All Loans shall be evidenced by the
Note.

     

    
      
        
        

      

      
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    2.2         Letter of Credit
Facility.  Upon the terms and conditions (including the right
of the Lender to decline to issue, renew or extend any such Letter of Credit so
long as any condition to the issuance, renewal or extension of such Letter of
Credit set forth in Section 3.3 has not
been satisfied) and relying on the representations and warranties contained in
this Agreement, the Lender agrees, from the date of this Agreement until the
date which is 30 days prior to the Commitment Termination Date, to issue Letters
of Credit under the Facility for the account of the Borrower and to renew and
extend such Letters of Credit.  Such Letters of Credit shall be
issued, renewed or extended from time to time on any Business Day designated by
the Borrower following the receipt in accordance with the terms hereof by the
Lender of the written (or oral, confirmed promptly in writing) request by a
Responsible Officer of the Borrower therefor and a Letter of Credit
Application.  Such Letters of Credit shall be issued in such amounts
as the Borrower may request; provided, however, that (i) no
such Letter of Credit shall have an expiration date which is less than 30 days
prior to the Commitment Termination Date, (ii) the Loan Balance plus the L/C
Exposure, including that under any then requested Letter of Credit to be issued
under the Facility, shall not exceed at any time the Revolving Commitment
Amount, (iii) the L/C Exposure, including that under any then requested Letter
of Credit to be issued under the Facility, shall not exceed at any time the L/C
Sublimit and (iii) no such Letter of Credit shall be issued in an amount less
than $10,000.

     

    2.3         Additional Provisions
Applicable to Letters of Credit.

     

    (a)           In
connection with the issuance, renewal or extension by the Lender of any Letter
of Credit pursuant to Section 2.2, the
Borrower shall pay to the Lender a letter of credit fee in an amount equal to
the greater of (i) the face amount of such Letter of Credit multiplied by two
and one half percent (2.50%) per annum, calculated on the basis of a year of 360
days and actual days elapsed (including the first day but excluding the last
day), on the amount of the L/C Exposure under such Letter of Credit and for the
period for which such Letter of Credit is issued or renewed or extended and
remains outstanding or (ii) $750.  Such fee with respect to each
Letter of Credit shall be payable in advance commencing on the date of issuance,
renewal or extension of the relevant Letter of Credit.  The Lender
shall not have any obligation to refund any portion of any such fee upon early
cancellation of the relevant Letter of Credit.  The Borrower also
agrees to pay on demand to the Lender its customary letter of credit transaction
fees and expenses, including amendment fees, payable with respect to each Letter
of Credit.

     

    (b)           The
Borrower agrees that the Lender shall not be responsible for, nor shall the
Obligations be affected by, among other things, (i) the validity or genuineness
of documents or any endorsements thereon presented in connection with any Letter
of Credit, even if such documents shall in fact prove to be in any and all
respects invalid, fraudulent or forged, so long as the Lender has no actual
knowledge of any such invalidity, lack of genuineness, fraud or forgery prior to
the presentment for payment of a corresponding Letter of Credit or any draft
thereunder or (ii) any dispute between or among the Borrower and any beneficiary
of any Letter of Credit or any other Person to which any Letter of Credit may be
transferred, or any claims whatsoever of the Borrower against any beneficiary of
any Letter of Credit or any such transferee.  The Borrower further
acknowledges and agrees that the Lender shall be liable to the Borrower to the
extent, but only to the extent, of any direct, as opposed to consequential or
punitive, damages suffered by the Borrower as a result of the willful misconduct
or gross negligence of the Lender in determining whether documents presented
under a Letter of Credit complied with the terms of such Letter of Credit that
resulted in either a wrongful payment under such Letter of Credit or a wrongful
dishonor of a claim or draft properly presented under such Letter of
Credit.  In the absence of gross negligence or willful misconduct by
the Lender, the Lender shall not be liable for any error, omission, interruption
or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit.  The Lender and
the Borrower agree that any action taken or omitted by the Lender under or in
connection with any Letter of Credit or the related drafts or documents, if done
in the absence of gross negligence or willful misconduct, shall be binding as
among the Lender and the Borrower and shall not put the Lender under any
liability to the Borrower.

    
      
         

      

      
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    (c)           Unless
the Borrower provides to the Lender  funds sufficient to allow the
Lender to pay any drawing by a beneficiary under a Letter of Credit prior to the
Lender being obligated to pay the relevant drawing under a Letter of Credit, the
Lender shall make a Letter of Credit Payment in payment of such
drawing.

     

    (d)           Each
Letter of Credit Payment shall be deemed to be a Loan by the Lender under and
shall be evidenced by the Note and shall be payable by the Borrower upon demand
by the Lender.

     

    2.4         Use of Loan Proceeds and
Letters of Credit.

     

    (a)           Proceeds
of all Loans shall be used solely by the Borrower (i) to refinance the
Indebtedness of the Borrower under the Existing Credit Agreement, (ii) to
acquire and develop Oil and Gas Properties, (iii) for the Borrower’s working
capital and general business purposes and capital expenditures not otherwise
prohibited under applicable provisions of this Agreement, (iv) to advance funds
to the Guarantors for working capital and general business purposes and capital
expenditures not prohibited under the provisions of this Agreement or to acquire
and develop Oil and Gas Properties and (v) to pay fees and expenses incurred in
connection with this Agreement and for other general business purposes of the
Borrower.

     

    (b)           Letters
of Credit shall be issued solely for the account of the Borrower for general
business purposes of the Borrower and the Guarantors not otherwise prohibited
under applicable provisions of this Agreement; provided, however, no Letter of
Credit may be used in lieu or in support of stay or appeal bonds or Obligations
in respect of Commodity Hedge Agreements or Interest Rate Hedge
Agreements.

     

    2.5         Interest.  Subject
to applicable provisions of this Agreement (including those of Section 2.16),
interest on the Loan Balance shall accrue and be payable at a daily interest
rate based on the per annum rate equal to the lesser of (a) the Adjusted Base
Rate for each relevant day plus one half of one percent (0.50%), but in no event
based on a per annum rate less than four percent (4.00%), and (b) the Highest
Lawful Rate for each relevant day, converted to a daily rate on the basis of a
year of 365 or 366 days, as the case may be, with such rates being applied on
the basis of actual days elapsed (including the first day, but excluding the
last day) during the period for which interest is payable at the relevant
rate.  Notwithstanding the foregoing, interest on past due principal
and, to the extent permitted by applicable law, past due interest and fees,
shall accrue at the Default Rate and shall be payable upon demand by the Lender
at any time as to all or any portion of such interest.  Interest
provided for herein shall be calculated on unpaid sums actually advanced and
outstanding pursuant to the terms of this Agreement and only for the period from
the date or dates of such advances to, but not including, the date or dates of
repayment.

    
      
         

      

      
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    2.6         Repayment of Loans and
Interest.  Accrued and unpaid interest on the Loan Balance
shall be due and payable monthly commencing on the first day of March, 2011 and
continuing on the first day of each calendar month thereafter while any Loan
remains outstanding, the payment in each instance to be the amount of interest
which has accrued and remains unpaid in respect of the relevant
Loan.  The Loan Balance, together with all accrued and unpaid interest
thereon as of such date, shall be due and payable on the Commitment Termination
Date.  At the time of making each payment hereunder or under the Note,
the Borrower shall specify to the Lender the Loans or other amounts payable by
the Borrower hereunder to which such payment is to be applied.  In the
event the Borrower fails to so specify, or if an Event of Default has occurred,
the Lender may apply such payment as it may elect in its discretion and in
accordance with the terms hereof.  Subject to the provisions of Section 2.16, if any
payment due under the terms of this Agreement remains unpaid for a period of 15
days or more from the date such payment is due, the Lender may charge a
delinquency charge equal to five percent (5.00%) of the amount of such
payment.

     

    2.7         Outstanding
Amounts.  The outstanding principal balance of the Note
reflected by the notations of the Lender on its records shall be deemed
rebuttably presumptive evidence of the principal amount owing on the
Note.  The liability for payment of principal and interest evidenced
by the Note shall be limited to principal amounts actually advanced and
outstanding pursuant to this Agreement and interest on such amounts calculated
in accordance with this Agreement.

     

    2.8         Taxes and Time, Place, and
Method of Payments.

     

    (a)           All
payments required pursuant to this Agreement or the Note shall be made without
set-off or counterclaim in Dollars and in immediately available funds free and
clear of, and without deduction for, any Indemnified Taxes or Other Taxes; provided, however that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased by the amount (the
“Additional
Amount”) necessary so that after making all required deductions
(including deductions applicable to additional sums described in this paragraph)
the Lender receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.  In
addition, to the extent not paid in accordance with the preceding sentence, the
Borrower shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

     

    (b)           The
Borrower shall indemnify the Lender for Indemnified Taxes and Other Taxes paid
by the Lender, including any Indemnified Taxes or Other Taxes arising from the
negligence, whether sole or concurrent, of the Lender; provided,
however, that the
Borrower shall not in any event be obligated to make payment to the Lender in
respect of penalties, interest and other similar liabilities attributable to
such Indemnified Taxes or Other Taxes if such penalties, interest or other
similar liabilities are attributable to the gross negligence or willful
misconduct of, or breach of this Agreement by, the Lender.

    
      
         

      

      
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    (c)           If
the Lender shall become aware that it is entitled to claim a refund from a
Governmental Authority in respect of Indemnified Taxes or Other Taxes paid by
the Borrower pursuant to this Section 2.8,
including Indemnified Taxes or Other Taxes as to which it has been indemnified
by the Borrower, or with respect to which the Borrower has paid Additional
Amounts pursuant to the Loan Documents, it shall promptly notify the Borrower of
the availability of such refund claim and, if the Lender determines in good
faith that making a claim for refund will not have an adverse effect to its
taxes or business operations, shall, within 10 days after receipt of a request
by the Borrower, make a claim to such Governmental Authority for such refund at
the expense of the Borrower.  If the Lender receives a refund in
respect of any Indemnified Taxes or Other Taxes paid by the Borrower pursuant to
the Loan Documents, it shall within 30 days from the date of such receipt pay
over such refund to the Borrower (but only to the extent of Indemnified Taxes or
Other Taxes paid pursuant to the Loan Documents, including indemnity payments
made or Additional Amounts paid, by the Borrower under this Section 2.8 with
respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net
of all reasonable out of pocket expenses of the Lender and without interest
(other than interest paid by the relevant Governmental Authority with respect to
such refund).

     

    (d)           If
the Lender is or becomes eligible under any applicable law, regulation, treaty
or other rule to a reduced rate of taxation, or a complete exemption from
withholding, with respect to Indemnified Taxes or Other Taxes on payments made
to it or for its benefit by the Borrower, the Lender shall, upon the request,
and at the cost and expense, of the Borrower, complete and deliver from time to
time any certificate, form or other document requested by the Borrower, the
completion and delivery of which are a precondition to obtaining the benefit of
such reduced rate or exemption, provided that the taking of such action by the
Lender would not, in the reasonable judgment of the Lender be disadvantageous or
prejudicial to the Lender or inconsistent with its internal policies or legal or
regulatory restrictions.  For any period with respect to which the
Lender has failed to provide any such certificate, form or other document
requested by the Borrower, the Lender shall not be entitled to any payment under
this Section
2.8 in respect of any Indemnified Taxes or Other Taxes that would not
have been imposed but for such failure.

     

    (e)           The
Lender, shall (i) deliver to the Borrower, upon the written request of the
Borrower, two original copies of United States Internal Revenue Service Form W-9
or any successor form, properly completed and duly executed by the Lender,
certifying that the Lender is exempt from United States backup withholding Tax
on payments of interest made under the Loan Documents and (ii) thereafter, at
each time it is so reasonably requested in writing by the Borrower, deliver
within a reasonable time two original copies of an updated United States
Internal Revenue Service Form W-9 or any successor form thereto.

     

    (f)           All
payments by the Borrower  shall be deemed received on (i) receipt or
(ii) the next Business Day following receipt if such receipt is after 2:00 p.m.,
Central Standard or Central Daylight Savings Time, as the case may be, on any
Business Day, and shall be made to the Lender at the Principal
Office.  Except as provided to the contrary herein, if the due date of
any payment hereunder or under the Note would otherwise fall on a day which is
not a Business Day, such date shall be extended to the next succeeding Business
Day, and interest shall be payable for any principal so extended for the period
of such extension.

    
      
         

      

      
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    2.9         Borrowing Base and Monthly
Reduction Amount.

     

    (a)           The
Borrowing Base as of the Closing Date is acknowledged by the Borrower and the
Lender to be $4,000,000.  Commencing on March 1, 2011 and continuing
thereafter on the first day of each calendar month through the Commitment
Termination Date, the amount of the Borrowing Base then in effect shall be
reduced by the Monthly Reduction Amount, which Monthly Reduction Amount as of
the Closing Date is acknowledged to be $0.

     

    (b)           The
Borrowing Base and the Monthly Reduction Amount shall be redetermined
semi-annually as soon as practicable following each receipt of Reserve Reports
pursuant to the provisions of Section 5.4, and all
other information available to the Lender.  In addition, the Lender
shall, in the normal course of business following a request of the Borrower,
redetermine the Borrowing Base and the Monthly Reduction Amount; provided, however, the Lender
shall not be obligated to respond to more than one such request during the
period between the scheduled semi-annual redeterminations provided for
above.  Notwithstanding the foregoing, the Borrowing Base in effect at
any time shall be subject to reduction at such other time or times as may be
permitted by the terms of this Agreement and the Lender may redetermine the
Borrowing Base and the Monthly Reduction Amount at any time.

     

    (c)           Upon
each determination of the Borrowing Base and the Monthly Reduction Amount, the
Lender shall notify the Borrower orally (confirming such notice promptly in
writing) of such determination, and, subject to the operation of the Monthly
Reduction Amount, the Borrowing Base and the Monthly Reduction Amount so
communicated to the Borrower shall become effective upon such oral notification
and shall remain in effect until the next subsequent determination of the
Borrowing Base and the Monthly Reduction Amount.

     

    (d)           The
Borrowing Base shall represent the determination by the Lender, in accordance
with the applicable definitions and provisions herein contained and the
customary lending practices of the Lender for loans of this nature (but taking
into account floor and cap prices or other price protection under Commodity
Hedge Agreements), of the value, for loan purposes, of the Mortgaged Properties
and any other Oil and Gas Properties of the Borrower and its Domestic
Subsidiaries acceptable to the Lender, subject, in the case of any increase in
the Borrowing Base, to the credit approval processes of the
Lender.  Furthermore, the Borrower acknowledges that the determination
of the Borrowing Base contains an equity cushion (market value in excess of loan
value), which is acknowledged by the Borrower to be essential for the adequate
protection of the Lender.

    
      
         

      

      
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    2.10        Mandatory
Prepayments.  If at any time the sum of the Loan Balance and
the L/C Exposure exceeds the Borrowing Base then in effect (such excess, a
“Deficiency”),
the Borrower shall, within 30 days of notice from the Lender of such occurrence,
(i) prepay the amount of the Deficiency for application on the portion of the
Loan Balance applicable to the Revolving Facility and then to provide cash as
Collateral for the Revolving Facility L/C Exposure in the manner provided below
in this Section
2.10, (ii) provide additional Collateral, of character and value
satisfactory to the Lender in its sole discretion, and/or cash as Collateral to
secure the Obligations, by way of the execution and delivery to the Lender of
Security Documents in form and substance satisfactory to the Lender, or (iii)
affect any combination of the alternatives described in clauses (i) and (ii) of
this sentence and acceptable to the Lender in its reasonable
discretion.  Any prepayment pursuant to the provisions of this Section 2.10 shall be
without premium or penalty, except as provided in Section 2.17, and the
amount of any such prepayment may be reborrowed if otherwise available to the
Borrower pursuant to the terms of this Agreement.  In the event that a
mandatory prepayment is to be made under this Section 2.10 or any
other applicable provision of this Agreement and the Loan Balance is less than
the amount required to be prepaid, the Borrower shall repay the entire Loan
Balance and, in accordance with the provisions of the relevant Letter of Credit
Applications executed by the Borrower or otherwise to the satisfaction of the
Lender, deposit with the Lender, as additional Collateral securing the
Obligations, an amount of cash, in immediately available funds, equal to the
Revolving Facility L/C Exposure minus the Revolving Commitment
Amount.  The cash deposited with the Lender in satisfaction of the
requirement provided in this Section 2.10 shall be
invested, at the express direction of the Borrower as to investment vehicle and
maturity (which shall be no later than the latest expiry date of any then
outstanding Letter of Credit), for the account of the Borrower in cash or cash
equivalent investments offered by or through the Lender.

     

    2.11        Voluntary
Prepayments.  Subject to applicable provisions of this
Agreement, the Borrower shall have the right at any time or from time to time to
prepay all or any portion of the Loan Balance without prepayment penalty;
provided, however, that (a) the Borrower shall give the Lender notice of each
such prepayment of all or any portion of the Loan Balance no less than one
Business Day prior to prepayment, (b) any prepayment of any portion of the Loan
Balance shall be in an amount of at least equal to $50,000 and a whole multiple
of $10,000, (c) the Borrower shall pay all accrued and unpaid interest on the
amounts prepaid, (d) no such prepayment shall serve to postpone the repayment
when due of any Obligation or any installments thereof, and (e) the Borrower
shall reimburse the Lender for any losses, expenses or costs reasonably incurred
by the Lender as a result of the failure of the Borrower to make such
prepayment.  Except as provided in the immediately preceding sentence,
any prepayment pursuant to the provisions of this Section 2.11 shall be
without premium or penalty and the amount of any such prepayment  may
be reborrowed if otherwise available to the Borrower pursuant to the terms of
this Agreement.

     

    2.12        Engineering Fees and
Expenses.  The Borrower shall pay the Lender a fee in the
amount of $2,500 on the Closing Date and in connection with each regularly
scheduled or Borrower-requested redetermination of the Borrowing Base subsequent
to the Closing Date by the independent petroleum engineer or firm of independent
petroleum engineers engaged by the Lender, payable within ten days of receipt by
the Borrower of an invoice therefor or statement thereof.

     

    2.13         Commitment
Fees.  In addition to interest on the Note as provided herein
and other fees payable hereunder, and to compensate the Lender for maintaining
funds available under the Facilities, the Borrower shall pay to the Lender, in
immediately available funds, on the first day of each calendar quarter during
the Commitment Period, commencing on the first day of April, 2011, and on the
Commitment Termination Date, a fee equal to a per annum rate of one half of one
percent (0.50%), calculated on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed (including the first day, but excluding the
last day), multiplied by the average daily amount of the Available Commitment
during the preceding quarterly or shorter period, as the case may
be.  Commitment Fees shall be payable by the Borrower within ten days
of receipt of an invoice therefor or statement thereof delivered by the
Lender.

    
      
         

      

      
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    2.14       Additional
Fees.  In addition to interest on the Note as provided herein
and other fees payable hereunder, and to compensate the Lenders for the costs of
the extension of credit hereunder, the Borrower shall pay to the Lender, on the
Closing Date, in immediately available funds, a fee in the amount of
$30,000.  Additionally, the Borrower shall pay a fee to the Lender at
any time the Borrowing Base is increased, with the agreement of the Borrower,
above the highest Borrowing Base previously in effect, equal to three quarters
of one percent (0.75%) of such increased Borrowing Base.

     

    2.15       Loans to Satisfy
Obligations.  Upon a Default, the Lender may, but shall not be
obligated to, make Loans for the benefit of the Borrower and apply proceeds
thereof to the satisfaction of any condition, warranty, representation or
covenant of the Borrower or any of the Guarantors contained in this Agreement or
any other Loan Document .  Such Loans shall be evidenced by the Note
and shall bear interest at the Adjusted Base Rate in the manner provided in
Section 2.5,
subject, however, to the
provisions of Section
2.5 regarding the accrual of interest at the Default Rate in certain
circumstances.

     

    2.16       General Provisions Relating
to Interest.

     

    (a)           It
is the intention of the parties hereto to comply strictly with the usury laws of
the State of Texas and the United States of America.  In this
connection, there shall never be collected, charged, or received on the sums
advanced hereunder interest in excess of that which would accrue at the Highest
Lawful Rate.  The Borrower agrees that, to the extent the Highest
Lawful Rate is determined with reference to the laws of the State to Texas, the
Highest Lawful Rate shall be the “weekly” rate as defined in Chapter 303 of the
Texas Finance Code, provided, however, that the
Lender may, at its election, substitute for the “weekly” rate the “annualized”
or “quarterly” rate, as such terms are defined in the aforesaid statute, upon
the giving of notices provided for in such statute and effective upon the giving
of such notices.  The Lender may also rely, to the extent permitted by
applicable laws of the State of Texas or the United States of America, on
alternative maximum rates of interest under other laws of the State of Texas or
the United States of America applicable to the Lender, if greater.

     

    (b)           Notwithstanding
anything herein or in the Note to the contrary, during any Limitation Period,
the interest rate to be charged on amounts evidenced by the Note shall be the
Highest Lawful Rate, and the obligation, if any, of the Borrower for the payment
of fees or other charges deemed to be interest under applicable law shall be
suspended.  During any period or periods of time following a
Limitation Period, to the extent permitted by applicable laws of the State of
Texas or the United States of America, the interest rate to be charged hereunder
on amounts evidenced by the Note shall remain at the Highest Lawful Rate until
such time as there has been paid to the Lender (i) the amount of interest in
excess of that accruing at the Highest Lawful Rate that the Lender would have
received during the Limitation Period had the interest rate remained at the
otherwise applicable rate, and (ii) all interest and fees otherwise payable to
the Lender but for the effect of such Limitation Period.

    
      
         

      

      
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    (c)           If,
under any circumstances, the aggregate amounts paid on the Note or under this
Agreement or any other Loan Document include amounts which by law are deemed
interest and which would exceed the amount permitted if the Highest Lawful Rate
were in effect, the Borrower stipulates that such payment and collection will
have been and will be deemed to have been, to the extent permitted by applicable
laws of the State of Texas or the United States of America, the result of
mathematical error on the part of the Borrower and the Lender; and the Lender
shall promptly refund the amount of such excess (to the extent only of such
interest payments in excess of that which would have accrued and been payable on
the basis of the Highest Lawful Rate) upon discovery of such error by the Lender
or notice thereof from the Borrower.  In the event that the maturity
of any Obligation is accelerated, by reason of an election by the Lender or
otherwise, or in the event of any required or permitted prepayment, then the
consideration constituting interest under applicable laws may never exceed that
payable on the basis of the Highest Lawful Rate, and excess amounts paid which
by law are deemed interest, if any, shall be credited by the Lender on the
principal amount of the Obligations, or if the principal amount of the
Obligations shall have been paid in full, refunded to the Borrower.

     

    (d)           All
sums paid, or agreed to be paid, to the Lender for the use, forbearance and
detention of the proceeds of any advance hereunder shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full term hereof until paid in full so that the actual rate of
interest is uniform but does not exceed the Highest Lawful Rate throughout the
full term hereof.

     

    2.17       Yield
Protection.

     

    (a)           Without
limiting the effect of the other provisions of this Section 2.17 (but
without duplication), the Borrower shall pay to the Lender from time to time on
request such amounts as the Lender may reasonably determine are necessary to
compensate the Lender or the Lender’s holding company for any costs attributable
to the maintenance by the Lender, pursuant to any Regulatory Change, of capital
in respect of its Commitment, such compensation to include an amount equal to
any reduction of the rate of return on assets or equity of the Lender or the
Lender’s holding company to a level below that which the Lender or the Lender’s
holding company could have achieved but for such Regulatory Change.

     

    (b)           Without
limiting the effect of the other provisions of this Section 2.17 (but
without duplication), in the event that any Requirement of Law or Regulatory
Change or the compliance by the Lender therewith shall (i) impose, modify or
hold applicable any reserve, special deposit or similar requirement against any
Letter of Credit or obligation to issue Letters of Credit or (ii) impose upon
the Lender any other condition regarding any Letter of Credit or obligation to
issue Letters of Credit, and the result of any such event shall be to increase
the cost to the Lender of issuing or maintaining any Letter of Credit or
obligation to issue Letters of Credit or any liability with respect to Letter of
Credit Payments, or to reduce any amount receivable in connection therewith,
then upon demand by the Lender, the Borrower shall pay to the Lender, from time
to time as specified by the Lender in the exercise of its reasonable judgment,
additional amounts which shall be sufficient to compensate the Lender for such
increased cost or reduced amount receivable.

    
      
         

      

      
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    (c)           Determinations
by the Lender for purposes of this Section 2.17 of the
effect of any Regulatory Change on capital maintained, its costs or rate of
return, its obligation to make and maintain Loans, issuing or participating in
Letters of Credit, or on amounts receivable by it in respect of Loans, Letters
of Credit or such other obligations, and the additional amounts required to
compensate the Lender under this Section 2.17 shall be
conclusive, absent manifest error.  The Lender shall furnish the
Borrower with a certificate setting forth in reasonable detail the basis and
amount of any loss, cost or expense incurred as a result of any such event, and
the statements set forth therein shall be conclusive, absent manifest
error.  The Lender shall notify the Borrower, as promptly as
practicable after the Lender obtains knowledge of any sums payable pursuant to
this Section
2.17 and determines to request compensation therefor, of any event
occurring after the Closing Date which will entitle the Lender to compensation
pursuant to this Section
2.17.  Any compensation requested by the Lender pursuant to
this Section
2.17 shall be due and payable within 30 days of receipt by the Borrower
of any such notice.

     

    (d)           The
Lender agrees not to request, and the Borrower shall not be obligated to pay,
any sums payable pursuant to this Section 2.17 unless
similar sums are also generally assessed by the Lender against other customers
similarly situated where such customers are subject to documents providing for
such assessment.

     

    2.18       Letters in Lieu of Transfer
Orders or Division Orders.  The Lender agrees that none of the
letters in lieu of transfer or division orders provided pursuant to the
provisions of Section
3.1(f) or Section 5.7 will be
sent to the addressees thereof unless an Event of Default has occurred, at which
time the Lender may, at its option, and in addition to the exercise of any of
its other rights and remedies, send any or all of such letters.

     

    2.19       Power of
Attorney.  The Borrower hereby designates the Lender as its
agent and attorney-in-fact, to act in its name, place and stead solely for the
purpose of completing and, upon the occurrence of an Event of Default,
delivering any and all of the letters in lieu of transfer or division orders
delivered by the Borrower pursuant to the provisions of Section 3.1(f) or
Section 5.7,
including completing any blanks contained in such letters and attaching exhibits
thereto describing the relevant Collateral.  The Borrower hereby
ratifies and confirms all that the Lender shall lawfully do or cause to be done
by virtue of this power of attorney and the rights granted with respect to such
power of attorney.  This power of attorney is coupled with the
interests of the Lender in the Collateral, shall commence and be in full force
and effect as of the Closing Date and shall remain in full force and effect and
shall be irrevocable so long as any Obligation remains outstanding or unpaid or
any Commitment exists.  The powers conferred on the Lender by this
appointment are solely to protect the interests of the Lender and any other
Approved Hedge Counterparties under the Loan Documents with respect to the
assignment of production proceeds under certain of the Security Documents and
shall not impose any duty upon the Lender to exercise any such
powers.  The power of attorney under this Section 2.19 is
expressly limited to the rights and powers set forth herein and no additional
rights or powers are herein created or implied.  The Lender shall be
accountable only for amounts that it actually receives as a result of the
exercise of such powers and shall not be responsible to the Borrower or any
other Person for any act or failure to act with respect to such powers, except
for gross negligence or willful misconduct.

    
      
         

      

      
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    2.20       Security Interest in
Accounts; Right of Offset.  As security for the payment and
performance of the Obligations, the Borrower hereby transfers, assigns, and
pledges to the Lender and grants to the Lender (for the pro rata benefit of the
Lender and any other Approved Hedge Counterparties) a security interest in all
of its funds now or hereafter or from time to time on deposit with the Lender or
any other Approved Hedge Counterparty, with such interest of the Lender to be
retransferred, reassigned and/or released at the expense of the Borrower upon
payment in full and complete performance  of all
Obligations.  All remedies as secured party or assignee of such funds
shall be exercisable  upon the occurrence of any Event of Default,
regardless of whether the exercise of any such remedy would result in any
penalty or loss of interest or profit with respect to any withdrawal of funds
deposited in a time deposit account prior to the maturity
thereof.  Furthermore, the Borrower hereby grants to the Lender (for
the pro rata benefit of the Lender and any other Approved Hedge Counterparties)
the right, exercisable at such time as any Obligation shall mature, whether by
acceleration of maturity or otherwise, of offset or banker’s lien against all of
its funds now or hereafter or from time to time on deposit with the Lender or
any other Approved Hedge Counterparty, regardless of whether the exercise of any
such remedy would result in any penalty or loss of interest or profit with
respect to any withdrawal of funds deposited in a time deposit account prior to
the maturity thereof.  The Lender shall notify the Borrower promptly
of the exercise of any such right of offset or banker’s lien.

     

    ARTICLE
III

     

    CONDITIONS

     

    The
obligations of the Lender to enter into this Agreement and to make Loans or
issue Letters of Credit are subject to the satisfaction of the following
conditions precedent:

     

    3.1         Receipt of Loan Documents
and Other Items.  The Lender shall have no obligation under
this Agreement unless and until all matters incident to the consummation of the
transactions contemplated herein shall be satisfactory to the Lender and the
Lender shall have received, reviewed and approved the following documents and
other items, appropriately executed when necessary and, where applicable,
acknowledged by one or more Responsible Officers of the Borrower or other
Persons, as the case may be, all in form and substance satisfactory to the
Lender and dated, where applicable, of even date herewith or a date prior
thereto or thereafter and acceptable to the Lender:

     

    (a)           multiple
counterparts of this Agreement as requested by the Lender;

     

    (b)           the
Note;

     

    (c)           copies
of the organizational documents of the Borrower and all amendments to any of
such documents, accompanied by a certificate dated the Closing Date issued by
the secretary or an assistant secretary or another authorized representative of
the Borrower to the effect that each such copy is correct and
complete;

     

    (d)           a
certificate of incumbency dated the Closing Date, including specimen signatures
of all officers or other representatives of the Borrower who are authorized to
execute Loan Documents on behalf of the Borrower, each such certificate being
executed by the secretary or an assistant secretary or another authorized
representative of the Borrower;

    
      
         

      

      
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    (e)           copies
of resolutions adopted by the governing body of the Borrower approving the Loan
Documents to which the Borrower is a party and authorizing the transactions
contemplated herein and therein, accompanied by a certificate dated the Closing
Date issued by the secretary or an assistant secretary or another authorized
representative of the Borrower to the effect that such copies are true and
correct copies of resolutions duly adopted and that such resolutions constitute
all the resolutions adopted with respect to such transactions, have not been
amended, modified or rescinded in any respect, and are in full force and effect
as of the date of such certificate;

     

    (f)           the
following documents continuing in effect or establishing Liens in favor or for
the benefit of the Lender in and to the Collateral, including Mortgaged
Properties constituting at least ninety percent (90%) of the discounted present
value, as determined by the Lender in its reasonable discretion, of the proved
reserves attributable to the Oil and Gas Properties of the
Borrower:

     

    
      	
               
      

            	
              (i)

            	
              amendments
      to and ratifications of the security documents in effect under the terms
      of the Existing Credit Agreement;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      requested by the Lender, additional security documents from the Borrower
      in favor of the Lender covering certain Property of the Borrower,
      including additional Oil and Gas Properties of the Borrower sufficient for
      the Borrower to be in compliance with the provisions of Section
      5.5;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              financing
      statement amendments and, if requested by the Lender, new financing
      statements, in each case constituent to the documents described in clauses
      (i) and (ii) above; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              undated
      letters, in form and substance satisfactory to the Lender, from the
      Borrower to each purchaser of production and disburser of the proceeds of
      production from or attributable to the Mortgaged Properties, with the
      addressees left blank, authorizing and directing the addressees to make
      future payments attributable to production from the Mortgaged Properties
      directly to the Lender for the account of the
  Borrower;

            

    

     

    (g)           unaudited
pro forma Financial Statements as of January 4, 2011, certified by a Responsible
Officer of the Borrower as having been prepared in accordance with GAAP
consistently applied and as a fair presentation of the condition of the
Borrower, subject to changes resulting from normal year-end audit
adjustments;

     

    (h)           certificates
dated as of a recent date from the Secretary of State or other appropriate
Governmental Authority evidencing the existence or qualification and, if
applicable, good standing of the Borrower in its jurisdiction of organization
and in any other jurisdictions where it owns property or does
business;

    
      
         

      

      
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    (i)           results
of a search of the uniform commercial code records of the Secretary of State of
the State of Nevada in the name of the Borrower, such search report to be from a
source or sources acceptable to the Lender and reflecting no Liens, other than
Permitted Liens, against any of the Collateral as to which perfection of a Lien
is accomplished by the filing of a financing statement;

     

    (j)          confirmation,
acceptable to the Lender, of the title of the Borrower, free and clear of Liens
other than Permitted Liens, to Mortgaged Properties constituting at least ninety
percent (90%) of the discounted present value, as determined by the Lender in
its discretion, of the proved reserves attributable to such Mortgaged
Properties;

     

    (k)         confirmation
acceptable to the Lender that the Oil and Gas Properties of the Borrower are in
compliance, in all material respects, with applicable Environmental
Laws;

     

    (l)          copies
of executed counterparts of all operating, lease, sublease, royalty, sales,
exchange, processing, farmout, bidding, pooling, unitization, communitization
and other agreements relating to the Mortgaged Properties as of the Closing
Date, as  requested by the Lender;

     

    (m)        engineering
information regarding the Oil and Gas Properties of the Borrower, as requested
by the Lender;

     

    (n)         the
opinion of O’Neill Law Group PLLC, as Nevada counsel to the Borrower in
connection with this Agreement and the other Loan Documents to which the
Borrower is a party, substantially in the form attached hereto as Exhibit IV, with such
changes thereto as may be approved by the Lender;

     

    (o)         the
opinion of Friday Eldredge & Clark LLP, as Texas counsel to the Borrower in
connection with this Agreement and the other Loan Documents to which the
Borrower is a party, substantially in the form attached hereto as Exhibit V, with such
changes thereto as may be approved by the Lender;

     

    (p)         certificates
evidencing the insurance coverage required by the provisions of Section
5.20;

     

    (q)         payment
of any fees due as of the Closing Date pursuant to this Agreement;

     

    (r)      
   payment from the Borrower for estimated fees charged by filing
officers and other public officials incurred or to be incurred in connection
with the filing and recordation of any Security Documents and for which invoices
have been presented as of the Closing Date;

     

    (s)         copies
of all Commodity Hedge Agreements to which the Borrower is a party as of the
Closing Date;

     

    (t)          a
certificate of a Responsible Officer of the Borrower to the effect that all
representations and warranties made by the Borrower in this Agreement or any
other Loan Document in place on the Closing Date are true and correct in all
material respects as of the Closing Date and that no Default or Event of Default
exists as of the Closing Date;

    
      
         

      

      
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    (u)         confirmation
acceptable to the Lender that no event or circumstance, including any action,
suit, investigation or proceeding pending, or, to the knowledge of the Borrower,
threatened in any court or before any arbitrator or Governmental Authority,
shall have occurred which could reasonably be expected to have a Material
Adverse Effect; and

     

    (v)         such
other agreements, documents, instruments, opinions, certificates, waivers,
consents and evidence as the Lender may reasonably request.

     

    3.2          Each
Loan.  In addition to the conditions precedent stated elsewhere
herein, the Lender shall not be obligated to make any Loan, other than in
connection with a Letter of Credit Payment, unless:

     

    (a)           at
least the requisite time prior to the requested date for the relevant Loan, the
Borrower shall have delivered to the Lender a Borrowing Request and a funding
direction advising the Lender whether the requested Loan should be funded to an
account of the Borrower at the Lender or should be funded by wire transfer to an
account of another Person (in which case wire transfer instructions shall be
included) and each statement or certification made in such Borrowing Request
shall be true and correct in all material respects on the requested date for
such Loan;

     

    (b)           no
Event of Default or Default shall exist or will occur as a result of the making
of the requested Loan;

     

    (c)           if
requested by the Lender, the Borrower shall have delivered evidence satisfactory
to the Lender substantiating any of the matters contained in this Agreement
which are necessary to enable the Borrower to qualify for such
Loan;

     

    (d)          the
Lender shall have received a copy of any notice to the Trustee under the Trust
Indenture required, pursuant to the provisions of the Trust Indenture, with
respect to such Loan;

     

    (e)          the
Lender shall have received, reviewed and approved such additional documents and
items as described in Section 3.1 as may be
requested by the Lender with respect to such Loan;

     

    (f)           no
event shall have occurred which, in the opinion of the Lender, could reasonably
be expected to have a Material Adverse Effect;

     

    (g)           each
of the representations and warranties of the Borrower or any of the Guarantors
contained in this Agreement and the other Loan Documents shall be true and
correct in all material respects and shall be deemed to be repeated by the
relevant entity as if made on the requested date for such Loan;

     

    (h)          all
of the Security Documents shall be in full force and effect;

    
      
         

      

      
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    (i)           neither
the consummation of the transactions contemplated hereby nor the making of such
Loan shall contravene, violate or conflict with any Requirement of Law
applicable to the Lender, the Borrower or any of the Guarantors;
and

     

    (j)           the
Borrower or any relevant Guarantor, as applicable, shall hold full legal title
to the Collateral pledged by it under the Security Documents and be the sole
beneficial owner thereof.

     

    3.3         Issuance of Letters of
Credit.  The obligation of the Lender to issue, renew, or
extend any Letter of Credit is subject to the satisfaction of the following
additional conditions precedent:

     

    (a)           the
Borrower shall have delivered to the Lender a written (or oral, confirmed
promptly in writing) request for the issuance, renewal or extension of a Letter
of Credit at least three Business Days prior to the requested issuance, renewal
or extension date and a Letter of Credit Application at least one Business Day
prior to the requested issuance date, and each statement or certification made
in such Letter of Credit Application shall be true and correct in all material
respects on the requested date for the issuance of such Letter of
Credit;

     

    (b)           no
Event of Default or Default shall exist or will occur as a result of the
issuance, renewal, or extension of such Letter of Credit;

     

    (c)           if
requested by the Lender, the Borrower shall have delivered evidence satisfactory
to the Lender substantiating any of the matters contained in this Agreement
which are necessary to enable the Borrower to qualify for the issuance, renewal
or extension of such Letter of Credit;

     

    (d)           the
Lender shall have received a copy of any notice to the Trustee under the Trust
Indenture required, pursuant to the provisions of the Trust Indenture, with
respect to such Letter of Credit;

     

    (e)           no
event shall have occurred which, in the opinion of the Lender, could reasonably
be expected to have a Material Adverse Effect;

     

    (f)           each
of the representations and warranties of the Borrower contained in this
Agreement and the other Loan Documents shall be true and correct in all material
respects and shall be deemed to be repeated by the Borrower as if made on the
requested date for the issuance, renewal or extension of such Letter of
Credit;

     

    (g)           all
of the Security Documents shall be in full force and effect;

     

    (h)           neither
the consummation of the transactions contemplated hereby nor the issuance,
renewal or extension of such Letter of Credit shall contravene, violate or
conflict with any Requirement of Law applicable to the Lender, the Borrower or
any of the Guarantors;

     

    (i)           the
Borrower or any relevant Guarantor, as applicable, shall hold full legal title
to the Collateral pledged by it under the Security Documents and be the sole
beneficial owner thereof; and

    
      
         

      

      
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    (j)           the
terms, provisions and beneficiary of the Letter of Credit or such renewal or
extension shall be satisfactory to the Lender in its reasonable
discretion.

     

    ARTICLE
IV

     

    REPRESENTATIONS AND
WARRANTIES

     

    To induce
the Lender to enter into this Agreement and to make the Loans and issue and
renew Letters of Credit, the Borrower and each of the Guarantors represents and
warrants to the Lender (which representations and warranties shall survive the
delivery of the Note) that:

     

    4.1           Due
Authorization.  The execution and delivery by it of this
Agreement and the borrowings by the Borrower hereunder, the execution and
delivery by the Borrower of the Note, the repayment by the Borrower of the Note
and interest and fees provided for in the Note and this Agreement, the execution
and delivery of the Security Documents to which it is a party and the
performance by it of its obligations under the Loan Documents to which it is a
party are within the power of the Borrower or such Person as the case may be,
have been duly authorized by all necessary action by the Borrower or such
Person, as the case may be, and do not and will not (a) require the consent of
any Governmental Authority, (b) contravene or conflict with any applicable
Requirement of Law, (c) contravene or conflict in any material respect with any
material indenture, instrument or other agreement to which it is a party or by
which any of its Property may be presently bound or encumbered or (d) result in
or require the creation or imposition of any Lien in, upon or on any of its
Property under any such indenture, instrument, or other agreement, other than
under any of the Loan Documents.

     

    4.2           Existence.  It
is a corporation, a limited partnership, a limited liability company or other
entity, as the case may be, duly organized, legally existing and, if applicable,
in good standing under the laws of the state of its organization or formation
and is duly qualified as a foreign limited partnership or limited liability
company and, if applicable, in good standing in all jurisdictions wherein the
ownership of its Property or the operation of its business necessitates same and
where the failure to so qualify would have a Material Adverse
Effect.

     

    4.3           Valid and Binding
Obligations.  Each Loan Document to which it is a party, when
duly executed and delivered by it, constitutes its legal, valid and binding
obligation enforceable against it in accordance with its terms.

     

    4.4           Security
Documents.  The provisions of each Security Document executed
by it are effective to create, in favor or for the benefit of the Lender, a
legal, valid and enforceable Lien in all of its right, title and interest in the
Collateral described therein, which Lien, assuming the accomplishment of
recording and filing in accordance with applicable laws prior to the
intervention of rights of other Persons, constitutes a fully perfected
first-priority Lien (except as to Permitted Liens) on all of its right, title
and interest in the Collateral described therein.

     

    4.5           Title to Oil and Gas
Properties.  It has good and indefeasible title to all of its
Oil and Gas Properties, free and clear of all Liens except Permitted
Liens.  No Person other than it has any ownership interest, whether
legal or beneficial, in its interest in any of its Oil and Gas
Properties.

    
      
         

      

      
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    4.6           Scope and Accuracy of
Financial Statements.  The Financial Statements provided to the
Lender in satisfaction of the condition set forth in Section 3.1(g) present
fairly (subject to normal year-end audit adjustments) the financial position and
results of operations and cash flows of the Borrower and its consolidated
Subsidiaries in accordance with GAAP as at the relevant point in time or for the
period indicated, as applicable.

     

    4.7           No Material Adverse Effect
or Default.  No event or circumstance has occurred since
January 4, 2011 which could reasonably be expected to have a Material Adverse
Effect, and, to its best knowledge, no Default has occurred and is
continuing.

     

    4.8           No Material
Misstatements.  No information, exhibit, statement or report
furnished to the Lender by it or at its direction in connection with this
Agreement or any other Loan Document contains any material misstatement of fact
or omits to state a material fact or  any fact necessary to make the
statements contained therein not misleading as of the date made or deemed
made.

     

    4.9           Liabilities, Litigation and
Restrictions.  Other than as reflected in the Financial
Statements provided to the Lender in satisfaction of the condition set forth in
Section 3.1(i)
or listed on Schedule
4.9 under the heading “Liabilities”, it has no liabilities, direct or
contingent, which may materially and adversely affect its business or operations
or its ownership of any Collateral.  Except as set forth under the
heading “Litigation” on Schedule 4.9, no
litigation or other action of any nature affecting it is pending before any
Governmental Authority or, to the best of its knowledge, threatened against or
affecting it or any of its Subsidiaries which could, if adversely determined,
reasonably be expected to have a Material Adverse Effect.  No unusual
or unduly burdensome restriction, restraint or hazard exists by contract,
Requirement of Law or otherwise relative to its business or operations or its
ownership and operation of any Collateral other than such as relate generally to
Persons engaged in business activities similar to those conducted by it or as
could not reasonably be expected to have a Material Adverse Effect.

     

    4.10           Authorizations;
Consents.  Except as expressly contemplated by this Agreement,
no authorization, consent, approval, exemption, franchise, permit or license of,
or filing with, any Governmental Authority or any other Person is required to
authorize, or is otherwise required in connection with, the valid execution and
delivery by it of the Loan Documents to which it is a party or any instrument
contemplated hereby, the repayment of the Note and interest and fees provided in
the Note and this Agreement or the performance of the Obligations.

     

    4.11           Compliance with
Laws.  It and its Properties, including any Mortgaged
Properties and Oil and Gas Properties owned by it, are in compliance with all
applicable Requirements of Law, except to the extent any such failure to comply
could not reasonably be expected to have a Material Adverse Effect.

     

    4.12           ERISA.  It
does not maintain, nor has it maintained, any Plan.  It does not
currently contribute to or have any obligation to contribute to or otherwise
have any liability with respect to any Plan.

     

    
      
         

      

      
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    4.13        Environmental
Laws.  Except as  described on Schedule
4.13:

     

    (a)           no
Property owned by it, or, to its knowledge, Property of others adjacent to
Property owned by it, is currently on or has, to its knowledge, ever been on any
federal or state list of Superfund Sites;

     

    (b)           no
Hazardous Substances have been generated, transported and/or disposed of by it
at a site which was, at the time of such generation, transportation and/or
disposal, or has since become, a Superfund Site;

     

    (c)           except
in accordance with applicable Requirements of Law or the terms of a valid
permit, license, certificate or approval of the relevant Governmental Authority,
no Release of Hazardous Substances by it or from, affecting or related to any
Property owned by it has occurred which could reasonably be expected to have a
Material Adverse Effect; and

     

    (d)           no
Environmental Complaint has been received by it that has not been resolved in
full.

     

    4.14        Compliance with Federal
Reserve Regulations.  No transaction contemplated by the Loan
Documents is in violation of, and it has not taken any action that would result
in any transaction contemplated by the Loan Documents being in violation of, in
any material respect, any regulations promulgated by the Board of Governors of
the Federal Reserve System, including Regulations T, U or X.

     

    4.15        Investment Company
Act.  It is not, nor is it directly or indirectly controlled by
or acting on behalf of any Person which is an “investment company” or an
“affiliated person” subject to regulation as an “investment company” within the
meaning of the Investment Company Act of 1940.

     

    4.16        Proper Filing of Tax
Returns; Payment of Taxes Due.  It has filed its United States
income tax returns and all other tax returns which are required to be filed and
has paid all taxes shown as due from it thereon, except such as are being
contested in good faith and as to which adequate provisions and disclosures have
been made.  The respective charges and reserves on its books with
respect to taxes and other governmental charges are adequate.

     

    4.17        Refunds.  Except
as described on Schedule 4.17, no
orders of, proceedings pending before, or other requirements of any Governmental
Authority exist which could result in it being required to refund any portion of
the proceeds received or to be received by it from the sale of hydrocarbons
constituting part of the Mortgaged Property or other Oil and Gas Properties
owned by it.

     

    4.18        Gas
Contracts.  Except as described on Schedule 4.18, (a) it
is not obligated in any material respect by virtue of any prepayment made under
any contract containing a “take-or-pay” or “prepayment” provision or under any
similar agreement to deliver hydrocarbons produced from or allocated to any of
the Mortgaged Property or other Oil and Gas Properties owned by it at some
future date without receiving full payment therefor within 90 days of delivery,
and (b) it has not produced gas, in any material amount, subject to, and neither
it nor any of the Mortgaged Properties  or other Oil and Gas
Properties owned by it is subject to, balancing rights of third parties or
subject to balancing duties under Requirements of Law, except as to such matters
for which it has established monetary reserves adequate in amount to satisfy
such obligations and has segregated such reserves from other
accounts.

    
      
         

      

      
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    4.19        Intellectual
Property.  It owns or is licensed to use all Intellectual
Property necessary to conduct its business as currently conducted, except where
the failure to own or license such property could not reasonably be expected to
have a Material Adverse Effect.  No claim is pending, or to its
knowledge has been asserted, by any Person with respect to the use of any such
Intellectual Property or challenging or questioning the validity or
effectiveness of any such Intellectual Property; and it knows of no valid basis
for any such claim.  The use of such Intellectual Property by it does
not infringe on the rights of any Person, except for such claims and
infringements as do not, in the aggregate, give rise to any material liability
on its part.

     

    4.20        Casualties or Taking of
Property.  Except as disclosed on Schedule 4.20, since
the later of (a) January 4, 2011, or (b) the date of the most recent Financial
Statements furnished to the Lender pursuant to either Section 5.2 or Section 5.3, neither
its business nor any of its Property has been affected as a result of any fire,
explosion, earthquake, flood, drought, windstorm, accident, strike or other
labor disturbance, embargo, requisition or taking of Property, or cancellation
of contracts, permits or concessions by any Governmental Authority, riot,
activities of armed forces or acts of God, except as could not reasonably be
expected to have a Material Adverse Effect.

     

    4.21        Principal
Location.  Its principal place of business and chief executive
office is located at its address set forth in Section 8.3 or at
such other location as it may have, by proper written notice hereunder, advised
the Lender.

     

    4.22        Subsidiaries.  It
has no Subsidiaries other than Doral West Corp., a Nevada corporation, which
owns no assets of material value, as disclosed to the Lender in writing from
time to time.

     

    4.23        Compliance with
Anti-Terrorism Laws.

     

    (a)           Neither
it nor any of its Affiliates is in violation in any material respect of any
applicable Anti-Terrorism Law or knowingly engages in or conspires to engage in
any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
applicable Anti-Terrorism Law.

     

    (b)           Neither
it nor any of its Affiliates is any of the following (each a “Blocked
Person”):

     

    
      	
               
      

            	
              (i)

            	
              a
      Person that is listed in the annex, to, or is otherwise subject to the
      provisions of, Executive Order No.
13224;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      Person owned or controlled by, or acting for or on behalf of, any Person
      that is listed in the annex to, or is otherwise subject to the provisions
      of, Executive Order No. 13224;

            

    

     

    
      
         

      

      
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              (iii)

            	
              a
      Person with which any bank or other financial institution is prohibited
      from dealing or otherwise engaging in any transaction by any
      Anti-Terrorism Law;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              a
      Person that commits, threatens or conspires to commit or supports
      “terrorism” as defined in Executive Order No.
  13224;

            

    

     

    
      	
               
      

            	
              (v)

            	
              a
      Person that is named as a “specially designated national” on the most
      current list published by OFAC at its official website or any replacement
      website or other replacement official publication of such list;
      or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              an
      Affiliate of a Person or entity listed
above.

            

    

     

    (c)           Neither
it nor any of its Affiliates (i) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person or (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to Executive
Order No. 13224.

     

    (d)           Neither
it nor any of its Affiliates is in violation in any material respect of any
rules or regulations promulgated by OFAC or of any economic or trade sanctions
administered and enforced by OFAC or engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in any rules or
regulations promulgated by OFAC.

     

    4.24        Identification
Numbers.  Its federal taxpayer identification number and
organizational number with the Secretary of State of the state of its
organization or formation are as set out on Schedule 4.24 or as
otherwise provided to the Lender in writing.

     

    4.25        Solvency.  Immediately
after the Closing and immediately following the making of each Loan made on the
Closing Date and following the making of any Loan made after the Closing Date,
after giving effect to the application of the proceeds of each such Loan, (a)
the fair value of its assets, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise, at a fair valuation; (b) the
present fair saleable value of its assets, at a fair valuation, will be greater
than the amount that will be required to pay the probable liability of its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured considering all financing
alternatives and potential asset sales reasonably available to it; (c) it will
be able to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured; and (d) it will not
have unreasonably small capital with which to conduct the business in which it
is engaged as such business is now conducted and are proposed to be conducted
following the Closing Date.

    
      
         

      

      
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    ARTICLE
V

     

    AFFIRMATIVE
COVENANTS

     

    So long
as any Obligation remains outstanding or unpaid or any Commitment exists, each
of the Borrower and the Guarantors shall (provided, however, that Section 5.14 shall
apply only to the Borrower):

     

    5.1         Maintenance and Access to
Records.  Keep adequate records, in accordance with GAAP, of
all its transactions so that at any time, and from time to time, its true and
complete financial condition (subject to normal year-end audit adjustments) may
be readily determined, and promptly following the request of the Lender, make
such records available for inspection by the Lender and, at the expense of the
Borrower allow Lender to make and take away copies thereof.

     

    5.2         Quarterly Financial
Statements and Compliance Certificates.  Deliver to the Lender,
on or before the 60th day after the close of each of the first three quarterly
periods of each fiscal year of the Borrower, commencing with that ending March
31, 2011, (a) a copy of the Financial Statements  as at the close of
such quarterly period and from the beginning of such fiscal year to the end of
such period, such Financial Statements to be certified by a Responsible Officer
of the Borrower as having been prepared in accordance with GAAP consistently
applied and as a fair presentation of the financial condition, as of the date
and for the period indicated therein, of the Borrower, on a consolidated basis
with its consolidated Subsidiaries, subject to changes resulting from normal
year end audit adjustments, and (b) a Compliance Certificate prepared as of the
close of such quarterly period.

     

    5.3         Annual Financial Statements
and Compliance Certificate.  Deliver to the Lender, on or
before the 120th day after the close of each fiscal year of the Borrower,
commencing with that ending on December 31, 2011, (a) a copy of the annual
audited Financial Statements, such Financial Statements to be certified by a
Responsible Officer of the Borrower as having been prepared in accordance with
GAAP consistently applied and as a fair presentation of the financial condition,
as of the date and for the period indicated therein, of the Borrower on a
consolidated basis with its consolidated Subsidiaries, with such audited
Financial Statements accompanied by an unqualified opinion from a nationally
recognized or regionally-recognized firm of independent certified public
accountants or other independent certified public accountants acceptable to the
Lender, and (b) a Compliance Certificate prepared as of the close of the
relevant fiscal year.

    
      
         

      

      
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    5.4          Oil and Gas Reserve Reports
and Production Reports.

     

    (a)           Deliver
to the Lender, no later than each March 31 during the term of this Agreement,
commencing with March 31, 2012, an engineering report in form satisfactory to
the Lender, prepared as of the preceding December 31 and certified by a
nationally or regionally-recognized firm of independent consulting petroleum
engineers or other firm of independent consulting petroleum engineers acceptable
to the Lender as fairly and accurately setting forth (i) the proved and
producing, non-producing, shut-in, behind-pipe and undeveloped oil and gas
reserves (separately classified as such) attributable to the Mortgaged
Properties and other Oil and Gas Properties of the Borrower and its Subsidiaries
as of the most recent practicable date, (ii) the aggregate present value of the
future net income with respect to proved and producing reserves attributable to
the Mortgaged Properties and other Oil and Gas Properties of the Borrower and
its Subsidiaries, discounted at a stated per annum discount rate, (iii)
projections of the annual rate of production, gross income and net income with
respect to such proved and producing reserves, (iv) information with respect to
the “take-or-pay,” “prepayment” and gas-balancing liabilities of the Borrower
and its Subsidiaries with respect to such reserves, and (v) general economic
assumptions.

    (b)          Deliver
to the Lender, no later than each September 30 during the term of this
Agreement, commencing with September 30, 2011, an engineering report, in
substantially the format of and providing the information provided in the
engineering reports provided pursuant to Section 5.4(a),
prepared as of the preceding June 30 and certified, at the election of the
Borrower, by either the chief operating officer or senior reserve engineer of
the Borrower or a nationally or regionally-recognized firm of independent
consulting petroleum engineers acceptable to the Lender or other firm of
independent consulting petroleum engineers acceptable to the Lender as fairly
and accurately setting forth the information provided therein.

     

    (c)           Deliver
to the Lender, no later than the 60th day following the end of each calendar
quarter, a report, in form satisfactory to the Lender, setting forth information
as to quantities of production from the Mortgaged Properties, volumes of
production sold, volumes of production committed to Commodity Hedge Agreements,
pricing, purchasers of production, gross revenues, lease operating expenses, and
such other information as the Lender may reasonably request with respect to the
relevant quarterly period.

     

    5.5          Title Opinions; Title
Defects; Mortgaged Properties.

     

    (a)          Promptly
upon the request of the Lender, furnish to the Lender title opinions, in form
and substance and by counsel satisfactory to the Lender, or other confirmation
of title reasonably acceptable to the Lender, covering Oil and Gas Properties of
the Borrower and its Subsidiaries the discounted present value of the proved
reserves attributable to which, in the aggregate, equals no less than ninety
percent (90%) of the aggregate discounted present value of the proved reserves
attributable to the combined Oil and Gas Properties of the Borrower and its
Domestic Subsidiaries.

     

    (b)          Promptly,
but in any event within 30 days after notice by the Lender of any defect having
a Material Adverse Effect, clear such title defect.

     

    (c)           Promptly
upon request of the Lender, execute and deliver to the Lender additional
Security Documents as necessary to maintain, as Mortgaged Properties, Oil and
Gas Properties of the Borrower and its Domestic Subsidiaries constituting no
less than ninety percent (90%) of the aggregate discounted present value of the
proved reserves attributable to the combined Oil and Gas Properties of the
Borrower and its Domestic Subsidiaries.

     

    
      
         

      

      
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    5.6         Notices of Certain
Events.  Deliver to the Lender, promptly, but in no event later
than the fifth Business Day after having knowledge of the occurrence of any of
the following events or circumstances, a written statement with respect thereto,
signed by a Responsible Officer of the relevant Business Entity or its general
partner and setting forth the relevant event or circumstance and the steps being
taken by the relevant Business Entity with respect to such event or
circumstance:

     

    (a)           any
Default or Event of Default;

     

    (b)          any
default by it under any contractual obligation or any litigation, investigation
or proceeding between it and any Governmental Authority which, in either case,
if not cured or if adversely determined, as the case may be, could reasonably be
expected to have a Material Adverse Effect;

     

    (c)          any
litigation or proceeding involving it as a defendant or in which any of its
Property is subject to a claim and in which the amount involved is $100,000 or
more and which is not covered by insurance or in which injunctive or similar
relief is sought;

     

    (d)          the
receipt by it of any Environmental Complaint, which if adversely determined
could reasonably be expected to have a Material Adverse Effect;

     

    (e)          any
actual, proposed, or threatened testing or other investigation by any
Governmental Authority or other Person concerning the environmental condition
of, or relating to, any of its Property following any allegation of a material
violation of any Requirement of Law;

     

    (f)           any
Release of Hazardous Substances by it or from, affecting, or related to any of
its Property or Property of others adjacent to any of its Property which could
reasonably be expected to have a Material Adverse Effect, except in accordance
with applicable Requirements of Law or the terms of a valid permit, license,
certificate, or approval of the relevant Governmental Authority, or the
violation of any Environmental Law in any material respect, or the revocation,
suspension, or forfeiture of or failure to renew, any permit, license,
registration, approval, or authorization which could reasonably be expected to
have a Material Adverse Effect;

     

    (g)          any
change in its senior management;

     

    (h)          any
material change in its accounting or financial reporting practices;
and

     

    (i)           any
other event or condition which could reasonably be expected to have a Material
Adverse Effect.

     

    5.7         Letters in Lieu of Transfer
Orders or Division Orders.  Promptly upon request by the Lender
at any time and from time to time, and without limitation on the rights of the
Lender pursuant to the provisions of Section 2.18 and
Section 2.19,
execute such letters in lieu of transfer or division orders, in addition to the
letters delivered to the Lender in satisfaction of the condition set forth in
Section 3.1(f),
as are necessary or appropriate to transfer and deliver to the Lender proceeds
from or attributable to any Mortgaged Property.

     

    
      
        
        

      

      
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    5.8          Commodity
Hedging.  Comply in all material respects with any Commodity
Hedge Agreements entered into by the Borrower or any Domestic Subsidiary of the
Borrower subsequent to the Closing Date and not in violation of the provisions
of Section
6.1.

     

    5.9          Joinder of New Domestic
Subsidiaries.  Execute and deliver Security Documents covering
all of its equity ownership in each Domestic Subsidiary of the Borrower formed
or acquired after the Closing Date or sixty five percent (65%) of the equity
ownership in any Subsidiary of the Borrower formed or acquired after the Closing
Date which is not a Domestic Subsidiary of the Borrower and take all other
action requested by the Lender to perfect the Lien of all such Security
Documents and cause each Domestic Subsidiary of the Borrower or any of the
Guarantors formed or acquired after the Closing Date to execute and deliver
Joinder Agreements and Guaranties, as requested by the Lender, and take all such
other action reasonably requested by the Lender in connection with such
Guaranties and Joinder Agreements.

     

    5.10       Additional
Information.  Furnish to the Lender, promptly upon the request
of the Lender, such additional financial or other information concerning its
assets, liabilities, operations and transactions as the Lender may from time to
time reasonably request; and notify the Lender not less than ten Business Days
prior to the occurrence of any condition or event that may change the proper
location for the filing of any financing statement or other public notice or
recording for the purpose of perfecting a Lien in any Collateral, including any
change in its name or jurisdiction of  organization; and upon the
request of the Lender, execute such additional Security Documents as may be
necessary or appropriate in connection therewith.

     

    5.11      
Compliance with
Laws.  Except to the extent the failure to comply or cause
compliance could not reasonably be expected to have a Material Adverse Effect,
comply in all material respects with all applicable Requirements of Law,
including (a) ERISA, (b) Environmental Laws and (c) all permits, licenses,
registrations, approvals, and authorizations (i) related to any natural or
environmental resource or media located on, above, within, related to or
affected by any of its Property, (ii) required for the performance of its
operations, or (iii) applicable to the use, generation, handling, storage,
treatment, transport or disposal of any Hazardous Substances; and use its best
efforts to cause all of its employees, crew members, agents, contractors,
subcontractors and future lessees (pursuant to appropriate lease provisions),
while such Persons are acting within the scope of their relationship with it, to
comply with all such Requirements of Law as may be necessary or appropriate to
enable it to so comply.

     

    5.12       Payment of Assessments and
Charges.  Pay all taxes, assessments, governmental charges,
rent and other Indebtedness which, if unpaid, might become a Lien against any of
its Property, except any of the foregoing that are being contested in good faith
and as to which an adequate reserve in accordance with GAAP has been established
or unless failure to pay would not have a Material Adverse Effect.

     

    5.13       Maintenance of Existence or
Qualification and Good Standing.  Maintain its separate
corporate, limited partnership or limited liability company existence and
identity, as the case may be, and, if applicable, good standing and
qualification in its jurisdiction of organization and in all jurisdictions
wherein the Property now owned or hereafter acquired or business now or
hereafter conducted by it necessitates same, except where the failure to so
qualify would not reasonably be expected to have a Material Adverse
Effect.

     

    
      
         

      

      
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    5.14           Payment of Note; Performance
of Obligations.  Pay the Note according to the reading, tenor
and effect thereof, as modified hereby, and do and perform every act and
discharge all of the other Obligations in all material respects.

     

    5.15           Further
Assurances.  Promptly cure any defects in the execution and
delivery of any of the Loan Documents to which it is a party and all agreements
contemplated thereby, and execute, acknowledge and deliver to the Lender such
other assurances and instruments as shall, in the reasonable opinion of the
Lender, be necessary to fulfill the terms of the Loan Documents to which it is a
party.

     

    5.16           Initial Expenses of
Lender.  Upon request by the Lender, promptly reimburse the
Lender for, or pay directly to such special counsel, all reasonable fees and
expenses of Jackson Walker  L.L.P., special counsel to the Lender, in
connection with the preparation of this Agreement and all documentation
contemplated hereby, the satisfaction of the conditions precedent set forth
herein, the filing and recordation of Security Documents and the consummation of
the transactions contemplated in this Agreement.

     

    5.17           Subsequent Expenses of
Lender.  Upon request by the Lender, promptly reimburse the
Lender (to the fullest extent permitted by law) for all amounts reasonably
expended, advanced or incurred by or on behalf of the Lender to evaluate the
Mortgaged Properties or to satisfy any of the Borrower’s or any Guarantor’s
obligations under any of the Loan Documents; to collect the Obligations; to
ratify, amend, restate or prepare additional Loan Documents, as the case may be;
for the filing and recordation of Security Documents; to enforce the rights of
the Lender under any of the Loan Documents; and to protect the relevant Person’s
Properties or business, including the Collateral, which amounts shall be deemed
compensatory in nature and liquidated as to amount upon notice to the relevant
Person by the Lender and which amounts shall include (a) all court costs, (b)
reasonable attorneys’ fees, (c) reasonable fees and expenses of auditors,
accountants and independent petroleum engineers incurred to protect the
interests of the Lender and any other Approved Hedge Counterparties, (d) fees
and expenses incurred in connection with the participation by the Lender as
members of the creditors’ committee in any Insolvency Proceeding, (e) fees and
expenses incurred in connection with lifting the automatic stay prescribed in
§362 Title 11 of the United States Code, and (f) fees and expenses reasonably
incurred in connection with any action pursuant to §1129 Title 11 of the United
States Code all incurred by the Lender in connection with the collection of any
sums due under the Loan Documents, together with interest at the per annum
interest rate equal to the Adjusted Base Rate on each such amount from the date
of notification that the same was expended, advanced, or incurred by the Lender
until the date it is repaid to the Lender, with the obligations under this
Section 5.17 surviving the non-assumption of this Agreement in any Insolvency
Proceeding and being binding upon it and/or a trustee, receiver, custodian, or
liquidator of it  appointed in any such case.

     

    5.18           Operation of Oil and Gas
Properties.  Develop, maintain and operate or, to the extent
that the right or obligation to do so rests with another Person, exercise its
best efforts to cause such other Person to develop, maintain and operate its Oil
and Gas Properties in a prudent and workmanlike manner and in accordance with
customary industry standards.

     

    
      
         

      

      
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    5.19           Maintenance and Inspection
of Properties.  Maintain or, to the extent that the right or
obligation to do so rests with another Person, exercise its best efforts to
cause such other Person to maintain all of its material tangible Properties
necessary to operate its business as currently conducted in good repair and
condition, ordinary wear and tear excepted; make or, to the extent that the
right or obligation to do so rests with another Person, exercise its best
efforts to cause such other Person to make all necessary replacements thereof
and operate such Properties in a good and workmanlike manner; and permit any
authorized representative of the Lender, upon prior notice to visit and inspect,
at reasonable times, any of its tangible Property.

     

    5.20           Maintenance of
Insurance.  Maintain insurance with respect to its Properties
and businesses against such liabilities, casualties, risks and contingencies as
is customary in the relevant industry and sufficient to prevent a Material
Adverse Effect, all such insurance to be in amounts and from insurers reasonably
acceptable to the Lender,  name the Lender as an additional insured
(in the case of liability insurance) and co-loss payee (in the case of physical
damage insurance), and, upon any renewal of any such insurance and at other
times upon request by the Lender, furnish to the Lender evidence, satisfactory
to the Lender, of the maintenance of such insurance.  The Lender shall
have the right to collect, and each of the Borrower and the Guarantors hereby
assigns to the Lender, any and all monies that may become payable under any
policies of insurance relating to business interruption or by reason of damage,
loss or destruction of any of the Collateral.  In the event of any
damage, loss or destruction for which insurance proceeds relating to (a)
business interruption exceed $250,000 or (b) Collateral exceed ten percent
(10%) of the book
value of such Collateral, the Lender may, at its option, apply all such sums or
any part thereof received by it toward the payment of the Obligations, whether
matured or unmatured, application to be made first to fees, then to interest and
then to principal, and shall deliver to the Borrower or the relevant Guarantor,
as the case may be, the balance, if any, after such application has been
made.  In the event of any other damage, loss or destruction for which
insurance proceeds are received, and provided that no Default or Event of
Default has occurred and is continuing, the Lender shall deliver any such
proceeds received by it to the Borrower or the relevant Guarantor, as the case
may be, for use to repair or replace the damaged, destroyed or lost
property.  In the event the Lender receives insurance proceeds not
attributable to Collateral or business interruption, the Lender shall deliver
any such proceeds to the Borrower or the relevant Guarantor, as the case may
be.

     

    
      
         

      

      
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    5.21           Environmental
Indemnification.  Indemnify
and hold the Lender and its shareholders, officers, directors, employees,
agents, attorneys-in-fact and Affiliates and each trustee for the benefit of the
Lender under any Security Document (each of the foregoing an “Indemnitee”) harmless
from and against any and all claims, losses, damages, liabilities, fines,
penalties, charges, administrative and judicial proceedings and orders,
judgments, remedial actions, requirements and enforcement actions of any kind,
and all costs and expenses incurred in connection therewith (including
reasonable attorneys’ fees and expenses), arising directly or indirectly, in
whole or in part, from (a) the presence of any Hazardous Substances on, under,
or from any of its Property, whether prior to or during the term hereof, (b) any
activity carried on or undertaken on any of its Property, whether prior to or
during the term hereof, and whether by it or any of its predecessors in title,
employees, agents, contractors or subcontractors or any other Person at any time
occupying or present on such Property, in connection with the handling,
treatment, removal, storage, decontamination, cleanup, transportation, or
disposal of any hazardous substances at any time located or present on or under
such Property, (c) any residual contamination on or under any of its Property,
(d) any contamination of any Property or natural resources arising in connection
with the generation, use, handling, storage, transportation or disposal of any
Hazardous Substances by it or any of its employees, agents, contractors, or
subcontractors while such Persons are acting within the scope of their
relationship with it, irrespective of whether any of such activities were or
will be undertaken in accordance with applicable Requirements of Law, or (e) the
performance and enforcement of any Loan Document or any other act or omission in
connection with or related to any Loan Document or the transactions contemplated
thereby, including any such claim, loss, damage, liability, fine, penalty,
charge, administrative or judicial proceeding, order, judgment, remedial action,
requirement, enforcement action, cost or expense, arising from the negligence
(but not the gross negligence or willful misconduct), whether sole or
concurrent, of any Indemnitee; with the foregoing indemnity surviving
satisfaction of all Obligations and the termination of this Agreement, unless
all such Obligations have been satisfied wholly in cash and not by way of
realization against any Collateral or the conveyance of any Property in lieu
thereof, provided,
however, that such
Indemnity shall not extend to any act or omission by the Lender with respect to
any Property subsequent to the Lender becoming the owner of such Property and
with respect to which Property such claim, loss, damage, liability, fine,
penalty, charge, proceeding, order, judgment, action or requirement arises
subsequent to the acquisition of title thereto by the Lender.  All
amounts due under this Section
5.21 shall be
payable on written demand therefor.

     

    5.22           General
Indemnification.  Indemnify
and hold each Indemnitee harmless from and against any and all losses, claims,
damages, liabilities and related expenses, including reasonable attorneys’ fees
and expenses (including the allocated cost of internal counsel), incurred by or
asserted against any Indemnitee arising out of, in any way connected with, or as
a result of (a) the execution and delivery of this Agreement and the other Loan
Documents, the performance by the parties hereto and thereto of their respective
Obligations hereunder and thereunder and consummation of the transactions
contemplated hereby and thereby, (b) the use of proceeds of the Loans or Letters
of Credit, or (c) any claim, litigation, investigation or proceeding relating to
any of the foregoing, whether or not any Indemnitee is a party thereto,
including any such loss, claim, damage, liability or expense arising from the
negligence (but not the gross negligence or willful misconduct), whether sole or
concurrent, of any Indemnitee; with the foregoing Indemnity surviving
satisfaction of all Obligations and the termination of this
Agreement.  All amounts due under this Section
5.22 shall be
payable on written demand therefor.

     

    
      
         

      

      
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    5.23           Evidence of Compliance with
Anti-Terrorism Laws.  Deliver to the Lender any certification
or other evidence requested from time to time by the Lender confirming its
compliance with the provisions of Section 6.17.

     

    5.24           Deposit
Accounts.  Open and maintain with the Lender its primary
operating accounts.

     

    ARTICLE
VI

     

    NEGATIVE
COVENANTS

     

    So long
as any Obligation remains outstanding or unpaid or any Commitment exists,
neither the Borrower nor any of the Guarantors will:

    6.1         
  Indebtedness.  Create,
incur, assume or suffer to exist any Indebtedness, whether by way of loan or
otherwise; provided, however, the foregoing restriction shall not apply to (a)
the Obligations, (b) unsecured accounts payable, taxes and other assessments, in
each case incurred in the ordinary course of business and which are not unpaid
in excess of 90 days beyond invoice date or are being contested in good faith
and as to which such reserve as is required by GAAP has been made, (c)
Indebtedness under Commodity Hedge Agreements, including reimbursement
obligations under letters of credit securing or supporting such Indebtedness,
with any Approved Hedge Counterparty, any Secured Third Party Hedge Counterparty
or, so long as each such Person is acceptable to the Lender, other
counterparties, provided that (i) such agreements shall not be for a term in
excess of three years and shall not, except as to floors, be entered into with
respect to more than seventy five percent (75%) of the projected production of
proved developed producing volumes of each commodity category, as determined by
the Lender in connection with each determination of the Borrowing Base provided
pursuant to the provisions of Section 5.4 during the term of the relevant
agreement, and (ii) the floor prices in such agreements are not less than the
prices used by the Lender in its most recent Borrowing Base determination as of
the time the relevant agreement is entered into, (d) Indebtedness under Interest
Rate Hedge Agreements with any Approved Hedge Counterparty, any Secured Third
Party Hedge Counterparty or, so long as each such Person is acceptable to the
Lender, other counterparties, provided that such agreements shall not be entered
into with respect to notional principal amounts in excess of seventy five
percent (75%) of the Loan Balance, (e) Indebtedness incurred with respect to all
or a portion of the purchase price of Property acquired in the ordinary course
of business not exceeding $250,000 in the aggregate for the Borrower on a
consolidated basis with its Subsidiaries, (f) Indebtedness from time to time
owing by any Guarantor to the Borrower or any other Guarantor with respect to
loans or advances not prohibited by the provisions of Section 6.7, (g) the
Subordinated Debt provided that such Indebtedness is paid as and when due and is
not renewed or extended in any respect and the material terms thereof are not
amended in any material respect, (h) Indebtedness secured by Permitted Liens and
(i) other unsecured Indebtedness not exceeding, in the aggregate at any time,
$100,000 for the Borrower on a consolidated basis with its consolidated
Subsidiaries.

     

    
      
        
        

      

      
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    6.2        
   Contingent
Obligations.  Create, incur, assume or suffer to exist any
Contingent Obligation; provided, however, the foregoing restriction shall not
apply to (a) performance guarantees, performance surety or other bonds or
endorsements of items deposited for collection, in each case provided in the
ordinary course of business, (b) trade credit incurred or operating leases
entered into in the ordinary course of business, (c) the Guaranties or (d)
Indebtedness permitted by Section
6.1.

     

    6.3       
    Liens.  Create,
incur, assume or suffer to exist any Lien on any of its Oil and Gas Properties
or any other Property, whether now owned or hereafter acquired; provided, however, the
foregoing restriction shall not apply to Permitted Liens.

     

    6.4    
       Sales of
Assets.  Sell, transfer or otherwise dispose of, in one or any
series of transactions, any of its Property, whether now owned or hereafter
acquired, or enter into any agreement to do so; provided, however, the
foregoing restriction shall not apply to (a) the sale of hydrocarbons or
inventory in the ordinary course of business, provided, however, that no
contract for the sale of hydrocarbons shall obligate the relevant Person to
deliver hydrocarbons produced from any of its Oil and Gas Properties at some
future date without receiving full payment therefor within 90 days of delivery,
or (b) the sale or other disposition of Property destroyed, lost, worn out,
damaged or having only salvage value or no longer used or useful in the business
in which it is used, (c) the sale, transfer or other disposition of Property
from the Borrower to its Domestic Subsidiaries or from the Subsidiaries of the
Borrower to the Borrower, or (d) if no Default exists or would result therefrom,
sales of assets having an aggregate book value of less than $250,000 in the
aggregate in any fiscal year of the Borrower.

     

    6.5     
      Leasebacks.  Enter
into any agreement to sell or transfer any Property and thereafter rent or lease
as lessee such Property or other Property intended for the same use or purpose
as the Property sold or transferred.

     

    6.6      
     Sale or Discount of
Receivables.  Except to minimize losses on bona fide debts
previously contracted, discount or sell with recourse, or sell for less than the
greater of the face or market value thereof, any of its notes receivable or
accounts receivable.

     

    6.7        
   Loans or
Advances.  Make or agree to make or allow to remain outstanding
any loans or advances to any Person; provided, however, the foregoing
restriction shall not apply to (a) advances or extensions of credit in the form
of accounts receivable incurred in the ordinary course of business and upon
terms common in the industry for such accounts receivable, (b) advances to
employees for the payment of expenses in the ordinary course of business not
exceeding $50,000 in the aggregate for the Borrower on a consolidated basis with
its consolidated Subsidiaries, (c) loans or advances by the Borrower or any
Domestic Subsidiary of the Borrower to a Guarantor or the Borrower or (d) other
loans or advances so long as not exceeding, in the aggregate outstanding
principal balance at any time, $50,000.

     

    6.8          
 Investments.  Make
or acquire Investments in, or purchase or otherwise acquire all or substantially
all of the assets of, any Person; provided, however, the
foregoing restriction shall not apply to the purchase or acquisition of (a) Oil
and Gas Properties, (b) Investments in the form of (i) debt securities issued or
directly and fully guaranteed or insured by the United States Government or any
agency or instrumentality thereof, with maturities of no more than one year,
(ii) commercial paper of a domestic issuer rated at the date of acquisition at
least P-2 by Moody’s Investors Service, Inc. or A-2 by Standard & Poor’s
Corporation and with maturities of no more than one year from the date of
acquisition, or (iii) repurchase agreements covering debt securities or
commercial paper of the type permitted in this Section 6.8,
certificates of deposit, demand deposits, eurodollar time deposits, overnight
bank deposits and bankers’ acceptances, with maturities of no more than 180 days
from the date of acquisition, issued by or acquired from or through the Lender
or any bank or trust company organized under the laws of the United States of
America or any state thereof and having capital surplus and undivided profits
aggregating at least $100,000,000, (c) other short-term Investments similar in
nature and degree of risk to those described in clause (b) of this Section 6.8, (d)
Investments in money-market funds sponsored or administered by Persons
acceptable to the Lender and which funds invest in short-term Investments
similar in nature and degree of risk to those described in clause (b) of this
Section 6.8, (e) evidences of loans or advances not prohibited by the provisions
of Section 6.7
or (f) Investments by the Borrower or any Domestic Subsidiary of the Borrower in
a Guarantor.

     

    
      
        
        

      

      
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    6.9           
Dividends,
Distributions and Certain Payments.  Declare, pay or make,
whether in cash or Property of the Borrower, any dividend or distribution on, or
purchase, redeem or otherwise acquire for value, any of its equity interests at
any time when there exists a Default or an Event of Default or if a Default or
an Event of Default would exist after giving effect to such dividend,
distribution, purchase, redemption or other acquisition or make any payment on
the Subordinated Debt other than scheduled payments of principal and interest
pursuant to the provisions of the Trust Indenture or any payment on the
Subordinated Debt when there exists a Default or an Event of Default or if a
Default or an Event of Default would exist after giving effect to such
payment.

     

    6.10           Issuance of Equity; Changes
in Corporate Structure.  Issue or agree to issue any additional
equity interests; enter into any transaction of consolidation, merger or
amalgamation; or liquidate, wind up or dissolve (or suffer any liquidation or
dissolution); provided, however, the
foregoing shall not restrict (a) the issuance of shares of the common stock of
the Borrower, (b) transactions of merger, consolidation or amalgamation among
any of the Domestic Subsidiaries of the Borrower or, if the Borrower is the
surviving entity, between the Borrower and any Domestic Subsidiary of the
Borrower or (c) any liquidation, winding up or dissolution of a Domestic
Subsidiary of the Borrower.

     

    6.11           Transactions with
Affiliates.  Directly or indirectly, enter into any transaction
(including the sale, lease or exchange of Property or the rendering of service)
with any of its Affiliates (other than transactions entered into in the normal
course of business between the Borrower or a Domestic Subsidiary of the Borrower
with another Domestic Subsidiary of the Borrower not otherwise prohibited
hereunder), other than upon fair and reasonable terms no less favorable than
could be obtained in an arm’s length transaction with a Person which was not an
Affiliate.

     

    6.12           Lines of
Business.  Change its principal line of business from that in
which it is engaged as of the date hereof.

     

    6.13           Plan
Obligation.  Assume or otherwise become subject to an
obligation to contribute to or maintain any Plan or acquire any Person which has
at any time had an obligation to contribute to or maintain any
Plan.

     

    
      
        
        

      

      
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    6.14           Current
Ratio.  Permit, as of the close of any quarterly period of any
fiscal year of the Borrower, commencing with the quarterly period ending March
31, 2011, the ratio of Current Assets to Current Liabilities to be less than
1.00 to 1.00.

     

    6.15           Total Funded Indebtedness to
EBITDA Ratio.  Permit the ratio, determined as of the close of
any quarterly period of any quarterly period of any fiscal year of the Borrower,
commencing with the quarterly period ending March 31, 2011, of (a) Indebtedness
of the Borrower in respect of funded borrowed money, including the Loan Balance
(exclusive, for the avoidance of doubt, of trade accounts payable and accrued
liabilities, net unrealized losses or charges in respect of Commodity Hedge
Agreements or Interest Rate Hedge Agreements and the undrawn, unexpired amount
of all outstanding Letters of Credit, if such would otherwise be included),
which is not subordinated to payment in full of all Obligations on terms
approved by the Lender (which shall include the Subordinated Debt) to (b) EBITDA determined as follows (provided that for any
calendar quarter in which any acquisitions or divestitures occur, EBITDA shall
be determined on a pro forma basis as if the relevant acquisitions or
divestitures were consummated on the first day of the relevant calendar
quarter):

     

    
      
        
          
            
              
                	
                        Quarterly Period

                      	 
      	
                        EBITDAX

                      
	 
      	 
      	 
      
	
                        Ending
      March 31, 2011

                      	 
      	
                        EBITDA
      for the period January 4, 2011 2011 through March 31, 2011 multiplied by
      four

                      
	 
      	 
      	 
      
	
                        Ending
      June 30, 2011

                      	 
      	
                        EBITDA
      for the period January 4, 2011 through June 30, 2011 multiplied by
      two

                      
	 
      	 
      	 
      
	
                        Ending
      September 30, 2011

                      	 
      	
                        EBITDA
      for the period January 4, 2011 through September 30, 2011 multiplied by
      one and one third

                      
	 
      	 
      	 
      
	
                        Ending
      December 31, 2012

                        and
      thereafter

                      	 
      	
                        EBITDA
      for such calendar quarter and the three immediately preceding calendar
      quarters

                      

              

            

          

        

      

    

     

    to be
greater than 4.00 to 1.00.

     

    6.16           Interest Coverage
Ratio.  Permit, as of the close of any quarterly period of any
fiscal year of the Borrower, commencing with the quarterly period ending March
31, 2011, the ratio of (a) EBITDA for the quarterly period then ended to (b)
Interest Expense for the quarterly period then ended to be less than 3.00 to
1.00.

     

    6.17           Anti-Terrorism
Laws.  Conduct any business or engage in any transaction or
dealing with any Blocked Person, including the making or receiving of any
contribution of funds, goods or services to or for the benefit of any Blocked
Person; deal in, or otherwise engage in any transaction relating to, any
Property or interests in Property blocked pursuant to Executive Order No. 13224;
or engage in or conspire to engage in any transaction that evades or avoids, or
has the purpose of evading or avoiding, or attempts to violate, (i) any of the
prohibitions set forth in Executive Order No. 13224 or the USA Patriot Act, or
(ii) any prohibitions set forth in the rules or regulations issued by OFAC or
any sanctions against targeted foreign countries, terrorism sponsoring
organizations, and international narcotics traffickers based on United States
foreign policy.

     

    
      
        
        

      

      
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    ARTICLE
VII

     

    EVENTS OF
DEFAULT

     

    7.1         Enumeration of Events of
Default.  Any of the following events shall constitute an Event
of Default:

     

    (a)          default
shall be made in the payment when due of (i) any installment of principal or
interest under this Agreement or the Note and such default shall remain
unremedied in excess of three days, (ii) in the payment when due of any fee or
other sum payable under any Loan Document and such default shall remain
unremedied in excess of three days or (iii) any Indebtedness of the Borrower
under any Commodity Hedge Agreement or Interest Rate Hedge Agreement permitted
or required under applicable provisions of this Agreement and such default shall
remain unremedied for in excess of the period of grace, if any, with respect
thereto;

    (b)          default
shall be made by the Borrower or any of the Guarantors in the due observance or
performance of any of its obligations, covenants or agreements under (i) the
Note, (ii) Section
4.6, Section
5.14 or Article
VI or (iii) any material provision of any Loan Documents, other than this
Agreement, and such default shall continue beyond any applicable grace or cure
period or default shall be made by the Borrower or any of the Guarantors in the
due observance or performance of any of its obligations, covenants or agreements
under any other provision of any Loan Document and such default shall continue
for 30 days after the earlier of notice thereof  by the Lender or
knowledge thereof by the Borrower or the relevant Guarantor, as the case may
be;

     

    (c)          any
representation or warranty made by or on behalf of the Borrower or any of the
Guarantors in any of the Loan Documents proves to have been untrue in any
material respect or any representation, statement (including Financial
Statements), certificate or data furnished or made to the Lender in connection
herewith proves to have been untrue in any material respect as of the date the
facts therein set forth were stated or certified;

     

    (d)          default
shall be made by the Borrower or any of the Guarantors (as principal or
guarantor or other surety) in the payment or performance of any bond, debenture,
note or other Indebtedness in excess of $250,000 in the aggregate or under any
credit agreement, loan agreement, indenture, promissory note or similar
agreement or instrument executed in connection with any of the foregoing, and
such default shall remain unremedied for in excess of the period of grace, if
any, with respect thereto or there shall occur any event or condition in respect
of any such Indebtedness which would allow the holders thereof to require such
Indebtedness to be repaid, repurchased or redeemed;

     

    
      
        
        

      

      
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      (e)           the
Borrower or any of the Guarantors shall be unable to satisfy any condition or
cure any circumstance specified in Article III, the
satisfaction or curing of which is precedent to the right of the Borrower to
obtain a Loan or the issuance, renewal or extension of a Letter of Credit, and
such inability shall continue for a period in excess of 60
days;

    

     

    (f)           the
levy against any significant portion of the Property of the Borrower or any of
the Guarantors of any execution, garnishment, attachment, sequestration or other
writ or similar proceeding in an amount in excess of $250,000 which is not
permanently dismissed or discharged within 60 days after the levy;

     

    (g)          the
Borrower or any of the Guarantors shall (i) apply for or consent to the
appointment of a receiver, trustee, or liquidator of it or all or a substantial
part of its assets, (ii) file a voluntary petition commencing an Insolvency
Proceeding, (iii) make a general assignment for the benefit of creditors of all
or substantially all of its assets, (iv) be unable, or admit in writing its
inability, to pay its debts generally as they become due, or (v) file an answer
admitting the material allegations of a petition filed against it in any
Insolvency Proceeding;

     

    (h)          an
order, judgment or decree shall be entered against the Borrower or any of the
Guarantors by any court of competent jurisdiction or by any other duly
authorized authority, on the petition of a creditor or otherwise, granting
relief in any Insolvency Proceeding or approving a petition seeking
reorganization or an arrangement of its debts or appointing a receiver, trustee,
conservator, custodian, or liquidator of it or all or any substantial part of
its assets, and such order, judgment, or decree shall not be dismissed or stayed
within 60 days;

     

    (i)           a
final and non-appealable order, judgment, or decree shall be entered against the
Borrower or any of the Guarantors for money damages and/or Indebtedness due in
an amount in excess of $250,000, and such order, judgment, or decree shall not
be dismissed or stayed within 60 days or is not fully covered by insurance
(excluding any deductible);

     

    (j)           any
charges are filed or any other action or proceeding is instituted by any
Governmental Authority against the Borrower or any of the Guarantors under the
Racketeering Influence and Corrupt Organizations Statute (18 U.S.C. §1961 et seq.), the result of
which could be the forfeiture or transfer of any material Property of the
Borrower or any of the Guarantors subject to a Lien in favor of the Lender
without (i) satisfaction or provision for satisfaction of such Lien, or (ii)
such forfeiture or transfer of such Property being expressly made subject to
such Lien;

     

    (k)           the
Borrower or any of the Guarantors shall have (i) concealed, removed or diverted,
or permitted to be concealed, removed or diverted, any part of its Property,
with intent to hinder, delay or defraud its creditors or any of them, (ii) made
or suffered a transfer of any of its Property which is fraudulent under any
bankruptcy, fraudulent conveyance, or similar law with intent to hinder, delay
or defraud its creditors, (iii) made any transfer of its Property to or for the
benefit of a creditor at a time when other creditors similarly situated have not
been paid with intent to hinder, delay or defraud its creditors, or (iv) shall
have suffered or permitted, while insolvent, any creditor to obtain a Lien upon
any of its Property through legal proceedings or distraint which is not vacated
within 60 days from the date thereof;

     

    
      
        
        

      

      
        - 47
-

        
          

        

      

      
        
        

      

    

     

    (l)           any
Security Document shall for any reason not, or cease to, create valid and
perfected first priority Liens (subject only to Permitted Liens) against the
Collateral purportedly covered thereby, except to the extent permitted by this
Agreement or resulting from the negligence of the Lender;

     

    (m)         the
Borrower or one of the Guarantors shall cease to be the sole shareholder or
member or the sole general partner of any Guarantor;

     

    (n)          any
Loan Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or thereunder or satisfaction in
full of all Obligations and termination of the Commitments and this Agreement,
ceases to be in full force and effect;

     

    (o)          the
Borrower or any Guarantor purports to revoke, terminate or rescind any Loan
Document or any provision of any Loan Document; or

     

    (p)          the
occurrence of a Material Adverse Effect which is not remedied within 30 days
following written notice thereof from the Lender or knowledge thereof by the
Borrower.

     

    7.2         Remedies.

     

    (a)           Upon
the occurrence of an Event of Default specified in Section 7.1(f) or
Section 7.1(g),
immediately and without notice, (i) all Obligations under the Loan Documents
shall automatically become immediately due and payable, without presentment,
demand, protest, notice of protest, default, or dishonor, notice of intent to
accelerate maturity, notice of acceleration of maturity, or other notice of any
kind, except as may be provided to the contrary elsewhere herein, all of which
are hereby expressly waived by the Borrower and the Guarantors and (ii) the
Commitment shall immediately cease and terminate unless and until reinstated by
the Lender in writing.

     

    (b)          Upon
the occurrence of any Event of Default other than those specified in Section 7.1(f) or
Section 7.1(g),
(i) the Lender may, by notice in writing to the Borrower, declare all
Obligations under the Loan Documents immediately due and payable, without
presentment, demand, protest, notice of protest, default, or dishonor, notice of
intent to accelerate maturity, notice of acceleration of maturity, or other
notice of any kind, except as may be provided to the contrary elsewhere herein,
all of which are hereby expressly waived by the Borrower and the Guarantors and
(ii) the Lender may declare the Commitment terminated, whereupon the Commitment
shall immediately cease and terminate unless and until reinstated by the Lender
in writing.

     

    (c)          Upon
the occurrence of any Event of Default,  the Lender may, in addition
to the foregoing in this Section 7.2, exercise
any or all of the rights and remedies provided by law or pursuant to the Loan
Documents.

     

    
      
        
        

      

      
        - 48
-

        
          

        

      

      
        
        

      

    

     

    (d)           Should
the Obligations under the Loan Documents become immediately due and payable in
accordance with any of the preceding subsections of this Section 7.2, the
obligation of the Borrower with respect to the L/C Exposure shall be to provide
cash as Collateral therefor, to be held and administered by the Lender as
provided in Section
2.10 with respect to mandatory prepayments and, failing receipt by the
Lender of immediate payment in full of the Loan Balance, any additional
Obligations then due and payable, and all accrued and unpaid interest and fees
and such cash to serve as Collateral for the L/C Exposure, the Lender shall be
entitled to proceed against the Collateral, and proceeds from any realization
against any such Collateral, other than cash, in excess of the sum of the costs
of such realization, the Loan Balance, any additional Obligations then due and
payable, and accrued and unpaid interest and fees shall constitute cash
Collateral for the remaining L/C Exposure, if any, to be held and administered
by the Lender as provided in Section
2.10.

     

    (e)           Proceeds
from realization against the Collateral and any other funds received by the
Lender from the Borrower or any of the Guarantors when an Event of Default has
occurred shall be applied (i) first, to fees and expenses due pursuant to the
terms of this Agreement, any other Loan Document or any Commodity Hedge
Agreement or Interest Rate Hedge Agreement with an Approved Hedge Counterparty,
(ii) second, to accrued interest on the Obligations under the Loan Documents or
any Commodity Hedge Agreement or Interest Rate Hedge Agreement with an Approved
Hedge Counterparty, (iii) third, to the Loan Balance, in any manner elected by
the Lender, and any other Obligations then due and payable, pro rata in
accordance with the ratio of the Loan Balance or such other Obligations, as the
case may be, to the sum of the Loan Balance and such other Obligations and (iv)
as provided in subsection (d) immediately above, if applicable.

     

    ARTICLE
VIII

     

    MISCELLANEOUS

     

    8.1         Assignments;
Participations.

     

    (a)           Neither
the Borrower nor any of the Guarantors may assign any of its rights or delegate
any of its obligations under any Loan Document without the prior consent of the
Lender.

     

    (b)           With
the consent of the Lender and, except when a Default or an Event of Default
shall have occurred, the Borrower (which shall not be unreasonably withheld or
delayed in either case), the Lender may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement; provided, however, (i) such
consent  shall not be required with respect to an assignment from the
Lender to one or more Affiliates of the Lender and (ii) such consent shall not
be required with respect to an assignment from the Lender to one or more
Approved Funds or Affiliates of Approved Funds.  Upon the
effectiveness of any assignment pursuant to this Section 8.1(b), the
assignee will become a “Lender,” if not already a “Lender,” for all purposes of
the Loan Documents, and the assignor shall be relieved of its obligations
hereunder to the extent of such assignment.  If the assignor no longer
holds any rights or obligations under this Agreement, such assignor shall cease
to be a “Lender” hereunder, except that its rights under Section 5.17, Section 5.21 and
Section 5.22,
shall not be affected.

     

    
      
        
        

      

      
        - 49
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    (c)           Lender
may transfer, grant, or assign participations in all or any portion of its
interests hereunder to any Person pursuant to this Section 8.1(c), provided, however, that the
Lender shall remain the “Lender” for all purposes of this Agreement and the
transferee of such participation shall not constitute a “Lender”
hereunder.  In the case of any such participation, the participant
shall not have any rights under any Loan Document, the rights of the participant
in respect of such participation to be against the granting Lender as set forth
in the agreement with such Lender creating such participation, and all amounts
payable by the Borrower hereunder shall be determined as if such Lender had not
sold such participation.

     

    (d)          The
Lender may furnish any information concerning the Borrower or any of the
Guarantors in the possession of the Lender from time to time to its permitted
assignees and participants and prospective assignees and
participants.  The Lender shall require any Person receiving any such
information to agree, in writing, to keep all such information
confidential.

     

    (e)           Notwithstanding
anything in this Section 8.1 to the
contrary, the Lender may assign and pledge the Note or any interest therein to
any Federal Reserve Bank or the United States Treasury as collateral security
pursuant to Regulation A of the Board of Governors of the Federal Reserve System
and any operating circular issued by such Federal Reserve System and/or such
Federal Reserve Bank.  No such assignment or pledge shall release the
Lender from its obligations hereunder.

     

    (f)           Notwithstanding
any other provisions of this Section 8.1, no
transfer or assignment of the interests or obligations of the Lender or grant of
participations therein shall be permitted if such transfer, assignment, or grant
would require the Borrower to file a registration statement with the Securities
and Exchange Commission or any successor Governmental Authority or qualify the
Loans under the “Blue Sky” laws of any state.

     

    8.2        Survival of Representations,
Warranties, and Covenants.  All representations and warranties
of the Borrower and the Guarantors and all covenants and agreements of the
Borrower and the Guarantors herein made shall survive the execution and delivery
of the Note and the Security Documents and shall remain in force and effect so
long as any Obligation is outstanding or any Commitment exists.

     

    8.3        Notices and Other
Communications.  Except as to oral notices expressly authorized
herein, which oral notices shall be confirmed in writing, all notices, requests,
and communications hereunder shall be in writing (including by facsimile,
electronic mail or other electronic form).  Unless otherwise expressly
provided herein, any such notice, request, demand, or other communication shall
be deemed to have been duly given or made when delivered by hand or by a
nationally-recognized overnight courier service, or, in the case of delivery by
mail, five days after being deposited in the mail, certified mail, return
receipt requested, postage prepaid, or, in the case of facsimile notice, when
receipt thereof is acknowledged orally or by written confirmation report,
addressed as follows:

     

    (a)           if
to the Lender, to:

     

    Texas
Capital Bank, N.A.

    One
Riverway, Suite 2100

    Houston,
Texas  77056

    Attention:  Energy
Banking

    Facsimile:  (832)
308-7042

     

    
      
        
        

      

      
        - 50
-

        
          

        

      

      
        
        

      

    

     

    (b)           if
to the Borrower or any of the Guarantors, to:

     

    22610
U.S. Hwy. 281 North

    Suite
218

    San
Antonio, Texas  78258

    Attention:  Chief
Financial Officer

    Facsimile:  (210)
930-3967

     

    Any party
may, by proper written notice hereunder to the others, change the individuals or
addresses to which such notices to it shall thereafter be sent.

     

    8.4         Parties in
Interest.  Subject to the restrictions on changes in structure
set forth in Section
6.10 and other applicable restrictions contained herein, all covenants
and agreements herein contained by or on behalf of the Borrower, any of the
other Guarantors, or the Lender shall be binding upon and inure to the benefit
of the Borrower, any of the other Guarantors, or the Lender, as the case may be,
and their respective legal representatives, successors, and permitted
assigns.

     

    8.5         Renewals;
Extensions.  All provisions of this Agreement relating to the
Note shall apply with equal force and effect to each promissory note hereafter
executed which in whole or in part represents a renewal or extension of any part
of the Indebtedness of the Borrower under this Agreement, the Note or any other
Loan Document.

     

    8.6         Rights of Third
Parties.  All provisions herein are imposed solely and
exclusively for the benefit of the Lender, any other Approved Hedge
Counterparties, the Borrower and the Guarantors.  No other Person
shall have any right, benefit, priority, or interest hereunder or as a result
hereof or have standing to require satisfaction of provisions hereof in
accordance with their terms.

     

    8.7         No Waiver; Rights
Cumulative.  No course of dealing on the part of the Lender or
its officers or employees, nor any failure or delay by the Lender with respect
to exercising any of its rights under any Loan Document shall operate as a
waiver thereof.  The rights of the Lender under the Loan Documents
shall be cumulative and the exercise or partial exercise of any such right shall
not preclude the exercise of any other right.  Neither the making of
any Loan nor the issuance of any Letter of Credit shall constitute a waiver of
any of the covenants, warranties or conditions of the Borrower contained
herein.  In the event the Borrower is unable to satisfy any such
covenant, warranty or condition, neither the making of any Loan nor the issuance
of any Letter of Credit shall have the effect of precluding the Lender from
thereafter declaring such inability to be an Event of Default as hereinabove
provided.

     

    8.8         Survival Upon
Unenforceability.  In the event any one or more of the
provisions contained in any of the Loan Documents or in any other instrument
referred to herein or executed in connection with the Obligations shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of any Loan Document or of any other instrument referred to herein or executed
in connection with such Obligations.

     

    
      
        
        

      

      
        - 51
-

        
          

        

      

      
        
        

      

    

     

    8.9           Amendments;
Waivers.  Neither this Agreement nor any provision hereof may
be amended, waived, discharged or terminated orally, but only by an instrument
in writing signed by the party against whom enforcement of the amendment,
waiver, discharge or termination is sought.  Subject to the preceding
sentence, any provision of this Agreement or any other Loan Document may be
amended, modified or waived by the Borrower, the Guarantors and the
Lender.

     

    8.10         Controlling
Agreement.  In the event of a conflict between the provisions
of this Agreement and those of any other Loan Document, the provisions of this
Agreement shall control.

     

    8.11         Disposition of
Collateral.  Notwithstanding any term or provision, express or
implied, in any of the Security Documents, but subject to applicable provisions
of this Agreement, the realization, liquidation, foreclosure or any other
disposition on or of any or all of the Collateral shall be in the order and
manner and determined in the sole discretion of the Lender; provided, however,
that in no event shall the Lender violate applicable law or exercise rights and
remedies other than those provided in such Security Documents or otherwise
existing at law or in equity.

     

    8.12         Governing
Law.  This
Agreement and the Note shall be deemed to be contracts made under and shall be
construed in accordance with and governed by the laws of the State of Texas,
without giving effect to principles thereof relating to conflicts of
law.

     

    8.13        Waiver
of Rights to Jury Trial.  The
Borrower, the Guarantors and the Lender hereby knowingly, voluntarily,
intentionally, irrevocably and unconditionally waive all rights to trial by jury
in any action, suit, proceeding, counterclaim or other litigation that relates
to or arises out of this Agreement or any other Loan Document or the acts or
omissions of the Lender in the enforcement of any of the terms or provisions of
this Agreement or any other Loan Document or otherwise with respect
thereto.  The provisions of this Section
8.13 are a
material inducement for the Lender to enter into this
Agreement.

     

    8.14    
    Jurisdiction
and Venue.  Subject to
the provisions of Section
8.13, all
actions or proceedings with respect to, arising directly or indirectly in
connection with, out of, related to or from this Agreement or any other Loan
Document may be litigated, at the sole discretion and election of the Lender, in
courts having situs in Houston, Harris County, Texas.  In such regard,
the Borrower and each of the Guarantors hereby submits to the jurisdiction of
any local, state or federal court located in Houston, Harris County, Texas, and
hereby waives any rights it may have to transfer or change the jurisdiction or
venue of any litigation brought against it by the Lender in accordance with this
Section
8.14.

     

    
      
        
        

      

      
        - 52
-

        
          

        

      

      
        
        

      

    

     

    8.15         Integration.  This
Agreement and the other Loan Documents constitute the entire Agreement between
the parties hereto and thereto with respect to the subject hereof and thereof
and shall supersede any prior agreement between the parties hereto and thereto,
whether written or oral, relating to the subject hereof and thereof, including
any term sheet provided to the Borrower by the Lender.  Furthermore,
in this regard, this Agreement and the other written Loan Documents represent,
collectively, the final agreement between the parties thereto and may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral
agreements of such parties.  There are no unwritten oral agreements
between such parties.

     

    8.16        Waiver
of Punitive and Consequential Damages.  Each of the
Borrower, the Guarantors and the Lender hereby knowingly, voluntarily,
intentionally and irrevocably (a) waives, to the maximum extent it may lawfully
and effectively do so, any right it may have to claim or recover, in any dispute
based hereon, or directly or indirectly at any time arising out of, under or in
connection with the Loan Documents or any transaction contemplated thereby or
associated therewith, before or after maturity, any special, exemplary, punitive
or consequential damages, or damages other than, or in addition to, actual
damages and (b) acknowledges that it has been induced to enter into this
Agreement, the other Loan Documents and the transactions contemplated hereby and
thereby by, among other things, the mutual waivers and certifications contained
in this Section
8.16.

     

    8.17         Counterparts.  For
the convenience of the parties, this Agreement may be executed in multiple
counterparts and by different parties hereto in separate counterparts, each of
which for all purposes shall be deemed to be an original, and all such
counterparts shall together constitute but one and the same Agreement and shall
be enforceable as of the date hereof upon the execution of one or more
counterparts hereof by each of the parties hereto.  In this regard,
each of the parties hereto acknowledges that a counterpart of this Agreement
containing a set of counterpart execution pages reflecting the execution of each
party hereto shall be sufficient to reflect the execution of this Agreement by
each party hereto and shall constitute one instrument.

     

    8.18        
USA Patriot Act
Notice.  The Lender hereby notifies the Borrower that, pursuant
to the requirements of the USA Patriot Act, it is required to obtain, verify and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow the
Lender to identify the Borrower in accordance with the USA Patriot
Act.

     

    8.19        
Tax Shelter
Regulations.  The Borrower does not intend to treat the Loans
and related transactions hereunder and under the other Loan Documents as a
“reportable transaction” (within the meanings under current Treasury Regulation
Section 1.6011-4 and Proposed Treasury Regulation Section 1.6011-4, promulgated
on November 1, 2006).  In the event the Borrower determines to take
any action inconsistent with the foregoing statement, it will promptly notify
the Lender thereof.  If the Borrower so notifies the Lender, the
Borrower acknowledges that the Lender may treat the Loans and related
transactions hereunder and under the other Loan Documents as part of a
transaction that is subject to current Treasury Regulation Section 301.6112-1 or
Proposed Treasury Regulation Section 301.6112-1, promulgated on November 1,
2006, and, in such case, the Lender will maintain the lists and other records
required, if any, by such Treasury Regulations.

     

    
      
        
        

      

      
        - 53
-

        
          

        

      

      
        
        

      

    

     

    8.20        Contribution and
Indemnification.  In the event that any  Guarantor
pays (whether through direct payments or as a result of providing Collateral for
the Obligations) any amounts on the Obligations in excess of such Guarantor’s
Obtained Benefit (the “Excess Payments”),
such Guarantor shall be entitled to make demand on the Borrower for such Excess
Payments, and, to the extent not recovered from the Borrower, to receive from
each other Guarantor that received an Obtained Benefit, such Guarantor’s
Contribution Percentage of the Excess Payment.  If any party obligated
to make such a payment is unable to pay the Contribution Percentage of the
Excess Payment, each Guarantor agrees to make a contribution to the party
entitled to such payment to the extent necessary so that each Guarantor shares
equally the liability for such Excess Payment in relation to the relative
Obtained Benefit received by such Guarantor.  In
such regard, to the maximum extent permitted by law, each Guarantor shall
indemnify, defend and hold harmless the other Guarantors from and against any
and all liability, claims, costs and expenses (including reasonable attorneys’
fees and expenses) arising with respect to the Obligations and exceeding such
other Guarantor’s obtained benefit or contribution percentage thereof as
provided herein.  Any amount due under this Section 8.20 shall be
due and payable within ten days of demand therefor by the party entitled to
payment and shall be made to the party entitled thereto at the Borrower’s
address for notices under this Agreement, in immediately available funds, not
later than 2:00 p.m., Central Standard or Daylight Time, on the date on which
such payment shall come due.  The remedies available to any Guarantor
pursuant to the provisions of this Section 8.20 are not
exclusive.  All rights and claims of contribution, indemnification and
reimbursement under this Section 8.20 shall be
subordinate in right of payment to the prior payment in full of the
Obligations.  The provisions of this Section 8.20 shall,
to the extent expressly inconsistent with any provision in any Loan Document,
supersede such inconsistent provision.

     

    (Signatures
appear on following pages)

    
      
         

      

      
        - 54
-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, this Agreement is executed as of the date first above
written.

     

    
      
        	
                BORROWER:

              
	 
      
	
                CROSS
      BORDER RESOURCES, INC.

              
	 
      
	
                By:

              	
                /s/ P. Mark Stark

              	 
      
	 
      	
                P.
      Mark Stark

              	 
      
	 
      	
                Chief
      Financial Officer

              	 
      

      

    

    

    (Signatures
continue on following page)

    
      
         

      

      
        - 55
-

        
          

        

      

      
         

      

    

    
      
        	
                LENDER:

              
	 
      
	
                TEXAS
      CAPITAL BANK, N.A.

              
	 
      
	
                By:

              	
                /s/ Jeff Treadway

              
	 
      	
                Jeff
      Treadway

              
	 
      	
                Vice
      President

              

      

    

     

    
      
         

      

      
        - 56
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    Schedule
4.9

     

    LIABILITIES
AND LITIGATION

     

    Liabilities:

    

    None.

    

    Litigation:

    

    None.

    
      
         

      

      
        Schedule
4.9

        
          

        

      

      
         

      

    

    

    Schedule
4.13

     

    ENVIRONMENTAL
MATTERS

     

    None.

    
      
         

      

      
        Schedule
4.13

        
          

        

      

      
         

      

    

    

    Schedule
4.17

     

    REFUNDS

     

    None.

    
      
         

      

      
        Schedule
4.17

        
          

        

      

      
         

      

    

    

    Schedule
4.18

     

    GAS
CONTRACTS

     

    None.

    
      
         

      

      
        Schedule
4.18

        
          

        

      

      
         

      

    

     

    Schedule
4.20

     

    CASUALTIES

     

    None.

    
      
         

      

      
        Schedule
4.20

        
          

        

      

      
         

      

    

    

    Schedule
4.24

     

    TAXPAYER
I.D. AND ORGANIZATIONAL NUMBERS

     

    
      
        
          	
                  Entity

                	 
      	
                  Taxpayer I.D. No.

                	 
      	
                  Organizational No.

                
	 
      	 
      	 
      	 
      	 
      
	
                  Borrower

                	 
      	
                  98-0555508

                	 
      	
                  NV20051667323

                

        

      

    

     

    
      
         

      

      
        Schedule
4.24

        
          

        

      

      
         

      

    

    

    EXHIBIT
I

    

    [FORM OF
NOTE]

    

    PROMISSORY
NOTE

    (this
“Note”)

     

    
      
        	
                $25,000,000.00

              	
                Houston,
      Texas

              	
                January 31,
      2011

              

      

    

     

    FOR VALUE
RECEIVED and WITHOUT GRACE (except to the extent, if any, provided in the
Amended and Restated Credit Agreement referred to hereinafter), the undersigned
(“Maker”) promises to pay to the order of Texas Capital Bank, N.A. (“Payee”), at
the Principal Office (as such term is defined in the Credit Agreement referred
to hereinafter) of Payee, TWENTY FIVE MILLION AND NO/100 DOLLARS
($25,000,000.00) or so much thereof as may be advanced against this Note and
remains unpaid pursuant to the Amended and Restated Credit Agreement dated
January 31, 2011 by and between Maker and Payee (as
amended,  supplemented, restated or otherwise modified from time to
time, the “Credit Agreement”), together with interest at the rates and
calculated as provided in the Credit Agreement.

     

    Reference
is hereby made to the Credit Agreement for matters governed thereby, including,
without limitation, certain events which will entitle the holder hereof to
accelerate the maturity of all amounts due hereunder.  Capitalized
terms used but not defined in this Note shall have the respective meanings
assigned to such terms in the Credit Agreement.

     

    This Note
is issued pursuant to, is the “Note” under, and is payable as provided in the
Credit Agreement.  Subject to compliance with applicable provisions of
the Credit Agreement, Maker may at any time pay the full amount or any part of
this Note without the payment of any premium or fee, but such payment shall not,
until this Note is fully paid and satisfied, excuse the payment as it becomes
due of any payment on this Note provided for in the Credit
Agreement.

     

    This Note
represents, in part, a renewal, but not a novation or discharge, of all or a
portion of the Indebtedness of Maker previously evidenced by the Promissory Note
or Promissory Notes issued by Maker pursuant to the Existing Credit
Agreement.

     

    Without
being limited thereto or thereby, this Note is secured by the Security
Documents.

     

    This Note shall be governed and
controlled by the laws of the State of Texas, without giving effect to
principles thereof relating to conflicts of law.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              CROSS
      BORDER RESOURCES, INC.

                            
	 
      
	
                              By:

                            	
                                 

                            
	 	
                              P.
      Mark Stark

                            
	 	
                              Chief
      Financial
Officer

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        Exhibit
I-i

        
          

        

      

      
         

      

    

    

    EXHIBIT
II

     

    [FORM OF
BORROWING REQUEST]

     

    [Date]

     

    Texas
Capital Bank, N.A.

    One
Riverway, Suite 2100

    Houston,
Texas 77056

    Attention:  Energy
Banking

     

    
      	
               
      

            	
              Re:

            	
              Amended
      and Restated Credit Agreement dated January 31, 2011, by and between
      Cross Border Resources, Inc., a Nevada corporation, and Texas Capital
      Bank, N.A., a national banking association (as amended, supplemented,
      restated or otherwise modified from time to time, the “Credit
      Agreement”)

            

    

     

    Ladies
and Gentlemen:

     

    Pursuant
to the Credit Agreement, the undersigned hereby makes the requests indicated
below:

     

    
      	
               
      

            	
              1.

            	
              Loans

            

    

     

    
      	
               
      

            	
              (a)

            	
              Amount
      of new Loan:  $__________

            

    

     

    
      	
               
      

            	
              (b)

            	
              Requested
      funding date:  ______________,
20__

            

    

     

    
      	
               
      

            	
              2.

            	
              Certification

            

    

     

    The
undersigned individual certifies that [s]he is the ___________ of the Borrower,
has obtained all consents necessary, and as such [s]he is authorized to execute
this request on behalf of the Borrower.  The undersigned individual
further certifies, represents, and warrants on behalf of the Borrower, that the
Borrower is entitled to receive the requested borrowing under the terms and
conditions of the Credit Agreement and that, to the best knowledge of such
undersigned individual, there exists as of the date hereof neither a Default nor
an Event of Default under the Credit Agreement.

     

    Each
capitalized term used but not defined herein shall have the meaning assigned to
such term in the Credit Agreement.

     

    
      
        
          	
                  Very
      truly yours,

                
	 
      
	
                       
    

                
	
                  ________________ of

                	 
      
	
                  Cross
      Border Resources, Inc.

                

        

      

    

     

    
      
         

      

      
        Exhibit
II-i

        
          

        

      

      
         

      

    

    

    EXHIBIT
III

     

    [FORM OF
COMPLIANCE CERTIFICATE]

     

    [Date]

     

    Texas
Capital Bank, N.A.

    One
Riverway, Suite 2100

    Houston,
Texas 77056

    Attention:  Energy
Banking

     

    
      	
               
      

            	
              Re:

            	
              Amended
      and Restated Credit Agreement dated January 31, 2011, by and between
      Cross Border Resources, Inc., a Nevada corporation, and Texas Capital
      Bank, N.A., a national banking association (as amended, supplemented,
      restated or otherwise modified from time to time, the “Credit
      Agreement”)

            

    

     

    Ladies
and Gentlemen:

     

    Pursuant
to applicable requirements of the Credit Agreement, the undersigned, as a
Responsible Officer of the Borrower, hereby certifies to you the following
information as true and correct as of the date hereof or for the period
indicated, as the case may be:

     

    1.           [To
the best of the knowledge of the undersigned, no Default or Event of Default
(including, but not limited to, any arising from any violation or alleged
violation of any Environmental Law) exists as of the date hereof or has occurred
since the date of our previous certification to you, if any.]

     

    [To the
best of the knowledge of the undersigned, the following Defaults or Events of
Default (including, but not limited to, any arising from any violation or
alleged violation of any Environmental Law) exist as of the date hereof or have
occurred since the date of our previous certification to you, if any, and the
actions set forth below are being taken to remedy such
circumstances:]

     

    2.           The
compliance of the Borrower, on a consolidated basis with its consolidated
Subsidiaries, with the financial covenants of the Credit Agreement, as of the
close of business on _________________________, is evidenced by the
following:

     

    
      	
               
      

            	
              (a)

            	
              Section
      6.14:

            	
              Current
      Ratio

            

    

     

    
      
        
          
            	
                    Required

                  	
                    Actual

                  
	
                    Not
      less than 1.00 to 1.00

                  	
                    ___
      to 1.00

                  

          

        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Section
      6.15:

            	
              Total
      Funded Indebtedness to EBITDA Ratio

            

    

     

    
      
        
          	
                  Required

                	
                  Actual

                
	
                  Not
      greater than 4.00 to 1.00

                	
                  ___
      to 1.00

                

        

      

    

    
      
         

      

      
        Exhibit
III-i

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              Section
      6.16:

            	
              Interest
      Coverage Ratio

            

    

     

    
      
        
          
            	
                    Required

                  	
                    Actual

                  
	
                    Not
      less than 4.00 to 1.00

                  	
                    ___
      to 1.00

                  

          

        

      

    

     

    (See
attached detailed calculation of EBITDA)

     

    3.           The
Borrower and the Guarantors [are] [are not] in compliance with the provisions of
Section 6.1 of the Credit Agreement relating to Commodity Hedge
Agreements.

     

    4.           No
Material Adverse Effect has occurred since the date of the combined consolidated
Financial Statements of the Borrower as of [_____________] and for the period
then ended.

     

    Each
capitalized term used but not defined herein shall have the meaning assigned to
such term in the Credit Agreement.

     

    
      
        	
                Very
      truly yours,

              
	 
      
	
                    

              
	
                ________________
      of

              	 
      
	
                Cross
      Border Resources, Inc.

              

      

    

    
      
         

      

      
        Exhibit
III-ii

        
          

        

      

      
         

      

    

    

    EXHIBIT
IV

     

    [FORM OF
OPINION OF NEVADA COUNSEL]

     

    January
31, 2011

     

    Texas
Capital Bank, N.A.

    One
Riverway, Suite 2100

    Houston,
Texas  77056

    Attention:  Energy
Banking

     

    
      	
               
      

            	
              Re:

            	
              Amended
      and Restated Credit Agreement dated effective January 31, 2011 (as
      amended, supplemented, restated or otherwise modified from time to time,
      the “Credit
      Agreement”) by and between Cross Border Resources, Inc., a Nevada
      corporation and Texas Capital Bank, N.A., a national banking association
      (the “Lender”)

            

    

     

    Ladies
and Gentlemen:

     

    [We][I]
have acted as counsel to the Borrower and Texas Capital Bank, N.A., a national
banking association (the “Lender”) in
connection with the transactions contemplated in the Credit
Agreement.  This opinion is delivered pursuant to Section 3.1(n) of
the Credit Agreement, and the Lender is hereby authorized to rely upon this
opinion in connection with the transactions contemplated in the Credit
Agreement.  For convenience, each capitalized term used but not
defined herein shall have the meaning assigned to such term in the Credit
Agreement, unless expressly provided to the contrary herein.

     

    In
[our][my] representation of the Borrower, [we][I] have examined an executed
counterpart or a copy of an executed counterpart of each of the following
(collectively, the “Loan Documents”),
each of which is dated of even date herewith:

     

    (i)           the
Credit Agreement;

     

    (ii)          the
Note;

     

    (iii)         Amendment
to and Ratification of Mortgage, Deed of Trust, Security Agreement, Financing
Statement and Assignment of Production by and between the Borrower and the
Lender;

     

    (iv)      
  Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production from the Borrower to Stephen Scholl, Trustee for the
benefit of the Lender; and

     

    (v)        
 Amendment to and Ratification of Security Agreement by and between the
Borrower and the Lender.

    
      
         

      

      
        Exhibit
IV-i

        
          

        

      

      
         

      

    

    In making
such examinations, [we][I] have, with your permission, assumed:

     

    (i)           the
genuineness of all signatures to the Loan Documents other than those of officers
of the Borrower;

     

    (ii)          the
authenticity of all documents submitted to [us][me] as originals and the
conformity with the originals of all documents submitted to [us] [me] as
copies;

     

    (iii)         that
the Lender is duly organized, legally existing and in good standing under the
laws of its jurisdiction of organization;

     

    (iv)         that
the Lender is authorized and has the power to enter into and perform its
obligations under those of the Loan Documents to which it is a party;
and

     

    (v)       
  the due authorization, execution and delivery by the Lender of all
Loan Documents to which it is a party.

     

    Based
upon the foregoing and subject to the qualifications set forth herein, [we
are][I am] of the opinion that:

     

    1.           The
Borrower is a corporation duly incorporated legally existing and in good
standing under the laws of the State of Nevada and is duly qualified and in good
standing as a foreign corporation in each of the State of New Mexico and the
State of Texas.

     

    2.           The
execution and delivery by the Borrower of the Credit Agreement and the
borrowings and obtaining of Letters of Credit by the Borrower thereunder, the
execution and delivery by the Borrower of the other Loan Documents to which it
is a party, the payment and performance by the Borrower of all Obligations and
the performance of all obligations of the Borrower under the Credit Agreement
and the other Loan Documents to which it is a party are within the power of the
Borrower, have been duly authorized by all necessary action by the Borrower, and
do not (a) require the consent of any Governmental Authority, (b) contravene or
conflict with any Requirement of Law, (c) to [our][my] knowledge, contravene or
conflict with any indenture, instrument or other agreement to which the Borrower
is a party or by which any Property of the Borrower may be presently bound or
encumbered or (d) result in or require the creation or imposition of any Lien
upon any Property of the Borrower other than as contemplated by the Loan
Documents.

     

    3.           The
Borrower is not, nor is the Borrower directly or indirectly controlled by or
acting on behalf of any Person which is, an “investment company” or an
“affiliate person” of an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

     

    The
opinions expressed herein are subject to the qualification and limitation that
[we are] [I am] licensed
to practice law only in the State of Nevada [and other jurisdictions the laws of
which are not applicable to the opinions expressed herein]; accordingly,
the foregoing opinions are limited solely to the laws of the State of Nevada and
applicable United States federal law.  Further to the foregoing, [we][I] express no opinion
herein regarding matters governed by the laws of either the State of New Mexico
or the State of Texas.

    
      
         

      

      
        Exhibit
IV-ii

        
          

        

      

      
         

      

    

    This
opinion is furnished for the benefit of the Lender and any transferee or
assignee of any the Lender in connection with the transactions contemplated by
the Credit Agreement and the other Loan Documents and is not to be quoted in
whole or in part or otherwise referred to or disclosed to any other Person or in
any other transaction.

     

    Very
truly yours,

    
      
         

      

      
        Exhibit
IV-iii

        
          

        

      

      
         

      

    

    

    EXHIBIT
V

     

    [FORM OF
OPINION OF TEXAS COUNSEL]

     

    January
31, 2011

     

    Texas
Capital Bank, N.A.

    One
Riverway, Suite 2100

    Houston,
Texas  77056

    Attention:  Energy
Banking

     

    
      	
               
      

            	
              Re:

            	
              Amended
      and Restated Credit Agreement dated effective January 31, 2011 (as
      amended, supplemented, restated or otherwise modified from time to time,
      the “Credit
      Agreement”) by and between Cross Border Resources, Inc., a Nevada
      corporation and Texas Capital Bank, N.A., a national banking association
      (the “Lender”)

            

    

     

    Ladies
and Gentlemen:

     

    [We][I]
have acted as counsel to the Borrower in connection with the transactions
contemplated in the Credit Agreement.  This opinion is delivered
pursuant to Section 3.1(o) of the Credit Agreement, and the Lender are hereby
authorized to rely upon this opinion in connection with the transactions
contemplated in the Credit Agreement.  For convenience, each
capitalized term used but not defined herein shall have the meaning assigned to
such term in the Credit Agreement, unless expressly provided to the contrary
herein.

     

    In
[our][my] representation of the Borrower, [we][I] have examined an executed
counterpart or a copy of an executed counterpart of each of the following
(collectively, the “Loan Documents”),
each of which is dated of even date herewith:

     

    (i)           the
Credit Agreement;

     

    (ii)          the
Note; and

     

    (iii)         Amendment
to and Ratification of Security Agreement by and between the Borrower and the
Lender.

     

    In making
such examinations, [we][I] have, with your permission, assumed:

     

    (iv)         the
genuineness of all signatures to the Loan Documents other than those of officers
of the Borrower;

     

    (v)         the
authenticity of all documents submitted to [us][me] as originals and the
conformity with the originals of all documents submitted to [us] [me] as
copies;

     

    (vi)         that
each of the Borrower and the Lender is duly organized, legally existing and in
good standing under the laws of its jurisdiction of
organization;

    
      
         

      

      
        Exhibit
V-i

        
          

        

      

      
         

      

    

    (vii)        that
each of the Borrower and the Lender, is authorized and has the power to enter
into and perform its obligations under those of the Credit Agreement and the
other Loan Documents to which it is a party; and

     

    (viii)       the
due authorization, execution and delivery of all Loan Documents by each party
thereto.

     

    Based
upon the foregoing and subject to the qualifications set forth herein, [we
are][I am] of the opinion that the Loan Documents to constitute legal, valid and
binding obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms.

     

    The
opinions expressed herein are subject to the qualification and limitation that
[we are] [I am] licensed
to practice law only in the State of Texas [and other jurisdictions the laws of
which are not applicable to the opinions expressed herein]; accordingly,
the foregoing opinions are limited solely to the laws of the State of Texas and
applicable United States federal law.  Further to the foregoing, [we][I] express no opinion
herein with respect to any matter governed by the laws of the State of
Nevada.

     

    This
opinion is furnished for the benefit of the Lender and any transferee or
assignee of any the Lender in connection with the transactions contemplated by
the Credit Agreement and the other Loan Documents and is not to be quoted in
whole or in part or otherwise referred to or disclosed to any other person or
entity or in any other transaction.

     

    Very
truly yours,

    
      
         

      

      
        Exhibit
V-ii

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