Document:

exv10w48

Exhibit 10.48

NONQUALIFIED STOCK OPTION AGREEMENT

UNDER THE NEUSTAR, INC. 2009 STOCK INCENTIVE PLAN

     This STOCK OPTION AGREEMENT is entered into as of [__________] (the “Grant Date”), between
NEUSTAR, INC. (the “Company”) and [_________] (“you”).

1. Option Grant. The Company grants you an option (the “Option”) to purchase up to
[_____] shares of the Company’s Common Stock at a price of $[____] per share. The Option is not
exercisable now but becomes exercisable in installments, which are cumulative, so that, so long as
you do not experience a Termination prior to any such date, the number of shares originally subject
to the Option shall vest and become exercisable on each of the dates set forth in Section 5 below.

2. The Plan. The Option is subject to the terms of the Company’s 2009 Stock Incentive
Plan (the “Plan”). Capitalized terms used but not defined in this Agreement have the meanings set
forth in the Plan.

3. Type of Option. The Option is a nonqualified option, not an incentive stock option,
for U.S. tax purposes.

4. Termination. The Option terminates on the seventh (7th) anniversary of the
date of this Agreement, except in the event of your Termination or as otherwise provided in the
Plan. The Option will immediately terminate upon your Termination, except that (i) if the
Termination is because of your death or Disability, the portion of the Option that is vested and
unexercised as of the date of Termination (the “Vested Portion”) will remain exercisable for one
year following Termination, and (ii) if the Termination is for any other reason, excluding Cause
(or a voluntary termination by you following an event that constitutes Cause), the Vested Portion
will remain exercisable for 90 days after Termination, although in all cases the Option will never
be exercisable after the seventh (7th) anniversary of this Agreement. Upon Termination
for Cause (or a voluntary termination by you following an event that constitutes Cause), the entire
Option (including any Vested Portion) terminates immediately. You will not be deemed to have
experienced a Termination until you no longer serve as any of (i) an employee of, or consultant to,
the Company or its Affiliates, or (ii) a Director.

Notwithstanding the foregoing, in the event of a Change in Control, subject to the terms of the
Plan, if the Option is not assumed or continued or substituted for a substantially equivalent right
by the surviving corporation, the successor corporation or its parent corporation, as applicable
(the “Successor Corporation”), you shall fully vest in and have the right to exercise the Option as
to all shares of Common Stock then subject thereto, including shares as to which the Option would
not otherwise be vested or exercisable. Any Options that are assumed or replaced (and any Option
shall be considered assumed if the Successor Corporation in a Change in Control reaffirms the
Option) in connection with a Change in Control and have not otherwise vested shall immediately vest
in full if you experience a Termination (other than by the Company for Cause or by you without Good
Reason (as defined below)) within two (2) years after the Change in Control.

For purposes of this Agreement, “Good Reason” shall mean, without your prior written consent, any
of the following events or conditions and the failure of the Successor Corporation to cure such
event or condition within thirty (30) days after receipt of written notice from you, provided that
you serve notice of such event or condition and intended termination within sixty (60) days of its
occurrence: (i) a reduction in your annual base salary, except pursuant to a policy generally
applicable to employees at your level and above resulting in a reduction of 10% or less; (ii) the
Successor Corporation’s failure to cover you under employee benefit plans, programs and practices
that, in the aggregate, provide substantially comparable benefits (from an economic perspective) to
you relative to the benefits and total costs under the material employee benefit plans, programs
and practices in which you (and/or your family or dependents) are participating immediately
preceding the Change in Control; (iii) the Successor Corporation’s requiring you to be based at any
office location that is more than fifty (50) miles further from your office location immediately
prior to a Change in Control, except for reasonable required travel for the Successor Corporation’s
business that is not materially greater than such travel requirements prior to such Change in
Control; or (iv) a material breach by the Successor Corporation of its obligations to you under the
Plan.

1

 

5. Vesting Schedule. Subject to Section 4, vesting occurs in increments of whole shares
only pursuant to the below schedule, with fractional shares accumulated for distribution in the
last installment or such earlier time that they constitute a whole share.

	 	 	 	 	 
	Date on Which Installment Vests	 	Percentage of Shares in
	and Becomes Exercisable	 	Installment
	 
	 	 	 	 
	[First Vesting Date]
	 	 	25	%
	 
	 	 	 	 
	[Second Vesting Date] and the last day of
	 	 	2.08333	%
	each of the succeeding 35 months
	 	 	 	 

6. Exercise. You may exercise the Option by delivering to the Company your signed,
written notice of the number of shares to be purchased by your exercise, together with the full
purchase price, or by any other method the Committee has approved. Payment may be made by
certified check, bank draft or money order payable to the order of the Company or in such other
manner as may be acceptable to the Committee. You shall be obligated to pay or make other
arrangements to provide for any applicable withholding taxes in a manner acceptable to the
Committee.

7. Transfer Restriction. Unless otherwise permitted by the Committee, the Option is
non-transferable, except that in the event of your death, it may be transferred by will or the laws
of descent and distribution. Only you (or your guardian or legal representative) may exercise the
Option.

8. Detrimental Activity. For purposes of this Award, Detrimental Activity shall have the
meaning set forth in the Plan and additionally shall mean any of the activities set forth on Annex
A. In the event that you engage in Detrimental Activity prior to any exercise of Options, such
Options shall thereupon terminate and expire. In the event you engage in Detrimental Activity
following the exercise of any Option, the Company shall be entitled to recover from you an amount
equal to any gain realized as a result of the exercise (whether at the time of exercise or
thereafter).

9. No Right to Continued Service. The issuance of this Option does not constitute an
agreement by the Company to continue to employ you or retain your services during the entire, or
any portion of, the period prior to full vesting of the Option or otherwise.

10. Adjustments. In the case of any change in corporate structure as contemplated under
Section 4.2(b) of the Plan, an equitable adjustment shall be deemed necessary and shall be made in
accordance with such Section 4.2(b).

11. Notice. Any notice or communication to the Company concerning the Option must be in
writing and delivered in person, or by U.S. mail, to the following address (or another address
specified by the Company): Neustar, Inc., Attn: General Counsel, 21575 Ridgetop Circle, Sterling,
VA 20166.

You will not have any rights with respect to your Option award unless and until you deliver an
executed copy of this Agreement to the Company within 60 days of the Grant Date.

NEUSTAR, INC.

	 	 	 	 	 

	By: 

	 	/s/ Lisa Hook	 	 
	 

	 	 
	 	 
	 

	 	Lisa Hook
	 	[_____________]

2

 

Annex A

Detrimental Activity

“Detrimental Activity” shall have the meaning set forth in the Plan and additionally shall mean any
of the following:

(i) For the period commencing on your first day of employment with the Company and ending on the
date which is 18 months following your termination of employment with the Company for any reason
(such period hereinafter referred to as the “Restricted Period”), with respect to any state or
country in which the Company is engaged in business during your employment term, you participate or
engage, directly or indirectly, for yourself or on behalf of or in conjunction with any person,
partnership, corporation or other entity, whether as an employee, agent, officer, director,
shareholder, partner, joint venturer, investor or otherwise, in any business competitive with a
business undertaken by the Company or by you at any time during your employment term.

(ii) During the Restricted Period, you engage in Solicitation, whether for your own account or for
the account of any other individual, partnership, firm, corporation or other business organization
(other than the Company). “Solicitation” means any of the following, or an attempt to do any of
the following: (i) recruiting, soliciting or inducing any non-clerical employee or consultant of
the Company (including, but not limited to, any independent sales representative or organization)
to terminate his or her employment with, or otherwise cease or reduce his or her relationship with,
the Company; (ii) hiring or assisting another person or entity to hire any non-clerical employee or
consultant of the Company or any person who within 12 months before was such a person; or (iii)
soliciting or inducing any person or entity (including any person who within the preceding 12
months was a customer or client of the Company) to terminate, suspend, reduce, or diminish in any
way its relationship with or prospective relationship with the Company.

(iii) (a) You disclose to any person or entity or use, at any time, any information not in the
public domain or generally known in the industry (except as may be required by law or legal
process), in any form, acquired by you while employed by the Company or any predecessor to the
Company’s business or, if acquired following the employment term, such information which, to your
knowledge, has been acquired, directly or indirectly, from any person or entity owing a duty of
confidentiality to the Company (or to which the Company owes a duty of confidentiality), including
but not limited to information regarding customers, vendors, suppliers, trade secrets, training
programs, manuals or materials, technical information, contracts, systems, procedures, mailing
lists, know-how, trade names, improvements, price lists, financial or other data (including the
revenues, costs or profits associated with any of the Company’s products or services), business
plans, code books, invoices and other financial statements, computer programs, software systems,
databases, discs and printouts, plans (business, technical or otherwise), customer and industry
lists, correspondence, internal reports, personnel files, sales and advertising material, telephone
numbers, names, addresses or any other compilation of information, written or unwritten, which is
or was used in the business of the Company; or (b) you fail to return to the Company the originals
and all copies of any such information in any form, and copies and extracts thereof, provided to or
acquired by you in connection with the performance of your duties for the Company (which are and
shall remain the sole and exclusive property of the Company); or (c) you fail to return to the
Company all files, correspondence and/or other communications received, maintained and/or
originated by you during the course of your employment.

(iv) You issue or communicate, directly or indirectly, any public statement (or statement likely to
become public) that disparages, denigrates, maligns or impugns the Company, its affiliates, or
their respective officers, directors, employees, products or services, except truthful responses to
legal process or governmental inquiry or by you in carrying out your duties while employed by the
Company.

3exv4w1

Exhibit 4.1

Execution Version

ALTA MESA HOLDINGS, LP,

ALTA MESA FINANCE SERVICES CORP.

EACH OF THE SUBSIDIARY GUARANTORS PARTY HERETO

AND

WELLS FARGO BANK, NATIONAL ASSOCIATION

AS TRUSTEE

 

INDENTURE

Dated as of October 13, 2010

 

9 5/8% Senior Notes due 2018

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	 	 
	 
	SECTION 1.1. Definitions
	 	 	1	 
	SECTION 1.2. Other Definitions
	 	 	35	 
	SECTION 1.3. Incorporation by Reference of Trust Indenture Act
	 	 	37	 
	SECTION 1.4. Rules of Construction
	 	 	38	 
	 
	ARTICLE II
 THE SECURITIES	 	 	 	 
	 
	SECTION 2.1. Form, Dating and Terms
	 	 	38	 
	SECTION 2.2. Execution and Authentication
	 	 	46	 
	SECTION 2.3. Registrar and Paying Agent
	 	 	47	 
	SECTION 2.4. Paying Agent to Hold Money in Trust
	 	 	48	 
	SECTION 2.5. Securityholder Lists
	 	 	49	 
	SECTION 2.6. Transfer and Exchange
	 	 	49	 
	SECTION 2.7. Form of Certificate to be Delivered upon Termination of Restricted Period

	 	 	53	 
	SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers to Institutional Accredited Investors
	 	 	54	 
	SECTION 2.9. Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S
	 	 	55	 
	SECTION 2.10. Mutilated, Destroyed, Lost or Stolen Securities
	 	 	56	 
	SECTION 2.11. Outstanding Securities
	 	 	57	 
	SECTION 2.12. Temporary Securities
	 	 	58	 
	SECTION 2.13. Cancellation
	 	 	58	 
	SECTION 2.14. Payment of Interest; Defaulted Interest
	 	 	59	 
	SECTION 2.15. Computation of Interest
	 	 	60	 
	SECTION 2.16. CUSIP, Common Code and ISIN Numbers
	 	 	60	 
	 
	ARTICLE III
 COVENANTS	 	 	 	 
	 
	SECTION 3.1. Payment of Securities
	 	 	60	 
	SECTION 3.2. Limitation on Indebtedness and Preferred Stock
	 	 	61	 
	SECTION 3.3. Limitation on Restricted Payments
	 	 	64	 
	SECTION 3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	68	 
	SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock
	 	 	71	 
	SECTION 3.6. Limitation on Liens
	 	 	74	 
	SECTION 3.7. Statement by Officers as to Default
	 	 	74	 
	SECTION 3.8. Limitation on Affiliate Transactions
	 	 	74	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.9. Purchase of Securities Upon a Change of Control
	 	 	76	 
	SECTION 3.10. Provision of Financial Information
	 	 	78	 
	SECTION 3.11. Future Subsidiary Guarantors
	 	 	79	 
	SECTION 3.12. Maintenance of Office or Agency
	 	 	79	 
	SECTION 3.13. Corporate Existence
	 	 	80	 
	SECTION 3.14. Payment of Taxes
	 	 	80	 
	SECTION 3.15. Payments for Consent
	 	 	80	 
	SECTION 3.16. Compliance Certificate
	 	 	80	 
	SECTION 3.17. Business Activities
	 	 	81	 
	 
	ARTICLE IV
 SUCCESSOR COMPANY	 	 	 	 
	 
	SECTION 4.1. Merger and Consolidation
	 	 	81	 
	 
	ARTICLE V
 REDEMPTION OF SECURITIES	 	 	 	 
	 
	SECTION 5.1. Redemption
	 	 	83	 
	SECTION 5.2. Applicability of Article
	 	 	83	 
	SECTION 5.3. Election to Redeem; Notice to Trustee
	 	 	83	 
	SECTION 5.4. Selection by Trustee of Securities to Be Redeemed
	 	 	83	 
	SECTION 5.5. Notice of Redemption
	 	 	83	 
	SECTION 5.6. Deposit of Redemption Price
	 	 	85	 
	SECTION 5.7. Securities Payable on Redemption Date
	 	 	85	 
	SECTION 5.8. Securities Redeemed in Part
	 	 	85	 
	 
	ARTICLE VI
 DEFAULTS AND REMEDIES	 	 	 	 
	 
	SECTION 6.1. Events of Default
	 	 	85	 
	SECTION 6.2. Acceleration
	 	 	88	 
	SECTION 6.3. Other Remedies
	 	 	88	 
	SECTION 6.4. Waiver of Past Defaults
	 	 	89	 
	SECTION 6.5. Control by Majority
	 	 	89	 
	SECTION 6.6. Limitation on Suits
	 	 	89	 
	SECTION 6.7. Rights of Holders to Receive Payment
	 	 	90	 
	SECTION 6.8. Collection Suit by Trustee
	 	 	90	 
	SECTION 6.9. Trustee May File Proofs of Claim
	 	 	90	 
	SECTION 6.10. Priorities
	 	 	90	 
	SECTION 6.11. Undertaking for Costs
	 	 	91	 
	 
	ARTICLE VII
 TRUSTEE	 	 	 	 
	 
	SECTION 7.1. Duties of Trustee
	 	 	91	 
	SECTION 7.2. Rights of Trustee
	 	 	92	 
	SECTION 7.3. Individual Rights of Trustee
	 	 	94	 

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	 	 	Page	 
	SECTION 7.4. Trustee’s Disclaimer
	 	 	94	 
	SECTION 7.5. Notice of Defaults
	 	 	94	 
	SECTION 7.6. Reports by Trustee to Holders
	 	 	94	 
	SECTION 7.7. Compensation and Indemnity
	 	 	95	 
	SECTION 7.8. Replacement of Trustee
	 	 	96	 
	SECTION 7.9. Successor Trustee by Merger
	 	 	96	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	97	 
	SECTION 7.11. Preferential Collection of Claims Against the Issuers
	 	 	97	 
	SECTION 7.12. Trustee’s Application for Instruction from the Issuers
	 	 	97	 
	 
	ARTICLE VIII
 DISCHARGE OF INDENTURE; DEFEASANCE	 	 	 	 
	 
	SECTION 8.1. Discharge of Liability on Securities; Defeasance
	 	 	97	 
	SECTION 8.2. Conditions to Defeasance
	 	 	99	 
	SECTION 8.3. Application of Trust Money
	 	 	100	 
	SECTION 8.4. Repayment to the Issuers
	 	 	100	 
	SECTION 8.5. Indemnity for U.S. Government Obligations
	 	 	100	 
	SECTION 8.6. Reinstatement
	 	 	101	 
	 
	ARTICLE IX
 AMENDMENTS	 	 	 	 
	 
	SECTION 9.1. Without Consent of Holders
	 	 	101	 
	SECTION 9.2. With Consent of Holders
	 	 	102	 
	SECTION 9.3. Compliance with Trust Indenture Act
	 	 	103	 
	SECTION 9.4. Revocation and Effect of Consents and Waivers
	 	 	103	 
	SECTION 9.5. Notation on or Exchange of Securities
	 	 	104	 
	SECTION 9.6. Trustee to Sign Amendments
	 	 	104	 
	 
	ARTICLE X
 GUARANTEE	 	 	 	 
	 
	SECTION 10.1. Guarantee
	 	 	104	 
	SECTION 10.2. Limitation on Liability; Termination, Release and Discharge
	 	 	106	 
	SECTION 10.3. Right of Contribution
	 	 	107	 
	SECTION 10.4. No Subrogation
	 	 	107	 
	 
	ARTICLE XI
 MISCELLANEOUS	 	 	 	 
	 
	SECTION 11.1. Trust Indenture Act Controls
	 	 	107	 
	SECTION 11.2. Notices
	 	 	108	 
	SECTION 11.3. Communication by Holders with other Holders
	 	 	109	 
	SECTION 11.4. Certificate and Opinion as to Conditions Precedent
	 	 	109	 
	SECTION 11.5. Statements Required in Certificate or Opinion
	 	 	109	 
	SECTION 11.6. When Securities Disregarded
	 	 	109	 
	SECTION 11.7. Rules by Trustee, Paying Agent and Registrar
	 	 	110	 

-iii-

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 11.8. Legal Holidays
	 	 	110	 
	SECTION 11.9. GOVERNING LAW
	 	 	110	 
	SECTION 11.10. No Personal Liability of Directors, Officers, Employees and Stockholders

	 	 	110	 
	SECTION 11.11. Successors
	 	 	110	 
	SECTION 11.12. Multiple Originals
	 	 	110	 
	SECTION 11.13. Table of Contents; Headings
	 	 	110	 
	SECTION 11.14. Waiver of Jury Trial
	 	 	110	 
	SECTION 11.15. Force Majeure
	 	 	110	 

	 	 	 

	EXHIBIT A

	 	Form of the Note
	EXHIBIT B

	 	Form of Indenture Supplement to Add Subsidiary Guarantors

-iv-

 

          This INDENTURE dated as of October 13, 2010, among Alta Mesa Holdings, LP, a Delaware limited
partnership (the “Company”), and Alta Mesa Finance Services Corp., a Delaware corporation
(the “Co-Issuer” and, together with the Company, the “Issuers”), the Subsidiary
Guarantors (as defined herein) and Wells Fargo Bank, National Association (the “Trustee”),
as trustee.

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Issuers’ 9 5/8% Senior Notes due 2018 issued on the date
hereof (the “Initial Securities”), the Holders of any Additional Securities (as defined
herein) issued hereafter and, if and when issued in exchange for the Initial Securities or any
Additional Securities as provided in a Registration Rights Agreement (as hereinafter defined), the
Exchange Securities (as hereinafter defined):

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. Definitions.

          “Acquired Indebtedness” means Indebtedness (i) of a Person or any of its Subsidiaries
existing at the time such Person becomes or is merged with and into a Restricted Subsidiary or (ii)
assumed in connection with the acquisition of assets from such Person, in each case whether or not
Incurred by such Person in connection with, or in anticipation or contemplation of, such Person
becoming a Restricted Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to have
been Incurred, with respect to clause (i) of the preceding sentence, on the date such Person
becomes or is merged with and into a Restricted Subsidiary and, with respect to clause (ii) of the
preceding sentence, on the date of consummation of such acquisition of assets.

          “Additional Assets” means:

          (1) any properties or assets (other than current assets) to be used by the Company or a
Restricted Subsidiary in the Oil and Gas Business; or

          (2) the Capital Stock of a Person that is or becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; provided, however,
that such Restricted Subsidiary is primarily engaged in the Oil and Gas Business.

          “Additional Interest” means the interest payable as a consequence of the failure to
effectuate in a timely manner the exchange offer and/or shelf registration procedures set forth in
the Registration Rights Agreement.

          “Additional Securities” means any Securities (other than the Initial Securities or the
Exchange Securities) issued under this Indenture in accordance with Section 2.2, as part of
the same series as the Initial Securities to the extent outstanding and any Exchange Securities
then outstanding.

 

 

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

          (a) the sum of:

          (i) discounted future net revenues from proved oil and gas reserves of the Company and
its Restricted Subsidiaries calculated in accordance with SEC guidelines before any state or
federal income taxes, as estimated by the Company in a reserve report prepared as of the end
of the Company’s most recently completed fiscal year for which audited financial statements
are available, which reserve report is prepared, reviewed or audited by independent
petroleum engineers, as increased by, as of the date of determination, the estimated
discounted future net revenues from

          (A) estimated proved oil and gas reserves acquired since such year end, which
reserves were not reflected in such year end reserve report, and

          (B) estimated oil and gas reserves attributable to extensions, discoveries and
other additions and upward revisions of estimates of proved oil and gas reserves
since such year end due to exploration, development or exploitation, production or
other activities, which would, in accordance with standard industry practice, cause
such revisions (including the impact to proved reserves and future net revenues from
estimated development costs incurred and the accretion of discount since such year
end),

and decreased by, as of the date of determination, the estimated
discounted future net revenues from

          (C) estimated proved oil and gas reserves produced or disposed of since such
year end, and

          (D) estimated oil and gas reserves attributable to downward revisions of
estimates of proved oil and gas reserves since such year end due to changes in
geological conditions or other factors which would, in accordance with standard
industry practice, cause such revisions, in each case calculated on a pre-tax basis
and substantially in accordance with SEC guidelines,

in the case of clauses (A) through (D) utilizing prices and costs calculated in
accordance with SEC guidelines as if the end of the most recent fiscal quarter
preceding the date of determination for which such information is available to the
Company were year end; provided, however, that in the case of each of the
determinations made pursuant to clauses (A) through (D), such increases and
decreases shall be as estimated by the Company’s petroleum engineers;

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

-2-

 

          (iii) the Net Working Capital of the Company and its Restricted Subsidiaries on a date
no earlier than the date of the Company’s latest annual or quarterly financial statements;
and

          (iv) the greater of

          (A) the net book value of other tangible assets of the Company and its
Restricted Subsidiaries, as of a date no earlier than the date of the Company’s
latest annual or quarterly financial statements, and

          (B) the appraised value, as estimated by independent appraisers, of other
tangible assets of the Company and its Restricted Subsidiaries, as of a date no
earlier than the date of the Company’s latest audited financial statements;
provided, that, if no such appraisal has been performed the Company shall not be
required to obtain such an appraisal and only clause (iv)(A) of this definition
shall apply;

minus

          (b) the sum of:

          (i) Minority Interests;

          (ii) any net gas balancing liabilities of the Company and its Restricted Subsidiaries
reflected in the Company’s latest annual or quarterly balance sheet (to the extent not
deducted in calculating Net Working Capital of the Company in accordance with clause
(a)(iii) above of this definition);

          (iii) to the extent included in (a)(i) above, the discounted future net revenues,
calculated in accordance with SEC guidelines (but utilizing prices and costs calculated in
accordance with SEC guidelines as if the end of the most recent fiscal quarter preceding the
date of determination for which such information is available to the Company were year end),
attributable to reserves which are required to be delivered to third parties to fully
satisfy the obligations of the Company and its Restricted Subsidiaries with respect to
Volumetric Production Payments (determined, if applicable, using the schedules specified
with respect thereto); and

          (iv) the discounted future net revenues, calculated in accordance with SEC guidelines,
attributable to reserves subject to Dollar-Denominated Production Payments which, based on
the estimates of production and price assumptions included in determining the discounted
future net revenues specified in (a)(i) above, would be necessary to fully satisfy the
payment obligations of the Company and its Subsidiaries with respect to Dollar-Denominated
Production Payments (determined, if applicable, using the schedules specified with respect
thereto).

          If the Company changes its method of accounting from the successful efforts method of
accounting to the full cost or a similar method, “Adjusted Consolidated Net Tangible

-3-

 

Assets” will continue to be calculated as if the Company were still using the successful
efforts method of accounting.

          “Affiliate” of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any 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.

          “Asset Disposition” means any direct or indirect sale, lease (including by means of
Production Payments and Reserve Sales and a Sale/Leaseback Transaction but excluding an operating
lease entered into in the ordinary course of the Oil and Gas Business), transfer, issuance or other
disposition, or a series of related sales, leases, transfers, issuances or dispositions that are
part of a common plan, of (A) any Capital Stock of a Restricted Subsidiary (other than directors’
qualifying shares or shares required by applicable law to be held by a Person other than the
Company or a Restricted Subsidiary) or (B) any other assets of the Company or any Restricted
Subsidiary outside of the ordinary course of business of the Company or such Restricted Subsidiary
(each referred to for the purposes of this definition as a “disposition”), in each case by the
Company or any of its Restricted Subsidiaries, including any disposition by means of a merger,
consolidation or similar transaction.

Notwithstanding the preceding, the following items shall not be deemed to be Asset Dispositions:

          (1) a disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary;

          (2) a disposition of cash, Cash Equivalents or other financial assets in the ordinary
course of business;

          (3) a disposition of Hydrocarbons in the ordinary course of business;

          (4) a disposition of damaged, unserviceable, obsolete or worn out equipment or
equipment that is no longer necessary for the proper conduct of the business of the Company
and its Restricted Subsidiaries and that is disposed of in each case in the ordinary course
of business;

          (5) transactions in accordance with Section 4.1;

          (6) an issuance of Capital Stock by a Restricted Subsidiary to the Company or to a
Restricted Subsidiary;

          (7) the making of a Permitted Investment or a Restricted Payment (or a disposition that
would constitute a Restricted Payment but for the exclusions from the definition thereof)
permitted by Section 3.3;

          (8) an Asset Swap;

-4-

 

          (9) dispositions of assets with a Fair Market Value of less than $10.0 million in any
single transaction or series of related transactions;

          (10) Permitted Liens;

          (11) dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;

          (12) the licensing or sublicensing of intellectual property (including the licensing of
seismic data or rights to access and use seismic data libraries);

          (13) any Production Payments and Reserve Sales pursuant to incentive compensation
programs on terms that are reasonably customary in the Oil and Gas Business for geologists,
geophysicists and other providers of technical or management services to the Company or a
Restricted Subsidiary;

          (14) surrender or waiver of contract rights, oil and gas leases, or the settlement,
release or surrender of contract, tort or other claims of any kind; and

          (15) the abandonment, assignment, farmout, lease, sublease, forfeiture or other
disposition of developed or undeveloped Oil and Gas Properties in the ordinary course of
business.

          “Asset Swap” means any substantially contemporaneous (and in any event occurring
within 180 days of each other) purchase and sale or exchange of any Oil and Gas Assets between the
Company or any of its Restricted Subsidiaries and another Person; provided, that any cash received
must be applied in accordance with Section 3.5 as if the Asset Swap were an Asset
Disposition.

          “Attributable Debt” in respect of a sale and leaseback transaction means, at the time
of determination, the present value of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction including any
period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest implicit
in such transaction, determined in accordance with GAAP; provided, however, that if such sale and
leaseback transaction results in a Capitalized Lease Obligation, the amount of Indebtedness
represented thereby will be determined in accordance with the definition of “Capitalized Lease
Obligation.”

          “Average Life” means, as of the date of determination, with respect to any
Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the sum of the products of
the numbers of years from the date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment with respect to such
Preferred Stock multiplied by the amount of such payment by (2) the sum of all such payments.

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

-5-

 

          “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be
deemed to have beneficial ownership of all securities that such “person” has the right to acquire
by conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

          “Board of Directors” means, as to any Person that is a corporation, the board of
directors of such Person or any duly authorized committee thereof or as to any Person that is not a
corporation, the board of managers or such other individual or group serving a similar function.
For long as the Company is a limited partnership, the board of directors of the General Partner
shall be deemed to be the Board of Directors of the Company.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of a Person to have been duly adopted by the Board of Directors of such Person
and to be in full force and effect on the date of such certification.

          “Business Day” means each day that is not a Saturday, Sunday or other day on which
commercial banking institutions in New York, New York are authorized or required by law to close.

          “Capital Stock” of any Person means any and all shares, units, 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, but excluding any debt
securities convertible into, or exchangeable for, such equity.

          “Capitalized Lease Obligation” means an obligation that is required to be classified
and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP,
and the amount of Indebtedness represented by such obligation will be the capitalized amount of
such obligation at the time any determination thereof is to be made as determined in accordance
with GAAP, and the Stated Maturity thereof will be the date of the last payment of rent or any
other amount due under such lease prior to the first date such lease may be terminated without
penalty.

          “Cash Equivalents” means:

          (1) securities issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality of the United States (provided that the full
faith and credit of the United States is pledged in support thereof), having maturities of
not more than one year from the date of acquisition;

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

-6-

 

          (3) certificates of deposit, time deposits, eurodollar time deposits, overnight bank
deposits or bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank the short-term deposit of which is
rated at the time of acquisition thereof at least “A-2” or the equivalent thereof by S&P, or
“P-2” or the equivalent thereof by Moody’s, and having combined capital and surplus in
excess of $500.0 million;

          (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (1), (2) and (3) entered into with any bank
meeting the qualifications specified in clause (3) above;

          (5) commercial paper rated at the time of acquisition thereof at least “A-2” by S&P or
“P-2” by Moody’s, and in either case maturing within nine months after the date of
acquisition thereof; and

          (6) interests in any investment company or money market fund which invests 95% or more
of its assets in instruments of the type specified in clauses (1) through (5) above.

          “Change of Control” means:

          (1) any “person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than a Permitted Holder, is or becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the total voting power of the
Voting Stock of the General Partner (or, following the conversion of the Company into
another form as described below, more than 50% of the total voting power of the Voting Stock
of the successor entity to the Company);

          (2) the first day on which a majority of the members of the Board of Directors of the
Company are not Continuing Directors;

          (3) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Restricted Subsidiaries taken as a
whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than to the Company, a Restricted Subsidiary or a Permitted Holder; or

          (4) the adoption by the members of the General Partner or the partners of the Company
(or, following the conversion of the Company into another form as described below, its
equity holders) of a plan or proposal for the liquidation or dissolution of the Company.

          Notwithstanding the preceding, a conversion (whether by merger, statutory conversion or
otherwise) of the Company from a limited partnership to a limited liability company or corporation
or an exchange of all of the outstanding partnership interests in the Company for Capital Stock in
a corporation or a limited liability company, shall not constitute a Change of Control, so long as
following such conversion or exchange the “persons” (as that term is used in Section 13(d)(3) of
the Exchange Act) who Beneficially Owned the Capital Stock of

-7-

 

the General Partner and the Company immediately prior to such transactions continue to
Beneficially Own in the aggregate sufficient Capital Stock of such successor entity to elect a
majority of its directors, managers trustees or other persons serving in a similar capacity for
such successor entity.

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

          “Co-Issuer” has the meaning ascribed to it in the first introductory paragraph of this
Indenture, together with its successors and assigns.

          “Commodity Agreements” means, in respect of any Person, any forward contract,
commodity swap agreement, commodity option agreement or other similar agreement or arrangement in
respect of Hydrocarbons used, produced, processed or sold by such Person that is customary in the
Oil and Gas Business and designed to protect such Person against fluctuation in Hydrocarbon prices.

          “Common Stock” means with respect to any Person, any and all Capital Stock (however
designated and whether voting or nonvoting) of such Person other than any Preferred Stock, whether
or not outstanding on the Issue Date, and includes, all series and classes of such Capital Stock.

          “Company” has the meaning ascribed to it in the first introductory paragraph of this
Indenture, together with its successors and assigns.

          “Consolidated Coverage Ratio” means, for any Person, as of any date of determination,
the ratio of (x) the aggregate amount of Consolidated EBITDAX of such Person for the period of the
most recent four consecutive fiscal quarters ending prior to the date of such determination for
which financial statements are in existence to (y) Consolidated Interest Expense for such four
fiscal quarters, provided, however, that:

          (1) if the Company or any Restricted Subsidiary:

          (a) has Incurred any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction giving rise
to the need to calculate the Consolidated Coverage Ratio is an Incurrence of
Indebtedness, Consolidated EBITDAX and Consolidated Interest Expense for such period
will be calculated after giving effect on a pro forma basis to the Incurrence of
such Indebtedness and the use of proceeds thereof as if such Indebtedness had been
Incurred on the first day of such period and such proceeds had been applied as of
such date (except that in making such computation, the amount of any revolving
credit Indebtedness outstanding on the date of such calculation will be deemed to be
(i) the average daily balance of such Indebtedness during such four fiscal quarters
or such shorter period during which such Indebtedness was outstanding or (ii) if
such revolving credit Indebtedness was Incurred after the end of such four fiscal
quarters, the average daily balance of such Indebtedness during the period from the
date of Incurrence of such revolving credit Indebtedness to the date of such
calculation, in each case,

-8-

 

provided that such average daily balance shall take into account any permanent
repayment of such revolving credit Indebtedness as provided in clause (b)); or

          (b) has repaid, repurchased, defeased or otherwise discharged any Indebtedness
since the beginning of the period, including with the proceeds of such new
Indebtedness, that is no longer outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage Ratio
involves a discharge of Indebtedness (in each case other than any revolving credit
Indebtedness, unless such revolving credit Indebtedness has been permanently repaid
and the related commitment terminated), Consolidated EBITDAX and Consolidated
Interest Expense for such period will be calculated after giving effect on a pro
forma basis to such discharge of such Indebtedness as if such discharge had occurred
on the first day of such period;

          (2) if, since the beginning of such period, the Company or any Restricted Subsidiary
has made any Asset Disposition or if the transaction giving rise to the need to calculate
the Consolidated Coverage Ratio is such an Asset Disposition, the Consolidated EBITDAX for
such period will be reduced by an amount equal to the Consolidated EBITDAX (if positive)
directly attributable to the assets which are the subject of such Asset Disposition for such
period or increased by an amount equal to the Consolidated EBITDAX (if negative) directly
attributable thereto for such period and Consolidated Interest Expense for such period shall
be reduced by an amount equal to the Consolidated Interest Expense directly attributable to
any Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased, defeased
or otherwise discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with or with the proceeds from such Asset Disposition for such
period (or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period directly attributable to the Indebtedness of such
Restricted Subsidiary to the extent the Company and its continuing Restricted Subsidiaries
are no longer liable for such Indebtedness after such sale);

          (3) if, since the beginning of such period, the Company or any Restricted Subsidiary
(by merger or otherwise) has made an Investment in any Restricted Subsidiary (or any Person
which becomes a Restricted Subsidiary or is merged with or into the Company or a Restricted
Subsidiary) or an acquisition (or has received a contribution) of assets, including any
acquisition or contribution of assets occurring in connection with a transaction causing a
calculation to be made under this Indenture, which constitutes all or substantially all of a
Company, division, operating unit, segment, business, group of related assets or line of
business, Consolidated EBITDAX and Consolidated Interest Expense for such period will be
calculated after giving pro forma effect thereto (including the Incurrence of any
Indebtedness) as if such Investment or acquisition or contribution had occurred on the first
day of such period; and

          (4) if, since the beginning of such period, any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) made any Asset

-9-

 

Disposition or any Investment or acquisition of assets that would have required an
adjustment pursuant to clause (2) or (3) above if made by the Company or a Restricted
Subsidiary during such period, Consolidated EBITDAX and Consolidated Interest Expense for
such period will be calculated after giving pro forma effect thereto as if such Asset
Disposition or Investment or acquisition of assets had occurred on the first day of such
period.

          For purposes of this definition, whenever pro forma effect is to be given to any calculation
under this definition, the pro forma calculations will be determined on behalf of the Company in
good faith by a responsible financial or accounting officer of the Company; provided that such
officer may in his or her discretion include any reasonably identifiable and factually supportable
pro forma changes to Consolidated EBITDAX, including any pro forma expenses and cost reductions,
that have occurred or in the judgment of such officer are reasonably expected to occur within 12
months of the date of the applicable transaction (regardless of whether such expense or cost
reduction or any other operating improvements could then be reflected properly in pro forma
financial statements prepared in accordance with Regulation S-X under the Securities Act or any
other regulation or policy of the SEC). If any Indebtedness bears a floating rate of interest and
is being given pro forma effect, the interest expense on such Indebtedness will be calculated as if
the average rate in effect from the beginning of such period to the date of determination had been
the applicable rate for the entire period (taking into account any Interest Rate Agreement
applicable to such Indebtedness, but if the remaining term of such Interest Rate Agreement is less
than 12 months, then such Interest Rate Agreement shall only be taken into account for that portion
of the period equal to the remaining term thereof). If any Indebtedness that is being given pro
forma effect bears an interest rate at the option of the Company or any Restricted Subsidiary, the
interest rate shall be calculated by applying such optional rate chosen by the Company or such
Restricted Subsidiary. Interest on Indebtedness that may optionally be determined at an interest
rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or
other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then
based upon such optional rate chosen as the Company or the applicable Restricted Subsidiary may
designate.

          “Consolidated EBITDAX” for any period means, without duplication, the Consolidated Net
Income for such period, plus the following, without duplication and to the extent deducted (and not
added back) in calculating such Consolidated Net Income:

          (1) Consolidated Interest Expense;

          (2) Consolidated Income Tax Expense;

          (3) consolidated depletion and depreciation expense of the Company and its Restricted
Subsidiaries;

          (4) consolidated amortization expense or impairment charges of the Company and its
Restricted Subsidiaries recorded in connection with the application of Statement of
Financial Accounting Standard No. 142, “Goodwill and Other Intangibles” and Statement of
Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long
Lived Assets”;

-10-

 

          (5) other non-cash charges of the Company and its Restricted Subsidiaries (excluding
any such non-cash charge to the extent it represents an accrual of or reserve for cash
charges in any future period or amortization of a prepaid cash expense that was paid in a
prior period not included in the calculation); and

          (6) the consolidated exploration and abandonment expense of the Company and its
Restricted Subsidiaries,

if applicable for such period; and less, to the extent included in calculating such Consolidated
Net Income and in excess of any costs or expenses attributable thereto that were deducted (and not
added back) in calculating such Consolidated Net Income, the sum of (x) the amount of deferred
revenues that is amortized during such period and is attributable to reserves that are subject to
Volumetric Production Payments, (y) amounts recorded in accordance with GAAP as repayments of
principal and interest pursuant to Dollar-Denominated Production Payments and (z) other non-cash
gains (excluding any non-cash gain to the extent it represents the reversal of an accrual or
reserve for a potential cash item that reduced Consolidated EBITDAX in any prior period).

          Notwithstanding the preceding sentence, clauses (2) through (6) relating to amounts of a
Restricted Subsidiary will be added to Consolidated Net Income to compute Consolidated EBITDAX of
the Company only to the extent (and in the same proportion) that the net income (loss) of such
Restricted Subsidiary was included in calculating the Consolidated Net Income of the Company and,
to the extent the amounts set forth in clauses (2) through (6) are in excess of those necessary to
offset a net loss of such Restricted Subsidiary or if such Restricted Subsidiary has net income for
such period included in Consolidated Net Income, only if a corresponding amount would be permitted
at the date of determination to be dividended to the Company by such Restricted Subsidiary without
prior approval (that has not been obtained), pursuant to the terms of its charter and all
agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations
applicable to that Restricted Subsidiary or the holders of its Capital Stock.

          “Consolidated Income Tax Expense” means, with respect to any period, the provision for
federal, state, local and foreign taxes (including state franchise taxes) based on income of the
Company and its Restricted Subsidiaries for such period as determined in accordance with GAAP, or
(for any period in which the Company is a partnership) the Tax Amount for such period.

          “Consolidated Interest Expense” means, for any period, the total consolidated interest
expense (excluding interest income) of the Company and its Restricted Subsidiaries, whether paid or
accrued, plus, to the extent not included in such interest expense and without duplication:

          (1) interest expense attributable to Capitalized Lease Obligations or Attributable Debt
and the interest component of any deferred payment obligations;

          (2) amortization of debt discount and debt issuance cost (provided that any
amortization of bond premium will be credited to reduce Consolidated Interest

-11-

 

Expense unless, pursuant to GAAP, such amortization of bond premium has otherwise
reduced Consolidated Interest Expense);

          (3) non-cash interest expense;

          (4) commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing;

          (5) the interest expense on Indebtedness of another Person that is guaranteed by the
Company or one of its Restricted Subsidiaries or secured by a Lien on assets of the Company
or one of its Restricted Subsidiaries;

          (6) cash costs associated with Interest Rate Agreements (including amortization of
fees); provided, however, that if Interest Rate Agreements result in net cash benefits
rather than costs, such benefits shall be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such net benefits are otherwise reflected in Consolidated Net
Income;

          (7) the consolidated interest expense of the Company and its Restricted Subsidiaries
that was capitalized during such period; and

          (8) all dividends paid or payable in cash, Cash Equivalents or Indebtedness, or accrued
during such period, in each case on any series of Disqualified Stock of the Company or on
Preferred Stock of its Restricted Subsidiaries payable to a party other than the Company or
a Wholly-Owned Subsidiary.

          For the purpose of calculating the Consolidated Coverage Ratio in connection with the
Incurrence of any Indebtedness described in the final paragraph of the definition of
“Indebtedness,” the calculation of Consolidated Interest Expense shall include all interest
expense (including any amounts described in clauses (1) through (8) above) relating to any
Indebtedness of the Company or any Restricted Subsidiary described in the final paragraph of
the definition of “Indebtedness.”

          “Consolidated Net Income” means, for any period, the aggregate net income (loss) of
the Company and its Subsidiaries determined in accordance with GAAP and before any reduction in
respect of Preferred Stock dividends of such Person, less (for any period the Company is a
partnership) the Tax Amount for such period; provided, however, that there will not be included (to
the extent otherwise included therein) in such Consolidated Net Income:

          (1) any net income (loss) of any Person (other than the Company) if such Person is not
a Restricted Subsidiary, except that:

          (a) subject to the limitations contained in clauses (3) and (4) below, the
Company’s equity in the net income of any such Person for such period will be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in

-12-

 

the case of a dividend or other distribution to a Restricted Subsidiary, to the
limitations contained in clause (2) below); and

          (b) the Company’s equity in a net loss of any such Person for such period will
be included in determining such Consolidated Net Income to the extent such loss has
been funded with cash from the Company or a Restricted Subsidiary during such
period;

          (2) any net income (but not loss) of any Restricted Subsidiary if such Subsidiary is
subject to restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the Company,
except that:

          (a) subject to the limitations contained in clauses (3) and (4) below, the
Company’s equity in the net income of any such Restricted Subsidiary for such period
will be included in such Consolidated Net Income up to the aggregate amount of cash
that could have been distributed by such Restricted Subsidiary during such period to
the Company or another Restricted Subsidiary as a dividend or other distribution
(subject, in the case of a dividend or other distribution paid to another Restricted
Subsidiary, to the limitation contained in this clause); and

          (b) the Company’s equity in a net loss of any such Restricted Subsidiary for
such period will be included in determining such Consolidated Net Income;

          (3) any gain (loss) realized upon the sale or other disposition of any property, plant
or equipment of the Company or its Subsidiaries (including pursuant to any Sale/Leaseback
Transaction) which is not sold or otherwise disposed of in the ordinary course of business
and any gain (loss) realized upon the sale or other disposition of any Capital Stock of any
Person;

          (4) any extraordinary or nonrecurring gains or losses, together with any related
provision for taxes (and, without duplication, any related Permitted Tax Distributions) on
such gains or losses and all related fees and expenses;

          (5) the cumulative effect of a change in accounting principles;

          (6) any asset impairment writedowns on Oil and Gas Properties under GAAP or SEC
guidelines;

          (7) any unrealized non-cash gains or losses or charges in respect of Hedging
Obligations (including those resulting from the application of Statement of Financial
Accounting Standard No. 133);

          (8) income or loss attributable to discontinued operations (including operations
disposed of during such period whether or not such operations were classified as
discontinued);

-13-

 

          (9) all deferred financing costs written off, and premiums paid, in connection with any
early extinguishment of Indebtedness; and

          (10) any non-cash compensation charge arising from any grant of stock, stock options or
other equity based awards; provided that the proceeds resulting from any such grant will be
excluded from clause (ii) of the definition of Basket Amount in Section 3.3.

          “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors of the Company who: (1) was a member of such Board of Directors on the date of this
Indenture; or (2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of Directors at
the time of such nomination or election.

          “Credit Facility” means, with respect to the Company or any Subsidiary Guarantor, one
or more debt facilities (including, without limitation, the Senior Secured Credit Agreement), or
commercial paper facilities providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to lenders or to special purpose entities formed to
borrow from such lenders against such receivables) or letters of credit from banks or other
institutional lenders, in each case, as amended, restated, modified, renewed, refunded, replaced or
refinanced in whole or in part from time to time (and whether or not with the original
administrative agent and lenders or another administrative agent or agents or other lenders and
whether provided under the original Senior Secured Credit Agreement or any other credit or other
agreement or indenture).

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

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

          “Default” means any event which is, or after notice or passage of time or both would
be, an Event of Default.

          “Definitive Securities” means certificated Securities.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock of such
Person which by its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable) at the option of the holder of the Capital Stock or upon the happening of
any event:

          (1) matures or is mandatorily redeemable (other than redeemable only for Capital Stock
of such Person which is not itself Disqualified Stock) pursuant to a sinking fund obligation
or otherwise;

-14-

 

          (2) is convertible or exchangeable for Disqualified Stock or other Indebtedness
(excluding Capital Stock which is convertible or exchangeable solely at the option of the
Company or a Restricted Subsidiary); or

          (3) is required to be repurchased by such Person at the option of the holder of the
Capital Stock in whole or in part,

in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Securities or (b) on which there are no Securities outstanding; provided
that only the portion of Capital Stock which so matures or is mandatorily redeemable, is so
convertible or exchangeable or is so required to be repurchased at the option of the holder thereof
prior to such date will be deemed to be Disqualified Stock; provided further, that any Capital
Stock that would constitute Disqualified Stock solely because the holders thereof have the right to
require the Company or any of its Restricted Subsidiaries to repurchase such Capital Stock upon the
occurrence of a change of control or asset sale (each defined in a substantially identical manner
to the corresponding definitions in this Indenture) shall not constitute Disqualified Stock if the
terms of such Capital Stock (and all such securities into which it is convertible or for which it
is exchangeable) provide that (i) the Company and its Restricted Subsidiaries may not repurchase or
redeem any such Capital Stock (and all such securities into which it is convertible or for which it
is ratable or exchangeable) pursuant to such provision prior to compliance by the Company and its
Restricted Subsidiaries with Section 3.9 and Section 3.5 and (ii) such repurchase
or redemption will be permitted solely to the extent also permitted in accordance with Section
3.3.

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

          “Domestic Subsidiary” means any Restricted Subsidiary that is not a Foreign
Subsidiary.

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

          “Equity Offering” means a public or private offering for cash by the Company of its
Capital Stock (other than Disqualified Stock).

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

          “Exchange Securities” means Securities issued in an exchange offer for Initial
Securities or Additional Securities pursuant to the Registration Rights Agreement

          “Fair Market Value” means, with respect to any asset or property, the sale value that
would be obtained in an arm’s-length free market transaction between an informed and willing seller
under no compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair
Market Value of an asset or property in excess of $20.0 million shall be determined by the Board of
Directors of the Company acting in good faith, whose determination

-15-

 

shall be conclusive and evidenced by a resolution of such Board of Directors, and any lesser
Fair Market Value may be determined by an officer of the Company acting in good faith.

          “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the
laws of the United States of America or any state thereof or the District of Columbia and that
conducts substantially all of its operations outside the United States of America.

          “GAAP” means generally accepted accounting principles in the United States of America
as in effect on the Issue Date. All ratios and computations based on GAAP contained in this
Indenture will be computed in conformity with GAAP.

          “General Partner” means Alta Mesa Holdings GP, LLC, a Texas limited liability company,
and its successors as general partner of the Company.

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

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

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

provided, however, that the term “guarantee” will not include endorsements for collection or
deposit in the ordinary course of business or any obligation to the extent it is payable only in
Capital Stock of the guarantor that is not Disqualified Stock. The term “guarantee” used as a verb
has a corresponding meaning.

          “Guarantor Subordinated Obligation” means, with respect to a Subsidiary Guarantor, any
Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter
Incurred) which is expressly subordinated in right of payment to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee pursuant to a written agreement.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to
any Interest Rate Agreement, Currency Agreement or Commodity Agreement.

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

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

-16-

 

          “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act.

          “Immaterial Subsidiary” means, as of any date, any Restricted Subsidiary with no
Indebtedness in excess of $500,000 (excluding guarantees of Indebtedness under the Senior Secured
Credit Agreement by Brayton Resources, L.P., Brayton Resources II, L.P. and Orion Operating
Company, LP), and whose total assets, as of the end of the most recent month for which financial
statements are available, taken together with those of all other Immaterial Subsidiaries, are less
than 1.0% of the Company’s Adjusted Consolidated Net Tangible Assets and whose total revenues,
taken together with those of all other Immaterial Subsidiaries, for the most recent 12-month period
for which financial statements are available do not exceed 1.0% of the Company’s total consolidated
revenues for such period.

          “Incur” means issue, create, assume, guarantee, incur or otherwise become directly or
indirectly liable for, contingently or otherwise; provided, however, that any Indebtedness or
Capital Stock of a Person existing at the time such Person becomes a Restricted Subsidiary (whether
by merger, consolidation, acquisition or otherwise) will be deemed to be Incurred by such
Restricted Subsidiary at the time it becomes a Restricted Subsidiary; and the terms “Incurred” and
“Incurrence” have meanings correlative to the foregoing.

          “Indebtedness” means, with respect to any Person on any date of determination (without
duplication, whether or not contingent):

          (1) the principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;

          (2) the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

          (3) the principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates
to a trade payable and except to the extent such letters of credit are not drawn upon or, if
and to the extent drawn upon, such obligation is satisfied within five Business Days of
payment on the letter of credit);

          (4) the principal component of all obligations of such Person to pay the deferred and
unpaid purchase price of property, which purchase price is due more than six months after
the date of placing such property in service or taking delivery and title thereto to the
extent such obligations would appear as liabilities upon the consolidated balance sheet of
such Person in accordance with GAAP, or as obligor on conditional sales of property or under
any title retention agreement;

          (5) Capitalized Lease Obligations or Attributable Debt of such Person;

          (6) the principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any

-17-

 

Disqualified Stock or, with respect to any Subsidiary of such Person, any Preferred
Stock (but excluding, in each case, any accrued dividends);

          (7) the principal component of all Indebtedness of other Persons secured by a Lien on
any asset of such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of such Indebtedness will be the lesser of (a) the Fair
Market Value of such asset at such date of determination and (b) the amount of such
Indebtedness of such other Persons;

          (8) the principal component of Indebtedness of other Persons to the extent guaranteed
by such Person; and

          (9) to the extent not otherwise included in this definition, net obligations of such
Person under Commodity Agreements, Currency Agreements and Interest Rate Agreements (the
amount of any such obligations to be equal at any time to the termination value of such
agreement or arrangement giving rise to such obligation that would be payable by such Person
at such time);

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

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

          Notwithstanding the preceding, “Indebtedness” shall not include:

          (1) Production Payments and Reserve Sales;

          (2) any obligation of a Person in respect of a farm-in agreement or similar arrangement
whereby such Person agrees to pay all or a share of the drilling, completion or other
expenses of an exploratory or development well (which agreement may be subject to a maximum
payment obligation, after which expenses are shared in accordance with the working or
participation interest therein or in accordance with the agreement of the parties) or
perform the drilling, completion or other operation on such well in exchange for an
ownership interest in an Oil and Gas Property;

          (3) any obligations under Currency Agreements, Commodity Agreements and Interest Rate
Agreements; provided that such Agreements are entered into for bona fide hedging purposes of
the Company or its Restricted Subsidiaries (as determined in good faith by the Board of
Directors or senior management of the Company, whether or not accounted for as a hedge in
accordance with GAAP) and, in the case of Currency Agreements or Commodity Agreements, such
Currency Agreements or Commodity Agreements are related to business transactions of the
Company or its

-18-

 

Restricted Subsidiaries entered into in the ordinary course of business and, in the
case of Interest Rate Agreements, such Interest Rate Agreements substantially correspond in
terms of notional amount, duration and interest rates, as applicable, to Indebtedness of the
Company or its Restricted Subsidiaries Incurred without violation of this Indenture;

          (4) any obligation arising from customary agreements of the Company or a Restricted
Subsidiary providing for indemnification, guarantees, adjustment of purchase price,
holdbacks, contingency payment obligations or similar obligations, in each case, Incurred or
assumed in connection with the acquisition or disposition of any business, assets or Capital
Stock of a Restricted Subsidiary, provided that such Indebtedness is not reflected on the
face of the balance sheet of the Company or any Restricted Subsidiary;

          (5) any obligation arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument (including daylight overdrafts) drawn against
insufficient funds in the ordinary course of business, provided that such Indebtedness is
extinguished within five Business Days of Incurrence;

          (6) in-kind obligations relating to net oil or natural gas balancing positions arising
in the ordinary course of business; and

          (7) accrued expenses and trade payables and other accrued liabilities arising in the
ordinary course of business that are not overdue by 90 days or more or are being contested
in good faith by appropriate proceedings promptly instituted and diligently conducted.

          In addition, “Indebtedness” of any Person shall include Indebtedness described in the first
paragraph of this definition of “Indebtedness” whether or not it would appear as a liability on the
balance sheet of such Person if:

          (1) such Indebtedness is the obligation of a joint venture or partnership that is not a
Restricted Subsidiary (a “Joint Venture”);

          (2) such Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture or otherwise liable for all or a portion of the Joint Venture’s liabilities (a
“general partner”); and

          (3) there is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted Subsidiary of such
Person;

and then such Indebtedness shall be included in an amount not to exceed:

          (a) the lesser of (i) the net assets of the general partner and (ii) the amount of such
obligations to the extent that there is recourse, by contract or operation of law, to the
property or assets of such Person or a Restricted Subsidiary of such Person; or

-19-

 

          (b) if less than the amount determined pursuant to clause (a) immediately above, the
actual amount of such Indebtedness that is with recourse to such Person or a Restricted
Subsidiary of such Person, if the Indebtedness is evidenced by a writing and is for a
determinable amount.

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

          “Initial Purchasers” means the several initial purchasers listed in Schedule 1 of the
Purchase Agreement dated October 7, 2010 among the Issuers, the Subsidiary Guarantors and such
initial purchasers relating to the Initial Securities.

          “Initial Securities” has the meaning ascribed to it in the first introductory
paragraph of this Indenture, together with any Security issued upon registration of transfer
thereof of or in exchange therefor.

          “Interest Rate Agreement” means with respect to any Person any interest rate
protection agreement, interest rate future agreement, interest rate option agreement, interest rate
swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement as to which such Person is party or a
beneficiary.

          “Investment” means, with respect to any Person, all investments by such Person in
other Persons (including Affiliates) in the form of any direct or indirect advance, loan or other
extensions of credit (including by way of guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit and advances or
extensions of credit to customers in the ordinary course of business) or capital contribution to
(by means of any transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments (excluding any interest in an oil or natural gas
leasehold to the extent constituting a security under applicable law) issued by, such other Person
and all other items that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP; provided that none of the following will be deemed to be an Investment:

          (1) Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture; and

          (2) endorsements of negotiable instruments and documents in the ordinary course of
business.

The amount of any Investment shall not be adjusted for increases or decreases in value, write-ups,
write-downs or write-offs with respect to such Investment.

          For purposes of the definition of “Unrestricted Subsidiary” and Section 3.3,

          (1) “Investment” will include the portion (proportionate to the Company’s
equity interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary)
of the Fair Market Value of the net assets of such Restricted Subsidiary at the time that
such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided,

-20-

 

however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the
Company will be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to

          (a) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (b) the portion (proportionate to the Company’s equity interest
in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at
the time that such Subsidiary is so redesignated a Restricted Subsidiary; and

          (2) any property transferred to or from an Unrestricted Subsidiary will be valued at
its Fair Market Value at the time of such transfer.

          “Issue Date” means the first date on which the Securities are issued under this
Indenture.

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

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

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

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

          “Net Available Cash” from an Asset Disposition means cash payments received (including
any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and net proceeds from the sale or other disposition of any
securities received as consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of Indebtedness or other
obligations relating to the assets that are the subject of such Asset Disposition or received in
any other non-cash form) therefrom, in each case net of:

          (1) all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all federal, state, provincial,
foreign and local taxes (or Permitted Tax Distributions in respect thereof)

-21-

 

required to be paid or accrued as a liability under GAAP (after taking into account any
available tax credits or deductions and any tax sharing agreements), as a consequence of
such Asset Disposition;

          (2) all payments made on any Hedging Obligation or other Indebtedness which is secured
by any assets subject to such Asset Disposition, in accordance with the terms of any Lien
upon such assets, or which must by its terms, or in order to obtain a necessary consent to
such Asset Disposition, or by applicable law be repaid out of the proceeds from such Asset
Disposition;

          (3) all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures or to holders of royalty or similar interests as a
result of such Asset Disposition;

          (4) the deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets disposed of in such
Asset Disposition and retained by the Company or any Restricted Subsidiary after such Asset
Disposition; and

          (5) all relocation expenses incurred as a result thereof and all related severance and
associated costs, expenses and charges of personnel related to assets and related operations
disposed of;

provided, however, that if any consideration for an Asset Disposition (that would otherwise
constitute Net Available Cash) is required to be held in escrow pending determination of whether or
not a purchase price adjustment will be made, such consideration (or any portion thereof) shall
become Net Available Cash only at such time as it is released to the Company or any of its
Restricted Subsidiaries from escrow.

          “Net Cash Proceeds” with respect to any issuance or sale of Capital Stock or any
contribution to equity capital, means the cash proceeds of such issuance, sale or contribution net
of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees,
discounts or commissions and brokerage, consultant and other fees and charges actually Incurred in
connection with such issuance, sale or contribution and net of taxes paid or payable as a result of
such issuance or sale (after taking into account any available tax credit or deductions and any tax
sharing arrangements).

          “Net Working Capital” means (a) the sum of all current assets of the Company and its
Restricted Subsidiaries, except current assets from commodity price risk management activities
arising in the ordinary course of the Oil and Gas Business, (other than accounts receivable with
respect to any non-contingent periodic settlement payments due thereunder), less (b) all current
liabilities of the Company and its Restricted Subsidiaries, except current liabilities (i)
associated with asset retirement obligations relating to Oil and Gas Properties, (ii) included in
Indebtedness and (iii) any current liabilities of the Company and its Restricted Subsidiaries from
commodity price risk management activities arising in the ordinary course of the Oil and Gas
Business, (other than accounts payable with respect to any non-contingent periodic settlement

-22-

 

payments due thereunder), in each case as set forth in the consolidated financial statements
of the Company prepared in accordance with GAAP.

          “Non-Recourse Debt” means Indebtedness of a Person:

          (1) as to which neither the Company nor any Restricted Subsidiary (a) provides any
guarantee or credit support of any kind (including any undertaking, guarantee, indemnity,
agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly
liable (as a guarantor or otherwise) or (c) constitutes the lender;

          (2) no default with respect to which (including any rights that the holders thereof may
have to take enforcement action against an Unrestricted Subsidiary) would permit (upon
notice, lapse of time or both) any holder of any other Indebtedness of the Company or any
Restricted Subsidiary to declare a default under such other Indebtedness or cause the
payment thereof to be accelerated or payable prior to its Stated Maturity; and

          (3) the explicit terms of which provide there is no recourse against any of the assets
of the Company or its Restricted Subsidiaries.

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

          “Obligations” means any principal, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable state, federal or foreign law), other monetary obligations,
penalties, fees, indemnifications, reimbursements (including reimbursement obligations with respect
to letters of credit and banker’s acceptances), damages and other liabilities, and guarantees of
payment of such principal, interest, penalties, fees, indemnifications, reimbursements, damages and
other liabilities, payable under the documentation governing any Indebtedness.

          “Offering Memorandum” means the offering memorandum, dated October 7, 2010, relating
to the offering by the Issuers of the Initial Securities.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Financial Officer, Chief Accounting Officer, any Vice President, the Treasurer or the
Secretary of an Issuer. Officer of any Subsidiary Guarantor has a correlative meaning, and in the
case of the Company (so long as it is a limited partnership), Officer means an Officer of its
General Partner.

          “Officers’ Certificate” means a certificate signed by two Officers of the Company, at
least one of whom shall be the Chief Executive Officer, the Chief Financial Officer or the Chief
Accounting Officer of the Company.

-23-

 

          “Oil and Gas Business” means the business of exploiting, exploring for, developing,
acquiring, operating, producing, processing, gathering, marketing, storing, selling, hedging,
treating, swapping and transporting (but not refining) Hydrocarbons.

          “Oil and Gas Properties” means any and all rights, titles, interests and estates in
and to (1) oil or gas leases or (2) other liquid or gaseous Hydrocarbon leases, mineral fee
interests, overriding royalty and royalty interests, net profit interests and production payment
interests, in each case including any reserved or residual interests of whatever nature.

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

          “Pari Passu Indebtedness” means any Indebtedness of the Company, the Co-Issuer or any
Subsidiary Guarantor that ranks equally in right of payment to the Securities or the Subsidiary
Guarantees, as the case may be.

          “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended, and
signed into law October 26, 2001.

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

          (1) of an acquired Person prior to the date on which such Person became a Restricted
Subsidiary as a result of having been acquired and not incurred in contemplation of such
acquisition; or

          (2) of a Person that was merged or consolidated with or into the Company or a
Restricted Subsidiary that was not incurred in contemplation of such merger or
consolidation,

provided that on the date such Person became a Restricted Subsidiary or the date such Person was
merged or consolidated with or into the Company or a Restricted Subsidiary, as applicable, after
giving pro forma effect thereto, the Restricted Subsidiary or the Company, as applicable, would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to Section 3.2(a).

          “Permitted Business Investment” means any Investment made in the ordinary course of,
and of a nature that is or shall have become customary in, the Oil and Gas Business through
agreements, transactions, interests or arrangements which permit one to share risks or costs,
comply with regulatory requirements regarding local ownership or satisfy other objectives
customarily achieved through the conduct of the Oil and Gas Business jointly with third parties
including:

          (1) ownership interests in oil, natural gas, other Hydrocarbon and mineral properties,
processing facilities, gathering systems, pipelines, storage facilities or related systems
or ancillary real property interests; and

-24-

 

          (2) Investments in the form of or pursuant to operating agreements, working interests,
royalty interests, mineral leases, processing agreements, farm-in agreements, farm-out
agreements, contracts for the sale, transportation or exchange of oil, natural gas, other
Hydrocarbons and minerals, production sharing agreements, participation agreements,
development agreements, area of mutual interest agreements, unitization agreements, pooling
agreements, joint bidding agreements, service contracts, joint venture agreements,
partnership agreements (whether general or limited), subscription agreements, stock purchase
agreements, stockholder agreements and other similar agreements (including for limited
liability companies) with third parties.

          “Permitted Holder” means any of the following (A) (i) Mike Ellis, Mickey Ellis and
their children, estates, heirs or lineal descendants, (ii) any trust having as its sole
beneficiaries one or more of the persons listed in clause (A)(i) above, (iii) any Person a majority
of the Voting Stock of which is owned or controlled by one or more of the Persons referred to in
clauses (A)(i) or (ii); (B) Denham Capital Management LP and any of its affiliates (other than any
operating company in which it has a portfolio investment) and (C) any group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any
of the forgoing are members.

          “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary
in:

          (1) the Company or a Restricted Subsidiary;

          (2) another Person whose primary business is the Oil and Gas Business if as a result of
such Investment such other Person becomes a Restricted Subsidiary or is merged or
consolidated with or into, or transfers or conveys all or substantially all its assets to,
the Company or a Restricted Subsidiary; provided, however, that the primary business of such
Restricted Subsidiary is the Oil and Gas Business;

          (3) cash and Cash Equivalents;

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

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

          (6) loans or advances to employees (other than executive officers) made in the ordinary
course of business of the Company or such Restricted Subsidiary;

          (7) Capital Stock or other securities received in settlement of debts (x) created in
the ordinary course of business and owing to the Company or any Restricted

-25-

 

Subsidiary or in satisfaction of judgments or (y) pursuant to any plan of
reorganization or similar arrangement in a bankruptcy or insolvency proceeding;

          (8) any Person as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 3.5;

          (9) Investments in existence on the Issue Date;

          (10) Commodity Agreements, Currency Agreements, Interest Rate Agreements described in
clause (3) of the penultimate paragraph of the definition of “Indebtedness,” and related
Hedging Obligations;

          (11) guarantees issued in accordance with Section 3.2;

          (12) Permitted Business Investments;

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

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

          (15) Investments in the Securities;

          (16) Investments made after the Issue Date in Unrestricted Subsidiaries in an aggregate
amount outstanding at any time not to exceed $10.0 million; and

          (17) Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (17), in an aggregate amount outstanding at
the time of such Investment not to exceed the greater of (i) $25.0 million and (ii) 2.5% of
the Company’s Adjusted Consolidated Net Tangible Assets.

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

          (1) Liens securing Indebtedness under a Credit Facility permitted to be Incurred under
clause (1) of Section 3.2(b);

          (2) pledges or deposits by such Person under workers’ compensation laws, unemployment
insurance laws, social security or old age pension laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits (which may be secured
by a Lien) to secure public or statutory obligations of such Person including letters of
credit and bank guarantees required or requested by the United States,

-26-

 

any State thereof or any foreign government or any subdivision, department, agency,
organization or instrumentality of any of the foregoing in connection with any contract or
statute (including lessee or operator obligations under statutes, governmental regulations,
contracts or instruments related to the ownership, exploration and production of oil,
natural gas, other hydrocarbons and minerals on state, federal or foreign lands or waters),
or deposits of cash or United States government bonds to secure indemnity performance,
surety or appeal bonds or other similar bonds to which such Person is a party, or deposits
as security for contested taxes or import or customs duties or for the payment of rent, in
each case Incurred in the ordinary course of business;

          (3) statutory and contractual Liens of landlords and Liens imposed by law, including
carriers’, warehousemen’s, mechanics’, materialmen’s and repairmen’s Liens, in each case for
sums not yet due or being contested in good faith by appropriate proceedings if a reserve or
other appropriate provisions, if any, as shall be required by GAAP shall have been made in
respect thereof;

          (4) Liens for taxes, assessments or other governmental charges or claims not yet
subject to penalties for non-payment or which are being contested in good faith by
appropriate proceedings; provided that appropriate reserves, if any, required pursuant to
GAAP have been made in respect thereof;

          (5) Liens in favor of issuers of surety or performance bonds or bankers’ acceptances
issued pursuant to the request of and for the account of such Person in the ordinary course
of its business;

          (6) survey exceptions, encumbrances, ground leases, easements or reservations of, or
rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other restrictions
(including minor defects or irregularities in title and similar encumbrances) as to the use
of real properties or Liens incidental to the conduct of the business of such Person or to
the ownership of its properties or assets which do not in the aggregate materially adversely
affect the value of the properties or assets of such Person and its Restricted Subsidiaries,
taken as a whole, or materially impair their use in the operation of the business of such
Person;

          (7) Liens arising from the deposit of funds or securities in trust for the purpose of
decreasing or defeasing Indebtedness so long as such deposit of funds or securities and such
decreasing or defeasing of Indebtedness are permitted under the covenant described under
Section 3.2;

          (8) Liens arising from leases, licenses, subleases and sublicenses of any property or
assets (including real property and intellectual property rights) entered into in the
ordinary course of the Oil and Gas Business;

          (9) prejudgment Liens and judgment Liens not giving rise to an Event of Default so long
as such Lien is adequately bonded and any appropriate legal proceedings which may have been
duly initiated for the review of such judgment have

-27-

 

not been finally terminated or the period within which such proceedings may be
initiated has not expired;

          (10) Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capitalized Lease Obligations, purchase money obligations or other payments
Incurred to finance the acquisition, lease, improvement or construction of or repairs or
additions to, assets or property acquired or constructed in the ordinary course of business;
provided that:

          (a) the aggregate principal amount of Indebtedness secured by such Liens is
otherwise permitted to be Incurred under this Indenture and does not exceed the cost
of the assets or property so acquired or constructed; and

          (b) such Liens are created within 180 days of the later of the acquisition,
lease, completion of improvements, construction, repairs or additions or
commencement of full operation of the assets or property subject to such Lien and do
not encumber any other assets or property of the Company or any Restricted
Subsidiary other than such assets or property and assets affixed or appurtenant
thereto;

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

          (a) such deposit account is not a dedicated cash collateral account and is not
subject to restrictions against access by the Company in excess of those set forth
by regulations promulgated by the Federal Reserve Board; and

          (b) such deposit account is not intended by the Company or any Restricted
Subsidiary to provide collateral to the depository institution;

          (12) Liens arising from deposits made in the ordinary course of business to secure any
liability to insurance carriers;

          (13) Liens existing on the Issue Date;

          (14) Liens on any property or assets of a Person at the time such Person becomes a
Subsidiary; provided, however, that such Liens are not created or Incurred in connection
with, or in contemplation of, such other Person becoming a Subsidiary; provided further,
however, that any such Lien may not extend to any other property or assets owned by the
Company or any Restricted Subsidiary (other than any property or assets affixed or
appurtenant thereto);

          (15) Liens on any property or assets at the time the Company or any of its Subsidiaries
acquired the property or assets, including any acquisition by means of a merger or
consolidation with or into the Company or any of its Subsidiaries; provided, however, that
such Liens are not created or Incurred in connection with, or in contemplation of, such
acquisition; provided further, however, that such Liens may not

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extend to any other property or assets owned by the Company or any Restricted
Subsidiary (other than any property or assets affixed or appurtenant thereto);

          (16) Liens securing the Securities, the Subsidiary Guarantees and any other Obligations
under this Indenture;

          (17) Liens securing Refinancing Indebtedness Incurred to refinance Indebtedness
described under clauses (10), (13), (14), (15) or this clause (17) that was previously so
secured, provided that any such Lien is limited to all or part of the same property or
assets that secured (or, under the written arrangements under which the original Lien arose,
could secure) the Indebtedness being refinanced or is in respect of property or assets that
is the security for a Permitted Lien hereunder;

          (18) any interest or title of a lessor under any operating lease;

          (19) Liens arising under farm-out agreements, farm-in agreements, division orders,
contracts for the sale, purchase, exchange, transportation, gathering or processing of
Hydrocarbons, unitizations and pooling designations, declarations, orders and agreements,
development agreements, joint venture agreements, partnership agreements, operating
agreements, royalties, working interests, net profits interests, joint interest billing
arrangements, participation agreements, production sales contracts, area of mutual interest
agreements, gas balancing or deferred production agreements, injection, repressuring and
recycling agreements, salt water or other disposal agreements, seismic or geophysical
permits or agreements, and other agreements that are customary in the Oil and Gas Business;
provided, however, in all instances that such Liens are limited to the property or assets
that are the subject of the relevant agreement, program, order or contract;

          (20) Liens on pipelines or pipeline facilities that arise by operation of law;

          (21) Liens in favor of the Company, the Co-Issuer or any Subsidiary Guarantor; and

          (22) Liens securing Indebtedness in an aggregate principal amount outstanding at any
one time, added together with all other Indebtedness secured by Liens Incurred pursuant to
this clause (22), not to exceed the greater of (a) $10.0 million and (b) 1.0% of the
Company’s Adjusted Consolidated Net Tangible Assets.

In each case set forth above, notwithstanding any stated limitation on the property or assets that
may be subject to such Lien, a Permitted Lien on a specified property or asset or group or type of
properties or assets may include Liens on all improvements, additions and accessions thereto and
all products and proceeds thereof (including dividends, distributions and increases in respect
thereof).

          “Permitted Tax Distributions” means for any calendar year or portion thereof of the
Company during which it is a pass-through entity for U.S. federal income tax purposes, payments and
distributions to the partners of the Company on each estimated payment date as

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well as each other applicable due date to enable the partners of the Company (or, if any of
them are themselves a pass-through entity for US. Federal income tax purposes, their shareholders
or partners) to make payments of U.S. federal and state income taxes (including estimates therefor)
as a result of the operations of the Company and its Subsidiaries during the current and any
previous calendar year, not to exceed an amount equal to the amount of each such partner’s (or, in
the case of a pass-through entity, its shareholders’ or partners’) U.S. federal and state income
tax liability resulting solely from the pass-through tax treatment of such partner’s interest in
the Company and as calculated pursuant to the limited partnership agreement of the Company as in
effect on the Issue Date and as it may be amended from time to time thereafter in a manner that is
not, considered as a whole, materially adverse to the holders of the Securities.

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

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

          “Production Payments and Reserve Sales” means the grant or transfer by the Company or
a Restricted Subsidiary to any Person of a royalty, overriding royalty, net profits interest,
production payment (whether volumetric or dollar denominated), partnership or other interest in Oil
and Gas Properties, reserves or the right to receive all or a portion of the production or the
proceeds from the sale of production attributable to such properties where the holder of such
interest has recourse solely to such production or proceeds of production, subject to the
obligation of the grantor or transferor to operate and maintain, or cause the subject interests to
be operated and maintained, in a reasonably prudent manner or other customary standard or subject
to the obligation of the grantor or transferor to indemnify for environmental, title or other
matters customary in the Oil and Gas Business, including any such grants or transfers pursuant to
incentive compensation programs on terms that are reasonably customary in the Oil and Gas Business
for geologists, geophysicists or other providers of technical or management services to the Company
or a Restricted Subsidiary.

          “QIB” means any “qualified institutional buyer” as such term is defined in Rule 144A.

          “Redemption Date” means, with respect to any redemption of Securities, the date of
redemption with respect thereto.

          “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance,
replace, exchange, renew, repay, extend, prepay, redeem or retire (including pursuant to any
defeasance or discharge mechanism) (collectively, “refinance” and the terms “refinances” and
“refinanced” shall have correlative meanings) any Indebtedness (including Indebtedness of the
Company that refinances Indebtedness of any Restricted Subsidiary and Indebtedness of any
Restricted Subsidiary that refinances Indebtedness of another Restricted Subsidiary, but

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excluding Indebtedness of a Restricted Subsidiary that refinances Indebtedness of the
Company), including Indebtedness that refinances Refinancing Indebtedness, provided, however, that:

          (1) (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the
Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated
Maturity of the Indebtedness being refinanced is later than the Stated Maturity of the
Securities, the Refinancing Indebtedness has a Stated Maturity at least 91 days later than
the Stated Maturity of the Securities;

          (2) the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;

          (3) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to or less than
the sum of the aggregate principal amount (or if issued with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being refinanced (plus,
without duplication, any additional Indebtedness Incurred to pay interest, premiums or
defeasance costs required by the instruments governing such existing Indebtedness and fees
and expenses Incurred in connection therewith); and

          (4) if the Indebtedness being refinanced is subordinated in right of payment to the
Securities or a Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in right
of payment to the Securities or the Subsidiary Guarantee on terms at least as favorable to
the holders as those contained in the documentation governing the Indebtedness being
refinanced.

          “Registration Rights Agreement” means that certain registration rights agreement dated
as of the Issue Date by and among the Issuers, the Subsidiary Guarantors and the Initial Purchasers
and, with respect to any Additional Securities, one or more substantially similar registration
rights agreements among the Issuers and the other parties thereto, as any such agreement may be
amended from time to time.

          “Regulation S” means Regulation S under the Securities Act.

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

          “Restricted Securities” means Initial Securities and Additional Securities bearing one
of the restrictive legends described in Section 2.1(d).

          “Restricted Securities Legend” means the legend set forth in Section 2.1(d)(1)
and, in the case of the Temporary Regulation S Global Note, the legend set forth in Section
2.1(d)(2).

          “Restricted Subsidiary” means any Subsidiary of the Company, including the Co-Issuer,
other than an Unrestricted Subsidiary.

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          “Rule 144A” means Rule 144A under the Securities Act.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor to the rating agency business thereof.

          “Sale/Leaseback Transaction” means an arrangement relating to property now owned or
hereafter acquired whereby the Company or a Restricted Subsidiary transfers such property to a
Person and the Company or a Restricted Subsidiary leases it from such Person.

          “SEC” means the United States Securities and Exchange Commission.

          “Securities” means securities issued under this Indenture. The Initial Securities,
the Exchange Securities and the Additional Securities shall be treated as a single class for all
purposes under this Indenture, including, without limitation, waivers, amendments, redemptions and
offers to purchase and unless otherwise provided or the context otherwise requires, all references
to “the Securities” shall include the Initial Securities, the Exchange Securities and the
Additional Securities.

          “Securities Act” means the Securities Act of 1933 (15 U.S.C. §§ 77a-77aa), as
amended, and the rules and regulations of the SEC promulgated thereunder.

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

          “Senior Secured Credit Agreement” means the Sixth Amended and Restated Credit
Agreement dated as of May 13, 2010 among the Company, as borrower, Wells Fargo Bank, National
Association, as administrative agent and the lenders parties thereto from time to time, including
any guarantees, collateral documents, instruments and agreements executed in connection therewith,
and any amendments, supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof with other revolving credit facilities with banks or other institutional
lenders or investors that replace, refund or refinance any part of the loans or commitments
thereunder, including any such replacement, refunding or refinancing revolving credit facility that
increases the amount borrowable thereunder or alters the maturity thereof.

          “Shelf Registration Statement” shall have the meaning set forth in the applicable
Registration Rights Agreement.

          “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC, as in effect on the Issue Date.

          “Stated Maturity” means, with respect to any security, the date specified in such
security as the fixed date on which the payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision, but shall not include any contingent
obligations to repay, redeem or repurchase any such principal prior to the date originally
scheduled for the payment thereof.

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          “Subordinated Obligation” means any Indebtedness of the Company or the Co-Issuer
(whether outstanding on the Issue Date or thereafter Incurred) which is expressly subordinated in
right of payment to the Securities pursuant to a written agreement.

          “Subsidiary” of any Person means (a) any corporation, association or other business
entity (other than a partnership, joint venture, limited liability company or similar entity) of
which more than 50% of the Voting Stock or (b) any partnership, joint venture, limited liability
company or similar entity of which more than 50% of the capital accounts, distribution rights,
total equity and voting interests or general or limited partnership interests, as applicable, is,
in the case of clauses (a) and (b), at the time owned or controlled, directly or indirectly, by (1)
such Person, (2) such Person and one or more Subsidiaries of such Person or (3) one or more
Subsidiaries of such Person. Unless otherwise specified herein, each reference to a Subsidiary
(other than in this definition) refers to a Subsidiary of the Company.

          “Subsidiary Guarantee” means, individually, any guarantee of payment of the Securities
by a Subsidiary Guarantor pursuant to the terms of this Indenture and any supplemental indenture
thereto, and, collectively, all such guarantees.

          “Subsidiary Guarantor” means any Subsidiary of the Company that is a guarantor of the
Securities, including any Person that is required after the Issue Date to guarantee the Securities
pursuant to Section 3.11, in each case until a successor replaces such Person pursuant to
the applicable provisions of this Indenture and, thereafter, means such successor; provided,
however, that the Co-Issuer shall not be a Subsidiary Guarantor.

          “Tax Amount” means, for any period, the combined federal, state and local income
taxes, including estimated taxes, that would be payable by the Company if it were a Texas
corporation filing separate tax returns with respect to its Taxable Income for such period;
provided that in determining the Tax Amount, the effect thereon of any net operating loss
carryforwards or other carryforwards or tax attributes, such as alternative minimum tax
carryforwards, that would have arisen if the Company were a Texas corporation shall be taken into
account; provided, further, that, if there is an adjustment in the amount of the Taxable Income for
any period, an appropriate positive or negative adjustment shall be made in the Tax Amount, and if
the Tax Amount is negative, then the Tax Amount for succeeding periods shall be reduced to take
into account such negative amount until such negative amount is reduced to zero. Notwithstanding
anything to the contrary, Tax Amount shall not include taxes resulting from the Company’s
reorganization as, or change in the status to, a corporation for tax purposes.

          “Taxable Income” means, for any period, the taxable income or loss of the Company for
such period for U.S. federal income tax purposes.

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

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

          “Trust Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice

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

          “Unrestricted Subsidiary” means:

          (1) any Subsidiary of the Company (other than the Co-Issuer) that at the time of
determination shall be designated an Unrestricted Subsidiary by the Board of Directors of
the Company in the manner provided below; and

          (2) any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) to be an Unrestricted Subsidiary only if:

          (1) such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of, any
other Subsidiary of the Company which is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary;

          (2) all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and will at all times thereafter, consist of Non-Recourse Debt;

          (3) on the date of such designation, such designation and the Investment of the Company
or a Restricted Subsidiary in such Subsidiary complies with Section 3.3;

          (4) such Subsidiary is a Person with respect to which neither the Company nor any of
its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Capital Stock of such Person or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of operating
results;

          (5) such Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially all of the
business of the Company and its Subsidiaries; and

          (6) such Subsidiary is not a party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary with terms less favorable to the
Company or such Restricted Subsidiary than those that might have been obtained from Persons
who are not Affiliates of the Company.

          Any such designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a Board Resolution of the Company giving

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effect to such designation and an Officers’ Certificate certifying that such designation
complies with the preceding conditions. If, at any time, any Unrestricted Subsidiary would fail to
meet the foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary
shall be deemed to be Incurred as of such date.

          The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness under Section
3.2(a) on a pro forma basis taking into account such designation.

          “U.S. Government Obligations” means securities that are (a) direct obligations of the
United States of America for the timely payment of which its full faith and credit is pledged or
(b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also include a depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of principal of or interest
on any such U.S. Government Obligations held by such custodian for the account of the holder of
such depositary 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 depositary receipt from any
amount received by the custodian in respect of the U.S. Government Obligations or the specific
payment of principal of or interest on the U.S. Government Obligations evidenced by such depositary
receipt.

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

          “Voting Stock” of a Person means all classes of Capital Stock of such Person then
outstanding and normally entitled to vote in the election of members of such Person’s Board of
Directors.

          “Wholly-Owned Subsidiary” means a Restricted Subsidiary, all of the Capital Stock of
which (other than directors’ qualifying shares or other shares required by applicable law to be
held by a Person other than the Company or another Wholly-Owned Subsidiary) is owned by the Company
or another Wholly-Owned Subsidiary.

     SECTION 1.2. Other Definitions.

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	 	 	Defined in
	Term	 	Section
	“Additional Restricted Securities”
	 	2.1(b)
	“Affiliate Transaction”
	 	3.8
	“Agent Members”
	 	2.1(e)(ii)
	“Asset Disposition Offer Amount”
	 	3.5
	“Asset Disposition Offer Period”
	 	3.5
	“Asset Disposition Offer”
	 	3.5
	“Asset Disposition Purchase Date”
	 	3.5
	“Authenticating Agent”
	 	2.2
	“Basket Amount”
	 	3.3(4)(c)
	“Change of Control Offer”
	 	3.9
	“Change of Control Payment”
	 	3.9(1)
	“Change of Control Payment Date”
	 	3.9(2)
	“Clearstream”
	 	2.1(b)
	“covenant defeasance option”
	 	8.1(b)
	“cross acceleration provision”
	 	6.1(6)(b)
	“Defaulted Interest”
	 	2.14
	“Euroclear”
	 	2.1(b)
	“Event of Default”
	 	6.1
	“Excess Proceeds”
	 	3.5
	“Exchange Global Note”
	 	2.1(b)
	“Global Securities”
	 	2.1(b)
	“Institutional Accredited Investor Global Notes”
	 	2.1(b)
	“Institutional Accredited Investor Note”
	 	2.1(b)
	“Investment”
	 	3.3(4)(c)(iv)(B)
	“Issuer Order”
	 	2.2
	“Joint Venture”
	 	1.1

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	 	 	Defined in
	Term	 	Section
	“judgment default provision”
	 	6.1(9)
	“legal defeasance option”
	 	8.1(b)
	“Notice of Default”
	 	6.1(4); 6.1(5)
	“Pari Passu Securities”
	 	3.5
	“Paying Agent”
	 	2.3
	“payment default”
	 	6.1(6)(a)
	“Permanent Regulation S Global Note”
	 	2.1(b)
	“protected purchaser”
	 	2.10
	“Registrar”
	 	2.3
	“Regulation S Global Note”
	 	2.1(b)
	“Regulation S Notes”
	 	2.1(b)
	“Resale Restriction Termination Date”
	 	2.6(b)
	“Restricted Payment”
	 	3.3
	“Restricted Period”
	 	2.1(b)
	“Rule 144A Global Note”
	 	2.1(b)
	“Rule 144A Notes”
	 	2.1(b)
	“Securities Register”
	 	2.3
	“Special Interest Payment Date”
	 	2.14(a)
	“Special Record Date”
	 	2.14(a)
	“Successor Company”
	 	4.1(a)(1)
	“Temporary Regulation S Global Note”
	 	2.1(b)

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

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          “Commission” means the SEC.

          “indenture securities” means the Securities and the Subsidiary Guarantees.

          “indenture security holder” means a Securityholder.

          “indenture to be qualified” means this Indenture.

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

          “obligor” on the indenture securities means the Issuers, the Subsidiary Guarantors and
any other obligor on the indenture securities.

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

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

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

          (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP and references to Statements of Financial Accounting Standards of the Financial Accounting
Standards Board do not reflect the new nomenclature resulting from the FASB’s codification of such
Statements in its ASC 105, Generally Accepted Accounting Principles, issued in June 2009, but are
deemed to include the codified Statements under their current nomenclature;

          (3) “or” is not exclusive;

          (4) “including” means including without limitation;

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

          (6) all amounts expressed in this Indenture or in any of the Securities in terms of money
refer to the lawful currency of the United States of America; and

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

ARTICLE II

THE SECURITIES

     SECTION 2.1. Form, Dating and Terms.

          (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited, subject to compliance with the other terms of this

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Indenture. The Initial Securities issued on the date hereof shall be in an aggregate
principal amount of $300,000,000. In addition, the Issuers may issue, from time to time in
accordance with the provisions of this Indenture, including Section 3.2 hereof, Additional
Securities (as provided herein) and Exchange Securities. Furthermore, Securities may be
authenticated and delivered upon registration of transfer, exchange or in lieu of, other Securities
pursuant to Section 2.2, 2.6, 2.10, 2.12, 5.8 or
9.5, in connection with an Asset Disposition Offer pursuant to Section 3.5 or in
connection with a Change of Control Offer pursuant to Section 3.9.

          The Securities shall be known and designated as “9 5/8% Senior Notes due 2018” of the
Issuers.

          With respect to any Additional Securities, the Issuers shall set forth in (a) a Board
Resolution and (b) (i) an Officers’ Certificate or (ii) one or more indentures supplemental hereto,
the following information:

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

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

          (3) whether such Additional Securities shall be Restricted Securities issued in the
form of Exhibit A hereto.

          In authenticating and delivering Additional Securities, the Trustee shall be entitled to
receive and shall be fully protected in relying upon, in addition to the Opinion of Counsel and
Officers’ Certificate required by Section 11.4, an Opinion of Counsel as to the due
authorization, execution, delivery, validity and enforceability of such Additional Securities.

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

          If any of the terms of any Additional Securities are established by action taken pursuant to
Board Resolutions of the Issuers, a copy of an appropriate record of such action shall be certified
by the Secretary or any Assistant Secretary of the Issuers and delivered to the Trustee at or prior
to the delivery of the Officers’ Certificate or the indenture supplemental hereto setting forth the
terms of the Additional Securities.

          (b) The Initial Securities are being offered and sold by the Issuers pursuant to a Purchase
Agreement, dated October 7, 2010, among the Issuers, the Subsidiary Guarantors and the Initial
Purchasers. The Initial Securities and any Additional Securities (if issued as Restricted
Securities) (the “Additional Restricted Securities”) shall be resold initially only to (A)
QIBs in reliance on Rule 144A (B) IAIs in reliance upon Rule 501 of the Securities Act and (C)

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Non-U.S. Persons in reliance on Regulation S. Such Initial Securities and Additional
Restricted Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance
on Regulation S and IAIs in accordance with Rule 501 of the Securities Act, in each case, in
accordance with the procedure described herein. Additional Securities offered after the date
hereof may be offered and sold by the Issuers from time to time pursuant to one or more purchase
agreements in accordance with applicable law.

          Initial Securities and Additional Restricted Securities offered and sold to QIBs in the United
States of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the
form of a permanent global Security substantially in the form of Exhibit A, which is hereby
incorporated by reference and made a part of this Indenture, including appropriate legends as set
forth in Section 2.1(d) (the “Rule 144A Global Note”), deposited with the Trustee,
as Securities Custodian, duly executed by the Issuers and authenticated by the Trustee as
hereinafter provided. The Rule 144A Global Note may be represented by more than one certificate,
if so required by DTC’s rules regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Rule 144A Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as Securities Custodian,
as hereinafter provided.

          Initial Securities and Additional Restricted Securities offered and sold or resold to IAIs
(the “Institutional Accredited Investor Notes”) in the United States of America shall be
issued in the form of a permanent global Security substantially in the form of Exhibit A
including appropriate legends as set forth in Section 2.1(d) (the “Institutional
Accredited Investor Global Note”) deposited with the Trustee, as Securities Custodian, duly
executed by the Issuers and authenticated by the Trustee as hereinafter provided. The
Institutional Accredited Investor Global Note may be represented by more than one certificate, if
so required by DTC’s rules regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Institutional Accredited Investor Global Note
may from time to time be increased or decreased by adjustments made on the records of the Trustee,
as custodian for DTC or its nominee, as hereinafter provided.

          Initial Securities and any Additional Restricted Securities offered and sold outside the
United States of America (the “Regulation S Notes”) in reliance on Regulation S shall
initially be issued in the form of a temporary global Security (the “Temporary Regulation S
Global Note”), without interest coupons. Beneficial interests in the Temporary Regulation S
Global Note will be exchanged for beneficial interests in a corresponding permanent global
Security, without interest coupons, substantially in the form of Exhibit A including
appropriate legends as set forth in Section 2.1(d) (the “Permanent Regulation S Global
Note” and, together with the Temporary Regulation S Global Note, each a “Regulation S
Global Note”) within a reasonable period after the expiration of the Restricted Period (as
defined below) upon delivery of the certification contemplated by Section 2.7. Each
Regulation S Global Note will be deposited upon issuance with, or on behalf of, the Trustee as
Securities Custodian in the manner described in this Article II for credit to the
respective accounts of the purchasers (or to such other accounts as they may direct), including,
but not limited to, accounts at Euroclear Bank S.A./N.V. (“Euroclear”) or Clearstream
Banking, société anonyme (“Clearstream”). Prior to the 40th day after the later of the
commencement of the offering of the Initial Securities and the Issue Date (such period through and
including such 40th day, the “Restricted Period”), interests in the

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Temporary Regulation S Global Note may only be transferred to Non-U.S. Persons pursuant to
Regulation S, unless exchanged for interests in another Global Security in accordance with the
transfer and certification requirements described herein.

          Following the Restricted Period, Investors may hold their interests in the Regulation S Global
Note through organizations other than Euroclear or Clearstream that are participants in DTC’s
system or directly through Euroclear or Clearstream, if they are participants in such systems, or
indirectly through organizations which are participants in such systems.

          The Regulation S Global Note may be represented by more than one certificate, if so required
by DTC’s rules regarding the maximum principal amount to be represented by a single certificate.
The aggregate principal amount of the Regulation S Global Note may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

          Exchange Securities exchanged for interests in the Rule 144A Notes, the Regulation S Notes and
the Institutional Accredited Investor Notes shall be issued in the form of a permanent global
Security, substantially in the form of Exhibit A, which is hereby incorporated by reference
and made a part of this Indenture, deposited with the Trustee as hereinafter provided, including
the appropriate legend set forth in Section 2.1(d) (the “Exchange Global Note”).
The Exchange Global Note shall be deposited upon issuance with, or on behalf of, the Trustee as
Securities Custodian, duly executed by the Issuers and authenticated by the Trustee as hereinafter
provided. The Exchange Global Note may be represented by more than one certificate, if so required
by DTC’s rules regarding the maximum principal amount to be represented by a single certificate.

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

          The principal of (and premium, if any) and interest (including Additional Interest, if any) on
the Securities shall be payable at the office or agency of the Issuers maintained for such purpose
in The City of New York, and at such other office or agency of the Issuers as may be maintained for
such purpose pursuant to Section 2.3; provided, however, that, at the option of the
Issuers, each installment of interest may be paid by (i) check mailed to addresses of the Persons
entitled thereto as such addresses shall appear on the Securities Register or (ii) wire transfer to
an account located in the United States maintained by the payee, subject to the last sentence of
this paragraph. Payments in respect of Securities represented by a Global Security (including
principal, premium, if any, and interest) will be made by wire transfer of immediately available
funds to the accounts specified by DTC. At the Issuers’ option, payments in respect of Securities
represented by Definitive Securities (including principal, premium, if any, and interest) may be
made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United
States if the Holder elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days immediately preceding
the relevant due date for payment (or such other date as the Trustee may accept in its discretion).

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

          (c) Denominations. The Securities shall be issuable only in fully registered form,
without coupons, and only in denominations of $2,000 and any integral multiple of $1,000 in excess
thereof.

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

          (1) the Rule 144A Global Note, the Regulation S Global Note and the Institutional
Accredited Investor Global Note shall bear the following legend on the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT
IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (C) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO
THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS ONE YEAR AFTER THE LATER OF
THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS OR ANY AFFILIATE OF
THE ISSUERS WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO
ALTA MESA HOLDINGS, LP OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED

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INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO OFFERS AND SALES
TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF SUBPARAGRAPH (a)(1),(2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS
ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN INSTITUTIONAL
ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (E) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (F)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (C), (D) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF
THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF
THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL
BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

IN THE CASE OF REGULATION S NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS
THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS
ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.

          (2) the Temporary Regulation S Global Note shall bear the following additional legend
on the face thereof:

THIS GLOBAL SECURITY IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS
TEMPORARY GLOBAL NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS
PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT
TO THE TERMS OF THE INDENTURE.

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          (3) Each Global Security, whether or not an Initial Security, shall bear the following
legend on the face thereof:

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

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.

          (e) Book-Entry Provisions. This Section 2.1(e) shall apply only to Global
Securities deposited with the Trustee, as Securities Custodian.

               (i) Each Global Security initially shall (x) be registered in the name of Cede & Co. as the
nominee of DTC, (y) be delivered to the Trustee as Securities Custodian and (z) bear legends as set
forth in Section 2.1(d). Transfers of a Global Security (but not a beneficial interest
therein) will be limited to transfers thereof in whole, but not in part, to the DTC, its successors
or their respective nominees, except as set forth in Section 2.1(e)(v) and 2.1(f).
If a beneficial interest in a Global Security is transferred or exchanged for a beneficial interest
in another Global Security, the Trustee will (x) record a decrease in the principal amount of the
Global Security being transferred or exchanged equal to the principal amount of such transfer or
exchange and (y) record a like increase in the principal amount of the other Global Security. Any
beneficial interest in one Global Security that is transferred to a Person who takes delivery in
the form of an interest in another Global Security, or exchanged for an interest in another Global
Security, will, upon transfer or exchange, cease to be an interest in such Global Security and
become an interest in the other Global Security and, accordingly, will thereafter be subject to all
transfer and exchange restrictions, if any, and other procedures applicable to beneficial interests
in such other Global Security for as long as it remains such an interest.

               (ii) Members of, or participants in, DTC (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by DTC or by the Trustee as
the Securities Custodian or under such Global Security, and DTC may be treated by the Issuers, the
Subsidiary Guarantors, the Trustee and any agent of the Issuers, the Subsidiary Guarantors or the
Trustee as the absolute owner of such Global Security for all

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purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuers,
the Subsidiary Guarantors, the Trustee or any agent of the Issuers, the Subsidiary Guarantors or
the Trustee from giving effect to any written certification, proxy or other authorization furnished
by DTC or impair, as between DTC and its Agent Members, the operation of customary practices of DTC
governing the exercise of the rights of a Holder of a beneficial interest in any Global Security.

               (iii) In connection with any transfer of a portion of the beneficial interest in a Global
Security pursuant to Section 2.1(f) to beneficial owners who are required to hold
Definitive Securities, the Securities Custodian shall reflect on its books and records the date and
a decrease in the principal amount of such Global Security in an amount equal to the principal
amount of the beneficial interest in the Global Security to be transferred, and the Issuers shall
execute, and the Trustee shall, upon receipt of an Issuer Order, authenticate and make available
for delivery, one or more Definitive Securities of like tenor and amount.

               (iv) In connection with the transfer of an entire Global Security to beneficial owners
pursuant to Section 2.1(f), such Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Issuers shall execute, and the Trustee shall, upon receipt of an
Issuer Order, authenticate and make available for delivery, to each beneficial owner identified by
DTC in exchange for its beneficial interest in such Global Security, an equal aggregate principal
amount of Definitive Securities of authorized denominations.

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

               (vi) Any Holder of a Global Security shall, by acceptance of such Global Security, agree that
transfers of beneficial interests in such Global Security may be effected only through a book-entry
system maintained by (a) the Holder of such Global Security (or its agent) or (b) any holder of a
beneficial interest in such Global Security, and that ownership of a beneficial interest in such
Global Security shall be required to be reflected in a book entry.

          (f) Definitive Securities. Except as provided below, owners of beneficial interests
in Global Securities will not be entitled to receive Definitive Securities. If required to do so
pursuant to any applicable law or regulation, beneficial owners may obtain Definitive Securities in
exchange for their beneficial interests in a Global Security upon written request in accordance
with DTC’s and the Registrar’s procedures. In addition, Definitive Securities shall be transferred
to all beneficial owners in exchange for their beneficial interests in a Global Security if (A) DTC
notifies the Issuers that it is unwilling or unable to continue as depositary for such Global
Security or DTC ceases to be a clearing agency registered under the Exchange Act, at a time when
DTC is required to be so registered in order to act as depositary, and in each case a successor
depositary is not appointed by the Issuers within 90 days of such notice or (B) an Event of Default
has occurred under this Indenture and is continuing and the Registrar has received a request from
the DTC to issue Securities in certificated registered form. In the event of the occurrence of any
of the events specified in the preceding sentence or in clause (A) or (B)

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of the preceding sentence, Definitive Securities delivered in exchange for any Global Note or
beneficial interests therein will be registered in the names, and issued in any approved
denominations, requested by or on behalf of DTC (in accordance with its customary procedures).

               (i) Any Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(e)(iv) shall, except as otherwise provided by Section
2.6(d), bear the applicable legend regarding transfer restrictions applicable to the Definitive
Security set forth in Section 2.1(d).

               (ii) If a Definitive Security is transferred or exchanged for a beneficial interest in a
Global Security, the Trustee will (x) cancel such Definitive Security, (y) record an increase in
the principal amount of such Global Security equal to the principal amount of such transfer or
exchange and (z) in the event that such transfer or exchange involves less than the entire
principal amount of the canceled Definitive Security, the Issuers shall execute, and the Trustee
shall, upon receipt of an Issuer Order, authenticate and make available for delivery, to the
transferring Holder a new Definitive Security representing the principal amount not so transferred.

               (iii) If a Definitive Security is transferred or exchanged for another Definitive Security,
(x) the Trustee will cancel the Definitive Security being transferred or exchanged, (y) the Issuers
shall execute, and the Trustee shall, upon receipt of an Issuer Order, authenticate and make
available for delivery, one or more new Definitive Securities in authorized denominations having an
aggregate principal amount equal to the principal amount of such transfer or exchange to the
transferee (in the case of a transfer) or the Holder of the canceled Definitive Security (in the
case of an exchange), registered in the name of such transferee or Holder, as applicable, and (z)
if such transfer or exchange involves less than the entire principal amount of the canceled
Definitive Security, the Issuers shall execute, and the Trustee shall, upon receipt of an Issuer
Order, authenticate and make available for delivery to the Holder thereof, one or more Definitive
Securities in authorized denominations having an aggregate principal amount equal to the
untransferred or unexchanged portion of the canceled Definitive Securities, registered in the name
of the Holder thereof.

               (iv) Notwithstanding anything to the contrary in this Indenture, in no event shall a
Definitive Security be delivered upon exchange or transfer of a beneficial interest in the
Temporary Regulation S Global Note prior to the end of the Restricted Period.

     SECTION 2.2. Execution and Authentication. One Officer shall sign the Securities for
the Issuers by manual or facsimile signature. If the Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security, the Security shall be
valid nevertheless.

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

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          At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Securities for original
issue on the Issue Date in an aggregate principal amount of $300,000,000, (2) subject to the terms
of this Indenture (including Section 3.2), Additional Securities for original issue in an
unlimited principal amount, (3) Exchange Securities for issue only in an exchange offer pursuant to
a Registration Rights Agreement or upon resale under an effective Shelf Registration Statement, and
only in exchange for Initial Securities or Additional Securities of an equal principal amount and
(4) when sold in connection with an effective registration statement, Initial Securities in the
form of an Unrestricted Global Note, in each case upon a written order of the Issuers signed by one
Officer of the Issuers (the “Issuer Order”). Such Issuer Order shall specify whether the
Securities will be in the form of Definitive Securities or Global Securities, the amount of the
Securities to be authenticated and the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Securities, Additional Securities or
Exchange Securities.

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Issuers to authenticate the Securities. Any such instrument shall be evidenced by an
instrument signed by a Trust Officer, a copy of which shall be furnished to the Issuers. Unless
limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee
includes authentication by the Authenticating Agent. An Authenticating Agent has the same rights
as any Registrar, Paying Agent or agent for service of notices and demands.

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

     SECTION 2.3. Registrar and Paying Agent. The Issuers shall maintain in the
continental United States an office or agency where Securities may be presented for registration of
transfer or for exchange (the “Registrar”), and the Issuers shall maintain in New York, New

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York an office or agency where Securities may be presented for payment (the “Paying
Agent”). The Registrar shall keep a register of the Securities and of their transfer and
exchange (the “Securities Register”). The Company or any of its Restricted Subsidiaries
may act as Registrar or Paying Agent. The Issuers may have one or more co-registrars and one or
more additional paying agents. The term “Paying Agent” includes any additional paying agent and
the term “Registrar” includes any co-registrar.

          The Issuers shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent. The Issuers shall
notify the Trustee of the name and address of each such agent. If the Issuers fail to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.7. The Issuers or any of its wholly owned
Subsidiaries organized in the United States may act as Paying Agent, Registrar or transfer agent.

          The Issuers initially appoint the Trustee as Registrar for the Securities at its corporate
trust office in Dallas, Texas, and as Paying Agent for the Securities at its corporate trust office
in New York, New York, which, on the date hereof, is located at 45 Broadway, 14th Floor, New York,
New York 10006. The Issuers may remove any Registrar or Paying Agent upon written notice to such
Registrar or Paying Agent and to the Trustee; provided, however, that no such removal shall become
effective until (i) acceptance of any appointment by a successor as evidenced by an appropriate
agreement entered into by the Issuers and such successor Registrar or Paying Agent, as the case may
be, and delivered to the Trustee or (ii) notification to the Trustee that the Trustee shall serve
as Registrar or Paying Agent until the appointment of a successor in accordance with clause (i)
above. The Registrar or Paying Agent may resign at any time upon written notice to the Issuers and
the Trustee.

     SECTION 2.4. Paying Agent to Hold Money in Trust. By no later than 11:00 a.m. (New
York City time) on the date on which any principal of, premium, if any, or interest on any Security
is due and payable, the Issuers shall deposit with the Paying Agent a sum sufficient in immediately
available funds to pay such principal, premium or interest when due. The Issuers shall require
each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall hold in
trust for the benefit of Securityholders or the Trustee all money held by such Paying Agent for the
payment of principal of, premium, if any, or interest on the Securities (whether such assets have
been distributed to it by the Issuers or other obligors on the Securities), shall notify the
Trustee in writing of any default by the Issuers or any Subsidiary Guarantor in making any such
payment and shall during the continuance of any default by the Issuers (or any other obligor upon
the Securities) in the making of any payment in respect of the Securities, upon the written request
of the Trustee, forthwith deliver to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities together with a full accounting thereof. If the Company or a
Restricted Subsidiary of the Company acts as Paying Agent, it shall segregate the money held by it
as Paying Agent and hold it as a separate trust fund. The Issuers at any time may require a Paying
Agent (other than the Trustee) to pay all money held by it to the Trustee and to account for any
funds or assets disbursed by such Paying Agent. Upon complying with this Section 2.4, the
Paying Agent (if other than the Company or a Restricted Subsidiary of the Company) shall have no
further liability for the money delivered to

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the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the
Issuers, the Trustee shall serve as Paying Agent for the Securities.

     SECTION 2.5. Securityholder Lists. The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar,
or to the extent otherwise required under the TIA, the Issuers, on its own behalf and on behalf of
each of the Subsidiary Guarantors, shall furnish or cause the Registrar to furnish to the Trustee,
in writing at least five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders and the Issuers shall otherwise
comply with TIA § 312(a).

     SECTION 2.6. Transfer and Exchange.

          (a) A Holder may transfer a Security (or a beneficial interest therein) to another Person or
exchange a Security (or a beneficial interest therein) for another Security or Securities of any
authorized denomination by presenting to the Trustee a written request therefor stating the name of
the proposed transferee or requesting such an exchange, accompanied by any certification, opinion
or other document required by this Section 2.6. The Trustee shall promptly register any
transfer or exchange that meets the requirements of this Section 2.6 by noting the same in
the register maintained by the Trustee for the purpose, and no transfer or exchange shall be
effective until it is registered in such register. The transfer or exchange of any Security (or a
beneficial interest therein) may only be made in accordance with this Section 2.6 and
Section 2.1(e) and 2.1(f), as applicable, and, in the case of a Global Security (or
a beneficial interest therein), the applicable rules and procedures of DTC, Euroclear and
Clearstream. The Trustee shall refuse to register any requested transfer or exchange that does not
comply with this paragraph.

          (b) Transfers of Rule 144A Notes and Institutional Accredited Investor Notes. The
following provisions shall apply with respect to any proposed registration of transfer of a Rule
144A Note or an Institutional Accredited Investor Note prior to the date which is one year after
the later of the date of its original issue and the last date on which the Issuers or any Affiliate
of Issuers was the owner of such Securities (or any predecessor thereto) (the “Resale
Restriction Termination Date”):

               (i) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a QIB shall be made upon the
representation of the transferee in the form as set forth on the reverse of the Security
that it is purchasing for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information regarding the
Issuers as the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration provided by Rule
144A; provided that no such written representation or other written certification

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shall be required in connection with the transfer of a beneficial interest in the Rule
144A Global Note to a transferee in the form of a beneficial interest in that Rule 144A
Global Note in accordance with this Indenture and the applicable procedures of DTC.

               (ii) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to an IAI shall be made upon receipt by the
Trustee or its agent of a certificate substantially in the form set forth in Section 2.8
from the proposed transferee and, if requested by the Issuers, the delivery of an opinion of
counsel, certification and/or other information satisfactory to it; and

               (iii) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a Non-U.S. Person shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form set forth in
Section 2.9 from the proposed transferee and, if requested by the Issuers, the delivery of
an opinion of counsel, certification and/or other information satisfactory to it.

          (c) Transfers of Regulations S Notes. The following provisions shall apply with
respect to any proposed transfer of a Regulation S Note prior to the expiration of the Restricted
Period:

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

               (ii) a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall
be made upon receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.8 from the proposed transferee and, if requested by the
Issuers or the Trustee, the delivery of an opinion of counsel, certification and/or other
information satisfactory to each of them; and

               (iii) a transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate substantially
in the form set forth in Section 2.9 hereof from the proposed transferee and, if
requested by the Issuers, receipt by the Trustee or its agent of an opinion of counsel,
certification and/or other information satisfactory to the Issuers.

          After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the certification set forth in
Section 2.8, Section 2.9 or any additional certification.

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          (d) Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities not bearing a Restricted Securities Legend, the Registrar shall deliver Securities that
do not bear a Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities bearing a Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless (i) Initial Securities are being exchanged for Exchange
Securities in an exchange offer pursuant to a Registration Rights Agreement, in which case the
Exchange Securities shall not bear a Restricted Securities Legend, (ii) an Initial Security is
being transferred pursuant to a Shelf Registration Statement or other effective registration
statement or (iii) there is delivered to the Registrar an Opinion of Counsel reasonably
satisfactory to the Issuers and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the provisions of the
Securities Act. Any Additional Securities sold in a registered offering shall not be required to
bear the Restricted Securities Legend.

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

          (f) Obligations with Respect to Transfers and Exchanges of Securities.

               (i) To permit registrations of transfers and exchanges, the Issuers shall, subject to the
other terms and conditions of this Article II, execute and the Trustee shall, upon receipt
of an Issuer Order, authenticate Definitive Securities and Global Securities at the Registrar’s
request.

               (ii) No service charge shall be made to a Holder for any registration of transfer or exchange,
but the Issuers may require the Holder to pay a sum sufficient to cover any transfer tax
assessments or similar governmental charge payable in connection therewith (other than any such
transfer taxes, assessments or similar governmental charges payable upon exchange or transfer
pursuant to Sections 2.2, 2.6, 2.10, 2.12, 3.5,
3.9, 5.8 or 9.5).

               (iii) The Issuers (and the Registrar) shall not be required to register the transfer of or
exchange of any Security (A) for a period (1) of 15 days before a selection of Securities to be
redeemed or (2) beginning 15 days before an interest payment date and ending on such interest
payment date or (B) selected for redemption, except the unredeemed portion of any Security being
redeemed in part.

               (iv) Prior to the due presentation for registration of transfer of any Security, the Issuers,
any Subsidiary Guarantor, the Trustee, the Paying Agent or the Registrar may deem and treat the
person in whose name a Security is registered as the owner of such Security for the purpose of
receiving payment of principal of, premium, if any, and (subject to paragraph 2 of the
forms of Securities attached hereto as Exhibits A and B) interest on such Security
and for all other purposes whatsoever, including without limitation the transfer or exchange of
such Security, whether or not such Security is overdue, and none of the Issuers, any

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Subsidiary Guarantor, the Trustee, the Paying Agent or the Registrar shall be affected by
notice to the contrary.

               (v) Any Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(f) shall, except as otherwise provided by Section 2.6(d),
bear the applicable legend regarding transfer restrictions applicable to the Definitive Security
set forth in Section 2.1(d).

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

          (g) No Obligation of the Trustee. The Trustee shall have no responsibility or
obligation to any beneficial owner of a Global Security, Agent Member or other Person with respect
to the accuracy of the records of DTC or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Securities or with respect to the delivery to any
participant, member, beneficial owner or other Person (other than DTC) of any notice (including any
notice of redemption or purchase) or the payment of any amount or delivery of any Securities (or
other security or property) under or with respect to such Securities. All notices and
communications to be given to the Holders and all payments to be made to Holders in respect of the
Securities shall be given or made only to or upon the order of the registered Holders (which shall
be DTC or its nominee in the case of a Global Security). The rights of beneficial owners in any
Global Security shall be exercised only through DTC subject to the applicable rules and procedures
of DTC. The Trustee may rely and shall be fully protected in relying upon information furnished by
DTC with respect to its Agent Members and any beneficial owners. The Trustee shall have no
obligation or duty to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to any transfer of any
interest in any Security (including any transfers between or among Agent Members or beneficial
owners in any Global Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and when expressly required
by, the terms of this Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

          (h) Affiliate Holders. By accepting a beneficial interest in a Global Security, any
Person that is an Affiliate of the Issuers agrees to give notice to the Issuers, the Trustee and
the Registrar of the acquisition and its Affiliate status.

          (i) Global Securities. Neither the Trustee nor any of its agents shall have any
responsibility for any actions taken or not taken by DTC.

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     SECTION 2.7. Form of Certificate to be Delivered upon Termination of Restricted
Period.

[Date]

Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp. and

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Attention: Corporate Trust Administration

	 	 	 

	Re:

	 	Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp. (together as the
“Issuers”)
	 

	 	9 5/8% Senior Notes due 2018 (the “Securities”)

Ladies and Gentlemen:

     This letter relates to Securities represented by a temporary global note (the “Temporary
Regulation S Global Note”). Pursuant to Section 2.1 of the Indenture dated as of
October 13, 2010 relating to the Securities (the “Indenture”), we hereby certify that the
persons who are the beneficial owners of $[_______] principal amount of Securities represented by
the Temporary Regulation S Global Note are persons outside the United States to whom beneficial
interests in such Securities could be transferred in accordance with Rule 904 of Regulation S
promulgated under the Securities Act of 1933, as amended. Accordingly, you are hereby requested to
issue a Permanent Regulation S Global Note representing the undersigned’s interest in the principal
amount of Securities represented by the Temporary Regulation S Global Note, all in the manner
provided by the Indenture. We certify that we [are][are not] an Affiliate of the Issuers.

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

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

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     SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers to
Institutional Accredited Investors.

[Date]

Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp.

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Attention: Corporate Trust Administration

Ladies and Gentlemen:

     This certificate is delivered to request a transfer of $[_________] principal amount of the 9
5/8% Senior Notes due 2018 (the “Securities”) of Alta Mesa Holdings, LP and Alta Mesa
Finance Services Corp. (together as the “Issuers”).

     Upon transfer, the Securities would be registered in the name of the new beneficial owner as
follows:

	 	 	 	Name: _________________________

	 	 	 	Address: ______________________

	 	 	 	Taxpayer ID Number: _____________________

	 	 	 	The undersigned represents and warrants to you that:

          1. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing for our
own account or for the account of such an institutional “accredited investor,” and we are acquiring
the Securities not with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risk of our investment in the Securities and
we invest in or purchase securities similar to the Securities in the normal course of our business.
We and any accounts for which we are acting are each able to bear the economic risk of our or its
investment.

          2. We understand that the Securities have not been registered under the Securities Act and,
unless so registered, may not be sold except as permitted in the following sentence. We agree on
our own behalf and on behalf of any investor account for which we are purchasing Securities to
offer, sell or otherwise transfer such Securities prior to the date that is one year after the
later of the date of original issue and the last date on which the Issuers or any affiliate of the
Issuers was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction
Termination Date”) only (a) to the Issuers or any Subsidiary thereof, (b) pursuant to an
effective registration statement under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act, to a person we reasonably believe is a
“qualified institutional buyer” under Rule 144A of the Securities Act (a “QIB”) that is

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purchasing for its own account or for the account of a QIB and to whom notice is given that
the transfer is being made in reliance on Rule 144A, (d) pursuant to offers and sales to non-U.S.
persons that occur outside the United States within the meaning of Regulation S under the
Securities Act, (e) to an institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act that is purchasing for its own account or for the account
of such an institutional “accredited investor,” for investment purposes and not with a view to or
for offer or sale in connection with any distribution in violation of the Securities Act or (f)
pursuant to any other available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the disposition of our
property or the property of such investor account or accounts be at all times within our or their
control and in compliance with any applicable state securities laws. The foregoing restrictions on
resale will not apply subsequent to the Resale Restriction Termination Date. If any resale or
other transfer of the Securities is proposed to be made pursuant to clause (e) above prior to the
Resale Restriction Termination Date, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Issuers and the Trustee, which shall provide, among
other things, that the transferee is an institutional “accredited investor” (within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it is acquiring such Securities
for investment purposes and not for distribution in violation of the Securities Act. Each
purchaser acknowledges that the Issuers and the Trustee reserve the right prior to any offer, sale
or other transfer prior to the Resale Termination Date of the Securities pursuant to clauses (d),
(e) or (f) above to require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Issuers and the Trustee.

          3. We [are][are not] an Affiliate of the Issuers.

	 	 	 	 	 
	 	TRANSFEREE:______________________

BY:______________________

 	 

     SECTION 2.9. Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

[Date]

Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp.

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Attention: Corporate Trust Administration

	 	 	 

	          Re:

	 	Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp. (together as the
“Issuers”)
	 
	 

	 	9 5/8% Senior Notes due 2018 (the “Securities”)

Ladies and Gentlemen:

     In connection with our proposed sale of $[________] aggregate principal amount of the
Securities, we confirm that such sale has been effected pursuant to and in accordance with

-55-

 

Regulation S under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

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

          (b) either (i) at the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the transferee was
outside the United States or (ii) the transaction was executed in, on or through the facilities of
a designated off-shore securities market and neither we nor any person acting on our behalf knows
that the transaction has been pre-arranged with a buyer in the United States;

          (c) no directed selling efforts have been made in the United States in contravention of the
requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable; and

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

     In addition, if the sale is made during a restricted period and the provisions of Rule
903(b)(2), Rule 903(b)(3) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that
such sale has been made in accordance with the applicable provisions of Rule 903(b)(2), Rule
903(b)(3) or Rule 904(b)(1), as the case may be.

     We also hereby certify that we [are][are not] an Affiliate of the Issuers and, to our
knowledge, the transferee of the Securities [is][is not] an Affiliate of the Issuers.

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

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

     SECTION 2.10. Mutilated, Destroyed, Lost or Stolen Securities. If a mutilated
Security is surrendered to the Registrar or if the Holder of a Security claims that the Security
has been lost, destroyed or wrongfully taken, the Issuers shall issue and the Trustee shall, upon
receipt of an Issuer Order, authenticate a replacement Security if the requirements of Section
8-405 of the Uniform Commercial Code are met, such that the Securityholder (a) satisfies the
Issuers or the Trustee that such Security has been lost, destroyed or wrongfully taken within a
reasonable time after such Securityholder has notice of such loss, destruction or wrongful taking
and the Registrar has not registered a transfer prior to receiving such notification, (b) makes
such request to the Issuers or Trustee prior to the Security being acquired by a protected
purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected
purchaser”) and (c) satisfies any

-56-

 

other reasonable requirements of the Trustee; provided, however, if after the delivery of such
replacement Security, a protected purchaser of the Security for which such replacement Security was
issued presents for payment or registration such replaced Security, the Trustee or the Issuers
shall be entitled to recover such replacement Security from the Person to whom it was issued and
delivered or any Person taking therefrom, except a protected purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or
expense incurred by the Issuers or the Trustee in connection therewith. If required by the Trustee
or the Issuers, such Holder shall furnish an indemnity bond sufficient in the judgment of the
Issuers and the Trustee to protect the Issuers, the Trustee, the Paying Agent and the Registrar
from any loss which any of them may suffer if a Security is replaced, and, in the absence of notice
to the Issuers, any Subsidiary Guarantor or the Trustee that such Security has been acquired by a
protected purchaser, the Issuers shall execute, and upon receipt of an Issuer Order the Trustee
shall authenticate and make available for delivery, in exchange for any such mutilated Security or
in lieu of any such destroyed, lost or wrongfully taken Security, a new Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding.

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

          Upon the issuance of any new Security under this Section 2.10, the Issuers may require
that such Holder pay a sum sufficient to cover any transfer tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees and expenses of
counsel and of the Trustee) in connection therewith.

          Subject to the proviso in the initial paragraph of this Section 2.10, every new
Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or wrongfully
taken Security shall constitute an original additional contractual obligation of the Issuers, any
Subsidiary Guarantor and any other obligor upon the Securities, whether or not the mutilated,
destroyed, lost or wrongfully taken Security shall be at any time enforceable by anyone, and shall
be entitled to all benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.

          The provisions of this Section 2.10 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Securities.

     SECTION 2.11. Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Security does not cease to
be outstanding in the event the Issuers or an Affiliate of the Issuers holds the Security;
provided, however, that (i) for purposes of determining which are outstanding for consent or voting
purposes hereunder, the provisions of Section 11.6 shall apply and (ii) in determining
whether the Trustee shall be protected in making a determination whether the Holders of the
requisite principal amount of outstanding Securities are present at a meeting of Holders of
Securities for quorum purposes or have consented to or voted in favor of any request, demand,
authorization,

-57-

 

direction, notice, consent, waiver, amendment or modification hereunder, or relying upon any
such quorum, consent or vote, only Securities which a Trust Officer of the Trustee actually knows
to be held by the Issuers or an Affiliate of the Issuers shall not be considered outstanding.

          If a Security is replaced pursuant to Section 2.10 (other than a mutilated Security
surrendered for replacement), it ceases to be outstanding unless the Trustee and the Issuers
receive proof satisfactory to them that the replaced Security is held by a protected purchaser. A
mutilated Security ceases to be outstanding upon surrender of such Security and replacement
pursuant to Section 2.10.

          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, by 11:00
a.m. (New York City time) on a Redemption Date or other maturity date money sufficient to pay all
principal, premium, if any, and accrued interest payable on that date with respect to the
Securities (or portions thereof) to be redeemed or otherwise maturing, as the case may be, then on
and after that date such Securities (or portions thereof) cease to be outstanding and interest on
them ceases to accrue.

     SECTION 2.12. Temporary Securities. In the event that Definitive Securities are to be
issued under the terms of this Indenture, until such Definitive Securities are ready for delivery,
the Issuers may prepare and the Trustee shall, upon receipt of an Issuer Order, authenticate
temporary Securities. Temporary Securities shall be substantially in the form, and shall carry all
rights, of Definitive Securities but may have variations that the Issuers consider appropriate for
temporary Securities. Without unreasonable delay, the Issuers shall prepare and the Trustee shall,
upon receipt of an Issuer Order, authenticate Definitive Securities. After the preparation of
Definitive Securities, the temporary Securities shall be exchangeable for Definitive Securities
upon surrender of the temporary Securities at any office or agency maintained by the Issuers for
that purpose and such exchange shall be without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Issuers shall execute, and the Trustee
shall, upon receipt of an Issuer Order, authenticate and make available for delivery in exchange
therefor, one or more Definitive Securities representing an equal principal amount of Securities.
Until so exchanged, the Holder of temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as a Holder of Definitive Securities.

     SECTION 2.13. Cancellation. The Issuers at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and
no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment
or cancellation and dispose of such Securities in accordance with its internal policies and
customary procedures including delivery of a certificate describing such Securities disposed
(subject to the record retention requirements of the Exchange Act) or deliver canceled Securities
to the Issuers pursuant to written direction by one Officer of the Issuers. If the Issuers or any
Subsidiary Guarantor acquires any of the Securities, such acquisition shall not operate as a
redemption or satisfaction of the Indebtedness represented by such Securities unless and until the
same are surrendered to the Trustee for cancellation pursuant to this Section 2.13. The
Issuers may not issue new Securities to replace Securities they have paid or delivered to the
Trustee for cancellation for any reason other than in connection with a transfer or exchange.

-58-

 

          At such time as all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such Global Security shall
be returned by DTC or the Securities Custodian to the Trustee for cancellation or retained and
canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a
Global Security is exchanged for Definitive Securities, transferred in exchange for an interest in
another Global Security, redeemed, repurchased or canceled, the principal amount of Securities
represented by such Global Security shall be reduced and an adjustment shall be made on the books
and records of the Trustee (if it is then the Securities Custodian for such Global Security) with
respect to such Global Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

     SECTION 2.14. Payment of Interest; Defaulted Interest. Interest on any Security which
is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid
to the Person in whose name such Security (or one or more predecessor Securities) is registered at
the close of business on the regular record date for such payment at the office or agency of the
Issuers maintained for such purpose pursuant to Section 2.3.

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

               (a) The Issuers may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective predecessor Securities) are registered at
the close of business on a Special Record Date (as defined below) for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Issuers shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security and the date of the proposed payment (the “Special Interest Payment Date”),
and at the same time the Issuers shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Issuers shall
fix a record date (the “Special Record Date”) for the payment of such Defaulted
Interest, which date shall be not more than 15 days and not less than 10 days prior to the
Special Interest Payment Date and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment. The Issuers shall promptly notify the Trustee of such
Special Record Date, and in the name and at the expense of the Issuers, the Trustee shall
cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
and Special Interest Payment Date therefor to be given in the manner provided for in
Section 11.2, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date and Special
Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid
on the Special Interest Payment Date to the Persons in whose names the Securities (or their
respective predecessor Securities) are registered at

-59-

 

the close of business on such Special Record Date and shall no longer be payable
pursuant to the following clause (b).

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

          Subject to the foregoing provisions of this Section 2.14, 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 2.15. Computation of Interest. Interest on the Securities shall be computed
on the basis of a 360-day year of twelve 30-day months.

     SECTION 2.16. CUSIP, Common Code and ISIN Numbers. The Issuers in issuing the
Securities may use “CUSIP”, “Common Code” and “ISIN” numbers and, if so, the Trustee shall use
“CUSIP”, “Common Code” and “ISIN” numbers in notices of redemption or purchase as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a
redemption or purchase and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption or purchase shall not be affected by any defect
in or omission of such CUSIP, Common Code and ISIN numbers. The Issuers shall promptly notify the
Trustee in writing of any change in the CUSIP, Common Code and ISIN numbers.

ARTICLE III

COVENANTS

     SECTION 3.1. Payment of Securities. The Issuers shall promptly pay the principal of,
premium, if any, and interest (including Additional Interest, if any) on the Securities on the
dates and in the manner provided in the Securities and in this Indenture. Principal, premium, if
any, and interest (including Additional Interest, if any) shall be considered paid on the date due
if by 11:00 a.m. (New York City time) on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to pay all principal, premium, if any, and interest
(including Additional Interest) then due and the Trustee or the Paying Agent, as the case may be,
is not prohibited from paying such money to the Securityholders on that date pursuant to the terms
of this Indenture.

          The Issuers shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest (including Additional
Interest) at the same rate to the extent lawful.

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

     SECTION 3.2. Limitation on Indebtedness and Preferred Stock.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, Incur any Indebtedness (including Acquired Indebtedness) and the Company will not
permit any of its Restricted Subsidiaries to issue Preferred Stock; provided, however, that the
Company and any of the Subsidiary Guarantors may Incur Indebtedness and issue Preferred Stock if on
the date thereof:

               (1) the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is
at least 2.25 to 1.00, determined on a pro forma basis (including a pro forma application of
proceeds); and

               (2) no Default would occur as a consequence of, and no Event of Default would be
continuing following, Incurring the Indebtedness or its application.

          (b) Section 3.2(a) will not prohibit the Incurrence of the following:

               (1) Indebtedness under one or more Credit Facilities (including the Senior Secured
Credit Agreement) Incurred pursuant to this clause (1) by the Issuers or any Subsidiary
Guarantor in an aggregate amount outstanding at any one time not to exceed the greater of
(i) $300.0 million or (ii) 30.0% of the Company’s Adjusted Consolidated Net Tangible Assets
determined as of the date of the Incurrence of such Indebtedness after giving effect to the
application of the proceeds therefrom;

               (2) guarantees of Indebtedness Incurred in accordance with the provisions of this
Indenture; provided that in the event such Indebtedness that is being guaranteed is a
Subordinated Obligation or a Guarantor Subordinated Obligation, then the related guarantee
shall be subordinated in right of payment to the Securities or the Subsidiary Guarantees to
at least the same extent as the Indebtedness being guaranteed, as the case may be;

               (3) Indebtedness of the Company owing to and held by any Restricted Subsidiary or
Indebtedness of a Restricted Subsidiary owing to and held by the Company or any Restricted
Subsidiary; provided, however, that (a)(i) if the Company is the obligor on such
Indebtedness and the obligee is not a Subsidiary Guarantor, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all obligations with respect
to the Securities and (ii) if a Subsidiary Guarantor is the obligor of such Indebtedness and
the obligee is neither the Company nor a Subsidiary Guarantor, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all obligations of such
Subsidiary Guarantor with respect to its Subsidiary Guarantee and (b)(i) any subsequent
issuance or transfer of Capital Stock or any other event which results in any such
Indebtedness being held by a Person other than the Company or a Restricted Subsidiary of the
Company and (ii) any sale or other transfer of any such Indebtedness to a Person other than
the Company or a Restricted Subsidiary of the

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Company shall be deemed, in each case, to constitute an Incurrence of such Indebtedness
by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by
this Section 3.2(b)(3);

               (4) Indebtedness represented by (a) the Securities issued on the Issue Date and all
Subsidiary Guarantees, (b) any Indebtedness (other than the Indebtedness described in
Section 3.2(b)(1), (3), (4)(a) and (9) outstanding on the
Issue Date), (c) any Exchange Securities and related Subsidiary Guarantees issued pursuant
to a Registration Rights Agreement and (d) any Refinancing Indebtedness Incurred in respect
of any Indebtedness described in this Section 3.2(b)(4) or Section 3.2(b)(5)
or Incurred pursuant to Section 3.2(a);

               (5) Permitted Acquisition Indebtedness;

               (6) Indebtedness Incurred in respect of (a) self-insurance obligations or bid, plugging
and abandonment, appeal, reimbursement, performance, surety and similar bonds provided by
the Company or a Restricted Subsidiary in the ordinary course of business and any guarantees
or letters of credit functioning as or supporting any of such obligations or bonds and (b)
obligations represented by letters of credit for the account of the Company or a Restricted
Subsidiary in order to provide security for workers’ compensation claims (in the case of
both clauses (a) and (b) other than for an obligation for money borrowed);

               (7) Indebtedness of the Company or any Subsidiary Guarantor represented by Capitalized
Lease Obligations (whether or not incurred pursuant to Sale/Leaseback Transactions) or other
Indebtedness incurred or assumed in connection with the acquisition, construction,
improvement or development of real or personal, movable or immovable, property, in each case
Incurred for the purpose of financing, refinancing, renewing, defeasing or refunding all or
any part of the purchase price or cost of acquisition, construction, improvement or
development of property used in the business of the Company or its Subsidiary Guarantors;
provided that the aggregate principal amount incurred by the Company or any Subsidiary
Guarantor pursuant to this Section 3.2(b)(7) outstanding at any time shall not
exceed the greater of (x) $25.0 million and (y) 2.5% of the Company’s Adjusted Consolidated
Net Tangible Assets; and provided further that the principal amount of any Indebtedness
permitted under this Section 3.2(b)(7) did not in each case at the time of
incurrence exceed the Fair Market Value, as determined in accordance with the definition of
such term, of the acquired or constructed asset or improvement so financed;

               (8) Indebtedness to the extent that the net proceeds thereof are promptly deposited to
defease the Securities or to satisfy and discharge the Indenture;

               (9) in addition to the items referred to in Sections 3.2(b)(1) through
(8) above, Indebtedness of the Company and its Restricted Subsidiaries in an
aggregate outstanding principal amount which, when taken together with the principal amount
of all other Indebtedness Incurred pursuant to this clause (9) and then outstanding, will
not

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exceed the greater of (a) $35.0 million and (b) 5.0% of the Company’s Adjusted
Consolidated Net Tangible Assets.

          (c) For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section 3.2:

               (1) in the event an item of that Indebtedness meets the criteria of more than one of
the types of Indebtedness described in Section 3.2(a) and (b), the Company,
in its sole discretion, will classify such item of Indebtedness on the date of Incurrence
and, subject to Section 3.2(c)(2) below may later classify, reclassify or redivide
all or a portion of such item of Indebtedness, in any manner that complies with this
Section 3.2;

               (2) any Indebtedness outstanding on the date of this Indenture under the Senior Secured
Credit Agreement shall be deemed Incurred on the Issue Date under Section 3.2(b)(1);

               (3) guarantees of, or obligations in respect of letters of credit supporting,
Indebtedness which is otherwise included in the determination of a particular amount of
Indebtedness shall not be included;

               (4) the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary, will be equal to the greater of
the maximum mandatory redemption or repurchase price (including, in either case, any
redemption or repurchase premium) or the liquidation preference thereof;

               (5) Indebtedness permitted by this Section 3.2 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by one
such provision and in part by one or more other provisions of this Section 3.2
permitting such Indebtedness; and

               (6) the amount of Indebtedness issued at a price that is less than the principal amount
thereof will be equal to the amount of the liability in respect thereof determined in
accordance with GAAP.

          Accrual of interest, accrual of dividends, the amortization of debt discount or the accretion
of accreted value and unrealized losses or charges in respect of Hedging Obligations (including
those resulting from the application of Statement of Financial Accounting Standard No. 133) will
not be deemed to be an Incurrence of Indebtedness for purposes of this Section 3.2.

          The Company will not permit any of its Unrestricted Subsidiaries to Incur any Indebtedness
other than Non-Recourse Debt. If at any time an Unrestricted Subsidiary becomes a Restricted
Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be Incurred by a Restricted
Subsidiary as of such date (and, if such Indebtedness is not permitted to be Incurred as of such
date under this Section 3.2, the Company shall be in Default of this Section 3.2).

          This Indenture will not treat (1) unsecured Indebtedness as subordinated or junior to secured
Indebtedness merely because it is unsecured or (2) senior Indebtedness as

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subordinated or junior to any other senior Indebtedness merely because it has a junior
priority with respect to the same collateral.

     SECTION 3.3. Limitation on Restricted Payments. The Company will not, and will not
permit any of its Restricted Subsidiaries, directly or indirectly, to:

          (1) declare or pay any dividend or make any payment or distribution on or in respect of
its Capital Stock (including any payment or distribution in connection with any merger or
consolidation involving the Company or any of its Restricted Subsidiaries) except:

          (a) dividends or distributions by the Company payable solely in Capital Stock
of the Company (other than Disqualified Stock); and

          (b) dividends or distributions payable to the Company or a Restricted
Subsidiary and if such Restricted Subsidiary is not a Wholly-Owned Subsidiary, to
minority stockholders (or owners of an equivalent interest in the case of a
Subsidiary that is an entity other than a corporation) so long as the Company or a
Restricted Subsidiary receives at least its pro rata share of such dividend or
distribution;

          (2) purchase, repurchase, redeem, defease or otherwise acquire or retire for value any
Capital Stock of the Company or any direct or indirect parent of the Company held by Persons
other than the Company or a Wholly-Owned Subsidiary;

          (3) purchase, repurchase, redeem, defease or otherwise acquire or retire for value,
prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than (x) Indebtedness
permitted under Section 3.2(b)(3) or (y) the purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Subordinated Obligations or Guarantor
Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of
purchase, repurchase, redemption, defeasance or other acquisition or retirement); or

          (4) make any Restricted Investment in any Person;

(any such dividend, distribution, purchase, repurchase, redemption, defeasance, other
acquisition or retirement or Restricted Investment referred to in clauses (1) through (4) is
referred to herein as a “Restricted Payment”), if at the time the Company or such
Restricted Subsidiary makes such Restricted Payment:

          (a) a Default has occurred and is continuing (or would result therefrom);

          (b) the Company is not able to Incur an additional $1.00 of Indebtedness
pursuant to Section 3.2(a) after giving effect, on a pro forma basis, to
such Restricted Payment; or

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          (c) the aggregate amount of such Restricted Payment and all other Restricted
Payments declared or made subsequent to the Issue Date (other than under clauses
(1), (2), (4), (5), (6), (7), (8), (9), (10), and (11) of the next paragraph) would
exceed the sum of (the “Basket Amount”):

          (i) 50% of Consolidated Net Income accrued on a cumulative basis for
the period (treated as one accounting period) from October 1, 2010 to the
end of the most recent fiscal quarter ending prior to the date of such
Restricted Payment for which financial statements are in existence (or, in
case such Consolidated Net Income is a deficit, minus 100% of such deficit);

          (ii) 100% of the aggregate Net Cash Proceeds and the Fair Market Value
of any Capital Stock of Persons engaged primarily in the Oil and Gas
Business or assets used in the Oil and Gas Business, in each case received
by the Company from the issue or sale of its Capital Stock (other than
Disqualified Stock) or from cash capital contributions subsequent to the
Issue Date (other than Net Cash Proceeds received from an issuance or sale
of such Capital Stock to (x) a Subsidiary of the Company or (y) an employee
stock ownership plan, option plan or similar trust (to the extent such sale
to an employee stock ownership plan, option plan or similar trust is
financed by loans from or guaranteed by the Company or any Restricted
Subsidiary unless such loans have been repaid with cash on or prior to the
date of determination));

          (iii) the amount by which Indebtedness of the Company or its Restricted
Subsidiaries is reduced on the Company’s balance sheet upon the conversion
or exchange (other than by a Subsidiary of the Company) subsequent to the
Issue Date of any Indebtedness of the Company or its Restricted Subsidiaries
convertible or exchangeable for Capital Stock (other than Disqualified
Stock) of the Company (less the amount of any cash, or the Fair Market Value
of any other property (other than such Capital Stock), distributed by the
Company upon such conversion or exchange), together with the net proceeds,
if any, received by the Company or any of its Restricted Subsidiaries upon
such conversion or exchange; and

          (iv) the amount equal to the aggregate net reduction in Restricted
Investments made by the Company or any of its Restricted Subsidiaries in any
other Person after the Issue Date resulting from:

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

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distribution) by such Person to the Company or any Restricted
Subsidiary; and

          (B) the redesignation of Unrestricted Subsidiaries as Restricted
Subsidiaries (valued in each case as provided in the definition of
“Investment”) not to exceed, in the case of any Unrestricted
Subsidiary, the amount of Investments previously made by the Company
or any Restricted Subsidiary in such Unrestricted Subsidiary, which
amount in each case under this clause (iv) was included in the
calculation of the amount of Restricted Payments; provided, however,
that no amount will be included under this clause (iv) to the extent
it is already included in Consolidated Net Income.

          The provisions of the preceding paragraph will not prohibit:

          (1) any Restricted Payment made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Capital Stock of the Company (other than Disqualified Stock and other than
Capital Stock issued or sold to a Subsidiary of the Company or an employee stock ownership plan,
option plan or similar trust to the extent such sale to an employee stock ownership plan, option
plan or similar trust is financed by loans from or guaranteed by the Company or any Restricted
Subsidiary unless such loans have been repaid with cash on or prior to the date of determination)
or a substantially concurrent cash capital contribution received by the Company from the owners of
its Capital Stock; provided that the Net Cash Proceeds from such sale of Capital Stock or capital
contribution will be excluded from clause (c)(ii) of the preceding paragraph;

          (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations of an Issuer or Guarantor Subordinated Obligations of any Subsidiary
Guarantor made by exchange for, or out of the proceeds of the substantially concurrent sale of
Refinancing Indebtedness with respect to such Subordinated Obligations or Guarantor Subordinated
Obligations permitted to be Incurred pursuant to Section 3.2.

          (3) dividends paid or distributions made within 60 days after the date of declaration if at
such date of declaration such dividend or distribution would have complied with this Section
3.3; provided, however, that such dividends and distributions will be included in subsequent
calculations of the Basket Amount; and provided further, however, that for purposes of
clarification, this clause (3) shall not include cash payments in lieu of the issuance of
fractional shares included in clause (8) below;

          (4) the repurchase or other acquisition of Capital Stock (including options, warrants, equity
appreciation rights or other rights to purchase or acquire Capital Stock) of the Company held by
any existing or former employees, officers or directors of the Company or the General Partner or
any Restricted Subsidiary of the Company or their assigns, estates or heirs, in each case pursuant
to the repurchase or other acquisition provisions under employee stock option or stock purchase
plans or agreements or other agreements to compensate employees, officers or directors, in each
case approved by the Company’s Board of Directors; provided that such

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repurchases or other acquisitions pursuant to this clause (4) will not exceed $2.0 million in
the aggregate during any calendar year; and provided that the proceeds received from any such
transaction will be excluded from clause (c)(ii) of the preceding paragraph;

          (5) purchases, repurchases, redemptions or other acquisitions or retirements for value of
Capital Stock deemed to occur upon the exercise of stock options, warrants, rights to acquire
Capital Stock or other convertible securities if such Capital Stock represents a portion of the
exercise or exchange price thereof, and any purchases, repurchases, redemptions or other
acquisitions or retirements for value of Capital Stock made in lieu of withholding taxes in
connection with any exercise or exchange of warrants, options or rights to acquire Capital Stock;

          (6) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for
value of any Subordinated Obligation (i) at a purchase price not greater than 101% of the principal
amount of such Subordinated Obligation in the event of a Change of Control in accordance with
provisions similar to Section 3.9 or (ii) at a purchase price not greater than 100% of the
principal amount thereof in accordance with provisions similar to Section 3.5; provided
that, prior to or simultaneously with such purchase, repurchase, redemption, defeasance or other
acquisition or retirement, the Company has made the Change of Control Offer or Asset Disposition
Offer, as applicable, as provided in such Section with respect to the Securities and has completed
the repurchase of all Securities accepted for payment in connection with such Change of Control
Offer or Asset Disposition Offer;

          (7) so long as no Default has occurred and is continuing, payments or distributions to
dissenting equityholders pursuant to applicable law or in connection with the settlement or other
satisfaction of legal claims made pursuant to or in connection with a consolidation, merger or
transfer of assets;

          (8) cash payments in lieu of the issuance of fractional shares;

          (9) the declaration and payment of scheduled or accrued dividends to holders of any class of
or series of Disqualified Stock of the Company issued after the Issue Date in accordance with
Section 3.2, to the extent such dividends are included in Consolidated Interest Expense;

          (10) so long as the Company is treated for U.S. federal tax purposes as a disregarded entity
or partnership, Permitted Tax Distributions;

          (11) dividends paid or distributions made by the Company, or purchases, repurchases,
redemptions or other acquisitions or retirements for value of Capital Stock of the Company, within
60 days after the Issue Date from proceeds of the issuance of the Initial Securities in an
aggregate amount not to exceed $50.0 million; and

          (12) so long as no Default has occurred and is continuing, Restricted Payments in an amount
not to exceed $25.0 million in the aggregate since the Issue Date.

          The amount of all Restricted Payments (other than cash) shall be the Fair Market Value on the
date of such Restricted Payment of the securities or other assets proposed to be paid, transferred
or issued by the Company or such Restricted Subsidiary, as the case may be,

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pursuant to such Restricted Payment. The Fair Market Value of any cash Restricted Payment
shall be its face amount, and the Fair Market Value of any non-cash Restricted Payment shall be
determined in accordance with the definition of that term. Not later than the date of making any
Restricted Payment pursuant to clause (c) of the second preceding paragraph or clause (12) of the
preceding paragraph, the Company shall deliver to the Trustee an Officers’ Certificate stating that
such Restricted Payment is permitted and setting forth the basis upon which the calculations
required by this Section 3.3 were computed and the Basket Amount after giving effect to
such Restricted Payment.

          In the event that a Restricted Payment meets the criteria of more than one of the exceptions
described in clauses (1) through (12) above or is entitled to be made pursuant to the first
paragraph above, the Company shall, in its sole discretion, classify such Restricted Payment and
may later re-classify all or a portion of such Restricted Payment.

          The Company will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to the last sentence of the definition of “Unrestricted Subsidiary.” For
purpose of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding
Investments by the Company and its Restricted Subsidiaries (except to the extent repaid) in the
Subsidiary so designated will be deemed to be Restricted Payments in an amount determined as set
forth in the last sentence of the definition of “Investment.” Such designation will be
permitted only if a Restricted Payment in such amount would be permitted at such time, whether
pursuant to the first paragraph of this Section 3.3 or under clause (12) of the second
paragraph of this Section 3.3, or pursuant to the definition of “Permitted
Investments,” and if such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.

     SECTION 3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries.
The Company will not, and will not permit any Restricted Subsidiary (other than the Co-Issuer) to,
create or otherwise cause or permit to exist or become effective any consensual encumbrance or
consensual restriction on the ability of any such Restricted Subsidiary to:

          (1) pay dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligations owed to the Company or any other Restricted Subsidiary (it
being understood that the priority of any Preferred Stock in receiving dividends or
liquidating distributions prior to dividends or liquidating distributions being paid on
Common Stock shall not be deemed a restriction on the ability to make distributions on
Capital Stock);

          (2) make any loans or advances to the Company or any other Restricted Subsidiary (it
being understood that the subordination of loans or advances made to the Company or any
Restricted Subsidiary to other Indebtedness Incurred by the Company or any Restricted
Subsidiary shall not be deemed a restriction on the ability to make loans or advances); or

          (3) sell, lease or transfer any of its property or assets to the Company or any other
Restricted Subsidiary.

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          The preceding provisions will not prohibit:

          (i) any encumbrance or restriction pursuant to or by reason of an
agreement in effect at or entered into on the Issue Date, including this
Indenture and the Senior Secured Credit Agreement, each as in effect on such
date;

          (ii) any encumbrance or restriction with respect to a Person pursuant
to or by reason of an agreement relating to any Capital Stock or
Indebtedness Incurred by a Person on or before the date on which such Person
was acquired by the Company or another Restricted Subsidiary (other than
Capital Stock or Indebtedness Incurred as consideration in, or to provide
all or any portion of the funds utilized to consummate, the transaction or
series of related transactions pursuant to which such Person was acquired by
the Company or a Restricted Subsidiary or in contemplation of the
transaction) and outstanding on such date; provided that any such
encumbrance or restriction shall not extend to any assets or property of the
Company or any other Restricted Subsidiary other than the assets and
property so acquired;

          (iii) any encumbrance or restriction contained in contracts entered
into in the ordinary course of business, not relating to any Indebtedness,
and that do not, individually or in the aggregate, detract from the value
of, or from the ability of the Company and the Restricted Subsidiaries to
realize the value of, property or assets of the Company or any Restricted
Subsidiary in any manner material to the Company or any Restricted
Subsidiary;

          (iv) any encumbrance or restriction with respect to a Restricted
Subsidiary pursuant to an agreement effecting a refunding, replacement or
refinancing of Indebtedness Incurred pursuant to an agreement referred to in
clauses (i) and (ii) or clause (ix) of this paragraph or this clause (iv) or
contained in any amendment, restatement, modification, renewal,
supplemental, refunding, replacement or refinancing of an agreement referred
to in clauses (i) and (ii) or clause (ix) of this paragraph or this clause
(iv); provided that the encumbrances and restrictions with respect to such
Restricted Subsidiary contained in any such agreement taken as a whole are
no less favorable in any material respect to the holders of the Securities
than the encumbrances and restrictions contained in the agreements governing
the Indebtedness being refunded, replaced or refinanced;

          (v) in the case of clause (3) of the first paragraph of this
Section 3.4, any encumbrance or restriction:

          (A) that restricts in a customary manner the subletting,
assignment or transfer of any property or asset that is

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subject to a lease (including leases governing leasehold
interests or farm-in agreements or farm-out agreements relating to
leasehold interests in Oil and Gas Properties), license or similar
contract, or the assignment or transfer of any such lease (including
leases governing leasehold interests or farm-in agreements or
farm-out agreements relating to leasehold interests in Oil and Gas
Properties), license (including licenses of intellectual property) or
other contract;

          (B) contained in mortgages, pledges or other security agreements
permitted under this Indenture securing Indebtedness of the Company
or a Restricted Subsidiary to the extent such encumbrances or
restrictions restrict the transfer of the property subject to such
mortgages, pledges or other security agreements;

          (C) contained in any agreement creating Hedging Obligations
permitted from time to time under this Indenture;

          (D) pursuant to customary provisions restricting dispositions of
real property interests set forth in any reciprocal easement
agreements of the Company or any Restricted Subsidiary;

          (E) on cash or other deposits imposed by customers under
contracts entered into in the ordinary course of business; or

          (F) with respect to the disposition or distribution of assets or
property in operating agreements, joint venture agreements,
development agreements, area of mutual interest agreements and other
agreements that are customary in the Oil and Gas Business and entered
into in the ordinary course of business;

          (vi) any encumbrance or restriction contained in (a) purchase money
obligations for property acquired in the ordinary course of business and (b)
Capitalized Lease Obligations, in each case that are permitted under this
Indenture and that impose encumbrances or restrictions of the nature
described in clause (3) of the first paragraph of this Section 3.4
on the property or assets so acquired, and any proceeds thereof;

          (vii) any encumbrance or restriction with respect to a Restricted
Subsidiary (or any of its property or assets) imposed pursuant to an
agreement entered into for the direct or indirect sale or other disposition

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of all or a portion of the Capital Stock or property or assets of such
Restricted Subsidiary pending the closing of such sale or other disposition;

          (viii) any encumbrance or restriction arising or existing by reason of
applicable law or any applicable rule, regulation or order;

          (ix) any encumbrance or restriction contained in agreements governing
Indebtedness of the Company or any of its Restricted Subsidiaries permitted
to be Incurred pursuant to an agreement entered into subsequent to the Issue
Date in accordance with Section 3.2; provided that the provisions
relating to such encumbrance or restriction contained in such Indebtedness,
taken as a whole, are not materially less favorable to the Company taken as
a whole, as determined by the Board of Directors of the Company in good
faith, than the provisions contained in the Senior Secured Credit Agreement
and in this Indenture; and

          (x) any encumbrance or restriction on cash or other deposits or net
worth imposed by customers under contracts or required by insurance, surety
or bonding companies, in each case entered into or incurred in the ordinary
course of business.

     SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock. The Company will
not, and will not permit any of its Restricted Subsidiaries to, make any Asset Disposition unless:

          (1) the Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Disposition at least equal to the Fair Market Value
(such Fair Market Value to be determined on the date of contractually agreeing to such Asset
Disposition) of the Capital Stock or other assets subject to such Asset Disposition;

          (2) at least 75% of the consideration received by the Company or such Restricted
Subsidiary, as the case may be, is in the form of cash or Cash Equivalents or Additional
Assets, or any combination thereof; and

          (3) except as provided in the next paragraph, an amount equal to 100% of the Net
Available Cash from such Asset Disposition is applied, within 360 days from the later of the
date of such Asset Disposition or the receipt of such Net Available Cash, by the Company or
such Restricted Subsidiary, as the case may be:

          (a) to prepay, repay, redeem or purchase Indebtedness (other than intercompany
Indebtedness, Subordinated Obligations, Capital Stock or Indebtedness owed to an
Affiliate of the Company); provided, however, that, in connection with any
prepayment, repayment, redemption or purchase of Indebtedness pursuant to this
clause (a), the Company or such Restricted Subsidiary will cause the related
commitment to be permanently reduced in an amount equal to the principal amount so
prepaid, repaid, redeemed or purchased; or

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          (b) to invest in Additional Assets or to make capital expenditures in the Oil
and Gas Business;

provided that pending the final application of any such Net Available Cash in accordance with
clause (a) or clause (b) above, the Company and its Restricted Subsidiaries may temporarily reduce
revolving credit Indebtedness or otherwise invest such Net Available Cash in any manner not
prohibited by this Indenture.

Any Net Available Cash from Asset Dispositions that is not applied or invested as provided in the
preceding paragraph will be deemed to constitute “Excess Proceeds.” Not later than the
360th day from the later of the date of such Asset Disposition or the receipt of such Net Available
Cash, if the aggregate amount of Excess Proceeds exceeds $20.0 million, the Company will make an
offer (“Asset Disposition Offer”) to all Holders of Securities and, to the extent required
by the terms of other Pari Passu Indebtedness, to all holders of other Pari Passu Indebtedness
outstanding with similar provisions requiring the Company to make an offer to purchase such Pari
Passu Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Securities”)
to purchase the maximum principal amount of Securities and any such Pari Passu Securities to which
the Asset Disposition Offer applies that may be purchased out of the Excess Proceeds, at an offer
price in cash in an amount equal to 100% of the principal amount (or, in the event such Pari Passu
Indebtedness was issued with original issue discount, 100% of the accreted value thereof) of the
Securities and Pari Passu Securities plus accrued and unpaid interest, if any (or in respect of
such Pari Passu Securities, such lesser price, if any, as may be provided for by its terms), to the
date of purchase (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), in accordance with the procedures set forth in
this Section 3.5 or the agreements governing the Pari Passu Securities, as applicable, in
each case in a minimum principal amount of $2,000 and integral multiples of $1,000 in excess
thereof. If the aggregate principal amount of Securities surrendered by Holders thereof and other
Pari Passu Securities surrendered by holders or lenders, collectively, exceeds the amount of Excess
Proceeds, the Trustee shall select the Securities to be purchased on a pro rata basis (or, in the
case of Securities issued in global form as discussed in Section 2.1(e) the Trustee will
select the Securities for purchase based on DTC’s method that most nearly approximates a pro rata
selection) on the basis of the aggregate principal amount of tendered Securities and Pari Passu
Securities. To the extent that the aggregate amount of Securities and Pari Passu Securities so
validly tendered and not properly withdrawn pursuant to an Asset Disposition Offer is less than the
Excess Proceeds, the Company and its Restricted Subsidiaries may use any remaining Excess Proceeds
for general corporate purposes, subject to the other covenants contained in this Indenture. Upon
completion of such Asset Disposition Offer, the amount of Excess Proceeds shall be reset at zero.

The Asset Disposition Offer will remain open for a period of 20 Business Days following its
commencement, except to the extent that a longer period is required by applicable law (the
“Asset Disposition Offer Period”). No later than two Business Days after the termination of
the Asset Disposition Offer Period (the “Asset Disposition Purchase Date”), the Company
will purchase the principal amount of Securities and Pari Passu Securities required to be purchased
pursuant to this Section 3.5 (the “Asset Disposition Offer Amount”) or, if less
than the Asset Disposition Offer Amount has been so validly tendered and not properly withdrawn,
all

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Securities and Pari Passu Securities validly tendered and not properly withdrawn in response to the
Asset Disposition Offer.

          If the Asset Disposition Purchase Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest will be paid to each Person in
whose name a Note is registered at the close of business on such record date, and no further
interest will be payable to Holders who tender Securities pursuant to the Asset Disposition Offer.

          On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Securities and Pari Passu Securities or portions of Securities and Pari Passu Securities so
validly tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less
than the Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all
Securities and Pari Passu Securities so validly tendered and not properly withdrawn, in each case
in a minimum principal amount of $2,000 and integral multiples of $1,000 in excess thereof. The
Company will deliver to the Trustee an Officers’ Certificate stating that such Securities or
portions thereof were accepted for payment by the Company in accordance with the terms of this
Section 3.5 and, in addition, the Company will deliver all certificates required, if any,
by the agreements governing the Pari Passu Securities. On the Asset Disposition Date, the Company
or the paying agent, as the case may be, will mail or deliver to each tendering Holder of
Securities or holder or lender of Pari Passu Securities, as the case may be, an amount equal to the
purchase price of the Securities or Pari Passu Securities so validly tendered and not properly
withdrawn by such holder or lender, as the case may be, and accepted by the Company for purchase,
and the Company will promptly issue a new Security, and the Trustee, upon delivery of an Officers’
Certificate from the Issuers, will authenticate and mail or deliver such new Security to such
Holder, in a principal amount equal to any unpurchased portion of the Security surrendered;
provided that each such new Security will be in a minimum principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof. In addition, the Company will take any and all other actions
required by the agreements governing the Pari Passu Securities. Any Security not so accepted will
be promptly mailed or delivered by the Issuers to the Holder thereof. The Company will publicly
announce the results of the Asset Disposition Offer on the Asset Disposition Purchase Date.

          The Company will comply, to the extent applicable, with the requirements of Rule 14e-1 of the
Exchange Act and any other securities laws or regulations in connection with the repurchase of
Securities pursuant to an Asset Disposition Offer. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 3.5, the Company
will comply with the applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Indenture by virtue of its compliance with such securities laws
or regulations.

For the purposes of clause (2) of the first paragraph of this Section 3.5, the following
will be deemed to be cash:

          (1) the assumption by the transferee of Indebtedness of the Company or Indebtedness of
a Restricted Subsidiary (other than intercompany Indebtedness,

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Subordinated Obligations, Capital Stock or Indebtedness owed to an Affiliate of the
Company) and the release of such Issuers or Restricted Subsidiary from all liability on such
Indebtedness in connection with such Asset Disposition; and

          (2) securities, notes or other obligations received by the Company or any Restricted
Subsidiary from the transferee that are converted by the Company or such Restricted
Subsidiary into cash within 30 days after receipt thereof.

          The Company will not, and will not permit any Restricted Subsidiary to, engage in any
Asset Swaps, unless in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate Fair Market Value in excess of $20.0
million, the terms of such Asset Swap have been approved by a majority of the members of the
Board of Directors of the Company.

     SECTION 3.6. Limitation on Liens. The Company will not, and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, create, Incur or suffer to exist any Lien
(other than Permitted Liens) upon any of its property or assets (including Capital Stock of
Restricted Subsidiaries), including any income or profits therefrom, whether owned on the date of
this Indenture or acquired after that date, which Lien is securing any Indebtedness, unless
contemporaneously with the Incurrence of such Lien effective provision is made to secure the
Indebtedness due under the Securities (in the case of the Company) or any Subsidiary Guarantee of
such other Restricted Subsidiary, equally and ratably with (or senior in priority to in the case of
Liens with respect to Subordinated Obligations or Guarantor Subordinated Obligations, as the case
may be) the Indebtedness secured by such Lien for so long as such Indebtedness is so secured.

     SECTION 3.7. Statement by Officers as to Default. The Issuers shall, so long as any
Security is outstanding, deliver to the Trustee within thirty days after the occurrence of a
Default, an Officers’ Certificate setting forth the details of such Default, and what action the
Issuers are taking or proposing to take with respect thereto.

     SECTION 3.8. Limitation on Affiliate Transactions. The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, enter into, make, amend or
conduct any transaction (including making a payment to, the purchase, sale, lease or exchange of
any property or the rendering of any service), contract, agreement or understanding with or for the
benefit of any Affiliate of the Company (an “Affiliate Transaction”) unless:

          (1) the terms of such Affiliate Transaction are no less favorable to the Company or
such Restricted Subsidiary, as the case may be, than those that could reasonably be expected
to be obtained in a comparable transaction at the time of such transaction in arm’s-length
dealings with a Person who is not such an Affiliate;

          (2) if such Affiliate Transaction involves an aggregate consideration in excess of
$20.0 million, the terms of such transaction have been approved by a majority of the members
of the Board of Directors of the Company having no personal stake in such transaction, if
any (and such majority determines that such Affiliate Transaction satisfies the criteria in
clause (1) above); and

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          (3) if such Affiliate Transaction involves an aggregate consideration in excess of
$50.0 million, the Board of Directors of the Company has received a written opinion from an
independent investment banking, accounting, engineering or appraisal firm of nationally
recognized standing that such Affiliate Transaction is fair, from a financial standpoint, to
the Company or such Restricted Subsidiary or, in the case of non-financial transactions, is
not less favorable to the Company or such Restricted Subsidiary than those that could
reasonably be expected to be obtained in a comparable transaction at such time on an
arm’s-length basis from a Person that is not an Affiliate.

The preceding paragraph will not apply to:

          (1) any Restricted Payment permitted to be made pursuant to Section 3.3;

          (2) any issuance of Capital Stock (other than Disqualified Stock), or other payments,
awards or grants in cash, Capital Stock (other than Disqualified Stock) or otherwise
pursuant to, or the funding of, any employment, consulting, service or severance agreements
or other compensation arrangements, options to purchase Capital Stock (other than
Disqualified Stock) of the Company, restricted stock plans, long-term incentive plans, stock
appreciation rights plans, participation plans or similar employee benefits plans or
insurance and indemnification arrangements provided to or for the benefit of directors,
officers and employees, in each case in the ordinary course of business and approved by the
Board of Directors of the Company;

          (3) any merger or other transaction with an Affiliate solely for the purpose of
reincorporating or reorganizing the Company or any of its Restricted Subsidiaries in another
jurisdiction or creating a holding company for the Company;

          (4) advances to or reimbursements of employees for moving, entertainment and travel
expenses, drawing accounts and similar expenditures in the ordinary course of business of
the Company or any of its Restricted Subsidiaries;

          (5) any transaction between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries, and guarantees issued by the Company or a Restricted Subsidiary for
the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance
with Section 3.2;

          (6) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the
Company to, or the receipt by the Company of any capital contribution from, the holders of
its Capital Stock;

          (7) indemnities of officers, directors and employees of the Company or any of its
Restricted Subsidiaries permitted by charter, bylaw or statutory provisions;

          (8) the payment of reasonable compensation and fees to officers or directors of the
Company or any Restricted Subsidiary;

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          (9) any transaction with a joint venture or similar entity (other than an Unrestricted
Subsidiary) which would constitute an Affiliate Transaction solely because the Company or a
Restricted Subsidiary owns, directly or indirectly, an equity interest in or otherwise
controls such joint venture or similar entity; and

          (10) the performance of obligations of the Company or any of its Restricted
Subsidiaries under the terms of any agreement to which the Company or any of its Restricted
Subsidiaries is a party as of or on the Issue Date that is disclosed in the Offering
Memorandum under “Certain Relationships and Related Party Transactions,” as these agreements
may be amended, modified, supplemented, extended or renewed from time to time; provided,
however, that any future amendment, modification, supplement, extension or renewal entered
into after the Issue Date will be permitted only to the extent that its terms are not
materially more disadvantageous, taken as a whole, to the holders of the Securities than the
terms of the agreements in effect on the Issue Date.

     SECTION 3.9. Purchase of Securities Upon a Change of Control. If a Change of Control
occurs, unless the Issuers have previously or concurrently exercised their right to redeem all of
the Securities pursuant to Article V, each Holder will have the right to require the
Company to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess
thereof ) of such Holder’s Securities at a purchase price in cash equal to 101% of the principal
amount of the Securities plus accrued and unpaid interest, if any, to the date of purchase (subject
to the right of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

          Within 30 days following any Change of Control, unless the Issuers have previously or
concurrently exercised their right to redeem all of the Securities pursuant to Article V,
the Company will mail a notice (the “Change of Control Offer”) to each Holder, with a copy
to the Trustee, stating:

          (1) that a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Securities at a purchase price in cash equal to 101%
of the principal amount of such Securities plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date) (the “Change of Control Payment”);

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

          (3) that any Security not properly tendered will remain outstanding and continue to
accrue interest;

          (4) that unless the Company defaults in the payment of the Change of Control Payment,
all Securities accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;

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          (5) that Holders electing to have any Securities purchased pursuant to a Change of
Control Offer will be required to surrender such Securities, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of such Securities in certificated form
completed, to the Paying Agent specified in the notice at the address specified in the
notice prior to the close of business on the third Business Day preceding the Change of
Control Payment Date;

          (6) that Holders will be entitled to withdraw their tendered Securities and their
election to require the Company to purchase such Securities, provided that the Paying Agent
receives, not later than the close of business on the third Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder of the Securities, the principal amount of Securities tendered
for purchase, and a statement that such Holder is withdrawing its tendered Securities and
its election to have such Securities purchased;

          (7) that if the Company is repurchasing a portion of the Security of any Holder, the
Holder will be issued a new Note equal in principal amount to the unpurchased portion of the
Note surrendered, provided that the unpurchased portion of the Note must be equal to a
minimum principal amount of $2,000 and an integral multiple of $1,000 in excess thereof; and

          (8) the procedures determined by the Company, consistent with this Indenture, that a
Holder must follow in order to have its Securities repurchased.

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

          (1) accept for payment all Securities or portions of Securities (in a minimum principal
amount of $2,000 and integral multiples of $1,000 in excess thereof) properly tendered
pursuant to the Change of Control Offer and not properly withdrawn;

          (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Securities or portions of Securities accepted for payment; and

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

          The Paying Agent will promptly mail or deliver to each Holder of Securities accepted for
payment the Change of Control Payment for such Securities, and the Trustee, upon receipt of an
Issuer Order, will promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Security equal in principal amount to any unpurchased portion of the Securities
surrendered, if any; provided that each such new Note will be in a minimum principal amount of
$2,000 or an integral multiple of $1,000 in excess thereof.

          If the Change of Control Payment Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest, will be paid to each Person in
whose name a Security is registered at the close of business on such record date,

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and no further interest will be payable to Holders who tender pursuant to the Change of
Control Offer.

          The Company is not required to make a Change of Control Offer upon a Change of Control if any
other Person makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with this Section 3.9 applicable to a Change of Control Offer made by the
Company and purchases all Securities validly tendered and not properly withdrawn under such Change
of Control Offer.

          A Change of Control Offer may be made in advance of a Change of Control, and conditioned upon
the occurrence of a Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making the Change of Control Offer.

          The Company will comply, to the extent applicable, with the requirements of Rule 14e-1 of the
Exchange Act and any other securities laws or regulations in connection with the repurchase of
Securities as a result of a Change of Control. To the extent that the provisions of any securities
laws or regulations conflict with provisions of this Section 3.9, the Company will comply
with the applicable securities laws and regulations and will not be deemed to have breached its
obligations under this Section 3.9 by virtue of its compliance with such securities laws or
regulations.

     SECTION 3.10. Provision of Financial Information. Whether or not the Company is
subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, the
Company will make available to the Trustee and the Holders of the Securities without cost, by
posting the same on its website for public availability, the annual reports and the information,
documents and other reports that are specified in Sections 13 and 15(d) of the Exchange Act and
applicable to a U.S. corporation that would be due after the Issue Date, within the time periods
specified therein with respect to a non-accelerated filer; provided, however, that in lieu of a
Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, the Company may instead
provide, no later than 15 days after the applicable deadline under SEC rules for such report,
unaudited quarterly financial statements together with a Management’s Discussion and Analysis of
Financial Condition and Results of Operations, in each case consistent with those that would be
included in a Quarterly Report on Form 10-Q (the “Initial Report”), and no information required to
be reported in a Current Report on Form 8-K shall be due with respect to any event occurring prior
to the date of such Initial Report provided that information required in any such Current Report on
Form 8-K is included in such Initial Report. In addition, following the consummation of the
Exchange Offer contemplated by the Registration Rights Agreement, the Company will file a copy of
each of the reports referred to in the preceding sentence with the SEC for public availability
within the time periods specified in the rules and regulations applicable to such reports (unless
the SEC will not accept such a filing).

          This Section 3.10 will not impose any duty on the Company under the Sarbanes-Oxley Act
of 2002 and the related SEC rules that would not otherwise be applicable.

          If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the
financial information required will include a reasonably detailed presentation, either on the face
of the financial statements or in the footnotes thereto, and in any

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accompanying Management’s Discussion and Analysis of Financial Condition and Results of
Operations, of the financial condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of the Unrestricted
Subsidiaries of the Company.

          The availability of the foregoing materials on the SEC’s website or on the Company’s website
shall be deemed to satisfy the foregoing delivery obligations.

          For so long as any Securities remain outstanding and constitute “restricted securities” under
Rule 144, the Company will furnished to the holders of the Securities, and to securities analysts
and prospective investors, upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Issuers’ compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     SECTION 3.11. Future Subsidiary Guarantors. The Company will cause (a) each Domestic
Subsidiary of the Company formed or acquired after the Issue Date and (b) any other Restricted
Subsidiary (except the Co-Issuer) that is not already a Subsidiary Guarantor that guarantees any
Indebtedness of the Company, or a Subsidiary Guarantor, in each case to execute and deliver to the
Trustee within 30 days a supplemental indenture (in substantially the form specified in Exhibit
B to this Indenture) pursuant to which such Subsidiary will unconditionally guarantee, on a
joint and several basis, the full and prompt payment of the principal of, premium, if any, and
interest on the Securities on a senior basis; provided that (i) any Restricted Subsidiary that
constitutes an Immaterial Subsidiary need not become a Subsidiary Guarantor until such time as it
ceases to be an Immaterial Subsidiary and (ii) Brayton Resources, L.P., Brayton Resources II, L.P.
and Orion Operating Company, LP shall not be required to become Subsidiary Guarantors for so long
as they remain Immaterial Subsidiaries and do not guarantee Indebtedness of the Company or any
Subsidiary Guarantor other than the Senior Secured Credit Agreement.

     SECTION 3.12. Maintenance of Office or Agency. The Issuers will maintain an office or
agency where the Securities may be presented or surrendered for payment, where, if applicable, the
Securities may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Issuers in respect of the Securities and this Indenture may be served. The
corporate trust office of the Trustee indicated in Section 2.3 shall be such office or
agency of the Issuers, unless the Issuers shall designate and maintain some other office or agency
for one or more of such purposes. The Issuers will give prompt written notice to the Trustee of
any change in the location of any such office or agency. If at any time the Issuers 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 indicated in Section 11.2, and the Issuers hereby appoint the
Trustee as its agent to receive all such presentations, surrenders, notices and demands.

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          The Issuers may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind any such designation. The Issuers will give prompt written notice to the Trustee of
any such designation or rescission and any change in the location of any such other office or
agency.

     SECTION 3.13. Corporate Existence. Except as otherwise provided in Article
IV, the Company shall do or cause to be done all things necessary to preserve and keep in full
force and effect the existence, rights (charter and statutory), licenses and franchises of the
Company and its Restricted Subsidiaries; provided, however, that the Company shall not be required
to preserve any such right, license or franchise with respect to a Restricted Subsidiary if it
shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Restricted Subsidiaries, taken as a whole.

     SECTION 3.14. Payment of Taxes. The Issuers or any Subsidiary Guarantor shall pay or
discharge or cause to be paid or discharged, before the same shall become delinquent, all material
taxes, assessments and governmental charges levied or imposed upon the Issuers or any Subsidiary
Guarantor or upon the income, profits or property of the Issuers or any Subsidiary Guarantor;
provided, however, (i) that the Issuers or any Subsidiary Guarantors shall not be required to pay
or discharge or cause to be paid or discharged any such tax, assessment or charge the amount,
applicability or validity of which is being contested in good faith by appropriate proceedings and
(ii) that the Issuers and Subsidiary Guarantors are not required to pay or discharge taxes for
which a failure to pay or discharge the same could not reasonably be expected to have a material
adverse affect on the Company and the Restricted Subsidiaries taken as a whole.

     SECTION 3.15. Payments for Consent. Neither the Company nor any of its Restricted
Subsidiaries will, directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fees or otherwise, to any Holder of any Securities for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or is paid to all Holders of the Securities that
consent, waive or agree to amend in the time frame set forth in the solicitation documents relating
to such consent, waiver or amendment.

     SECTION 3.16. Compliance Certificate. The Issuers and the Subsidiary Guarantors shall
deliver to the Trustee within 120 days after the end of each fiscal year of the Company ending
after the Issue Date a statement (which need not be an Officers’ Certificate) signed by two
Officers of the Company, one of which shall be the principal executive officer, the principal
accounting officer or the principal financial officer of the Company, stating that a review of the
activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has been
made under the supervision of the signing Officers with a view to determining whether each of the
Issuers and the Subsidiary Guarantors has performed its obligations under this Indenture, and
further stating whether or not the signers know of any Default or Event of Default that occurred
during such period. If they do, the certificate shall describe such Default or Event of Default,
its status and what action the Issuers are taking or proposes to take with respect thereto. The
Issuers also shall comply with TIA § 314(a)(4).

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     SECTION 3.17. Business Activities. The Company will not, and will not permit any of
its Restricted Subsidiaries to, engage in any business other than the Oil and Gas Business, except
to such extent as would not be material to the Company and its Restricted Subsidiaries taken as a
whole. The Co-Issuer may not engage in any business not related directly or indirectly to obtaining
money or arranging financing for the Company or its Restricted Subsidiaries, the Co-Issuer may not
have any Subsidiary, and no Person other than the Company or any of its other Restricted
Subsidiaries may own any Capital Stock of the Co-Issuer.

ARTICLE IV

SUCCESSOR COMPANY

     SECTION 4.1. Merger and Consolidation.

          (a) Neither the Company nor the Co-Issuer will consolidate with or merge with or into or wind
up into (whether or not it is the surviving Person), or sell, convey, transfer or lease all or
substantially all its assets in one or more related transactions to, any Person, unless:

          (1) the resulting, surviving or transferee Person (the “Successor Company”)
will be a corporation (in the case of either the Company or the Co-Issuer) or a partnership,
trust or limited liability company (but only in the case of the Company), organized and
existing under the laws of the United States of America, any State of the United States or
the District of Columbia and the Successor Company (if not the Company or the Co-Issuer, as
the case may be) will expressly assume, by supplemental indenture, executed and delivered to
the Trustee, in form reasonably satisfactory to the Trustee, all the obligations of the
Company or the Co-Issuer, as the case may be, under this Indenture, the Securities and the
Registration Rights Agreement;

          (2) immediately after giving effect to such transaction (and treating any Indebtedness
that becomes an obligation of the Successor Company or any Subsidiary of the Successor
Company as a result of such transaction as having been Incurred by the Successor Company or
such Subsidiary at the time of such transaction), no Default or Event of Default shall have
occurred and be continuing;

          (3) immediately after giving effect to such transaction, the Successor Company would be
able to Incur at least an additional $1.00 of Indebtedness pursuant to Section
3.2(a);

          (4) if an Issuer is not the Successor Company in any of the transactions referred to
above that involve such Issuer, each Subsidiary Guarantor (unless it is the other party to
the transactions, in which case clause (1) shall apply) shall have by supplemental indenture
confirmed that its Subsidiary Guarantee shall apply to the Successor Company’s obligations
in respect of this Indenture and the Securities and that its Subsidiary Guarantee shall
continue to be in effect; and

          (5) the Company or the Co-Issuer, as the case may be, shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
transaction and such supplemental indenture (if any) comply with this Indenture.

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          For purposes of this Section 4.1, the sale, conveyance, assignment, transfer, lease or
other disposition of all or substantially all of the assets of one or more Subsidiaries of the
Company, which assets, if held by the Company instead of such Subsidiaries, would constitute all or
substantially all of the assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the assets of the Company.

          Upon satisfaction of the foregoing requirements, as applicable, the Successor Company will
succeed to, and be substituted for, and may exercise every right and power of, the Company or the
Co-Issuer, as the case may be, under this Indenture; and its predecessor, except in the case of a
lease of all or substantially all its assets, will be released from all obligations under this
Indenture.

          Notwithstanding the preceding clause (3), (x) any Restricted Subsidiary (other than the
Co-Issuer) may consolidate with, merge into or transfer all or part of its assets to the Company
and the Company may consolidate with, merge into or transfer all or part of its assets to a
Subsidiary Guarantor and (y) the Company may merge with an Affiliate formed solely for the purpose
of reorganizing the Company in another jurisdiction.

          (b) In addition, the Company will not permit any Subsidiary Guarantor to consolidate with or
merge with or into, and will not permit the conveyance, transfer or lease of all or substantially
all of the assets of any Subsidiary Guarantor to, any Person (other than the Company or another
Subsidiary Guarantor) unless:

               (1) either (A) (i) the resulting, surviving or transferee Person will be a corporation,
partnership, trust or limited liability company organized and existing under the laws of the United
States of America, any State of the United States or the District of Columbia and such Person (if
not such Subsidiary Guarantor) will expressly assume, by supplemental indenture, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, all the obligations of
the Subsidiary Guarantor under this Indenture, Subsidiary Guarantee and the applicable Registration
Rights Agreement and (ii) immediately after giving effect to such transaction (and treating any
Indebtedness that becomes an obligation of the resulting, surviving or transferee Person or any
Restricted Subsidiary as a result of such transaction as having been Incurred by such Person or
such Restricted Subsidiary at the time of such transaction), no Default shall have occurred and be
continuing; or

                    (B) the transaction results in the release of the Subsidiary Guarantor from its obligations
under its Subsidiary Guarantee in compliance with Section 10.2; and

               (2) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such transaction and such supplemental indenture (if any) comply with
this Indenture.

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ARTICLE V

REDEMPTION OF SECURITIES

     SECTION 5.1. Redemption. The Securities may be redeemed subject to the conditions and
at the redemption prices specified in paragraph 5 of the form of Securities set forth in
Exhibit A hereto, which are hereby incorporated by reference and made a part of this
Indenture.

     SECTION 5.2. Applicability of Article. Redemption of Securities at the election of
the Issuers, as permitted by any provision of the Securities, shall be made in accordance with such
provision and this Article.

     SECTION 5.3. Election to Redeem; Notice to Trustee. In case of any redemption at the
election of the Issuers, the Issuers shall, not later than five Business Days prior to giving
notice of any redemption pursuant to Section 5.5 (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Securities to be redeemed and, in the case of any redemption of less than all Securities,
shall deliver to the Trustee such documentation and records as shall enable the Trustee to select
the Securities to be redeemed pursuant to Section 5.4. Any such notice may be cancelled at
any time prior to notice of such redemption being mailed to any Holder and shall thereby be void
and of no effect.

     SECTION 5.4. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities are to be redeemed at any time pursuant to an optional redemption, 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 not previously called for redemption, in compliance
with the requirements, as set forth in an Officers’ Certificate delivered by the Issuers to the
Trustee, of the principal national securities exchange, if any, on which such Securities are
listed, or, if such Securities are not so listed, then on a pro rata basis (or, in the case of
Securities issued in global form as discussed in Section 2.1(e) the Trustee will select the
Securities for purchase based on DTC’s method that most nearly approximates a pro rata selection),
by lot or by such other method as the Trustee in its sole discretion will deem to be fair and
appropriate (and in such manner as complies with applicable legal requirements), and which may
provide for the selection for redemption of portions of the Securities in the principal amount of
$2,000 and integral multiples of $1,000 in excess thereof; provided, however, that no such partial
redemption shall reduce the portion of the principal amount of a Security not redeemed to less than
$2,000.

          The Trustee shall promptly notify the Issuers in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the method it has
chosen for the selection of Securities and the principal amount thereof to be redeemed.

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

     SECTION 5.5. Notice of Redemption. Notice of redemption shall be given in the manner
provided for in Section 11.2 not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed. At the Issuers’ request, the

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Trustee shall give notice of redemption in the Issuers’ name and at the Issuers’ expense;
provided, however, that the Issuer shall deliver to the Trustee, at least five Business Days prior
to the giving of such notice (unless a shorter period shall be satisfactory to the Trustee), an
Officers’ Certificate requesting that the Trustee give such notice at the Issuers’ expense and
setting forth the information to be stated in such notice as provided in the following items.

          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the redemption price, if then determinable, and otherwise the method for its
determination and the amount of accrued interest (including Additional Interest) to the
Redemption Date payable as provided in Section 5.7, if any,

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

          (4) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder 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 (and accrued interest (including
Additional Interest), if any, to the Redemption Date payable as provided in Section
5.7) will become due and payable upon each such Security, or the portion thereof, to be
redeemed, and, unless the Issuers default in making the redemption payment, that interest on
Securities called for redemption (or the portion thereof) will cease to accrue on and after
said date,

          (6) the place or places where such Securities are to be surrendered for payment of the
redemption price and accrued interest, if any,

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

          (8) that Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price,

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

          (10) the paragraph of the Securities pursuant to which the Securities are to be
redeemed.

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     SECTION 5.6. Deposit of Redemption Price. Prior to 11:00 a.m., New York City time, on
any Redemption Date, the Issuers shall deposit with the Trustee or with a Paying Agent an amount of
money sufficient to pay the redemption price of and accrued interest (including Additional
Interest) on, all the Securities which are to be redeemed on that date, other than Securities or
portions of Securities called for redemption that are beneficially owned by the Issuers and have
been delivered by the Issuers to the Trustee for cancellation.

     SECTION 5.7. Securities Payable on Redemption Date. Notice of redemption having been
given as aforesaid, the Securities or portions of Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the redemption price therein specified (together with
accrued interest, if any, to the Redemption Date), and from and after such date (unless the Issuers
shall default in the payment of the redemption price and accrued interest) such Securities shall
cease to bear interest and the only right of the Holders thereof will be to receive payment of the
redemption price and, subject to the next sentence, unpaid interest on such Securities to the
Redemption Date. Upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Issuers at the redemption price, together with accrued
interest, if any, to the Redemption Date, provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date will be payable to the Holder of such
Security, or one or more predecessor Securities, registered as such as of the relevant record date.

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

     SECTION 5.8. Securities Redeemed in Part. Any Security which is to be redeemed only
in part (pursuant to the provisions of this Article) shall be surrendered at the office or agency
of the Issuers maintained for such purpose pursuant to Section 3.12 (with, if the Issuers
or the Trustee so require, due endorsement by, or a written instrument of transfer in form
satisfactory to the Issuers and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing), and the Issuers shall execute, and the Trustee shall, upon
receipt of an Issuer Order, authenticate and make available for delivery to the Holder of such
Security at the expense of the Issuers, a new Security or Securities, of any authorized
denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered; provided, that each
such new Security will be in a principal amount of $2,000 and integral multiples of $1,000 in
excess thereof.

ARTICLE VI

DEFAULTS AND REMEDIES

     SECTION 6.1. Events of Default. An “Event of Default” wherever used herein,
means any one of the following events in relation to the Securities (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

          (1) default in any payment of interest or Additional Interest, if any, on any Security
when due, continued for 30 days;

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          (2) default in the payment of principal of or premium, if any, on any Security when due
at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration
of acceleration or otherwise;

          (3) failure by either Issuer or any Subsidiary Guarantor to comply with its obligations
under Section 4.1;

          (4) failure by either Issuer or any Subsidiary Guarantor to comply with Sections
3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.9,
3.10, 3.11, 3.15 or 3.18 for 30 days after the Issuer has
been given notice as provided below;

          (5) failure by the Company or the Issuers to comply with any agreement in this
Indenture (other than an agreement, a default in or failure to comply with is elsewhere in
this Section specifically dealt with) and continuance of such default or breach for a period
of 60 days after the Issuer has been given notice as provided below;

          (6) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company
or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created
after the date of this Indenture, which default:

          (a) is caused by a failure to pay principal of, or interest or premium, if any,
on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness (and any extensions of any grace period) (“payment default”);
or

          (b) results in the acceleration of such Indebtedness prior to its Stated
Maturity (the “cross acceleration provision”);

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a payment
default or the maturity of which has been so accelerated, aggregates $20.0 million
or more;

          (7) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company, the Co-Issuer or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the last audited consolidated financial
statements for the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary in an involuntary case or proceeding under any applicable Federal or State or
foreign bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Company, the Co-Issuer, or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the last audited consolidated financial statements
for the Company, the Co-Issuer and its Restricted Subsidiaries) would constitute a
Significant Subsidiary bankrupt or insolvent,

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or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company, the Issuers or a Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the last audited
consolidated financial statements for the Company and its Restricted Subsidiaries) would
constitute a Significant Subsidiary, under any applicable Federal or State law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company, the Co-Issuer or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the last audited consolidated financial
statements for the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary, or of any substantial part of its or their property, or ordering the winding up
or liquidation of its or their affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60
consecutive days; or

          (8) the commencement by the Company, the Co-Issuer or a Significant Subsidiary or group
of Restricted Subsidiaries that, taken together (as of the last audited consolidated
financial statements for the Company and its Restricted Subsidiaries) would constitute a
Significant Subsidiary of a voluntary case or proceeding under any applicable Federal or
State or foreign bankruptcy, insolvency, reorganization or other similar law or of any other
case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it or them
to the entry of a decree or order for relief in an involuntary case or proceeding under any
applicable Federal or State or foreign bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or proceeding
against it or them, or the filing by it or them of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State or foreign law, or the
consent by it or them to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company, the Co-Issuer or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the last audited consolidated financial
statements for the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary or of any substantial part of its or their property, or the making by it or them
of an assignment for the benefit of creditors, or the failure by them or it to pay its or
their debts generally as they become due; or

          (9) failure by the Company, the Co-Issuer or any Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary to pay final judgments aggregating in excess of $20.0 million (to the
extent not covered by insurance by a reputable and creditworthy insurer as to which the
insurer has not disclaimed coverage), which judgments are not paid or discharged, and there
shall be any period of 60 consecutive days following entry of such final judgment or decree
during which a stay of enforcement of such final judgment or decree, by reason of pending
appeal or otherwise, shall not be in effect (the “judgment default provision”); or

          (10) any Subsidiary Guarantee of a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial

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statements for the Company and its Restricted Subsidiaries) would constitute a
Significant Subsidiary, ceases to be in full force and effect (except as contemplated by the
terms of this Indenture) or is declared null and void in a judicial proceeding or the
Company or any Subsidiary Guarantor that is a Significant Subsidiary or group of Subsidiary
Guarantors that, taken together (as of the latest audited consolidated financial statements
of the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary,
denies or disaffirms its obligations under this Indenture or its Subsidiary Guarantee.

          However, a default under clauses (4) and (5) of this Section 6.1 will not constitute
an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the
outstanding Securities notify the Issuers in writing and, in the case of a notice given by the
Holders, the Trustee of the default and the Company or the Co-Issuer do not cure such default
within the time specified in clauses (4) and (5) of this Section 6.1 after receipt of such
notice.

     SECTION 6.2. Acceleration. If an Event of Default (other than an Event of Default
described in Section 6.1(7) and (8)) occurs and is continuing, the Trustee by
notice to the Company and the Issuers, or the Holders of at least 25% in principal amount of the
outstanding Securities by notice to the Company and the Co-Issuer and the Trustee, may, and the
Trustee at the request of such Holders shall, declare the principal of, premium, if any, accrued
and unpaid interest, if any, on all the Securities to be due and payable. If an Event of Default
described in Section 6.1(7) and (8) occurs and is continuing, the principal of,
premium, if any, accrued and unpaid interest, if any, on all the Securities will become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holders. Notwithstanding the foregoing, if an Event of Default specified in Section
6.1(6) shall have occurred and be continuing, such Event of Default and any consequential
acceleration (to the extent not in violation of any applicable law or in conflict with any judgment
or decree of a court of competent jurisdiction) shall be automatically rescinded if (i) the
Indebtedness that is the subject of such Event of Default has been repaid or (ii) if the default
relating to such Indebtedness is waived by the holders of such Indebtedness or cured and if such
Indebtedness has been accelerated, then the holders thereof have rescinded their declaration of
acceleration in respect of such Indebtedness, in each case within 20 days after the declaration of
acceleration with respect thereto, and (iii) any other existing Events of Default, except
nonpayment of principal, premium or interest on the Securities that became due solely because of
the acceleration of the Securities, have been cured or waived.

     SECTION 6.3. Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of (or premium) or interest (including Additional Interest) on the Securities or to
enforce the performance of any provision of the Securities, this Indenture or the Subsidiary
Guarantees.

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the

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Event of Default. No remedy is exclusive of any other remedy. All available remedies are
cumulative.

     SECTION 6.4. Waiver of Past Defaults. The Holders of a majority in principal amount
of the outstanding Securities by notice to the Trustee (with a copy to the Issuers, but the
applicable waiver or rescission shall be effective when the notice is given to the Trustee) may (a)
waive, by their consent (including, without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities), an existing Default or Event of
Default and its consequences except (i) a Default or Event of Default in the payment of the
principal of, or premium, if any, or interest (including Additional Interest) on a Security or (ii)
a Default or Event of Default in respect of a provision that under Section 9.2 cannot be
amended without the consent of each Securityholder affected and (b) rescind any acceleration with
respect to the Securities and its consequences if (1) such rescission would not conflict with any
judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default,
other than the nonpayment of the principal of, premium, if any, and interest (including Additional
Interest) on the Securities that have become due solely by such declaration of acceleration, have
been cured or waived. When a Default or Event of Default is waived, it is deemed cured, but no
such waiver shall extend to any subsequent or other Default or Event of Default or impair any
consequent right.

     SECTION 6.5. Control by Majority. The Holders of a majority in principal amount of
the outstanding Securities may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture,
the Securities or the Subsidiary Guarantees or, subject to Sections 7.1 and 7.2,
that the Trustee determines is unduly prejudicial to the rights of other Securityholders (it being
understood that the Trustee does not have an affirmative duty to ascertain whether or not such
direction is unduly prejudicial to such Securityholders) or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any such action hereunder,
the Trustee shall be entitled to indemnification or security satisfactory to it against all losses
and expenses caused by taking or not taking such action.

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

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

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

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

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

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          (5) the Holders of a majority in principal amount of the outstanding Securities have
not waived such Event of Default or otherwise given the Trustee a direction that, in the
opinion of the Trustee, is inconsistent with such request during such 60-day period.

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

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

     SECTION 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses
(1) or (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Issuers for the whole amount then due and
owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.7.

     SECTION 6.9. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and the Securityholders allowed in any judicial
proceedings relative to the Company, the Co-Issuer or the other Subsidiary Guarantors or its or
their respective creditors or properties and, unless prohibited by law or applicable regulations,
may be entitled and empowered to participate as a member of any official committee of creditors
appointed in such matter and may vote on behalf of the Holders in any election of a trustee in
bankruptcy or other Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section
7.7.

          No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

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

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          FIRST: to the Trustee for amounts due to it under Section 7.7, including
payment of all compensation, expense and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

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

          THIRD: to the Issuers or to such party as a court of competent jurisdiction shall
direct.

          The Trustee may fix a record date and payment date for any payment to Holders of Securities
pursuant to this Section 6.10.

     SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted
by it as Trustee, a court in its discretion may require the filing by any party litigant in the
suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section does not apply to a suit by the Trustee, a suit by the Issuers, a
suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in
outstanding principal amount of the Securities.

ARTICLE VII

TRUSTEE

     SECTION 7.1. Duties of Trustee.

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

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

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

          (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates, opinions or orders furnished to the Trustee and conforming to the requirements
of this Indenture, the Securities or the Subsidiary Guarantees, as applicable. However, in
the case of any such certificates or opinions which by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine such
certificates and opinions to determine whether or not they

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conform to the requirements of this Indenture, the Securities or the Subsidiary
Guarantees, as the case may be (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

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

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

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

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

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

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

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

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

          (f) Every provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of this Section and to
the provisions of the TIA.

          (g) Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from an Issuer shall be sufficient if signed by one Officer of such Issuer.

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

          (a) The Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been signed or presented by the
proper person. The Trustee need not investigate any fact or matter stated in the document. The
Trustee shall receive and retain financial reports and statements of the Issuers as

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provided herein, but shall have no duty to review or analyze such reports or statements to
determine compliance with covenants or other obligations of the Issuers.

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

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

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers conferred upon it by this
Indenture.

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

          (f) The Trustee shall not be deemed to have knowledge or notice of any Default or Event of
Default or whether any entity or group of entities constitutes a Significant Subsidiary unless a
Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a Default or of any such Significant Subsidiary is received by the Trustee at
the corporate trust office of the Trustee specified in Section 11.2, and such notice
references the Securities and this Indenture.

          (g) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder.

          (h) The Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture, the Securities or the Subsidiary Guarantees at the request, order
or direction of any of the Holders pursuant to the provisions of this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity satisfactory to it in its sole
discretion against the costs, expenses and liabilities which may be incurred therein or thereby.

          (i) The Trustee shall not be deemed to have knowledge of any fact or matter unless such
fact or matter is known to a Trust Officer of the Trustee.

          (j) Whenever in the administration of this Indenture, the Securities or the Subsidiary
Guarantees the Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder or thereunder, the Trustee (unless other
evidence be herein specifically prescribed) may request and in the absence of bad faith or willful
misconduct on its part, rely upon an Officers’ Certificate.

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          (k) In no event shall the Trustee be responsible or liable for any special, indirect,
punitive or consequential loss or damage of any kind whatsoever (including, but not limited to,
loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.

          (l) The parties hereto acknowledge, in accordance with Section 326 of the Patriot Act,
that the Trustee, like all financial institutions and in order to help fight the funding of
terrorism and money laundering, is required to obtain, verify and record information that
identifies each person or legal entity that establishes a relationship or opens an account with the
Trustee. The Company and the Subsidiary Guarantors agree that they will provide the Trustee with
all such information as it may reasonably request in order to satisfy the requirements or its
obligations under the Patriot Act.

          (m) The Trustee shall not be required to give any bond or surety in respect of the
performance of its powers and duties hereunder.

     SECTION 7.3. Individual Rights of Trustee. The Trustee in its individual or any
other capacity may become the owner or pledgee of Securities and may otherwise deal with the
Issuers, the Subsidiary Guarantors or their Affiliates with the same rights it would have if it
were not Trustee. Any Paying Agent or Registrar may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11. In addition, the Trustee shall be
permitted to engage in transactions with the Issuers; provided, however, that if the Trustee
acquires any conflicting interest under the TIA, the Trustee must (i) eliminate such conflict
within 90 days of acquiring such conflicting interest, (ii) apply to the SEC for permission to
continue acting as Trustee or (iii) resign.

     SECTION 7.4. Trustee’s Disclaimer. The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture, the Subsidiary Guarantees
or the Securities, shall not be accountable for the Issuers’ use of the proceeds from the sale of
the Securities, shall not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee or any money paid to the Issuers pursuant to the terms of this
Indenture and shall not be responsible for any statement of the Issuers in this Indenture or in any
document issued in connection with the sale of the Securities or in the Securities other than the
Trustee’s certificate of authentication.

     SECTION 7.5. Notice of Defaults. If a Default or Event of Default occurs and is
continuing and if a Trust Officer has knowledge thereof, the Trustee shall mail by first class mail
to each Securityholder at the address set forth in the Securities Register notice of the Default or
Event of Default within 90 days after it occurs. Except in the case of a Default or Event of
Default in payment of principal of, premium (if any), or interest on any Security (including
payments pursuant to the optional redemption or required repurchase provisions of such Security),
the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good
faith determines that withholding the notice is in the interests of Securityholders.

     SECTION 7.6. Reports by Trustee to Holders. Within 60 days after each October 15
beginning October 15, 2011, the Trustee shall mail to each Securityholder a brief report dated as

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of such October 15 that complies with TIA § 313(a) if and to the extent required thereby. The
Trustee also shall comply with TIA § 313(b) and TIA § 313(c).

          A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to
notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof and the Trustee shall comply with TIA § 313(d).

     SECTION 7.7. Compensation and Indemnity. The Issuers shall pay to the Trustee
from time to time compensation for its services hereunder and under the Securities and the
Subsidiary Guarantees as the Issuers and the Trustee shall from time to time agree in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Issuers shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred or made by it, including, but not limited to, costs of collection, costs of
preparing reports, certificates and other documents, costs of preparation and mailing of notices to
Securityholders. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s agents, counsel, accountants and experts. The Issuers
shall indemnify the Trustee against any and all loss, liability, damages, claims or expense
(including reasonable attorneys’ fees and expenses) incurred by it without willful misconduct,
gross negligence or bad faith on its part in connection with the administration of this trust and
the performance of its duties hereunder and under the Securities and the Subsidiary Guarantees,
including the costs and expenses of enforcing this Indenture (including this Section 7.7),
the Securities and the Subsidiary Guarantees and of defending itself against any claims (whether
asserted by any Securityholder, the Issuers or otherwise). The Trustee shall notify the Issuers
promptly of any claim for which it may seek indemnity of which it has received written notice.
Failure by the Trustee to so notify the Issuers shall not relieve the Issuers of its obligations
hereunder except to the extent the Issuers are prejudiced thereby. The Issuers shall defend the
claim and the Trustee shall provide reasonable cooperation at the Issuers’ expense in the defense.
The Trustee may have separate counsel and the Issuers shall pay the fees and expenses of such
counsel; provided that the Issuers shall not be required to pay the fees and expenses of such
separate counsel if it assumes the Trustee’s defense, and, in the reasonable judgment of outside
counsel to the Trustee, (i) there is no conflict of interest between the Issuers and the Trustee in
connection with such defense or (ii) there are no legal defenses available to the Trustee that are
different from or are in addition to those available to the Issuers.

          To secure the Issuers’ payment obligations in this Section 7.7, the Trustee shall have
a lien prior to the Securities on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of, premium, if any, and interest on particular
Securities. Such lien shall survive the satisfaction and discharge of this Indenture. The
Trustee’s right to receive payment of any amounts due under this Section 7.7 shall not be
subordinate to any other liability or Indebtedness of the Issuers.

          The Issuers’ payment obligations pursuant to this Section shall survive the discharge of this
Indenture. Without prejudice to any other rights available to the Trustee under applicable law,
when the Trustee incurs expenses after the occurrence of a Default specified in clause (7) or
clause (8) of Section 6.1, the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.

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     SECTION 7.8. Replacement of Trustee. The Trustee may resign at any time by so
notifying the Issuers in writing. The Holders of a majority in principal amount of the Securities
may remove the Trustee by so notifying the removed Trustee in writing and may appoint a successor
Trustee with the Issuers’ written consent, which consent will not be unreasonably withheld. The
Issuers shall remove the Trustee if:

          (1) the Trustee fails to comply with Section 7.10 hereof or TIA §310;

          (2) the Trustee is adjudged bankrupt or insolvent;

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

          (4) the Trustee otherwise becomes incapable of acting.

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

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuers. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.7.

          If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the
Securities may petition, at the Issuers’ expense, any court of competent jurisdiction for the
appointment of a successor Trustee.

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

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

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

          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture, any of the

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Securities shall have been authenticated but not delivered, any such successor to the Trustee
may adopt the certificate of authentication of any predecessor trustee, and deliver such Securities
so authenticated; and in case at that time any of the Securities shall not have been authenticated,
any successor to the Trustee may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor to the Trustee; provided that the right to adopt the
certificate of authentication of any predecessor Trustee or authenticate Securities in the name of
any predecessor Trustee shall only apply to its successor or successors by merger, consolidation or
conversion.

     SECTION 7.10. Eligibility; Disqualification. This Indenture shall always have a
Trustee that satisfies the requirements of TIA § 310(a)(1), (2) and (5) in every respect. The
Trustee shall have a combined capital and surplus of at least $100 million as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA § 310(b); provided,
however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities or certificates of interest or participation in other
securities of the Issuers are outstanding if the requirements for such exclusion set forth in TIA §
310(b)(1) are met.

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

     SECTION 7.12. Trustee’s Application for Instruction from the Issuers. Any
application by the Trustee for written instructions from the Issuers may, at the option of the
Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this
Indenture and the date on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee in
accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the date any Officer of
the Issuers actually receives such application, unless any such Officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

     SECTION 8.1. Discharge of Liability on Securities; Defeasance.

          (a) Subject to Section 8.1(c), when (i)(x) all Securities that have been
authenticated (other than Securities replaced or paid pursuant to Section 2.10 and
Securities for whose payment money has been deposited in trust or segregated and held in trust by
the Issuers and thereafter repaid to the Issuers or discharged from such trust), have been
delivered to the Trustee for cancellation or (y) all outstanding Securities not theretofore
delivered to the Trustee for cancellation have become due and payable by reason of the making of a
notice of redemption or otherwise, will become due and payable within one year or will be called
for redemption within one year under arrangements satisfactory to the Trustee for the giving of
notice of

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redemption by the Trustee in the name, and at the expense, of the Issuers, and the Issuers or
any Subsidiary Guarantor has irrevocably deposited or caused to be deposited with the Trustee, as
trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars, in such amount as
will be sufficient without consideration of any reinvestment of interest, to pay and discharge the
entire Indebtedness on the Securities not theretofore delivered to the Trustee for cancellation for
principal, premium, if any, and accrued interest to the date of final maturity or redemption; (ii)
the Issuers have paid or caused to be paid all sums payable by it under this Indenture; and (iii)
the Issuers have delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of such Securities at final maturity or the redemption date,
as the case may be, then the Trustee shall acknowledge satisfaction and discharge of this Indenture
on demand of the Issuers (accompanied by an Officers’ Certificate and an Opinion of Counsel stating
that all conditions precedent specified herein relating to the satisfaction and discharge of this
Indenture have been complied with) and at the cost and expense of the Issuers. If U.S. Government
Obligations shall have been deposited in connection with such satisfaction and discharge, then as a
further condition to such satisfaction and discharge, the Trustee shall have received a certificate
from a nationally recognized firm of independent accountants to the effect set forth in Section
8.2(1).

          (b) Subject to Sections 8.1(c) and 8.2, the Issuers at any time may
terminate (i) all of their obligations under the Securities and this Indenture (“legal defeasance
option”), and after giving effect to such legal defeasance, any omission to comply with such
obligations shall no longer constitute a Default or Event of Default or (ii) its obligations under
Sections 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.9,
3.10, 3.11, 3.15 and 3.18 and Section 4.1 (other than
Sections 4.1(a)(1), (2), (4) and (5)), and the Issuers may omit to
comply with and shall have no liability in respect of any term, condition or limitation set forth
in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein
to any such covenant or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply with such covenants shall no longer
constitute a Default or an Event of Default under Section 6.1(3) (as it relates to
Section 4.1(a)(3)), Section 6.1 (4) (to the extent applicable to such other
defeased covenants), Section 6.1(6), Section 6.1(7) (with respect to Significant
Subsidiaries), Section 6.1(8) (with respect to Significant Subsidiaries) and Section
6.1(9), and the events specified in such Sections shall no longer constitute an Event of
Default (clause (ii) being referred to as the “covenant defeasance option”), but except as
specified above, the remainder of this Indenture and the Securities shall be unaffected thereby.
The Issuers may exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option. If the Issuers exercise their legal defeasance or its covenant
defeasance option, the Subsidiary Guarantees in effect at such time shall terminate.

          If the Issuers exercise their legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default. If the Issuers exercise its covenant defeasance
option, payment of the Securities may not be accelerated because of an Event of Default specified
in Section 6.1(4) (to the extent applicable to Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.8, 3.9, 3.10, 3.11,
3.15 and 3.18), Section 6.1(5), Section 6.1(6), Section
6.1(7) (with respect only to Significant Subsidiaries), Section 6.1(8) (with respect
only to Significant Subsidiaries), Section 6.1(9) or Section 6.1(10) or because of
the failure of the Company or the Issuers to comply with Section 4.1(a)(3).

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          Upon satisfaction of the conditions set forth herein and upon request and expense of the
Issuers, the Trustee shall acknowledge in writing the discharge of those obligations that the
Issuers terminates.

          (c) Notwithstanding the provisions of Sections 8.1(a) and (b) to the
extent relating to a legal defeasance, the Issuers’ obligations in Sections 2.2,
2.3, 2.4, 2.5, 2.6, 2.10, 2.11, 2.12,
2.13, 3.12, 7.7 and 7.8 and in this Article VIII shall
survive until the Securities have been paid in full. Thereafter, the Issuers’ obligations in
Sections 7.7, 8.4 and 8.5 shall survive.

     SECTION 8.2. Conditions to Defeasance. The Issuers may exercise its legal
defeasance option or its covenant defeasance option only if:

          (1) the Issuers or a Subsidiary Guarantor irrevocably deposits in trust with the
Trustee, in trust, for the benefit of the Holders, cash in U.S. dollars, U.S. Government
Obligations, or a combination of cash in U.S. dollars and U.S. Government Obligations, in
amounts as will be sufficient, in the opinion of a nationally recognized firm of independent
public accountants, to pay the principal of, and premium, if any, and interest, including
Additional Interest, if any, due on the outstanding Securities on the Stated Maturity or on
the applicable redemption date, as the case may be, and the Issuers must specify whether the
Securities are being defeased to Stated Maturity or to a particular redemption date;

          (2) in the case of legal defeasance, the Issuers have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that since the Issue
Date, (a) the Issuers have received from, or there has been published by, the Internal
Revenue Service a ruling or (b) there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of Counsel will
confirm that, the Holders of the respective outstanding Securities will not recognize
income, gain or loss for federal income tax purposes as a result of such legal defeasance
and will be subject to federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such legal defeasance had not occurred;

          (3) in the case of covenant defeasance, the Issuers have delivered to the Trustee
an Opinion of Counsel (subject to customary assumptions and exclusions) reasonably
acceptable to the Trustee confirming that the Holders of the respective outstanding
Securities will not recognize income, gain or loss for federal income tax purposes as a
result of such covenant defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred;

          (4) such legal defeasance or covenant defeasance will not result in a breach or
violation of, or constitute a default under any material agreement or instrument (other than
this Indenture) to which the Issuers or any of the Restricted Subsidiaries is a party or by
which the Issuers or any Restricted Subsidiaries are bound;

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          (5) no Default or Event of Default has occurred and is continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit and the grant of any Lien securing such borrowings) or insofar
as Events of Default resulting from the borrowing of funds or insolvency events are
concerned, at any time in the period ending on the 91st day after the date of deposit;

          (6) the Issuers must deliver to the Trustee an Opinion of Counsel to the effect
that, assuming, among other things, no intervening bankruptcy of the Issuers between the
date of deposit and the 91st day following the deposit and assuming that no Holder is an
“insider” of the Issuers under applicable bankruptcy law, after the 91st day following the
deposit, the trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization of similar laws affecting creditors’ rights generally;

          (7) the Issuers must deliver to the Trustee an Officers’ Certificate stating that
the deposit was not made by the Issuers with the intent of defeating, hindering, delaying or
defrauding creditors of the Issuers or others; and

          (8) the Issuers must deliver to the Trustee an Officers’ Certificate and an Opinion
of Counsel (which Opinion of Counsel may be subject to customary assumptions and
exclusions), each stating that all conditions precedent relating to the legal defeasance or
the covenant defeasance have been complied with.

     SECTION 8.3. Application of Trust Money. The Trustee shall hold in trust all
money or U.S. Government Obligations (including proceeds thereof) deposited with it pursuant to
this Article VIII. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture and the Securities to
the Holders of the Securities of all sums due in respect of the payment of principal of, premium,
if any, and accrued interest on the Securities.

     SECTION 8.4. Repayment to the Issuers. The Trustee and the Paying Agent shall
promptly turn over to the Issuers upon request any excess money, U.S. Government Obligations or
other securities held by them upon payment of all the Obligations under this Indenture.

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Issuers upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Securities that remains unclaimed by the Holders thereof for two years,
and, thereafter, Securityholders entitled to the money must look to the Issuers for payment as
unsecured general creditors unless an abandoned property law designates another Person and the
Trustee and the Paying Agent shall have no further liability with respect to such money.

     SECTION 8.5. Indemnity for U.S. Government Obligations. The Issuers shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest received on such U.S.
Government Obligations.

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     SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article VIII by reason of any
legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the obligations of the Issuers
and each Subsidiary Guarantor under this Indenture, the Securities and the Subsidiary Guarantees
shall be revived and reinstated as though no deposit had occurred pursuant to this Article
VIII until such time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with this Article VIII; provided, however, that,
if the Issuers or the Subsidiary Guarantors have made any payment of principal, premium, if any, or
interest (including Additional Interest) on any Securities because of the reinstatement of their
obligations, the Issuers or Subsidiary Guarantors, as the case may be, shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

          The Trustee’s rights under this Article VIII shall survive termination of this
Indenture.

ARTICLE IX

AMENDMENTS

     SECTION 9.1. Without Consent of Holders. The Issuers, the Subsidiary Guarantors
and the Trustee may amend or supplement this Indenture, the Securities and the Subsidiary
Guarantees without notice to or consent of any Securityholder:

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

          (2) to provide for the assumption by a successor corporation, partnership, trust or
limited liability company of the obligations of the Company, the Co-Issuer or any Subsidiary
Guarantor under this Indenture and the Securities;

          (3) to provide for or facilitate the issuance of uncertificated Securities in
addition to or in place of certificated Securities; provided, however, that the
uncertificated Securities are issued in registered form for purposes of Section 163(f) of
the Code or in a manner such that the uncertificated Securities are described in Section
163(f)(2)(B) of the Code;

          (4) to add Subsidiary Guarantors (or any other guarantors) with respect to the
Securities, including Subsidiary Guarantors, or release a Subsidiary Guarantor from its
Subsidiary Guarantee and terminate such Subsidiary Guarantee; provided that the release and
termination is in accordance with the applicable provisions of this Indenture;

          (5) to secure the Securities or the Subsidiary Guarantees;

          (6) to add covenants of the Company, the Co-Issuer or a Subsidiary Guarantor for
the benefit of the Holders or to surrender any right or power herein conferred upon the
Company, the Co-Issuer or a Subsidiary Guarantor;

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          (7) to make any change that does not adversely affect the legal rights under this
Indenture of any Securityholder, provided, however, that any change made to conform this
Indenture to the “Description of Notes” contained in the Offering Memorandum shall not be
deemed to adversely affect such legal rights;

          (8) to comply with any requirement of the SEC in connection with any required
qualification of this Indenture under the TIA; or

          (9) to evidence and provide for the acceptance of an appointment under this
Indenture of a successor Trustee; provided that the successor Trustee is otherwise qualified
and eligible to act as such under the terms of this Indenture.

     SECTION 9.2. With Consent of Holders. The Issuers, the Subsidiary Guarantors and
the Trustee may amend or supplement this Indenture, the Securities and the Subsidiary Guarantees
without notice to any Securityholder but with the consent of the Holders of at least a majority in
principal amount of the Securities then outstanding (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for, Securities).
Subject to Section 6.4 and 6.7, any past default or compliance with the provisions
of this Indenture, the Securities or the Subsidiary Guarantees may be waived with the consent of
the Holders of at least a majority in principal amount of the Securities then outstanding
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities). However, without the consent of each Securityholder affected,
an amendment, supplement or waiver may not:

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

          (2) reduce the stated rate of interest or extend the stated time for payment of
interest or Additional Interest on any Security;

          (3) reduce the principal of or extend the Stated Maturity of any Security;

          (4) reduce the premium payable upon the redemption of any Security as described in
Section 3.9, Article V hereof or paragraph 5 of any Security,
change the time at which any Security may be redeemed as described in Section 3.9,
Article V hereof or paragraph 5 of any Security or make any change relative
to the Issuers’ obligation to make an offer to repurchase the Securities as a result of a
Change of Control as described in Section 3.9 after (but not before) the occurrence
of such Change of Control;

          (5) make any Security payable in money other than U.S. dollars;

          (6) impair the right of any Holder to receive payment of principal of, premium, if
any, and interest (including Additional Interest) on such Holder’s Securities on or after
the due dates therefor or to institute suit for the enforcement of any payment on or with
respect to such Holder’s Securities;

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          (7) make any change to this Section 9.2;

          (8) release any Subsidiary Guarantor from any of its obligations under its
Subsidiary Guarantee otherwise than in accordance with the applicable provisions of this
Indenture; or

          (9) subordinate the Securities or any Subsidiary Guarantee in right of payment to
any other Indebtedness of either Issuer or any Subsidiary Guarantor.

          It shall not be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof. A consent to any amendment, supplement or waiver under
this Indenture by any Holder of the Securities given in connection with a tender or exchange of
such Holder’s Securities will not be rendered invalid by such tender or exchange.

          After an amendment or supplement under this Section becomes effective, the Issuers shall mail
to Securityholders a notice briefly describing such amendment. The failure to give such notice to
all Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section.

     SECTION 9.3. Compliance with Trust Indenture Act. Every amendment or supplement
to this Indenture, the Securities or the Subsidiary Guarantees shall comply with the TIA as then in
effect.

     SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an
amendment, supplement or a waiver by a Holder of a Security shall bind the Holder and every
subsequent Holder of that Security or portion of the Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent or waiver is not made on the
Security. Any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation
before the date the amendment, supplement or waiver becomes effective or otherwise in accordance
with any related solicitation documents. After an amendment, supplement or waiver becomes
effective, it shall bind every Securityholder unless it makes a change described in any of clauses
(1) through (9) of Section 9.2, and in that case the amendment, supplement, waiver or other
action shall bind each Securityholder who has consented to it and every subsequent Securityholder
that evidences the same debt as the consenting Holder’s Securities. An amendment, supplement or
waiver under Section 9.2 shall become effective upon receipt by the Trustee of the
requisite number of consents, and in relation to any Securities evidenced by Global Securities,
such consents need not be in written form and may be evidenced by any electronic transmissions that
comport with the applicable procedures of DTC.

          The Issuers may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons,

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shall be entitled to give such consent or to revoke any consent previously given or to take
any such action, whether or not such Persons continue to be Holders after such record date. No
such consent shall become valid or effective more than 120 days after such record date.

     SECTION 9.5. Notation on or Exchange of Securities. If an amendment, supplement
or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Issuers or the Trustee so
determine, the Issuers in exchange for the Security shall issue and the Trustee shall, upon receipt
of an Issuer Order, authenticate a new Security that reflects the changed terms. Failure to make
the appropriate notation or to issue a new Security shall not affect the validity of such
amendment.

     SECTION 9.6. Trustee to Sign Amendments. The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or
waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If
it does, the Trustee may but need not sign it. In signing any amendment, supplement or waiver the
Trustee shall be entitled to receive indemnity satisfactory to it and shall be provided with, and
(subject to Sections 7.1 and 7.2) shall be fully protected in relying upon, an
Officers’ Certificate and an Opinion of Counsel stating that such amendment, supplement or waiver
is authorized or permitted by this Indenture and that such amendment, supplement or waiver is the
legal, valid and binding obligation of the Issuers and any Subsidiary Guarantors, enforceable
against them in accordance with its terms, subject to customary exceptions, and complies with the
provisions hereof (including Section 9.3).

ARTICLE X

GUARANTEE

     SECTION 10.1. Guarantee. Subject to the provisions of this Article X,
each Subsidiary Guarantor hereby fully, unconditionally and irrevocably guarantees, as primary
obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, to
each Holder of the Securities, to the extent lawful, and the Trustee the full and punctual payment
when due, whether at final maturity, by acceleration, by redemption or otherwise, of the
Obligations. Each Subsidiary Guarantor agrees that the Obligations will rank equally in right of
payment with other Indebtedness of such Subsidiary Guarantor, except to the extent such other
Indebtedness is subordinate to the Obligations. Each Subsidiary Guarantor further agrees (to the
extent permitted by law) that the Obligations may be extended or renewed, in whole or in part,
without notice or further assent from it, and that it will remain bound under this Article
X notwithstanding any extension or renewal of any Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of payment from and protest to the
Issuers of any of the Obligations and also waives notice of protest for nonpayment. Each
Subsidiary Guarantor waives notice of any default under the Securities or the Obligations.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
guarantee of payment when due (and not a guarantee of collection) and waives any

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right to require that any resort be had by any Holder to any security held for payment of the
Obligations.

          Except as set forth in Section 10.2, the obligations of each Subsidiary Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Obligations in full), including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Subsidiary Guarantor herein shall not be discharged or impaired
or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to enforce
any right or remedy against the Issuers or any other person under this Indenture, the Securities or
any other agreement or otherwise; (b) any extension or renewal of any thereof; (c) any rescission,
waiver, amendment or modification of any of the terms or provisions of this Indenture, the
Securities or any other agreement; (d) the release of any security held by any Holder for the
Obligations or any of them; (e) the failure of any Holder to exercise any right or remedy against
any other Subsidiary Guarantor; (f) any change in the ownership of the Issuers; (g) any default,
failure or delay, willful or otherwise, in the performance of the Obligations; or (h) any other act
or thing or omission or delay to do any other act or thing which may or might in any manner or to
any extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a discharge of
such Subsidiary Guarantor as a matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee herein shall remain in full
force and effect until payment in full of all the Obligations or such Subsidiary Guarantor is
released from its Subsidiary Guarantee upon the merger or the sale of all the Capital Stock or
assets of the Subsidiary Guarantor or otherwise in compliance with Section 4.1, Section
10.2 or Article VIII, as applicable. Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may be, if
at any time payment, or any part thereof, of principal of, premium, if any, or interest on any of
the Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Issuers or otherwise.

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

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

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

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

          The delivery of any Security by the Trustee, after authentication thereof hereunder, shall
constitute delivery of the Subsidiary Guarantees set forth in this Indenture or any supplemental
indenture on behalf of a Subsidiary Guarantor. Neither any Issuer nor any Subsidiary Guarantor
shall be required to make a notation on any Security to reflect the Subsidiary Guarantees. The
validity and enforceability of any Subsidiary Guarantee shall not be affected by the fact that a
notation thereof is not affixed to any particular Security.

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

          (a) Any term or provision of this Indenture to the contrary notwithstanding, the
obligations of each Subsidiary Guarantor hereunder will be limited to the maximum amount as will,
after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor
(including, without limitation, any guarantees under the Senior Secured Credit Agreement) and after
giving effect to any collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary
Guarantee or pursuant to its contribution obligations under this Indenture, result in the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law and not otherwise being
void or voidable under any similar laws affecting the rights of creditors generally.

          (b) Upon the sale or disposition of a Subsidiary Guarantor (by merger, consolidation, the
sale of its Capital Stock or the sale of all or substantially all of its assets (other than by
lease)) and whether or not the Subsidiary Guarantor is the surviving entity in such transaction, to
a Person which is not the Company or a Restricted Subsidiary of the Company, such Subsidiary
Guarantor will be automatically released from all its obligations under this Indenture and its
Subsidiary Guarantee if the sale or other disposition does not violate Section 3.5.

          (c) A Subsidiary Guarantor will be released from its obligations under this Indenture and
its Subsidiary Guarantee if the Company designates such Subsidiary Guarantor as an Unrestricted
Subsidiary and such designation complies with the other applicable provisions of this Indenture.

          (d) Each Subsidiary Guarantor will be deemed released from all its obligations under this
Indenture and its Subsidiary Guarantee, and such Subsidiary Guarantee will terminate, upon the
legal defeasance or covenant defeasance of the Securities or upon satisfaction and discharge of
this Indenture, in each case pursuant to the provisions of Article VIII hereof.

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          (e) Upon the liquidation or dissolution of such Subsidiary Guarantor, provided that no
Default or Event of Default has occurred and is continuing.

          (f) With respect to a Subsidiary Guarantor that is an Immaterial Subsidiary, such
Subsidiary Guarantor will be released from its obligations under this Indenture and its Subsidiary
Guarantee upon the liquidation or dissolution of such Subsidiary Guarantor.

          (g) The release of any Subsidiary Guarantor from its obligations pursuant to this
Section 10.2 shall be conditioned upon such Subsidiary Guarantor delivering to the Trustee
an Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent provided
for in this Indenture relating to such release have been complied with.

     SECTION 10.3. Right of Contribution. Each Subsidiary Guarantor hereby agrees that
to the extent that any Subsidiary Guarantor shall have paid more than its proportionate share of
any payment made on the obligations under the Subsidiary Guarantees, such Subsidiary Guarantor
shall be entitled to seek and receive contribution from and against the Issuers or any other
Subsidiary Guarantor who has not paid its proportionate share of such payment. The provisions of
this Section 10.3 shall in no respect limit the obligations and liabilities of each
Subsidiary Guarantor to the Trustee and the Holders and each Subsidiary Guarantor shall remain
liable to the Trustee and the Holders for the full amount guaranteed by such Subsidiary Guarantor
hereunder.

     SECTION 10.4. No Subrogation. Notwithstanding any payment or payments made by
each Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be entitled to be subrogated to
any of the rights of the Trustee or any Holder against the Issuers or any other Subsidiary
Guarantor or guarantee or right of offset held by the Trustee or any Holder for the payment of the
Obligations, nor shall any Subsidiary Guarantor seek or be entitled to seek any contribution or
reimbursement from the Issuers or any other Subsidiary Guarantor in respect of payments made by
such Subsidiary Guarantor hereunder, until all amounts owing to the Trustee and the Holders by the
Issuers on account of the Obligations are paid in full. If any amount shall be paid to any
Subsidiary Guarantor on account of such subrogation rights at any time when all of the Obligations
shall not have been paid in full, such amount shall be held by such Subsidiary Guarantor in trust
for the Trustee and the Holders, segregated from other funds of such Subsidiary Guarantor, and
shall, forthwith upon receipt by such Subsidiary Guarantor, be turned over to the Trustee in the
exact form received by such Subsidiary Guarantor (duly indorsed by such Subsidiary Guarantor to the
Trustee, if required), to be applied against the Obligations.

ARTICLE XI

MISCELLANEOUS

     SECTION 11.1. Trust Indenture Act Controls. If and to the extent that any
provision of this Indenture limits, qualifies or conflicts with another provision which is required
to be included in this Indenture by the TIA, the provision required by the TIA shall control. Each
Subsidiary Guarantor in addition to performing its obligations under its Subsidiary Guarantee shall
perform such other obligations as may be imposed upon it with respect to this Indenture under the
TIA.

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     SECTION 11.2. Notices. Any notice or communication shall be in writing in the
English language and delivered in person, sent by facsimile, other electronic means, delivered by
commercial courier service or mailed by first-class mail, postage prepaid, addressed as follows:

if to the Issuers or to any Subsidiary Guarantor:

Alta Mesa Holdings, LP and Alta Mesa Finance

Services Corp.

Alta Mesa Holdings, LP

15415 Katy Freeway, Suite 800

Houston, Texas 77094

Attention: Chief Financial Officer

if to the Trustee, at its corporate trust office in Dallas,

Texas, which corporate trust office for purposes of this

Indenture is at the date hereof located at:

Wells Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas, Texas 75202-2812

Attention: Corporate Trust Administration

Telecopy: (214) 777-4086

          The Issuers, any Subsidiary Guarantor or the Trustee by written notice to the others may
designate additional or different addresses for subsequent notices or communications.

          Any notice or communication to the Issuers or the Subsidiary Guarantors shall be deemed to
have been given or made as of the date so delivered if personally delivered; when receipt is
acknowledged, if telecopied; and five calendar days after mailing if sent by U.S. Postal Service
registered or certified mail, postage prepaid (except that a notice of change of address shall not
be deemed to have been given until actually received by the addressee). Any notice or
communication to the Trustee shall be deemed delivered upon receipt by a Trust Officer. Notices
given by publication will be deemed given on the first date on which publication is made.

          Any notice or communication mailed to a Securityholder shall be mailed to the Securityholder
at the Securityholder’s address as it appears in the Securities Register and shall be sufficiently
given if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it,
except that notices to the Trustee shall be effective only upon receipt.

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

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

     SECTION 11.3. Communication by Holders with other Holders. Securityholders may
communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under
this Indenture or the Securities. The Issuers, the Trustee, the Registrar and anyone else shall
have the protection of TIA § 312(c).

     SECTION 11.4. Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Issuers to the Trustee to take or refrain from taking any action
under this Indenture (except in connection with the original issuance of Securities on the date
hereof), the Issuers shall furnish to the Trustee:

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

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

     SECTION 11.5. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
shall include:

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

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

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

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

          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

     SECTION 11.6. When Securities Disregarded. In determining whether the Holders of
the required aggregate principal amount of Securities have concurred in any direction, waiver or
consent, Securities owned by the Issuers, any Subsidiary Guarantor or any Affiliate of them shall
be disregarded and deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only

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Securities which the Trustee actually knows are so owned shall be so disregarded. Also,
subject to the foregoing, only Securities outstanding at the time shall be considered in any such
determination.

     SECTION 11.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or at meetings of, Securityholders. The Registrar and the Paying
Agent may make reasonable rules for their functions.

     SECTION 11.8. Legal Holidays. If a specified payment date is not a Business Day,
payment shall be made on the next succeeding day that is a Business Day and no interest shall
accrue for the intervening period. If a regular record date is not a Business Day, the record date
shall not be affected.

     SECTION 11.9. GOVERNING LAW. THIS INDENTURE, THE SECURITIES AND THE SUBSIDIARY
GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

     SECTION 11.10. No Personal Liability of Directors, Officers, Employees and
Stockholders. No director, officer, employee, incorporator, stockholder, member, partner or
trustee of the Company, the Co-Issuer or any Subsidiary Guarantor, as such, shall have any
liability for any obligations of the Company, the Co-Issuer or any Subsidiary Guarantor under the
Securities, this Indenture or the Subsidiary Guarantees or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder by accepting a Security waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Securities.

     SECTION 11.11. Successors. All agreements of the Issuers and each Subsidiary
Guarantor in this Indenture and the Securities shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successors.

     SECTION 11.12. Multiple Originals. The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

     SECTION 11.13. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not intended to be considered a part hereof and
shall not modify or restrict any of the terms or provisions hereof.

     SECTION 11.14. Waiver of Jury Trial. EACH OF THE ISSUERS, THE SUBSIDIARY
GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 11.15. Force Majeure. In no event shall the Trustee be responsible or
liable for any failure or delay in the performance of its obligations hereunder arising out of or

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caused by, directly or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it being understood that
the Trustee shall use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the circumstances.

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

	 	 	 	 	 
	 	ALTA MESA HOLDINGS, LP

 	 
	 	By:  	Alta Mesa Holdings GP, LLC,
as general partner
 	 
	 
	 	By:  	           /s/ Harlan H. Chappelle
 	 
	 	 	Harlan H. Chappelle 	 
	 	 	Chief Executive Officer 	 

	 	 	 	 	 
	 	ALTA MESA FINANCE SERVICES CORP.

 	 
	 	By:  	/s/ Harlan H. Chappelle	 
	 	 	Harlan H. Chappelle 	 
	 	 	Chief Executive Officer 	 
	 

Signature
Page to Indenture

 

	 	 	 	 	 
	 	SUBSIDIARY GUARANTORS :

ARI DEVELOPMENT, LLC

ALTA MESA DRILLING, LLC

ALTA MESA GP, LLC

ALTA MESA ACQUISITION SUB, LLC

ALTA MESA SERVICES, LP

CAIRN ENERGY USA, LLC

HILLTOP ACQUISITION LLC

LOUISIANA ONSHORE PROPERTIES LLC

THE MERIDIAN PRODUCTION, LLC

THE MERIDIAN RESOURCE, LLC

THE MERIDIAN RESOURCE &

EXPLORATION LLC

TMR DRILLING, LLC

VIRGINIA OIL AND GAS, LLC

SUNDANCE ACQUISITION, LLC

TE TMR, LLC

TMR EQUIPMENT, LLC

NEW EXPLORATION TECHNOLOGIES COMPANY, L.L.C.

FBB ANADARKO, LLC

LOUISIANA EXPLORATION & ACQUISITION PARTNERSHIP, LLC

BRAYTON MANAGEMENT GP, LLC

BRAYTON MANAGEMENT GP II, LLC

 	 
	 	Each by: 	/s/ Harlan H. Chappelle	 
	 	 	 	Harlan H. Chappelle 	 
	 	 	 	 Chief Executive Officer 	 
	 
	 	ARANSAS RESOURCES, L.P.

BUCKEYE PRODUCTION COMPANY, LP

LOUISIANA EXPLORATION &

ACQUISITIONS, LP

NAVASOTA RESOURCES, LTD., LLP

NUECES RESOURCES, LP

OKLAHOMA ENERGY ACQUISITIONS, LP

TEXAS ENERGY ACQUISITIONS, LP

GALVESTON BAY RESOURCES, LP

PETRO ACQUISITIONS, LP

PETRO OPERATING COMPANY, LP

Each by: Alta Mesa GP, LLC

 	 
	 	By:  	/s/ Harlan H. Chappelle	 
	 	 	Harlan H. Chappelle 	 
	 	 	Chief Executive Officer 	 
	 

Signature Page to Indenture

 

	 	 	 	 	 
	 	WELLS FARGO BANK,
NATIONAL ASSOCIATION

 	 
	 	By:  	WELLS FARGO BANK, NATIONAL ASSOCIATION
 	 
	 	 	 
	 	By:  	/s/ John C. Stohlmann
	 
	 	 	Name:  	John C. Stohlmann	 
	 	 	Title:  	Vice President	 
	 

Signature Page to Indenture

 

EXHIBIT A

[FORM OF FACE OF INITIAL SECURITY]

[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

			
	No. [___]
	 	Principal Amount $[______________], as
	 
	 	revised by the Schedule of Increases and
	 
	 	Decreases in Global Security attached hereto
	 	 	 
	 
	 	CUSIP NO.                     
	 
	 	ISIN:                     

9 5/8% Senior Notes due 2018

          Alta Mesa Holdings, LP a Delaware limited partnership and Alta Mesa Finance Services Corp., a
Delaware corporation, jointly and severally promise to pay to ________ or registered assigns, the
principal sum of [___] Dollars, as revised by the [___] Schedule of Increases and Decreases in
Global Security attached hereto, on October 15, 2018.

Interest Payment Dates: April 15 and October 15

Record Dates: April 1 and October 1

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

	 	 	 	 	 
	 	Alta Mesa Holdings, LP

 	 
	 	By:  	 	 
	 	 	 	 
	 	Alta Mesa Finance Services Corp.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

A-1

 

	 	 	 	 	 

	 	 	 	 	 

	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 	 	 	 
	This is one of the Securities described in the within-mentioned Indenture.	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	 	 	 
	as Trustee,
	 	 	 	 
	By:              
                 
                 
                         
            

	 	 	 	Dated:                                                             
	          Authorized Officer
	 	 	 	 

A-2

 

[FORM OF REVERSE SIDE OF NOTE]

ALTA MESA HOLDINGS, LP, AND ALTA MESA FINANCE SERVICES CORP.

9 5/8% Senior Notes due 2018

     1. Interest

          Alta Mesa Holdings, LP, a Delaware limited partnership (the “Company”), and Alta Mesa
Finance Services Corp., a Delaware corporation (“Co-Issuer” together with the Company, the
“Issuers”), jointly and severally promise to pay interest on the principal amount of this
Security at the rate per annum shown above.

          The Issuers will pay interest semiannually on April 15 and October 15 of each year commencing
April 15, 2011. Interest on the Securities will accrue from the most recent date to which interest
has been paid on the Securities or, if no interest has been paid, from the date of original
issuance of the Notes. The Issuers shall pay interest on overdue principal at the above rate plus
1.0% to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve
30-day months.

          If an interest payment date falls on a day that is not a Business Day, the interest payment to
be made on such interest payment date will be made on the next succeeding Business Day with the
same force and effect as if made on such interest payment date, and no additional interest will
accrue as a result of such delayed payment

          [The Holder of this Note is entitled to the benefits of the Registration Rights Agreement.
Additional Interest, if any, due under the Registration Rights Agreement, shall be paid to the same
Persons, in the same manner and at the same times as regular interest.]1

     2. Method of Payment

          By no later than 11:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Security is due and payable, the Issuers shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest (including Additional Interest). The Issuers will pay interest (except
Defaulted Interest) to the Persons who are registered Holders of Securities at the close of
business on the April 1 or October 1 immediately preceding the interest payment date even if
Securities are cancelled, repurchased or redeemed after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to collect principal
payments. The Issuers will pay principal, premium, if any, and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts.
Payments in respect of Securities represented by a Global Security (including principal, premium,
if any, and interest) will be made by the transfer of immediately available funds to the accounts
specified by The Depository Trust Company or any successor depository. The Issuers will make all
payments in respect of a Definitive Security (including principal, premium, if any, and interest)
by mailing a check to the registered address of each Holder thereof; provided,

 

			
	1	 	Include in Restricted Securities only.

A-3

 

however, that payments on the Securities may also be made, at the Issuers’ option, by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the United States if the
Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent
to such effect designating such account no later than 15 days immediately preceding the relevant
due date for payment (or such other date as the Trustee may accept in its discretion).

     3. Paying Agent and Registrar

          Initially, Wells Fargo Bank, National Association (the “Trustee”) will act as Trustee,
Paying Agent and Registrar. The Issuers may appoint and change any Paying Agent, Registrar or
co-registrar without notice to any Securityholder. The Company or any of its Restricted
Subsidiaries may act as Paying Agent or Registrar.

     4. Indenture

          The Issuers issued the Securities under an Indenture dated as of October 13, 2010 (as it may
be amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Issuers, the Subsidiary Guarantors and the Trustee. The terms of
the Securities include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date
of the Indenture (the “Act”). Capitalized terms used herein and not defined herein have
the meanings ascribed thereto in the Indenture. The Securities are subject to all terms and
provisions of the Indenture, and Securityholders are referred to the Indenture and the Act for a
statement of those terms.

          The Securities are senior obligations of the Issuers. The aggregate principal amount of
Securities that may be authenticated and delivered under the Indenture is unlimited. This Security
is one of the 9 5/8% Senior Notes due 2018 referred to in the Indenture. The Securities include
(i) $300,000,000 aggregate principal amount of the Issuers’ 9 5/8% Senior Notes due 2018 issued
under the Indenture on October 13, 2010 (herein called “Initial Securities”), (ii) if and
when issued, additional 9 5/8% Senior Notes due 2018 of the Issuers that may be issued from time to
time under the Indenture subsequent to October 13, 2010 (herein called “Additional
Securities”) as provided in Section 2.1(a) of the Indenture and (iii) if and when
issued, the Issuers’ 9 5/8% Senior Notes due 2018 that may be issued from time to time under the
Indenture in exchange for Initial Securities or Additional Securities in an offer registered under
the Securities Act as provided in a Registration Rights Agreement (herein called “Exchange
Securities”). The Initial Securities, Additional Securities and Exchange Securities are
treated as a single class of securities under the Indenture. The Indenture imposes certain
limitations on the incurrence of indebtedness, the making of restricted payments, the sale of
assets and subsidiary stock, the incurrence of certain liens, the making of payments for consents,
the entering into of agreements that restrict distribution from restricted subsidiaries and the
consummation of mergers and consolidations. The Indenture also imposes requirements with respect
to the provision of financial information and the provision of guarantees of the Securities by
certain subsidiaries.

          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Securities and all other amounts

A-4

 

payable by the Issuers under the Indenture, the Securities and the Registration Rights
Agreement when and as the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Securities and the Indenture, the Subsidiary Guarantors
have unconditionally guaranteed (and future guarantors, together with the Subsidiary Guarantors,
will unconditionally guarantee), jointly and severally, such obligations on a senior basis pursuant
to the terms of the Indenture.

     5. Redemption

          Except as set forth below, the Securities will not be redeemable at the option of the Issuers
prior to October 15, 2014. On and after such date, the Securities will be redeemable, at the
Issuers’ option, in whole or in part, at any time upon not less than 30 nor more than 60 days’
prior notice mailed by first-class mail to each Holder’s registered address, at the following
redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest
(including Additional Interest) to the applicable Redemption Date (subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the 12-month period commencing on October 15 of the years set forth
below:

	 	 	 	 	 
	Period	 	Redemption Price	 
	2014
	 	 	104.813	%
	2015
	 	 	102.406	%
	2016 and thereafter
	 	 	100.000	%

          In addition, at any time and from time to time prior to October 15, 2013, the Issuers may
redeem in the aggregate up to 35% of the original principal amount of the Securities (calculated
after giving effect to any issuance of Additional Securities) with the Net Cash Proceeds of one or
more Equity Offerings at a redemption price (expressed as a percentage of principal amount) of
109.625% of the principal amount thereof, plus accrued and unpaid interest (including Additional
Interest), if any, to the Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment date); provided,
that:

          (1) at least 65% of the original principal amount of the Securities (calculated after
giving effect to any issuance of Additional Securities) must remain outstanding after each such
redemption; and

          (2) each such redemption occurs within 120 days of the date of closing of such Equity
Offering.

          In addition, at any time prior to October 15, 2014, upon not less than 30 nor more than 60
days’ prior notice mailed by first-class mail to each Holder’s registered address, the Issuers may
redeem the Securities, in whole or in part, at a redemption price equal to 100% of the principal
amount thereof plus the Applicable Premium plus accrued and unpaid interest (including Additional
Interest), if any, to the Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment date).

A-5

 

          “Applicable Premium” means, with respect to a Security at any Redemption Date, the greater of
(i) 1.0% of the principal amount of such Security or (ii) the excess, if any, of (A) the present
value at such Redemption Date of (1) the redemption price of such Security on October 15, 2014
(such redemption price set forth in the table above) plus (2) all required interest payments
(excluding accrued and unpaid interest to such Redemption Date) due on such Security through
October 15, 2014, computed using a discount rate equal to the Treasury Rate as of such Redemption
Date plus 50 basis points, over (B) the principal amount of such Security.

          “Treasury Rate” means, as of any Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to October 15, 2014; provided, however, that if the
period from the Redemption Date to October 15, 2014 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Rate shall
be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the Redemption Date to October 15, 2014 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

          The Issuers will (a) calculate the Treasury Rate as of the second Business Day preceding the
applicable Redemption Date and (b) prior to such Redemption Date file with the Trustee an Officers’
Certificate setting forth the Applicable Premium and the Treasury Rate and showing the calculation
of each in reasonable detail.

     6. Repurchase Provisions

          If a Change of Control occurs, unless the Issuers have exercised its right to redeem all of
the Securities as described under paragraph 5 of the Securities, each Holder will have the
right to require the Issuers to repurchase from each Holder all or any part (equal to $2,000 or an
integral multiple of $1,000 in excess thereof) of such Holder’s Securities at a purchase price in
cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to
the date of purchase (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date) as provided in, and subject to the
terms of, the Indenture.

     7. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$2,000 and whole multiples of $1,000 in excess thereof. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay a sum sufficient to
cover any taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange of any Security (A) for a period (1) of 15 days before a
selection of Securities to be redeemed or (2) beginning 15 days before an

A-6

 

interest payment date and ending on such interest payment date or (B) selected for redemption,
except the unredeemed portion of any Security being redeemed in part.

     8. Persons Deemed Owners

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

     9. Unclaimed Money

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

     10. Defeasance

          Subject to certain exceptions and conditions set forth in the Indenture, the Issuers at any
time may terminate some or all of its obligations under the Securities and the Indenture if the
Issuers deposit with the Trustee money or U.S. Government Obligations for the payment of principal,
premium, if any, and interest on the Securities to redemption or final maturity, as the case may
be.

     11. Amendment, Supplement, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities or
the Subsidiary Guarantees may be amended or supplemented by the Issuers, the Subsidiary Guarantors
and the Trustee with the consent of the Holders of at least a majority in principal amount of the
then outstanding Securities and (ii) any default (other than with respect to nonpayment or in
respect of a provision that cannot be amended without the written consent of each Securityholder
affected) or noncompliance with any provision may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Securities. Subject to certain exceptions set
forth in the Indenture, without the consent of any Securityholder, the Issuers, the Subsidiary
Guarantors and the Trustee may amend or supplement the Indenture, the Securities or the Subsidiary
Guarantees to cure any ambiguity, omission, defect, mistake or inconsistency, to comply with
Article IV of the Indenture, to provide for uncertificated Securities in addition to, or in
place of, certificated Securities, to add Subsidiary Guarantors with respect to the Securities,
including Subsidiary Guarantors, or release a Subsidiary Guarantor from its Subsidiary Guarantee
and terminate such Subsidiary Guarantee, provided that the release and termination is in accordance
with the Indenture, to secure the Securities or the Subsidiary Guarantees, to add additional
covenants of the Company, the Issuers or a Subsidiary Guarantor for the benefit of the Holders or
to surrender any right or power conferred on the Company, the Issuers or a Subsidiary Guarantor, to
comply with any requirement of the SEC in connection with qualifying the Indenture under the Act,
to make any change that does not adversely affect the rights of any Securityholder, or to evidence
and provide for the appointment of a successor Trustee.

A-7

 

     12. Defaults and Remedies

          Events of Default are set forth in the Indenture. Event of Default (other than an Event of
Default relating to certain bankruptcy events specified in the Indenture) occurs and is continuing,
the Trustee by notice to the Company and the Issuers, or the Holders of at least 25% in principal
amount of the outstanding Securities by notice to the Company and the Issuers and the Trustee, may,
and the Trustee at the request of such Holders shall, declare all the Securities to be due and
payable immediately. If an Event of Default relating to certain bankruptcy events specified in the
Indenture occurs and is continuing, the principal of, premium, if any, and accrued and unpaid
interest (including Additional Interest) on all the Securities will become and be immediately due
and payable without any declaration or other act on the part of the Trustee or any Holders.

          Securityholders may not enforce the Indenture or the Securities except as provided in the
Indenture. Subject to the provisions of the Indenture relating to the duties of the Trustee if an
Event of Default exists, the Trustee may refuse to enforce the Indenture or the Securities unless
it receives indemnity or security satisfactory to it. Subject to certain limitations, Holders of a
majority in principal amount of the Securities may direct the Trustee in its exercise of any trust
or power. The Trustee may withhold from Securityholders notice of any continuing Default or Event
of Default (except a Default or Event of Default in payment of principal, premium, if any, or
interest) if it determines that withholding notice is in their interest.

     13. Trustee Dealings with the Issuers

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

     14. No personal liability of directors, officers, employees and stockholders

          No director, officer, employee, incorporator, stockholder, member, partner or trustee of the
Company, the Co-Issuer or any Subsidiary Guarantor, as such, shall have any liability for any
obligations of the Company, the Co-Issuer or any Subsidiary Guarantor under the Securities, the
Indenture or the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for issuance of the
Securities.

     15. Authentication

          This Security shall not be valid until an authorized officer of the Trustee (or an
Authenticating Agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Security.

     16. Abbreviations

A-8

 

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

17. CUSIP, Common Code and ISIN Numbers

          The Issuers have caused CUSIP, Common Code and ISIN numbers, if applicable, to be printed on
the Securities and has directed the Trustee to use CUSIP, Common Code and ISIN numbers, if
applicable, in notices of redemption or purchase as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption or purchase and reliance may be placed only on the other
identification numbers placed thereon.

18. Governing Law

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

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

Alta Mesa Holdings, LP

15415 Katy Freeway, Suite 800

Houston, Texas 77094

Attention: Chief Financial Officer

19. Patriot Act

          The parties hereto acknowledge that in accordance with Section 326 of the Patriot Act, the
Trustee is required to obtain, verify, and record information that identifies each person or legal
entity that establishes a relationship or opens an account with the Trustee. The parties to the
Indenture agree that they will provide the Trustee with such information as it may request in order
for the Trustee to satisfy the requirements of the Patriot Act.

A-9

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to:

 

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

 

(Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint ___________ agent to transfer this Security on the books of the Issuers.
The agent may substitute another to act for him.

 

			
	Date:____________________
	 	Your Signature:___________________

Signature Guarantee:
 

(Signature must be guaranteed)

 

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

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

A-10

 

[The undersigned hereby certifies that it o is / o is not an Affiliate of the Issuers and that, to
its knowledge, the proposed transferee o is / o is not an Affiliate of the Issuers.

          In connection with any transfer or exchange of any of the Securities evidenced by this
certificate occurring prior to the date that is one year (or 40 days in the case of any Regulation
S Notes) after the later of the date of original issuance of such Securities and the last date, if
any, on which such Securities were owned by the Issuers or any Affiliate of the Issuers, the
undersigned confirms that such Securities are being:

CHECK ONE BOX BELOW:

	 	 	 	 	 

	(1)

	 	o
	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 	 	 
	(2)

	 	o
	 	transferred to the Issuers; or
	 
	 	 	 	 
	(3)

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

	 	o
	 	transferred pursuant to an effective registration statement under the
Securities Act; or
	 
	 	 	 	 
	(5)

	 	o
	 	transferred pursuant to and in compliance with Regulation S under the
Securities Act; or
	 
	 	 	 	 
	(6)

	 	o
	 	transferred to an institutional “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the Trustee
a signed letter containing certain representations and agreements (the form of which
letter appears as Section 2.8 of the Indenture); or
	 
	 	 	 	 
	(7)

	 	o
	 	transferred pursuant to another available exemption from the registration
requirements of the Securities Act of 1933, as amended.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered Holder thereof;
provided, however, that if box (5), (6) or (7) is checked, the Issuers may require, prior to
registering any such transfer of the Securities, in its sole discretion, such legal opinions,
certifications and other information as the Issuers may reasonably request to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended, such as the exemption provided
by Rule 144 under such Act.

	 	 	 

	 

	 	 
	 

	 	Signature
	 
	 	 
	Signature Guarantee:
	 	 
	 
	 	 
	 

	 	 
	(Signature must be guaranteed)

	 	Signature

A-11

 

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

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

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

              
                 
                 
                 
                 

Dated: ]2

 

			
	2	 	Include in Restricted Security only.

A-12

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Signature of	 
	 	 	 	 	 	 	Amount of	 	 	Principal Amount	 	 	authorized	 
	 	 	Amount of decrease	 	 	increase	 	 	of this Global	 	 	signatory of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Security following	 	 	Trustee or	 
	Date of	 	of this Global	 	 	of this Global	 	 	such decrease or	 	 	Securities	 
	increase/decrease	 	Security	 	 	Security	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

A-13

 

OPTION OF HOLDER TO ELECT PURCHASE

          If
you elect to have this Security purchased by the Issuers pursuant to Section 3.5 or 3.9
of the Indenture, check either box:

o     o

3.5      3.9

          If you want to elect to have only part of this Security purchased by the Issuers pursuant to
Section 3.5 or Section 3.9 of the Indenture, state the amount in principal amount
(must be in denominations of $2,000 or an integral multiple of $1,000 in excess thereof):
$________________________ and specify the denomination or denominations (which shall not be less
than the minimum authorized denomination) of the Securities to be issued to the Holder for the
portion of the within Security not being repurchased (in the absence of any such specification, one
such Security will be issued for the portion not being repurchased): $ ________________.

	 	 	 
	Date: __________ 
	Your Signature

	 
	(Sign exactly as your name appears on the other side of the Security)
	 	 	 
	Signature Guarantee:

	(Signature must be guaranteed)

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

A-14

 

EXHIBIT B

FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS

          This Supplemental Indenture, dated as of [_______ __], 20__ (this “Supplemental
Indenture” or “Guarantee”), is among [name of future Guarantor] (the
“Guarantor”), Alta Mesa Holdings, LP, a Delaware limited partnership (the
“Company”), and Alta Mesa Finance Services Corp., a Delaware corporation
(“Co-Issuer” together with the Company, the “Issuers”), each other then existing
Subsidiary Guarantor under the Indenture referred to below, and Wells Fargo Bank, National
Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

          WHEREAS, the Issuers, the Company, the Subsidiary Guarantors and the Trustee have heretofore
executed and delivered an Indenture, dated as of October 13, 2010 (as amended, supplemented, waived
or otherwise modified, the “Indenture”), providing for the issuance of an aggregate
principal amount of [  ] million of 9 5/8% Senior Notes due 2018 of the Issuers (the
“Securities”);

          WHEREAS, Section 3.11 of the Indenture provides that after the Issue Date the Company
is required to cause certain Subsidiaries of the Company to execute and deliver to the Trustee a
supplemental indenture pursuant to which such Subsidiary will unconditionally guarantee, on a joint
and several basis with the other Subsidiary Guarantors, the full and prompt payment of the
principal of, premium, if any, and interest on the Securities; and

          WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee, the Guarantor and the
Issuers are authorized to execute and deliver this Supplemental Indenture to amend or supplement
the Indenture, without the consent of any Securityholder;

          NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor, the Issuers, the
Company, the other Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal
and ratable benefit of the Holders of the Securities as follows:

ARTICLE I

Definitions

          SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in
the Indenture or in the preamble or recital hereto are used herein as therein defined. The words
“herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

B-1

 

ARTICLE II

Agreement to be Bound; Guarantee

          SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all
of the obligations and agreements of a Subsidiary Guarantor under the Indenture. The Guarantor
agrees to be bound by all of the provisions of the Indenture applicable to a Subsidiary Guarantor
and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.

          SECTION 2.2 Guarantee. The Guarantor agrees, on a joint and several basis with all
the existing Subsidiary Guarantors, to fully, unconditionally and irrevocably Guarantee to each
Holder of the Securities and the Trustee the Obligations pursuant to Article X of the
Indenture.

ARTICLE III

Miscellaneous

          SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be
given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to
the Issuers as provided in the Indenture for notices to the Issuers.

          SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the
Indenture or any provision herein or therein contained.

          SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3.4 Severability Clause. In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby and such provision
shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

          SECTION 3.5 Ratification of Indenture; Supplemental Indentures Part of Indenture.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This
Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of
Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee
makes no representation or warranty as to the validity or sufficiency of this Supplemental
Indenture or with respect to the recitals contained herein, all of which recitals are made solely
by the other parties hereto.

B-2

 

          SECTION 3.6 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.

          SECTION 3.7 Headings. The headings of the Articles and the sections in this
Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or
affect the meaning or interpretation of any provisions hereof.

B-3

 

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

	 	 	 	 	 
	 	ALTA MESA HOLDINGS, LP

 	 
	 	By:  	Alta Mesa Holdings GP, LLC,
as general partner
 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ALTA MESA FINANCE SERVICES CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Accepted as of the date hereof.

WELLS FARGO BANK, NATIONAL ASSOCIATION.

 	 
	 	By:  	WELLS FARGO BANK, NATIONAL ASSOCIATION.
 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-4

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