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                                                                    EXHIBIT 4.13

THE SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE OR OTHER APPLICABLE SECURITIES LAWS AND,
ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS WARRANT MAY NOT BE RESOLD,
PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER, OR IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE
SECURITIES ACT AND IN ACCORDANCE WITH ANY STATE OR OTHER APPLICABLE SECURITIES
LAWS.

                               SUBSTITUTE WARRANT

                           to Purchase Common Stock of

                          CHESAPEAKE ENERGY CORPORATION

                          Expiring on November 24, 2002

Date of Issuance: January 16, 2001                      Certificate No. W-AMO-1

This Warrant to purchase Common Stock (the "Warrant") is issued as a substitute
and replacement for the original Warrant issued January 23, 1998 (the "Original
Warrant"), to purchase Common Stock of Gothic Energy Corporation. The Company
(as hereinafter defined) assumed the Original Warrant pursuant to that certain
Agreement and Plan of Merger dated September 8, 2000, as amended by Amendment
No. 1 to Agreement and Plan of Merger dated October 31, 2000 between the
Company, Chesapeake Merger 2000 Corp. and Gothic Energy (the "Merger
Agreement"). This new Warrant is being issued pursuant to Section 3.4 of the
Original Warrant to reflect the consummation of the Merger. This Warrant
certifies that for value received, Amoco Corporation, an Indiana corporation, or
its registered assigns (the "Holder"), is entitled to subscribe for and purchase
from the Company (as hereinafter defined), in whole or in part, 450,000 duly
authorized, validly issued, fully paid and non-assessable shares of Common Stock
(as hereinafter defined) at the Exercise Price (as hereinafter defined),
subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. The number of shares of Common Stock purchasable
hereunder and the Exercise Price therefor are subject to adjustment as
hereinafter set forth. This Warrant and all rights hereunder shall expire at
5:00 P.M., Oklahoma City, Oklahoma time, on November 24, 2002.

         As used herein, the following terms shall have the meanings set forth
below:

         "Company" shall mean Chesapeake Energy Corporation, an Oklahoma
corporation, and shall also include any successor thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

         "Common Stock" shall mean and include the Company's Common Stock, par
value $0.01 per share, authorized on the date of the original issue of this
Warrant and shall also include (i) in

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case of any reorganization, reclassification, consolidation, merger, share
exchange or sale, transfer or other disposition of assets of the character
referred to in Section 3.4 hereof, the stock or securities provided for in such
Section 3.4, and (ii) any other shares of common stock of the Company into which
such shares of Common Stock may be converted.

         "Common Stock Deemed Outstanding" means at any given time, the number
of shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to paragraphs 3.2.1 and
3.2.2 hereof regardless of whether the Options or Convertible Securities are
actually exercisable at such time.

         "Convertible Securities" means any stock or securities (directly or
indirectly) convertible into or exchangeable for Common Stock.

         "Exercise Price" shall mean the initial purchase price of $10.00 per
share of Common Stock payable upon exercise of the Warrant. The Exercise Price
shall be adjusted from time to time pursuant to the provisions hereof.

         "Market Price" means as to any security the average of the closing
prices of such security's sales on all domestic securities exchanges on which
such security may at the time be listed, or, if there have been no sales on any
such exchange on any day, the average of the highest bid and lowest asked prices
on all such exchanges at the end of such day, or, if on any day such security is
not so listed, the average of the representative bid and asked prices quoted in
the NASDAQ System as of 4:00 P.M., New York time, on such day, or, if on any day
such security is not quoted in the NASDAQ System, the average of the highest bid
and lowest asked prices on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any similar
successor organization, in each such case averaged over a period of 10 days
consisting of the day as of which "Market Price" is being determined and the 9
consecutive business days prior to such day; provided that if such security is
listed on any domestic securities exchange the term "business days" as used in
this sentence means business days on which such exchange is open for trading. If
at any time such security is not listed on any domestic securities exchange or
quoted in the NASDAQ System or the domestic over-the-counter market, the "Market
Price" shall be the fair value thereof determined jointly by the Company and the
Registered Holders of Warrants representing a majority of the Warrant Shares
purchasable upon exercise of all the Warrants then outstanding; provided, that
if such parties are unable to reach agreement within a reasonable period of
time, such fair value shall be determined by an appraiser jointly selected by
the Company and the Registered Holders of Warrants representing a majority of
the Warrant Shares purchasable upon exercise of all the Warrants then
outstanding. The determination of such appraiser shall be final and binding on
the Company and the Registered Holders of the Warrants, and the fees and
expenses of such appraiser shall be paid jointly by the Company and the
Registered Holders.

         "Options" means any rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

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

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         "Securities Act" means the Securities Act of 1933, as amended.

         "Warrant" shall mean this Warrant Certificate, and any one or more
Warrant Certificates into which this Warrant may be exchanged or converted
("Warrants"), representing the right to purchase up to 450,000 Warrant Shares,
or such greater or lesser amounts as may result pursuant to the adjustments
provided for herein.

         "Warrant Shares" shall mean the shares of Common Stock or other
securities purchased or purchasable by the holder hereof upon the exercise of
the Warrants, taking into account all adjustments provided for herein.

                                   ARTICLE I

                              EXERCISE OF WARRANTS

         1.1      Exercise Period.

            The Warrant represented hereby may be exercised by the Holder
hereof, in whole or in part, at any time and from time to time on or after the
date hereof until 5:00 PM, Oklahoma City, Oklahoma time, on November 24, 2002.

         1.2      Method of Exercise.

            To exercise the Warrants, the Holder hereof shall deliver to the
Company, at the Warrant Office designated in Section 2.1 hereof, (i) a written
notice in the form of the Subscription Notice attached as Exhibit I hereto,
stating therein the election of such holder to exercise the Warrant in the
manner provided in the Subscription Notice; (ii) payment in full of the Exercise
Price in cash or by bank check or wire transfer for all Warrant Shares purchased
hereunder, or a written notice (a "Cashless Exercise" notice) to the Company
that such Holder is exercising the Warrant (or a portion thereof) by authorizing
the Company to withhold from issuance a number of Warrant Shares issuable upon
such exercise of the Warrant which, when multiplied by the Market Price for such
shares, is equal to the Exercise Price for the total number of Warrant Shares to
which such exercise relates (and such withheld shares shall no longer be
exercisable under this Warrant); (iii) if this Warrant is not registered in the
name of the Holder, an Assignment or Assignments in the form set forth in
Exhibit II hereto evidencing the assignment of this Warrant to the current
Holder; and (iv) this Warrant. The Warrants shall be deemed to be exercised on
the date of receipt by the Company of the Subscription Notice, accompanied by
payment for the Warrant Shares (or the Cashless Exercise notice) and surrender
of this Warrant, as aforesaid, and such date is referred to herein as the
"Exercise Date". Upon such exercise, the Company shall, as promptly as
practicable and in any event within five (5) business days, issue and deliver to
such holder a certificate or certificates for the full number of the Warrant
Shares purchased by such holder hereunder, and shall, unless the Warrant has
expired, deliver to the holder hereof (within such five (5) day period) a new
Warrant representing the right to purchase the number of Warrant Shares, if any,
with respect to which the Warrant shall not have been previously exercised, but
in all other respects identical to this Warrant. As permitted by applicable law,
the Person in whose name the certificates for Common Stock are to be issued
shall be deemed to have become a holder of record of such Common Stock on the

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Exercise Date and shall be entitled to all of the benefits of such holder on the
Exercise Date, including without limitation, the right to receive dividends and
other distributions for which the record date falls on or after the Exercise
Date and the right to exercise voting rights.

         1.3 Expenses and Taxes. The Company shall pay all expenses and taxes
(including, without limitation, all documentary, stamp, transfer or other
transactional taxes), other than income taxes payable by the Holder,
attributable to the preparation, issuance or delivery of the Warrant and of the
issuance of the Warrant Shares.

         1.4 Reservation of Shares. The Company shall reserve at all times so
long as the Warrant remains outstanding, free from preemptive rights, out of its
authorized but unissued shares of Common Stock, solely for the purpose of
effecting the exercise of the Warrant, a sufficient number of shares of Common
Stock to provide for the exercise of the Warrant. The Company shall take all
such actions as may be necessary to assure that all such Warrant Shares may be
so issued without violation of any applicable law or governmental regulation or
any requirements of any domestic securities exchange or automated quotation
system upon which shares of Common Stock may be listed or quoted (except for
official notice of issuance, which shall be immediately delivered by the Company
upon each such issuance). The Company shall take all such actions as may be
necessary to assure that all such Warrant Shares shall be authorized, approved
for and listed on any national securities exchange or quotation system on which
the Company's Common Stock is listed or quoted. The Company shall not take any
action which would cause the number of authorized but unissued shares of Common
Stock to be less than the number of such shares-required to be reserved
hereunder for issuance upon exercise of the Warrant.

         1.5 Valid Issuance. All Warrant Shares that may be issued upon any
exercise of the Warrant will, upon issuance by the Company, be duly and validly
issued, fully paid and non-assessable and free from all taxes, liens and charges
with respect to the issuance thereof and, without limiting the generality of the
foregoing, the Company shall take no action or fail to take any action which
will cause a contrary result (including, without limitation, any action that
would cause the Exercise Price then in effect to be less than the par value, if
any, of the Common Stock).

         1.6 Purchase Agreement and Merger Agreement. The Original Warrant
substituted hereby was originally issued pursuant to that certain Agreement of
Purchase and Sale dated November 24, 1997 (the "Purchase Agreement,") between
Gothic Energy Corporation, a wholly-owned subsidiary of the Company ("Gothic
Energy") and Amoco Production Company, a wholly-owned indirect subsidiary of
Amoco ("Amoco Production"). The Warrant was originally issued by Gothic Energy
in partial consideration for Amoco Production's sale of certain properties to
Gothic Energy. The Company assumed the Original Warrant and issued this Warrant
pursuant to the Original Warrant and the Merger Agreement.

         1.7 Acknowledgment of Rights. At the time of the exercise of the
Warrants in accordance with the terms hereof and upon the written request of the
Holder hereof, the Company will acknowledge in writing its continuing obligation
to afford to such Holder any rights (including, without limitation, any right to
registration of the Warrant Shares) to which such Holder shall continue to be
entitled after such exercise in accordance with the provisions of

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this Warrant; provided however. that if the holder hereof shall fail to make any
such request, such failure shall not affect the continuing obligation of the
Company to afford to such Holder any such rights.

         1.8 No Fractional Shares. The Company shall not be required to issue
fractional shares of Common Stock (or other securities) on the exercise of this
Warrant. If more than one Warrant shall be presented for exercise at the same
time by the same Holder, the number of full Warrant Shares which shall be
issuable upon such exercise shall be computed on the basis of the aggregate
number of whole Warrant Shares purchasable on exercise of the Warrants so
presented. If any fraction of a Warrant Share would, except for the provisions
of this Section 1.8, be issuable on the exercise of this Warrant, the Company
shall pay an amount in cash calculated by it to be equal to the Market Price of
one such share at the time of such exercise multiplied by such fraction computed
to the nearest whole cent.

         1.9 Assistance and Cooperation. The Company shall not close its books
against the transfer of this Warrant or of any Warrant Share in any manner which
interferes with the timely exercise of this Warrant. The Company shall assist
and cooperate with any Holder required to make any governmental filings or
obtain any governmental approvals prior to or in connection with any exercise of
this Warrant (including, without limitation, making any filings required to be
made by the Company).

         1.10 Delayed Exercise. Notwithstanding any other provision hereof, if
an exercise of any portion of this Warrant is to be made in connection with a
registered public offering or the sale of the Company, the exercise of any
portion of this Warrant may, at the election of the Holder hereof, be
conditioned upon the consummation of the public offering or sale of the Company
in which case such exercise shall not be deemed to be effective until the
consummation of such transaction.

                                   ARTICLE II

                                    TRANSFER

         2.1 Warrant Office. The Company shall maintain an office for certain
purposes specified herein (the "Warrant Office"), which office shall initially
be the Company's offices at 6100 North Western Avenue, Oklahoma City, Oklahoma
74105, and may subsequently be such other office of the Company or of any
transfer agent of the Common Stock in the continental United States as to which
written notice has previously been given to the holder hereof. The Company shall
maintain, at the Warrant Office, a register for the Warrants in which the
Company shall record the name and address of the Person in whose name this
Warrant has been issued, as well as the name and address of each permitted
assignee of the rights of the registered owner hereof.

         2.2 Ownership of Warrants. The Company may deem and treat the Person in
whose name the Warrant is registered -as the Holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until presentation of this Warrant for

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registration of transfer as provided in this Article II. Notwithstanding the
foregoing, the Warrants represented hereby, if otherwise properly assigned in
compliance with this Article II (i.e., but for registration of the transfer at
the Warrant Office), may be exercised by an assignee for the purchase of Warrant
Shares without having a new Warrant issued.

         2.3 Restrictions on Transferability of Warrant. Subject to the transfer
conditions referred to herein, this Warrant and all rights hereunder (including,
but not limited to, Registration Rights under Article VII) are transferable, in
whole or in part, without charge to the Holder, upon surrender of this Warrant
with a properly executed Assignment (in the form of Exhibit II hereto) at the
Warrant Office of the Company. The Company agrees to maintain at the Warrant
Office books for the registration and transfer of the Warrants. The Company
shall, from time to time, register the transfer of the Warrants in such books
upon surrender of any such Warrant at the Warrant Office accompanied by a
properly executed Assignment and written instructions for transfer satisfactory
to the Company. Upon any such transfer and upon payment by the holder or its
transferee of any applicable transfer taxes, a new Warrant shall be issued to
the transferee and the surrendered Warrant shall be cancelled by the Company.
The Company shall pay all taxes (other than securities transfer taxes or income
taxes) and all other expenses and charges payable in connection with the
transfer of the Warrants pursuant to this Section 2.3. Prior to any transfer as
provided herein, the transferor shall provide written notice to the Company.

         2.4 Warrant Exchangeable for Different Denominations. This Warrant is
exchangeable, upon the surrender hereof, by the Holder at the Warrant Office of
the Company, for new Warrants of like tenor representing in the aggregate the
purchase rights hereunder, and each of such new Warrants shall represent such
portion of such rights as is designated by the Holder at the time of such
surrender. The date the Company initially issues this Warrant shall be deemed to
be the "Date of Issuance" hereof regardless of the number of times new
certificates representing the unexpired and unexercised rights formerly
represented by this Warrant shall be issued. All Warrants representing portions
of the rights hereunder are referred to herein as the "Warrants."

         2.5 Compliance with Securities Laws. Subject to Article VII hereof, and
notwithstanding any other provisions contained in this Warrant, the Holder
hereof understands and agrees that the following restrictions and limitations
shall be applicable to all Warrant Shares and to all resales or other transfers
thereof pursuant to the Securities Act:

            2.5.1 The holder hereof agrees that the Warrant and Warrant Shares
shall not be sold or otherwise transferred unless the Warrant or Warrant Shares
are registered under the Securities Act and applicable state securities or blue
sky laws or are sold in a transaction that is exempt therefrom.

            2.5.2 A legend in substantially the following form will be placed on
the certificates) evidencing the Warrant Shares:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT"), OR

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                  ANY STATE OR OTHER APPLICABLE SECURITIES LAWS AND,
                  ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                  MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT
                  PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A
                  TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT
                  AND IN ACCORDANCE WITH ANY STATE OR OTHER APPLICABLE
                  SECURITIES LAWS."

            2.5.3 Stop transfer instructions will be imposed with respect to the
Warrant Shares so as to restrict resale or other transfer thereof not in
accordance with this Section 2.5.

                                   ARTICLE III

                                  ANTI-DILUTION

         3. Adjustment of Exercise Price and Number of Shares. In order to
prevent dilution of the rights granted under this Warrant, the Exercise Price
shall be subject to adjustment from time to time as provided in this Section 3,
and the number of shares of Common Stock (i.e., Warrant Shares) obtainable upon
exercise of this Warrant shall be subject to adjustment from time to time as
provided in this Article III.

         3.1 Adjustment of Exercise Price and Number of Shares upon Issuance
of Common Stock.

            3.1.1 If and whenever on or after the Date of Issuance of this
Warrant the Company issues or sells, or in accordance with paragraph 3.2 is
deemed to have issued or sold, any shares of Common Stock for a consideration
per share less than the Exercise Price in effect immediately prior to such time,
then immediately upon such issue or sale the Exercise Price shall be reduced to
the new Exercise Price determined by dividing:

               (A) the sum of (x) the product derived by multiplying the
Exercise Price in effect immediately prior to such issue or sale times the
number of shares of Common Stock Deemed Outstanding immediately prior to such
issue or sale, plus (y) the consideration, if any, received by the Company upon
such issue or sale, by

               (B) the number of shares of Common Stock Deemed Outstanding
immediately after such issue or sale.

            3.1.2 Upon each such adjustment of the Exercise Price hereunder, the
number of shares of Common Stock acquirable upon exercise of this Warrant shall
be adjusted to the number of shares determined by multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of shares of Common
Stock acquirable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

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         3.2 Effect on Exercise Price of Certain Events. For purposes of
determining the adjusted Exercise Price upon paragraph 3.1, the following shall
be applicable:

             3.2.1 Issuance of Rights or Options. If the Company in any manner
grants or sells any Options and the price per share for which Common Stock is
issuable upon the exercise of such Options, or upon conversion or exchange of
any Convertible Securities issuable upon exercise of such Options, is less than
the Exercise Price in effect immediately prior to the time of the granting or
sale of such Options, then the total maximum number of shares of Common Stock
issuable upon the exercise of such Options, or upon conversion or exchange of
the total maximum amount of such Convertible Securities issuable upon the
exercise of such Options, shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the granting or sale of such
Options for such price per share. For purposes of this paragraph, the "price per
share for which Common Stock is issuable upon exercise of such Options or upon
conversion or exchange of such Convertible Securities" is determined by dividing
(A) the total amount, if any, received or receivable by the Company as
consideration for the granting or sale of such Options, plus the minimum
aggregate amount of additional consideration payable to the Company upon the
exercise of all such Options, plus in the case of such Options which relate to
Convertible Securities, the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the issuance or sale of such
Convertible Securities and the conversion or exchange thereof, by (B) the total
maximum number of shares of Common Stock issuable upon exercise of such Options
or upon the conversion. or exchange of all such Convertible Securities issuable
upon the exercise of such Options. No further adjustment of the Exercise Price
shall be made upon the actual issuance of such Common Stock or of such
Convertible Securities upon the exercise of such Options or upon the actual
issuance of such Common Stock upon conversion or exchange of such Convertible
Securities.

             3.2.2 Issuance of Convertible Securities. If the Company in any
manner issues or sells any Convertible Securities and the price per share for
which Common Stock is issuable upon conversion or exchange thereof is less than
the Exercise Price in effect immediately prior to the time of such issue or
sale, then the maximum number of shares of Common Stock issuable upon conversion
or exchange of such Convertible Securities shall be deemed to be outstanding and
to have been issued and sold by the Company at the time of the issue or sale of
such Convertible Securities for such price per share. For the purposes of this
paragraph, the "price per share for which Common Stock is issuable upon
conversion or exchange thereof" is determined by dividing (A) the total amount
received or receivable by the Company as consideration for the issue or sale of
such Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (B) the total maximum number of shares of Common Stock issuable upon
the conversion or exchange of all such Convertible Securities. No further
adjustment of the Exercise Price shall be made upon the actual issue of such
Common Stock upon conversion or exchange of such Convertible Securities, and if
any such issue or sale of such Convertible Securities is made upon exercise of
any Options for which adjustments of the Exercise Price had been or are to be
made pursuant to other provisions of this paragraph 3.2, no further adjustment
of the Exercise Price shall be made by reason of such issue or sale.

             3.2.3 Change in Option Price or Conversion Rate. If the purchase
price provided for in any Options, the additional consideration, if any, payable
upon the issue, conversion or

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exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exchangeable for Common Stock changes at any
time, the Exercise Price in effect at the time of such change shall be adjusted
immediately to the Exercise Price which would have been in effect at such time
had such Options or Convertible Securities still outstanding provided for such
changed purchase price, additional consideration or changed conversion rate, as
the case may be, at the time initially granted, issued or sold and the number of
shares of Common Stock issuable hereunder shall be correspondingly adjusted. For
purposes of this paragraph 3.2, if the terms of any Option or Convertible
Security which was outstanding as of the date of issuance of this Warrant are
changed in the manner described in the immediately preceding sentence, then such
Option or Convertible Security and the Common Stock deemed issuable upon
exercise, conversion or exchange thereof shall be deemed to have been issued as
of the date of such change; provided that no such change shall at any time cause
the Exercise Price hereunder to be increased.

             3.2.4 Treatment of Expired Options and Unexercised Convertible
Securities. Upon the expiration of any Option or the termination of any right to
convert or exchange any Convertible Securities without the exercise of such
Option or right, the Exercise Price then in effect and the number of shares of
Common Stock acquirable hereunder shall be adjusted immediately to the Exercise
Price and the number of shares which would have been in effect at the time of
such expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination, never
been issued. For purposes of this paragraph 3.2, the expiration or termination
of any Option or Convertible Security which was outstanding as of the date of
issuance of this Warrant shall not cause the Exercise Price hereunder to be
adjusted unless, and only to the extent that, a change in the terms of such
Option or Convertible Security caused it to be deemed to have been issued after
the date of issuance of this Warrant.

             3.2.5 Calculation of Consideration Received. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor shall be deemed to
be the amount received by the Company therefor. In case any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash, the amount of the consideration other than cash received by the
Company shall be the fair value of such consideration, except where such
consideration consists of securities, in which case the amount of consideration
received by the Company shall be the Market Price thereof as of the date of
receipt. In case any Common Stock, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which
the Company is the surviving entity the amount of consideration therefor shall
be deemed to be the fair value of such portion of the net assets and business of
the non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be. The fair value of any consideration
other than cash or securities shall be determined at the reasonable discretion
of the board of directors of the Company consistent with the value assigned for
Generally Accepted Accounting Principles purposes.

             3.2.6 Integrated Transactions. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options shall be deemed to
have been issued for consideration determined at the reasonable

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discretion of the board of directors of the Company consistent with the value
assigned for Generally Accepted Accounting Principles purposes.

             3.2.7 Treasury Shares. The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company or any Subsidiary, and the disposition of any shares
so owned or held shall be considered an issue or sale of Common Stock.

             3.2.8 Record Date. If the Company takes a record of the holders of
Common Stock for the purpose of entitling them (A) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

         3.3 Stock Splits and Reverse Splits. In the event that the Company
shall at any time subdivide its outstanding shares of Common Stock into a
greater number of shares (by stock split, stock dividend, recapitalization or
otherwise), the Exercise Price in effect immediately prior to such subdivision
shall be proportionately reduced and the number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to such subdivision shall be
proportionately increased. Conversely, in the event that the outstanding shares
of Common Stock shall at any time be combined into a smaller number of shares
(by reverse stock split or otherwise), the Exercise Price in effect immediately
prior to such combination shall be proportionately increased and the number of
Warrant Shares purchasable upon the exercise of this Warrant immediately prior
to such combination shall be proportionately reduced.

         3.4 Reorganizations and Asset Sales. If any capital recapitalization,
reorganization or reclassification of the capital stock of the Company, or any
consolidation, merger or share exchange of the Company with another Person, or
the sale, transfer or other disposition of all or substantially all of its
assets to another Person shall be effected in such a way that a holder of Common
Stock of the Company shall be entitled to receive capital stock, securities or
assets with respect to or in exchange for their shares, then the following
provisions shall apply:

             3.4.1 As a condition of such recapitalization, reorganization,
reclassification, consolidation, merger, share exchange, sale, transfer or other
disposition (except as otherwise provided below in this Section 3.2), lawful and
adequate provisions (in form and substance satisfactory to the Holders of
Warrants representing a majority of the Warrant Shares obtainable upon exercise
of all of the Warrants then outstanding) shall be made whereby the holder of
Warrants shall thereafter have the right to purchase and receive upon the terms
and conditions specified in this Warrant and in lieu of or addition to (as the
case may be) the Warrant Shares immediately theretofore receivable upon the
exercise of the rights represented hereby, such shares of capital stock,
securities or assets as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of
Warrant Shares immediately theretofore so receivable had such recapitalization,
reorganization, reclassification, consolidation, merger, share exchange or sale
not taken place, and in any such case appropriate provision (in form and
substance satisfactory to the Holders of Warrants

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representing a majority of the Warrant Shares obtainable upon exercise of all of
the Warrants then outstanding) shall be made with respect to the rights and
interests of such Holder(s) to the end that the provisions hereof (including,
without limitation, in the case of any such consolidation, merger or sale in
which the successor entity or purchasing entity is other than the Company, an
immediate adjustment of the Exercise Price to the value for the Common Stock
reflected by the terms of such consolidation, merger or sale, and a
corresponding immediate adjustment in-the number of shares of Common Stock
acquirable and receivable upon exercise of the Warrants, if the value so
reflected is less than the Exercise Price in effect immediately prior to such
consolidation, merger or sale) shall thereafter be applicable, as nearly as
possible, in relation to any shares of capital stock, securities or assets
thereafter deliverable upon the exercise of Warrants.

             3.4.2 The Company shall not effect any such consolidation, merger,
share exchange, sale, transfer or other disposition unless prior to or
simultaneously with the consummation thereof the successor Person (if other than
the Company) resulting from such consolidation, share exchange or merger or the
Person purchasing or otherwise acquiring such assets shall have assumed by
written instrument executed and mailed or delivered to each of the Holders
hereof at the last address of such holder appearing on the books of the Company,
(i) the obligation to deliver to such holder such shares of capital stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to receive, and (ii) all other liabilities and
obligations of the Company hereunder. As a condition to any consolidation, share
exchange or merger, such successor Person must assume the Company's obligations
hereunder by written instrument and issue a new warrant revised to reflect the
modifications in this Warrant effected pursuant to this Section 3.4.

         3.5 Certain Events. If any event occurs of the type contemplated by the
provisions of this Article III but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company's
board of directors shall make an appropriate adjustment in the Exercise Price
and the number of shares of Common Stock obtainable upon exercise of this
Warrant so as to protect the rights of the holders of the Warrants; provided
that no such adjustment shall increase the Exercise Price or decrease the number
of shares of Common Stock obtainable as otherwise determined pursuant to this
Article III.

         3.6 Notice of Adjustment. Whenever the Exercise Price or the number of
Warrant Shares issuable upon the exercise of the Warrants shall be adjusted as
herein provided, or the rights of the holder hereof shall change by reason of
other events specified herein, the Company shall compute the adjusted Exercise
Price and the adjusted number of Warrant Shares in accordance with the
provisions hereof and shall prepare an Officer's Certificate setting forth the
adjusted Exercise Price and the adjusted number of Warrant Shares issuable upon
the exercise of the Warrants or specifying the other shares of stock, securities
or assets receivable as a result of such change in rights, and showing in
reasonable detail the facts' and calculations upon which such adjustments or
other changes are based. The Company shall promptly cause to be mailed to the
holder hereof copies of such Officer's Certificate together with a notice
stating that the Exercise Price and the number of Warrant Shares purchasable
upon exercise of the Warrants have been adjusted and setting forth the adjusted
Exercise Price and the adjusted number of Warrant Shares purchasable upon the
exercise of the Warrants.

                                       11
<PAGE>   12

         3.7 Notices to Holders. In case at any time the Company proposes:

             (i) to declare any dividend upon its Common Stock payable in
capital stock or make any dividend or other distribution (including cash
dividends) to the holders of its Common Stock;

             (ii) to offer for subscription pro rata to all of the holders of
its Common Stock any additional shares of capital stock of any class or other
rights;

             (iii) to effect any capital reorganization, or reclassification of
the capital stock of the Company, or consolidation, merger or share exchange of
the Company with another Person, or sale, transfer or other disposition of al(
or substantially all of its assets; or

             (iv) to effect a voluntary or involuntary dissolution, liquidation
or winding up of the Company,

then, in any one or more of such cases, the Company shall give the holder hereof
(a) at least 20 days' (but not more than 90 days') prior written notice of the
date on which the books of the Company shall close or a record shall be taken
for such dividend, distribution or subscription rights or for determining rights
to vote in respect of such issuance, recapitalization, reorganization,
reclassification, consolidation, merger, share exchange, sale, transfer,
disposition, dissolution, liquidation or winding up, and (b) in the case of any
such issuance, recapitalization, reorganization, reclassification,
consolidation, merger, share exchange, sale, transfer, disposition, dissolution,
liquidation or winding up, at least 20 days' (but not more than 90 days') prior
written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause (x) shall also specify, in the case of any
such dividend, distribution or subscription rights, the date on which the
holders of Common Stock shall be entitled thereto, and such notice in accordance
with the foregoing clause (y) shall also specify the date on which the holders
of Common Stock shall be entitled to exchange their Common Stock, as the case
may be, for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, share exchange, sale, transfer,
disposition, dissolution, liquidation or winding up, as the case may be.

         3.8 Exceptions to Anti-Dilution Adjustment. Notwithstanding anything to
the contrary contained in this Warrant, there shall be no adjustment' in the
Exercise Price or the number of shares of Common Stock (i.e., Warrant Shares)
obtainable upon exercise of this Warrant as a consequence of the issuance by the
Company of any shares of Common Stock upon exercise or conversion of (i) any
option, warrant, convertible security or other right to acquire shares of Common
Stock of the Company outstanding or in effect as of the date of issuance of this
Warrant, and (ii) any options, stock purchase or other rights to acquire Common
Stock of the Company on exercise of options granted or that may be granted under
the Company's compensatory stock option plans including, without implied
limitation, the 1992 Incentive Stock Option Plan, 1992 Nonstatutory Stock Option
Plan, 1994 Stock Option Plan, 1996 Stock Option Plan, 1999 Stock Option Plan,
2000 Employee Stock Option Plan and 2000 Executive Officer Stock Option Plan.

                                       12
<PAGE>   13

                                   ARTICLE IV

                              Liquidating Dividends

         If the Company declares or pays a dividend upon the Common Stock
payable otherwise than in cash out of earnings or earned surplus (determined in
accordance with generally accepted accounting principles, consistently applied)
except for a stock dividend payable in shares of Common Stock (a "Liquidating
Dividend"), then the Company shall pay to the Holder of this Warrant at the time
of payment thereof the Liquidating Dividend which would have been paid to such
Holder on the Common Stock had this Warrant been fully exercise immediately
prior to the date on which a record is taken for such Liquidating Dividend, or,
if no record is taken, the date as of which the record holders of Common Stock
entitled to such dividends are to be determined.

                                   ARTICLE V

                                 Purchase Rights

         If at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of any class of Common Stock (the
"Purchase Rights"), then the Holder of this Warrant shall be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which such holder could have acquired if such holder had held
the number of shares of Common Stock acquirable upon complete exercise of this
Warrant immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights.

                                   ARTICLE VI

                               Information Rights

         6.1 Financial Statements and Other Information. The Company shall
deliver to each Holder (so long as such Person holds any Warrants), within ten
days after transmission thereof, copies of all notices and reports which the
Company is required to file (or would be required to file as a publicly listed
company) under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), the NYSE Rules and Listing Agreement (or other applicable exchange rules)
and all reports, press releases and correspondence sent to stockholders of the
Company and shall notify each Holder of each other filing by the Company with
the Securities and Exchange Commission.

         6.2 Rule 144 and 144A Reporting Information. With a view to making
available the benefits of certain rules and regulations of the SEC which may at
times permit the sale of the Warrant or Warrant Shares to the public or other
persons without registration, the Company shall use its reasonable best efforts
to:

                                       13
<PAGE>   14

             6.2.1 make and keep public information available, as contemplated
by Rule 144 under the Securities Act;

             6.2.2 file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and

             6.2.3 furnish to each holder of Warrant Shares promptly upon
request (A) a written statement by the Company as to its compliance with the
reporting requirements of such Rule 144 of the Securities Act and the Exchange
Act, (B) copies of all SEC filings made by the Company within the previous one
(1) year period and any press releases issued by the Company since the date of
the last such filing, and (C) copies of all Rule 144A information with respect
to the Company.

                                  ARTICLE VII

                               Registration Rights

         7.1 Demand Registrations.

             7.1.1 Registration of Immediate Offering. At any time after January
16, 2000, the holders of at least 50% of the Registrable Securities (hereinafter
the "Majority Holders") may request registration by the Company under the
Securities Act of the resale by such holders of all or any portion of their
Registrable Securities (an "Immediate Offering Registration." A request for an
Immediate Offering Registration shall specify the approximate number of
Registrable Securities requested to be registered by the requesting holders and
the anticipated per share price range for such offering. Within 10 days after
receipt of such request, the Company shall give written notice of such requested
registration to all other holders of Registrable Securities and shall include in
such registration all Registrable Securities with respect to which the Company
has received written requests for inclusion therein within 15 days after
delivery of the Company's notice.

             7.1.2 Registration of Delayed or Continuous Offering. At any time
after January 16, 2000, the Majority Holders may request registration by the
Company under the Securities Act of all or any portion of their Registrable
Securities for resale in a delayed or continuous offering to the extent
permitted by Rule 415 (or any successor rule thereto) under the Securities Act
(a "Shelf Registration"). A registration statement for a Shelf Registration
shall provide for resale by the holders in the manner or manners designated in
writing to the Company by them (including, without limitation, one or more
underwritten offerings). Within 10 days after the receipt of such request, the
Company shall give similar written notice of such requested registration to all
other holders of Registrable Securities and shall include in such registration
all Registrable Securities with respect to which the Company has received
written requests for inclusion therein within 15 days after delivery of the
Company's notice.

             7.1.3 Number of Demand Registrations. The Majority Holders shall be
entitled to request two (2) Immediate Offering Registrations under the Original
Warrant and this Warrant; provided, a registration shall not count as one of the
permitted Immediate Offering Registrations (A) until it has become effective,
and (B) unless the Holders of Registrable

                                       14
<PAGE>   15

Securities requesting such registration are able to register and sell at least
80% of the Registrable Securities requested to be included in such registration.
In addition, the Majority Holders shall be entitled to one (1) Shelf
Registration under the Original Warrant and this Warrant; provided, a
registration shall not count as the permitted Shelf Registration until it has
become effective. For purposes of this Warrant, an Immediate Offering
Registration and a Shelf Registration shall each constitute and be referred to
as "Demand Registration."

             7.1.4 Priority on Demand Registrations. The Company shall not
include in any Demand Registration any securities which are not Registrable
Securities without the prior written consent of the Holders of at least 75% of
the Registrable Securities initially requesting such registration. If a Demand
Registration is an underwritten offering and the managing underwriters advise
the Company in writing that in their opinion the number of Registrable
Securities and, if permitted hereunder, other securities requested to be
included in such offering exceeds the number of shares, if any, which can be
sold in an orderly manner in such offering within a price range acceptable to
the Majority Holders initially requesting registration, the Company shall
include in such registration prior to the inclusion of any securities which are
not Registrable Securities the number of Registrable Securities requested to be
included which in the opinion of such underwriters can be sold in an orderly
manner within the price range of such offering, pro rata (i) first, among the
respective Majority Holders requesting registration, and (ii) second, among the
remaining respective holders of Registrable Securities, in each case on the
basis of the amount of shares requested for inclusion by each such holder. Then,
after the inclusion of all such Shares, the Company shall include any other
securities requested for inclusion.

             7.1.5 Selection of Underwriters. The Majority Holders initially
requesting registration in any Demand Registration hereunder shall have the
right to select the investment bankers) and managers) to administer the
offering, subject to the Company's approval which shall not be unreasonably
withheld.

             7.1.6 Other Registration Rights. Except as provided in this
Agreement, after the date hereof the Company shall not grant to any Persons the
right to request the Company to register any equity securities of the Company,
or any securities convertible or exchangeable into or exercisable for such
securities, on a basis pari passu or senior to the Holders' rights granted in
Section 7.1 or 7.2 hereof, without the prior written consent of all the holders
of the Warrant Shares underlying all Warrants then outstanding (or the Holders
of such Warrants representing the right to purchase such Warrant Shares).

         7.2 Piggyback Registrations.

             7.2.1 Right to Piggyback. At any time after January 16, 2000,
whenever the Company proposes to register any of its securities under the
Securities Act (other than pursuant to a registration on Form S-8) and the
registration form to be used may be used for the registration of Registrable
Securities (a "Piggyback Registration"), the Company shall give prompt written
notice (in any event within five (5) business days after its receipt of notice
of any exercise of demand registration rights other than under this Agreement)
to all holders of Warrants or Registrable Securities of its intention to effect
such a registration and shall include in such registration all Registrable
Securities with respect to which the Company has received written requests for
inclusion therein within 20 days after the receipt of the Company's notice.

                                       15
<PAGE>   16

             7.2.2 Priority on Primary Registrations. If a Piggyback
Registration is an underwritten primary registration on behalf of the Company,
and the managing underwriters advise the Company in writing that in their
opinion the number of securities requested to be included in such registration
exceeds the number which can be sold in an orderly manner in such offering
within a price range acceptable to the Company, the Company shall include in
such registration, subject, however, to the terms of any other agreement entered
into prior to the date hereof to which the Company shall be a party, (i) first,
the securities the Company proposes to sell, (ii) second, the Registrable
Securities requested to be included in such registration, subject to pro rata
cut back among the holders thereof, and (iii) third, other securities requested
to be included in such registration.

             7.2.3 Priority on Secondary Registrations. If a Piggyback
Registration is an underwritten secondary registration on behalf of holders of
the Company's securities, and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be included
in such registration exceeds the number which can be sold in an orderly manner
in such offering within a price range acceptable to the holders initially
requesting such registration, the Company shall include in such registration,
subject, however, to the terms of any other agreement entered into prior to the
date hereof to which the Company shall be a party, (i) first, the securities
requested to be included therein by the holders requesting such registration,
(ii) second, the Registrable Securities requested to be included in such
registration, pro rata among the holders of such securities on the basis of the
number of securities so requested to be included therein, and (iii), third,
other securities requested to be included in such registration.

             7.2.4 Right of Holder to Withdraw. A Holder who has given notice to
the Company under paragraph 7.2.1 requesting inclusion of any Registrable
Securities in a Piggyback Registration shall, on five (5) business days notice
to the Company or secondary sellers, have the right to withdraw its Registrable
Securities from the Piggyback Registration.

             7.2.5 Right of Company to Withdraw. The Company shall, on five
business days notice to all holders who have given notice to the Company under
paragraph 7.2.1 requesting inclusion of their Registrable Securities in a
Piggyback Registration have the right to withdraw any registration statement
filed pursuant to this Section 7.2 for a Piggyback Registration at any time
prior to the effective date thereof.

         7.3 Maintaining: Effectiveness of Registration Statement.

             7.3.1 The Company shall use its reasonable best efforts to keep any
registration statement prepared and filed pursuant to this Article VII
continuously effective under the Securities Act from the initial effectiveness
thereof until the earliest to occur of (i) the date when all Registrable
Securities registered thereunder have been sold in the manner set forth and as
contemplated in the registration statement, or (ii) the date when counsel to the
Company or other counsel of such Holders' choosing shall render an opinion
addressed to the Holders whose Registrable Securities are registered thereunder,
to the effect that all remaining Registrable Securities are freely transferable
in the open market without limitations as to volume and manner of sale, and
without being required to file any forms or reports with the Securities and
Exchange

                                       16
<PAGE>   17

Commission (the "SEC") under the Securities Act or the rules and regulations
thereunder of the Company (such period being referred to as the "Effectiveness
Period").

             7.3.2 If the registration statement filed pursuant to this Article
VII ceases to be effective for any reason at any time during the Effectiveness
Period, the Company shall use its reasonable best efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within 45 days of such cessation of effectiveness amend such registration
statement in a manner reasonable expected to obtain the withdrawal of the order
suspending the effectiveness thereof, or file an additional registration
statement covering all of the Registrable Securities originally registered. If
an additional registration statement is filed, the Company shall use its
reasonable best efforts to cause such registration statement to be declared
effective as soon as practicable after such filing and to keep such registration
statement continuously effective for the remainder of the Effectiveness Period.

         7.4 Expenses of Registration. All Registration Expenses shall be borne
by the Company. Unless otherwise stated herein, all Selling Expenses relating to
securities registered on behalf of the Holder shall be borne by the Holder. The
Company shall pay all Registration Expenses in connection with any registration
initiated under this Article whether or not it has become effective and whether
or not such registration has counted as one of the permitted registrations.

         7.5 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant hereto, the Company
will keep the Holder advised in writing as to the initiation of each
registration, qualification and compliance and as to the completion thereof. At
its expense, the Company will:

             7.5.1 Prepare and file with the Commission a registration statement
with respect to such securities and use its commercially reasonable efforts to
cause such registration statement to become and remain effective until the
distribution described in such registration statement has been completed;

             7.5.2 Notify each Holder of Registrable Securities of the
effectiveness of each registration statement filed hereunder and prepare and
file with the SEC such amendments and supplements to such registration statement
and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for the period of time set forth in paragraph
7.3, as applicable, and to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement.

             7.5.3 Furnish to each Holder such number of copies of the
registration statement, each supplement and amendment thereto, and the
prospectus included therein, including a preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents as such
Holder may reasonably request in order to facilitate the public sale of the
shares by such Holder, and promptly furnish to each Holder notice of any
stop-order or similar notice issued by the Commission or any state agency
charged with the regulation of securities, and notice of any New York Stock
Exchange ("NYSE") or securities exchange listing.

                                       17
<PAGE>   18

             7.5.4 Use its reasonable best efforts to register or qualify such
Registrable Securities under the securities or blue sky laws of such
jurisdictions as any seller reasonably requests and do any and all other acts
and things which may be reasonably necessary or advisable to enable such seller
to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller. '

             7.5.5 Use its best efforts to cause the Warrant Shares to be listed
on the NYSE and each Securities Exchange on which the Common Stock is approved
for listing.

             7.5.6 Notify each seller of such Registrable Securities, at any
time when a prospectus relating thereto is required to be delivered under the
Securities Act, of the existence of facts or the happening of any event (without
necessarily identifying such facts or event to such sellers) as a result of
which the prospectus included in such registration statement contains an untrue
statement of a material fact or omits any fact necessary to make the statements
therein not misleading, and, at the request of any such seller, the Company
shall prepare a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not contain an untrue statement of a material fact or omit to
state any fact necessary to make the statements therein not misleading.

             7.5.7 Enter into such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the holders of
a majority of the Registrable Securities being sold or the underwriters, if any,
reasonably request in order to expedite or facilitate the disposition of such
Registrable Securities in any underwritten offering of Registrable Securities.

             7.5.8 Make available for reasonable inspection by any seller of
Registrable Securities, any underwriter participating in any disposition
pursuant to such registration statement and any attorney, accountant or other
agent retained by any such seller or underwriter, such financial and other
records, corporate documents and properties of the Company as are customarily
made available to such persons on a confidential basis by the issuer in
connection with a registered public offering of securities similar to the
Registrable Securities, and cause the Company's officers, directors, employees
and independent accountants to supply all information reasonably requested by
any such seller, underwriter, attorney, accountant or agent in connection with
such registration statement.

             7.5.9 Otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its security holders, as
soon as reasonably practicable, an earnings statement covering the period of at
least twelve months beginning with the first day of the Company's first full
calendar quarter after the effective date of the registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder.

         7.6 Indemnification.

             7.6.1 To the extent permitted by law, the Company will indemnify
the Holder, each of its officers and directors and partners, and each person
controlling the Holder within the meaning of the Securities Act, with respect to
which registration, qualification or compliance has

                                       18
<PAGE>   19

been effected pursuant to this Agreement, and each underwriter, if any, and each
person who controls any underwriter within the meaning of the Securities Act,
against all expenses, claims, losses, damages or liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, to the extent such expenses, claims,
losses, damages or liabilities arise out of or are based on any untrue statement
(or alleged untrue statement) of a material fact contained in any registration
statement, prospectus, offering circular or other similar document, or any
amendment or supplement thereto, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances in which they were made,
not misleading, or any violation by the Company of the Securities Act or any
rule or regulation promulgated under the Securities Act applicable to the
Company in connection with any such registration, qualification or compliance,
and the Company will reimburse Holder, each of its officers and directors and
partners, and each person controlling Holder, each such underwriter and each
person who controls any such underwriter, for any legal and any other expenses
reasonably incurred in connection with investigating, preparing or defending any
such claim, loss, damage, liability or action; provided, however, that the
indemnity contained herein shall not apply to amounts paid in settlement of any
claim, loss, damage, liability or expense if settlement is effected without the
consent of the Company (which consent shall not unreasonably be withheld);
provided, further, that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission or alleged untrue statement or
omission, made in reliance upon and in conformity with written information
furnished to the Company by the Holders or such controlling person specifically
for use therein. Notwithstanding the foregoing, insofar as the foregoing
indemnity relates to any such untrue statement (or alleged untrue statement) or
omission (or alleged omission) made in the preliminary prospectus but eliminated
or remedied in the amended prospectus on file with the Commission at the time
the registration statement becomes effective or in the final prospectus filed
with the Commission pursuant to the applicable rules of the Commission or in any
supplement or addendum thereto, the indemnity agreement herein shall not inure
to the benefit of any underwriter if a copy of the final prospectus filed
pursuant to such rules, together with all supplements and addenda thereto, was
not furnished to the person or entity asserting the loss, liability, claim or
damage at or prior to the time such furnishing is required by the Securities
Act.

             7.6.2 To the extent permitted by law, each Holder will, if
securities held by the Holder are included in the securities as to which such
registration, qualification or compliance is being effected pursuant to terms
hereof, severally but not jointly, indemnify the Company, each of its directors
and officers, each person who controls the Company or such underwriter within
the meaning of the Securities Act, and each other person selling the ' Company's
securities covered by such registration statement, each of such person's
officers and directors and each person controlling such persons within the
meaning of the Securities Act, against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other
document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by Holder of any rule or regulation promulgated
under the Securities Act applicable to Holder and relating to action or inaction
required of Holder in connection with any such registration, qualification or
compliance, and will

                                       19
<PAGE>   20

reimburse the Company, such other persons, such directors; officers, persons, or
control persons for any legal or other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by such Holder specifically for use therein; provided,
however, that the indemnity contained herein shall not apply to amounts paid in
settlement of any claim, loss, damage, liability or expense if settlement is
effected without the consent of such Holder (which consent shall not be
unreasonably withheld). Notwithstanding the foregoing, the liability of such
Holder under this subsection (b) shall be limited in an amount equal to the net
proceeds from the sale of the shares sold by such Holder, unless such liability
arises out of or is based on willful conduct by such Holder. In addition,
insofar as the foregoing indemnity relates to any such untrue statement (or
alleged untrue statement) or omission (or alleged omission) made in the
preliminary prospectus but eliminated or remedied in the amended prospectus on
file with the Commission at the time the registration statement becomes
effective or in the final prospectus filed pursuant to applicable rules of the
Commission or in any supplement or addendum thereto; the indemnity agreement
herein shall not inure to the benefit of the Company if a copy of the final
prospectus filed pursuant to such rules, together with all supplements and
addenda thereto, was not furnished to the person or entity asserting the loss,
liability, claim or damage at or prior to the time such furnishing is required
by the Securities Act.

             7.6.3 Notwithstanding the foregoing paragraphs 7.6.1 and 7.6.2 of
this Section, each party entitled to indemnification under this Section (the
"Indemnified Party") shall give notice to the panty required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Agreement unless the failure to give such notice is
materially prejudicial to an Indemnifying Party's ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or as to which the
Indemnifying Party is asserting separate or different defenses, which defenses
are inconsistent with the defenses of the Indemnified Party (in which case the
Indemnifying Party shall pay for one separate counsel for those Indemnified
Parties with whom such conflict exists). No Indemnifying Party, in the defense
of any such claim or litigation, shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation. No Indemnified Party shall consent to
entry of any judgment or enter into any settlement without the consent of each
Indemnifying Party. The failure of an Indemnifying Party to give notice to the
Indemnified Party of its election to assume and control the defense of any
action for which notice has been given to the Indemnifying Party in accordance
with this paragraph within 30 days after receipt of such notice shall constitute
an election by the Indemnifying Party not to assume and

                                       20
<PAGE>   21

control the defense of such action. An Indemnifying Party who is not entitled
to, or elects not to, assume the defense of a claim shall not be obligated to
pay the fees and expenses of more than one counsel for all parties indemnified
by such Indemnifying Party with respect to such claim, unless in the reasonable
judgment of any Indemnified Party a conflict of interest may exist between such
Indemnified Party and any other of such Indemnified Parties or the Indemnifying
Party with respect to such claim, in which event the Indemnifying Party shall be
obligated to pay the fees and expenses of one separate counsel for such
Indemnified Parties.

             7.6.4 If the indemnification provided for in this Section is
unavailable to an Indemnified Party in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company, on the one hand, and each respective
shareholder offering securities in the offering (the "Selling Security Holder"),
on the other, from the offering of the Company's securities, or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, on
the one hand, and each Selling Security Holder, on the other, in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company, on the one hand, and each Selling
Security Holder, on the other, shall be the net proceeds from the offering
(before deducting expenses) received by the Company, on the one hand, and each
Selling Security Holder, on the other. The relative fault of the Company, on the
one hand, and each Selling Security Holder, on the other, shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by such Selling Security
Holder and the parties' relevant intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and
each Selling Security Holder agree that it would not be just and equitable if
contribution pursuant to this Section were based solely upon the number of
entities from whom contribution was requested or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this Section. Notwithstanding the provisions of this Section, no
Selling Security Holder shall be required to contribute any amount or make any
other payments under this Agreement which in the aggregate exceed the proceeds
received by such Selling Security Holder. No person guilty of fraudulent
misrepresentation (within the meaning of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent
misrepresentation.

             7.6.5 The indemnification provided for under this Agreement shall
remain in full force and effect regardless of any investigation made by or on
behalf of -the Indemnified Party or any officer, director or controlling person
of such Indemnified Party and shall survive the transfer of securities.

         7.7 Certain Information.

             7.7.1 The Holder agrees, with respect to any Registrable Securities
included in any registration, to furnish to the Company such information
regarding Holder, the Registrable

                                       21
<PAGE>   22

Securities and the distribution proposed by the Holder as the Company may
reasonably request in writing and as shall be required in connection with any
registration, qualification or compliance referred to herein.

             7.7.2 The failure of the Holder to furnish the information
requested pursuant to this Section shall not affect the obligation of the
Company to any other selling security holders who furnish such information
unless, in the reasonable opinion of counsel to the Company, such failure
impairs or may impair the legality of the Registration Statement or the
underlying offering.

         7.8 Covenant to Remain Public. The Company covenants that, so long as
the Warrant or any Registrable Securities (so long as such securities remain
Registrable Securities) remains issued and outstanding, the Company shall take
all action necessary to keep its shares registered under Section 12(b) or 12(g)
of the Exchange Act, and listed and traded on the NYSE or other national
exchange or quotation system. In the event that such registration is suspended
or the Common Stock is delisted, the Company shall use its best efforts to
promptly reinstate such shares.

         7.9 Definitions Contained in Article VII. As used in this Article, the
following terms shall have the meanings set forth below:

             7.9.1 "Commission" shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act.

             7.9.2 "Holder" shall mean the Holder of any Warrants or holder of
any Warrant Shares issued upon exercise of any Warrants and any transferees.

             7.9.3 "Registrable Securities" shall mean (i) the Warrant Shares;
and (ii) any Common Stock issued or issuable at any time or from time to time in
respect of the Warrant Shares upon a stock split, stock dividend,
recapitalization or other similar event involving the Company until such Common
Stock is sold pursuant to a Registration Statement or under Rule 144(k) (or
successor Rule) under the Securities Act.

             7.9.4 The terms "register," "registered," and "registration" refer
to a registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering by the
Commission of the effectiveness of such registration statement.

             7.9.5 "Registration Expenses" shall mean all expenses, other than
Selling Expenses (as defined below), incurred by the Company in complying with
this Article, including, without limitation, all registration, qualification and
filing fees, exchange listing fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company and all auditors, blue sky fees and
expenses, the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the Company
which shall be paid in any event by the Company).

                                       22
<PAGE>   23

             7.9.6 "Selling Expenses" shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the sale of Warrant
Shares registered by the Holder and, except as set forth above, all fees and
disbursements of counsel for the Holder.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         8.1 Entire Agreement. This Warrant, the Merger Agreement and the
Purchase Agreement contain the entire agreement between the holder hereof and
the Company with respect to the Warrant Shares purchasable upon exercise hereof
and supersedes all prior arrangements or understandings with respect thereto
including, without implied limitation, the Original Warrant.

         8.2 Governing Law. This Warrant shall be governed by and construed in
accordance with the laws (other than the laws of conflicts) of the State of
Oklahoma.

         8.3 Amendment and Waiver. Except as otherwise provided herein, the
provisions of the Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Holders of
Warrants representing a majority of the Warrant Shares obtainable upon exercise
of the Warrants; provided that no such action may change the Exercise Price of
the Warrants, the number of shares or class of stock obtainable upon exercise of
each Warrant or the Registration Rights set forth in Article VII herein.
Notwithstanding the foregoing, the Company may, at its option, reduce the
Exercise Price of the Warrants, increase the number of shares of stock
obtainable upon exercise of each Warrant, or extend the Term of the Warrant for
such period as it may determine.

         8.4 Illegality. In the event that any one or more of the provisions
contained in this Warrant shall be determined to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the
benefit of the provision exists, be in any way impaired.

         8.5 Copy of Warrant. A copy of this Warrant shall be filed among the
records of the Company.

         8.6 Notice. Any notice or other document required or permitted to be
given or delivered to the Holder hereof shall be in writing and delivered at, or
sent by certified or registered mail to such holder at, the last address shown
on the books of the Company maintained at the Warrant Office for the
registration of this Warrant or at any more recent address of which the holder
hereof shall have notified the Company in writing. Any notice or other document
required or permitted to be given or delivered to the Company, other than such
notice or documents required to be delivered to the Warrant Office, shall be
delivered at, or sent by certified or registered mail to, the offices of the
Company at 6100 North Western Avenue, Oklahoma City, Oklahoma 73118, or such
other address within the continental United States of America as shall have been
furnished by the Company to the Holder of this Warrant.

                                       23
<PAGE>   24

         8.7 Limitation of Liability; Not Stockholders. No provision of this
Warrant shall be construed as conferring upon the Holder hereof the right to
vote, consent, receive dividends or receive notices (other than as herein
expressly provided, including, but not limited to, the notice of an upcoming
dividend record date), in respect of meetings of stockholders for the election
of directors of the Company or any other matter whatsoever as a stockholder of
the Company. No provision hereof, in the absence of affirmative action by the
holder hereof to purchase shares of Common Stock, and no mere enumeration herein
of the rights or privileges of the holder hereof, shall give rise to any
liability of such Holder for the purchase price of any shares of Common Stock or
as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

         8.8 Exchange, Loss, Destruction, etc. of Warrant. Upon receipt of
evidence satisfactory to the Company of the loss, theft, mutilation or
destruction of this Warrant, and in the case of any such loss, theft or
destruction upon delivery of a bond of indemnity or such other security in such
form and amount as ,shall be reasonably satisfactory to the Company, or in the
event of such mutilation upon surrender and cancellation of this Warrant, the
Company will make and deliver a new warrant of like tenor, in lieu of such lost,
stolen, destroyed or mutilated Warrant. Any warrant issued under the provisions
of this Section 8.8 in lieu of any Warrant alleged to be lost, destroyed or
stolen, or in lieu of any mutilated Warrant, shall constitute an original
contractual obligation on the part of the Company. This Warrant shall be
promptly canceled by the Company upon the surrender hereof in connection with
any exchange or replacement. The Company shall pay all taxes (other than
securities transfer taxes or income taxes) and all other expenses and charges
payable in connection with the preparation, execution and delivery of warrants
pursuant to this Section 8.8.

         8.9 Headings. The Article and Section and other headings herein are for
convenience only and are not a part of this Warrant and shall not affect the
interpretation thereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name.

                                           Chesapeake Energy Corporation

Dated:  January 16, 2000              By:  /s/ Marcus C. Rowland
                                           -------------------------------------
                                           Name:  Marcus C. Rowland
                                           Title: Executive Vice President

                                       24<PAGE>   1
                                                                   EXHIBIT 4.14

--------------------------------------------------------------------------------

                                WARRANT AGREEMENT

                                     between

                            GOTHIC ENERGY CORPORATION

                                       and

                             AMERICAN STOCK TRANSFER
                                & TRUST COMPANY,
                                AS WARRANT AGENT

                           Dated as of April 21, 1998

                   Warrants to Purchase 825,000 Common Shares

--------------------------------------------------------------------------------
<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
RECITALS...................................................................   1
AGREEMENT..................................................................   1
     1.   DEFINITIONS......................................................   1
     2.   WARRANT CERTIFICATES.............................................   8
          2.1  Issuance of Warrants........................................   8
          2.2  Form, Denomination and Date of Warrants.....................   8
          2.3  Execution and Delivery of Warrant Certificates..............   9
          2.4  Transfer and Exchange.......................................  11
          2.5  Temporary Securities........................................  12
          2.6  Effective Registration......................................  12
     3.   EXERCISE AND EXPIRATION OF WARRANTS..............................  13
          3.1  Right to Acquire Warrant Shares Upon Exercise...............  13
          3.2  Exercise and Expiration of Warrants.........................  13
               (a)  Exercise of Warrants...................................  13
               (b)  Expiration of Warrants.................................  13
               (c)  Method of Exercise.....................................  13
               (d)  Partial Exercise.......................................  14
               (e)  Issuance of Warrant Shares.............................  14
               (f)  Time of Exercise.......................................  15
               (g)  Exercise of Certain Warrants Evidenced by Unit
                    Certificates...........................................  15
          3.3  Application of Funds Upon Exercise of Warrants..............  15
          3.4  Payment of Taxes............................................  16
          3.5  Surrender of Certificates...................................  16
          3.6  Shares Issuable.............................................  16
     4.   REGISTRATION RIGHTS..............................................  16
     5.   DISSOLUTION, LIQUIDATION OR WINDING UP...........................  17
     6.   ADJUSTMENTS......................................................  18
          6.1  Adjustments.................................................  18
               (a)  Stock Dividends, Subdivisions and Combinations.........  18
               (b)  Certain Other Dividends and Distributions..............  19
               (c)  Reclassifications......................................  19
               (d)  Distribution of Warrants or Other Rights to Holders
                    of Common Shares.......................................  19
               (e)  Superseding Adjustment of Number of Warrant Shares
                    Into Which Each Warrant is Exercisable.................  20
               (f)  Other Provisions Applicable to Adjustments under
                    this Section...........................................  20
               (g)  Warrant Price Adjustment...............................  21
               (h)  Merger, Consolidation or Combination...................  21
               (i)  Compliance with Governmental Requirements..............  22
</TABLE>

<PAGE>   3

<TABLE>
<S>                                                                        <C>
               (j)  Optional Tax Adjustment................................  22
               (k)  Warrants Deemed Exercisable............................  22
               (l)  Limitations on Certain Non-Stock Dividends.............  22
          6.2  Notice of Adjustment........................................  23
          6.3  Statement on Warrant Certificates...........................  23
          6.4  Fractional Interest.........................................  23
      7.  LOSS OR MUTILATION...............................................  24
      8.  RESERVATION AND AUTHORIZATION OF WARRANT SHARES..................  24
      9.  WARRANT TRANSFER BOOKS...........................................  25
     10.  WARRANT HOLDERS..................................................  26
          10.1  Voting or Dividend Rights..................................  26
          10.2  Rights of Action...........................................  27
          10.3  Treatment of Holders of Warrant Certificates...............  27
          10.4  Communications to Holders..................................  27
     11.  CONCERNING THE WARRANT AGENT.....................................  28
          11.1  Nature of Duties and Responsibilities Assumed..............  28
          11.2  Right to Consult Counsel...................................  30
          11.3  Compensation, Reimbursement and Indemnification............  30
          11.4  Warrant Agent May Hold Company Securities..................  30
          11.5  Resignation and Removal; Appointment of Successor..........  31
          11.6  Appointment of Countersigning Agent........................  32
     12.  ADDITIONAL COVENANTS OF THE COMPANY..............................  33
          12.1  Reports to Holders.........................................  33
          12.2  Compliance with Agreements.................................  33
          12.3  Maintenance of Office......................................  33
     13.  NOTICES..........................................................  34
          13.1  Notices Generally..........................................  34
          13.2  Required Notices to Holders................................  35
          13.3  Company Notices to Warrant Agent...........................  36
     14.  APPLICABLE LAW...................................................  36
     15.  PERSONS BENEFITING...............................................  36
     16.  COUNTERPARTS.....................................................  37
     17.  AMENDMENTS.......................................................  37
     18.  INSPECTION.......................................................  38
     19.  SUCCESSOR TO THE COMPANY.........................................  38
     20.  ENTIRE AGREEMENT.................................................  38
     21.  HEADINGS.........................................................  38
</TABLE>

<PAGE>   4

                                    EXHIBITS

<TABLE>
<S>                                                                        <C>
A.   Form of Face of Warrant Certificate................................... A-1
B.   Form of Accredited Investor Transferee Certificate.................... B-1
C.   Form of Legal Opinion on Transfer..................................... C-1
</TABLE>

<PAGE>   5

                                WARRANT AGREEMENT

     THIS WARRANT AGREEMENT, dated as of April 21, 1998 (the "Issue Date"), is
entered into between GOTHIC ENERGY CORPORATION, an Oklahoma corporation (the
"Company"), and AMERICAN STOCK TRANSFER & TRUST, a New York corporation, as
warrant agent (the "Warrant Agent").

                                    RECITALS

     A. This Agreement is entered into in connection with the offering by the
Company of 104,000 Units (the "Units") consisting of an aggregate of
$104,000,000 principal amount of 14-1/8% Senior Secured Discount Notes due May
1, 2006 (the "Notes") and 825,000 Common Stock Purchase Warrants (the
"Warrants"). Each of the Units consists of $1,000 principal amount of the Notes
and 7.933 Warrants, each Warrant to purchase one share of Common Stock, par
value $.01 per share (the "Common Stock"), of the Company. The Warrants and the
Notes are not detachable or separately transferable until the Unit Termination
Date (as defined below).

     B. The Company proposes to issue 825,000 Warrants, as hereinafter
described, each to purchase at the Warrant Exercise Price (as defined below) one
share of Common Stock on or after the Separation Date (as defined below) and
prior to the Expiration Date (as defined below).

     C. The Company desires the Warrant Agent to act on behalf of the Company,
and the Warrant Agent is willing to act on behalf of the Company, in connection
with the issuance of the Warrant Certificates (as defined below) and the other
matters provided herein.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto agree as follows:

1.  DEFINITIONS

     "Accredited Investor" shall mean a Person that is an "accredited investor"
as that term is defined in Rule 501(a) under the Securities Act.

     "Additional Common Shares" shall mean all Common Shares issued or issuable
by the Company after the date of this Agreement, other than the Warrant Shares.

     "Affiliate" of any specified Person means any other Person which directly
or indirectly through one or more intermediaries controls, or is controlled by,
or is under common control with, such specified Person. For purposes of this
definition, "control" (including, with correlative

<PAGE>   6

meanings, the terms controlling, "controlled by" and "under common control
with"), as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise.

     "Agreement" shall mean this Warrant Agreement, as the same may be amended,
modified or supplemented from time to time.

     "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in the City of New York are
authorized or obligated by law to close.

     "Capital Stock" of any Person shall mean any and all shares, interests,
participations, or other equivalents (however designated) of such Person's
capital stock, and any warrants, options or similar rights to acquire such
capital stock.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

     "Common Equity Securities" shall mean any class or series of Common Shares
of the Company.

     "Common Shares" shall mean (i) the common stock, par value $.01 per share,
of the Company, as constituted on the original issuance of the Warrants, (ii)
any Capital Stock into which such Common Shares may thereafter be changed and
(iii) any share of the Company of any other class issued to holders of such
Common Shares upon any reclassification thereof.

     "Company" shall mean the company identified in the preamble hereof and its
successors and assigns.

     "Company Order" shall mean a written request or order signed in the name of
the Company by its Chairman or any Co-Chairman of the Board, its Chief Executive
Officer, its President, any Vice President, and by its Treasurer, any Assistant
Treasurer, its Secretary or any Assistant Secretary, and delivered to the
Warrant Agent.

     "Corporate Agency Office" shall have the meaning given such term in Section
9.

     "Countersigning Agent" shall mean any Person authorized by the Warrant
Agent to act on behalf of the Warrant Agent to countersign Warrant Certificates.

                                       -2-
<PAGE>   7

     "Current Common Equityholder" shall mean any Person who is a holder of
Common Equity Securities on the date of this Agreement.

     "Current Market Price" shall mean, with respect to any security on any
date:

         (1) if the Company does not have a class of equity securities
registered under the Exchange Act, the value of such security (a) determined in
good faith in the most recently completed arm's-length transaction between the
Company and an unaffiliated third party in which such determination is necessary
and the closing of which occurs on such date or shall have occurred within the
six months preceding such date, (b) if no such transaction shall have occurred
on such date or within such six-month period, most recently determined as of a
date within the six months preceding such date by an Independent Financial
Expert using one or more valuation methods that such Independent Financial
Expert, in its best professional judgment, determines to be most appropriate but
without giving effect to the discount for any lack of liquidity of the security
or to the fact that the Company may not have any class of equity securities
registered under the Exchange Act and assuming that the Warrants are currently
exercisable (in the event of more than one such determination, the determination
for the later date shall be used) or (c) if no such determination shall have
been made within such six-month period, determined as of such date by an
Independent Financial Expert as described in (b) above, or

         (2) if the Company does have a class of equity securities registered
under the Exchange Act, the average of the daily Market Prices of such security
for each Business Day during the period commencing ten (10) Business Days before
such date and ending on the date one day prior to such date or, if the Company
has had a class of equity securities registered under the Exchange Act for less
than thirty (30) consecutive Business Days before such date, then the average of
the daily Market Price for all of the Business Days before such date for which
daily Market Prices are available; provided, however, that in the event that the
Current Market Price per share of a security is determined during a period
following the announcement by the Company of (A) a dividend or distribution on
such a security payable in shares of such a security or securities convertible
into shares of such a security, or (B) any subdivision, combination or
reclassification of such security, and prior to the expiration of such thirty
(30) Business Day period before such date (or, if applicable, such lesser number
of Business Days before such date for which daily Market Prices are available)
after the ex-dividend date for such dividend or distribution, or the record date
for such subdivision, combination or reclassification, then in each such case,
Current Market Price shall be properly adjusted to take into account ex-dividend
trading.

     "Effective Date" shall mean the date of declaration by the SEC of
effectiveness of the Warrants Shelf Registration Statement.

                                       -3-
<PAGE>   8

     "Effective Registration" shall mean that the Company shall have filed and
caused to become effective a Warrants Shelf Registration Statement under the
Securities Act for the sale of Warrants by the Holders.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

     "Expiration Date" shall mean May 1, 2005 or such earlier date as determined
in accordance with Section 5.

     "Holder" or "Warrantholder" shall mean any Person in whose name at the time
any Warrant Certificate is registered upon the Warrant Register.

     "Indenture" shall mean the Indenture dated as of April 21, 1998, by and
among the Company and The Bank of New York, as trustee, relating to the Notes.

     "Independent" shall mean a nationally recognized investment banking firm or
Person (as the case may be) (i) that does not then have, and for the ten years
immediately preceding such time has not had (and, in the case of a nationally
recognized investment banking firm, whose directors, officers, employees and
Affiliates do not then have, and for the ten years immediately preceding such
time have not had) a direct or indirect interest in the Company or any of its
Subsidiaries or Affiliates or any successor to any of them and (ii) that is not
then, and for the ten years immediately preceding such time was not (and, in the
case of a nationally recognized investment banking firm, whose directors,
officers, employees or Affiliates are not then, and for the ten years
immediately preceding such time were not) an employee, consultant, advisor,
director, officer or Affiliate (it being understood that the term "Independent"
when applied to a director of the Company, means a non-employee director of the
Company whose only relationship with the Company during the relevant period has
been as a director of the Company) of the Company, any of its Subsidiaries or
Affiliates or any successor to any of them.

     "Independent Financial Expert" shall mean an Independent nationally
recognized investment banking firm with assets in excess of $1.0 billion
selected by a majority of the members of the Board of Directors (and by a
majority of the Independent members of the board, if any) of the Company.

     "Market Price" shall mean (A) in the case of a security listed or admitted
to trading on any securities exchange, the closing price, regular way, on such
day, or if no sale takes place on such day, the average of the closing bid and
asked prices on such day, (B) in the case of a security not then listed or
admitted to trading on any securities exchange, the last reported sale price on
such day, or if no sale takes place on such day, the average of the closing bid
and asked

                                       -4-
<PAGE>   9

prices on such day, as reported by a reputable quotation source designated by
the Company, (C) in the case of a security not then listed or admitted to
trading on any securities exchange and as to which no such reported sale price
or bid and asked prices are available, the average of the reported high bid and
low asked prices on such day, as reported by a reputable quotation service, or
The Wall Street Journal, Eastern Edition, or if such newspaper is no longer
published then in a newspaper of general circulation in the Borough of
Manhattan, City and State of New York, customarily published on each Business
Day, designated by the Company or if there shall be no bid and asked prices on
such day, the average of the high bid and low asked prices, as so reported, on
the most recent day (not more than thirty (30) days prior to the date in
question) for which prices have been so reported, and (D) if there are no bid
and asked prices reported during the thirty (30) days prior to the date in
question, the Current Market Value of the security shall be determined as if the
Company did not have a class of equity securities registered under the Exchange
Act.

     "Non-Stock Dividend" shall mean any payment by the Company to all holders
of its Common Shares of any dividend, or any other distribution by the Company
to such holders, of any shares of Capital Stock of the Company, evidences of
indebtedness of the Company, cash or other assets (including rights, warrants or
other securities (of the Company or any other Person)), other than any dividend
or distribution (i) upon a merger or consolidation or sale to which Section
6.1(h) applies, (ii) of any Common Shares referred to in Section 6.1(a) or (iii)
of cash not in liquidation of the Company.

     "Non-Surviving Combination" shall mean any merger, consolidation or other
business combination by the Company with one or more other entities in a
transaction in which the Company is not the surviving entity or becomes a
wholly-owned subsidiary of another entity.

     "outstanding" shall mean, as of the time of determination, when used with
respect of any Warrants, all Warrants originally issued under this Agreement
except (i) Warrants that have been exercised pursuant to Section 3.2(a), (ii)
Warrants that have expired pursuant to Sections 3.2(b), 5 or 7 and (iii)
Warrants that have otherwise been acquired by the Company; provided, however,
that in determining whether the Holders of the requisite amount of the
outstanding Warrants have given any request, demand, authorization, direction,
notice, consent or waiver under the provisions of this Agreement, Warrants owned
by the Company or any Subsidiary or Affiliate of the Company or any Person that
is at such time a party to a merger or acquisition agreement with the Company
shall be disregarded and deemed not to be outstanding.

     "Person" shall mean any individual, corporation (including a business
trust), partnership, joint venture, association, joint-stock company, trust,
estate, limited liability company, unincorporated association, unincorporated
organization, government or agency or political subdivision thereof or any other
entity.

                                       -5-
<PAGE>   10

     "Purchase Agreement" shall mean that Purchase Agreement, dated April 21,
1998, by and among the Company and the Purchasers, as such agreement may be
amended, modified or supplemented from time to time.

     "Purchasers" shall mean the purchasers named in the Purchase Agreement.

     "Qualified Institutional Buyer" shall have the meaning given such term in
Rule 144A under the Securities Act.

     "Recipient" shall have the meaning given such term in Section 3.2(e).

     "Registrar" shall have the meaning set forth in the Indenture.

     "Restricted Warrants" shall have the meaning given such term in Section
2.2(b).

     "Restricted Warrant Legend" shall mean the legend so designated on the
Warrant Certificate attached hereto as Exhibit A.

     "Rule 144" shall mean Rule 144 promulgated under the Securities Act.

     "Separation Date" shall mean the date that is the earlier of (i) the date
on which the Exchange Offer Registration Statement is declared effective under
the Securities Act and (ii) October 23, 1998. The Company shall notify the
Warrant Agent promptly if the Separation Date occurs prior to October 23, 1998
in accordance with Section 13.3. The Company shall notify the Warrant Agent in
accordance with Section 13.3 if the Unit Termination Date occurs prior to
October 23, 1998.

     "SEC" shall mean the Securities and Exchange Commission or any successor
agency thereto.

     "Securities Act" shall mean the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

     "Subsidiary" shall mean, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination
thereof.

                                       -6-
<PAGE>   11

     "Voting Stock" shall mean, with respect to any Person, one or more classes
of the Capital Stock of such Person entitled to vote under ordinary
circumstances in the election of directors, managers or trustees of such Person.

     "Units" shall have the meaning set forth in the Preamble.

     "Unit Certificate" shall have the meaning set forth in the Indenture.

     "Unit Termination Date" shall mean (i) October 23, 1998, or (ii) such
earlier date as determined under the Indenture.

     "Warrant Agent" shall mean the warrant agent named in the preamble hereof
or the successor or successors of such Warrant Agent appointed in accordance
with the terms hereof.

     "Warrant Certificates" shall mean those certain warrant certificates
evidencing the Warrants, substantially in the form of Exhibit A attached hereto.

     "Warrant Price" shall mean the exercise price per Warrant Share, initially
set at $2.40, subject to adjustment as provided in Section 6.1(g).

     "Warrant Register" shall have the meaning given such term in Section 9.

     "Warrant Registration Rights Agreement" shall mean that certain Warrant
Registration Rights Agreement, dated as of April 21, 1998, by and among the
Company and the Purchasers, as such agreement may be amended, modified or
supplemented from time to time.

     "Warrant Shares" shall mean the Common Shares issuable upon exercise of the
Warrants, the number of which is subject to adjustment from time to time in
accordance with Section 6.

     "Warrants" shall mean those warrants issued hereunder to purchase initially
up to an aggregate of 825,000 Warrant Shares at the Warrant Price, subject to
adjustment pursuant to Section 6.

     "Warrants Shelf Registration Statement" shall have the meaning given such
term in the Warrant Registration Rights Agreement.

                                       -7-
<PAGE>   12

2.   WARRANT CERTIFICATES

     2.1  Issuance of Warrants

          (a) An aggregate of 825,000 Warrants are deemed issued on the date of
this Agreement to the registered holders of Unit Certificates issued pursuant to
the Indenture on such date. Notwithstanding any provision of this Agreement to
the contrary, on or prior to the Unit Termination Date, the Warrants shall be
evidenced by the Unit Certificates issued pursuant to the terms of the Indenture
and the ownership of which shall be registered by the Registrar in accordance
with the Indenture.

          (b) After the Unit Termination Date, the Warrant Agent shall issue
Warrant Certificates to each registered owner of Unit Certificates as of the
close of the Unit Termination Date, in the name and number (7.933 Warrants per
Unit) and in such form (global or definitive) as set forth on a list of
registered holders of Unit Certificates as of the close of the Unit Termination
Date furnished to the Warrant Agent by the Registrar pursuant to Section 2.15 of
the Indenture; provided that no Warrant Certificate shall be issued to holders
in respect of Unit Certificates that have been noted by the Warrant Agent as
having had the Warrants evidenced thereby exercised pursuant to Section 3.2(g)
hereof. Each Warrant Certificate issued pursuant to this paragraph (b) shall
evidence 7.933 Warrants multiplied by the number of Units specified as held by
the holder as set forth in the above list, and each Warrant evidenced thereby
shall represent the right, subject to the provisions contained herein and
therein, to purchase one Warrant Share, subject to adjustment as provided in
Section 6.

     2.2  Form, Denomination and Date of Warrants

          (a) The Unit Certificates shall be issued in the form provided in the
Indenture. Warrant Certificates shall be substantially in the form of Exhibit A
hereto. The Warrants shall be numbered, lettered or otherwise distinguished in
such manner or in accordance with such plans as the officers of the Company
executing the same may determine with the approval of the Warrant Agent. Each
Warrant shall be dated the date of its authentication. Any of the Warrants may
be issued with appropriate insertions, omissions, substitutions and variations,
and may have imprinted or otherwise reproduced thereon such legend or legends,
not inconsistent with the provisions of this Agreement, as may be required to
comply with any law or with any rules or regulations pursuant thereto, or with
the rules of any securities market in which the Warrants are admitted to
trading, or to conform to general usage. All Warrants shall be otherwise
substantially identical except as to denomination and as provided herein.

                                       -8-
<PAGE>   13

          (b) Purchasers of Warrants will receive certificated Warrants bearing
the Restricted Warrant Legend ("Restricted Warrants"). Restricted Warrants will
bear the Restricted Warrant Legend unless removed in accordance with Section
2.4.

     Upon the occurrence of an Effective Registration, all requirements with
respect to legends on Warrants will cease to apply, and certificated Warrants
without legends will be available to the Holders.

     2.3  Execution and Delivery of Warrant Certificates

          (a) Warrant Certificates evidencing the Warrants which may be
countersigned and delivered under this Agreement are limited to Warrant
Certificates evidencing 825,000 Warrants, except for Warrant Certificates
countersigned and delivered upon registration of transfer of, or in exchange
for, or in lieu of, one or more previously countersigned Warrant Certificates
pursuant to Sections 2.6, 3.2(d), 7 and 9.

          (b) At any time and from time to time on or after the date of this
Agreement, Warrant Certificates evidencing the Warrants may be executed by the
Company and delivered to the Warrant Agent for countersignature, and the Warrant
Agent shall, upon receipt of a Company Order and at the direction of the Company
set forth therein, countersign and deliver such Warrant Certificates to the
Company for issuance. The Warrant Agent is further hereby authorized to
countersign and deliver Warrant Certificates as required by this Section 2.3 or
by Sections 2.2, 2.6, 3.2(d), 7 or 9.

          (c) The Warrant Certificates shall be executed in the corporate name
and on behalf of the Company by the Chairman (or any Co-Chairman) of the Board,
the Chief Executive Officer, the President or any one of the Vice Presidents of
the Company under corporate seal reproduced thereon and attested to by the
Secretary or one of the Assistant Secretaries of the Company, either manually or
by facsimile signature printed thereon. The Warrant Certificates shall be
countersigned by the Warrant Agent and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company whose signature shall have
been placed upon any of the Warrant Certificates shall cease to be such officer
of the Company before countersignature by the Warrant Agent and issue and
delivery thereof, such Warrant Certificates may, nevertheless, be countersigned
by the Warrant Agent and issued and delivered with the same force and effect as
though such person had not ceased to be such officer of the Company, and any
Warrant Certificate may be signed on behalf of the Company by such person as, at
the actual date of the execution of such Warrant Certificate, shall be a proper
officer of the Company, although at the date of the execution of this Agreement
any such person was not such an officer.

                                       -9-
<PAGE>   14

          (d) The Warrants are being offered and sold by the Company pursuant to
the Purchase Agreements. Warrants offered and sold to Qualified Institutional
Buyers shall be evidenced initially by a single, permanent Global Unit
Certificate in definitive, fully registered form with appropriate restrictive
legends set forth thereon (the "Global Unit Certificate") deposited with The
Bank of New York, as custodian for and registered in the name of the Depositary
or a nominee of the Depositary. The number of Warrants represented by such
Global Unit Certificate may from time to time be increased or decreased by
adjustments made on the records of the Registrar and the Depositary or its
nominee as provided in the Indenture. After the Unit Termination Date, a Warrant
Certificate issued in the name Depositary in respect of the Global Unit
Certificate shall be a single, permanent Global Warrant Certificate in
definitive, fully registered form with the Global Warrant Legend and Restricted
Warrant Legend set forth on the form of Warrant (the "Global Warrant") and
deposited with the Warrant Agent, as custodian for and registered in the name of
the Depositary or a nominee of the Depositary, duly executed by the Company and
authenticated by the Warrant Agent as hereinafter provided. The number of
Warrants represented by such Global Warrant may from time to time be increased
or decreased by adjustments made on the records of the Warrant Agent and the
Depositary or its nominee as hereinafter provided.

          (e) This Section 2.3(e) shall apply only to the Global Warrant
deposited with or on behalf of the Depositary.

              Members of, or participants in, the Depositary ("Agent Members")
shall have no rights under this Agreement with respect to any Global Warrant
held on their behalf by the Depositary or under the Global Warrant, and the
Depositary may be treated by the Company, the Warrant Agent, and any agent of
the Company or the Warrant Agent as the absolute owner of the Global Warrant for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Warrant Agent, or any agent of the Company or the
Warrant Agent, from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Agent Members the operation of customary practices governing the
exercise of the rights of a holder of any Warrant.

          (f) Except as otherwise provided herein, owners of beneficial
interests in the Global Warrant will not be entitled to receive physical
delivery of certificated Warrants. After the Unit Termination Date, purchasers
of Warrants who are not Qualified Institutional Buyers, or holders of Unit
Certificates as of the Unit Termination Date and issued in definitive form, will
receive certificated Warrants bearing the Restricted Warrant Legend ("Restricted
Warrants"); provided, however, that upon transfer of such certificated Warrants
to a Qualified Institutional Buyer, such certificated Warrants will, until the
Global Warrant has previously been exchanged, be exchanged for an interest in
the Global Warrant pursuant to the provisions of Section 2.4

                                      -10-
<PAGE>   15

hereof. Restricted Warrants will bear the Restricted Warrant Legend unless
removed in accordance with Section 2.4(b).

     Upon the occurrence of an Effective Registration, all requirements with
respect to the Global Warrant and legends on Warrants will cease to apply, and
certificated Warrants without legends will be available to the Holders.

     2.4  Transfer and Exchange

          (a) If a holder of a Restricted Warrant wishes at any time to transfer
such Restricted Warrant to a Person who wishes to take delivery thereof in the
form of a Restricted Warrant, such holder may, subject to the restrictions on
transfer set forth herein and in such Restricted Warrant, cause the exchange of
such Restricted Warrants for one or more Restricted Warrants of any authorized
denomination or denominations and exercisable for the same aggregate number of
Warrant Shares. Upon receipt by the Warrant Agent at its Corporate Agency Office
of (1) such Restricted Warrant, duly endorsed as provided herein, (2)
instructions from such holder directing the Warrant Agent to authenticate and
deliver one or more Restricted Warrants exercisable for the same aggregate
number of Warrant Shares as the Restricted Warrant to be exchanged, such
instructions to contain the name or names of the designated transferee or
transferees, the authorized denomination or denominations of the Restricted
Warrants to be so issued and appropriate delivery instructions, (3) a
certificate in the form of Exhibit B attached hereto given by the Person
acquiring the Restricted Warrants, to the effect set forth therein, and (4) an
opinion of counsel to the transferor of such Restricted Warrant in the form of
Exhibit C hereto, to the effect set forth therein, then the Warrant Agent shall
cancel or cause to be canceled such Restricted Warrant and, concurrently
therewith, the Company shall execute, and the Warrant Agent shall authenticate
and deliver, one or more Restricted Warrants to the effect set forth therein, in
accordance with the instructions referred to above.

          (b) If Warrants are issued upon the transfer, exchange or replacement
of Warrants bearing the Restricted Warrant Legend, or if a request is made to
remove such Restricted Warrant Legend, the Warrants so issued shall bear the
Restricted Warrant Legend, or the Restricted Warrant Legend shall not be
removed, as the case may be, unless (i) there is delivered to the Company
satisfactory evidence, which may include an opinion of counsel as may be
reasonably required by the Company to the effect that neither the Restricted
Warrant Legend nor the restrictions on transfer set forth therein are required
to ensure that transfers thereof comply with the provisions of the Securities
Act or, with respect to Restricted Warrants, that such Warrants are not
"restricted" within the meaning of Rule 144 under the Securities Act or (ii)
there is an Effective Registration with respect to the Warrants then in effect
or the Warrants as to which the Restricted Warrant Legend is sought to be
removed have been disposed of in accordance with the Warrants Shelf
Registration. Upon (i) provision of such satisfactory

                                      -11-
<PAGE>   16

evidence, or (ii) notification by the Company to the Warrant Agent of an
Effective Registration with respect to the Warrants, the Warrant Agent, at the
direction of the Company, shall authenticate and deliver Warrant Certificates
that do not bear the Restricted Warrant Legend.

          (c) No service charge shall be made to a Warrantholder for any
registration of transfer or exchange; provided, however, that the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Warrant Certificates.

          (d) The Warrant Agent shall use CUSIP numbers in notices of repurchase
or exchange as a convenience to Warrantholders; provided that any such notice
shall state that no representation is made as to the correctness or accuracy of
such numbers either as printed on the Warrants or as contained in any notice of
repurchase or exchange and that reliance may be placed only on the other
identification numbers printed on the Warrants. The Company will promptly notify
the Warrant Agent of any change in the CUSIP numbers.

     2.5  Temporary Securities

          Pending the preparation of definitive Warrants, the Company may
execute and the Warrant Agent shall authenticate and deliver temporary Warrants
(printed, lithographed, typewritten or otherwise reproduced, in each case in
form satisfactory to the Warrant Agent). Temporary Warrants shall be issuable as
registered Warrants, of any authorized denomination, and substantially in the
form of the definitive Warrants but with such omissions, insertions and
variations as may be appropriate for temporary Warrants, all as may be
determined by the Company with the concurrence of the Warrant Agent. Temporary
Warrants may contain such reference to any provisions of this Agreement as may
be appropriate. Every temporary Warrant shall be executed by the Company and be
authenticated by the Warrant Agent upon the same conditions and in substantially
the same manner, and with like effect, as the definitive Warrants. Without
unreasonable delay the Company shall execute and shall furnish definitive
Warrants and thereupon temporary Warrants may be surrendered in exchange
therefor without charge at each office or agency to be maintained by the Company
for the purpose pursuant to Section 12.3, and the Warrant Agent shall
authenticate and deliver in exchange for such temporary Warrants definitive
Warrants of authorized denominations exercisable for a like number of Warrant
Shares. Until so exchanged the temporary Warrants shall be entitled to the same
benefits under this Agreement as definitive Warrants.

     2.6  Effective Registration

          In the event the Company has an Effective Registration, the Company
shall notify the Warrant Agent within two Business Days after the Effective
Date. Promptly after delivering

                                      -12-
<PAGE>   17

to the Warrant Agent notice of the Effective Registration, the Company shall
cause to be delivered to the Warrant Agent certificates for Warrants without
legends and the Warrant Agent shall authenticate and deliver certificated
Warrants without legends to Holders presenting their certificated Warrants for
exchange to transferees of Warrants covered by the Warrants Shelf Registration
in the names and denominations specified by them.

3.   EXERCISE AND EXPIRATION OF WARRANTS

     3.1  Right to Acquire Warrant Shares Upon Exercise

          Each Warrant Certificate (or prior to the Unit Termination Date, each
Unit Certificate) shall, when countersigned by the Warrant Agent, entitle the
Holder thereof, subject to the provisions thereof and of this Agreement, to
acquire from the Company, for each Warrant evidenced thereby, one Warrant Share
at the Warrant Price, subject to adjustment as provided in this Agreement. The
Warrant Price shall be adjusted from time to time as required by Section 6.1.
The Warrants are exercisable at any time after the Separation Date and on or
prior to the Expiration Date.

     3.2  Exercise and Expiration of Warrants

          (a) Exercise of Warrants. Subject to the terms and conditions set
forth herein, including, without limitation, the exercise procedure described in
Section 3.2(c), a Holder of a Warrant Certificate may exercise all or any whole
number of the Warrants evidenced thereby, on any Business Day from and after the
Separation Date until 5:00 p.m., New York City time, on the Expiration Date
(subject to earlier expiration pursuant to Section 5) for the Warrant Shares
purchasable thereunder. The Company shall notify the Warrant Agent promptly if
the Separation Date occurs prior to October 23, 1998 in accordance with Section
13.3.

          (b) Expiration of Warrants. The Warrants shall terminate and become
void as of 5:00 P.M., New York time on the Expiration Date, subject to earlier
expiration in accordance with Section 5. In the event that the Warrants are to
expire by reason of Section 5, the term "Expiration Date" shall mean such
earlier date for all purposes of this Agreement.

          (c)  Method of Exercise. The Holder may exercise all or any of the
Warrants by either of the following methods:

               (i) The Holder may deliver to the Warrant Agent at the Corporate
Agency Office (A) a written notice of such Holder's election to exercise
Warrants, duly executed by such Holder in the form set forth on the reverse of,
or attached to, such Warrant Certificate, which notice shall specify the number
of Warrant Shares to be purchased, (B) the Warrant

                                      -13-
<PAGE>   18

Certificate evidencing such Warrants and (C) a sum equal to the aggregate
Warrant Price for the Warrant Shares into which such Warrants are being
exercised, which sum shall be paid in any combination elected by such Holder of
(x) official bank checks in New York Clearing House funds payable to the order
of the Company and delivered to the Warrant Agent at the corporate Agency
Office, or (y) wire transfers in immediately available funds to the account of
the Company at such banking institution as the Company shall have given notice
to the Warrant Agent and the Holders in accordance with Section 13.1(b); or

               (ii) The Holder may also exercise all or any of the Warrants in a
"cashless" or "net-issue" exercise by delivering to the Warrant Agent at the
Corporate Agency Office (A) a written notice of such Holder's election to
exercise Warrants, duly executed by such Holder in the form set forth on the
reverse of, or attached to, such Warrant Certificate, which notice shall specify
the number of Warrant Shares to be delivered to such Holder and the number of
Warrant Shares with respect to which such Warrants are being surrendered in
payment of the aggregate Warrant Price for the Warrant Shares to be delivered to
the Holder, and (B) the Warrant Certificate evidencing such Warrants. For
purposes of this subparagraph (ii), each Warrant Share as to which such Warrants
are surrendered in payment of the aggregate Warrant Price will be attributed a
value equal to (x) the Current Market Price per share of Common Shares minus (y)
the then-current Warrant Price.

          (d) Partial Exercise. If fewer than all the Warrants represented by a
Warrant Certificate are exercised, such Warrant Certificate shall be surrendered
and a new Warrant Certificate of the same tenor and for the number of Warrants
which were not exercised shall be executed by the Company. The Warrant Agent
shall countersign the new Warrant Certificate, registered in such name or names,
subject to the provisions of Section 9, as may be directed in writing by the
Holder, and shall deliver the new Warrant Certificate to the Person or Persons
in whose name such new Warrant Certificate is so registered. The Company,
whenever required by the Warrant Agent, will supply the Warrant Agent with
Warrant Certificates duly executed on behalf of the Company for such purpose.

          (e) Issuance of Warrant Shares. Upon surrender of a Warrant
Certificate evidencing Warrants in conformity with the foregoing provisions and
payment of the Warrant Price in respect of the exercise of one or more Warrants
evidenced thereby, the Warrant Agent shall, when such payment is received,
deliver to the Company the notice of exercise received pursuant to Section
3.2(c), and, in accordance with Section 3.3, deliver or deposit all funds
received as instructed in writing by the Company and advise the Company by
telephone at the end of such day of the amount of funds so deposited to its
account. The Company shall thereupon, as promptly as practicable, and in any
event within five Business Days after receipt by the Company of such notice of
exercise, execute or cause to be executed and deliver or cause to be delivered
to the Recipient (as defined below) a certificate or certificates representing
the

                                      -14-
<PAGE>   19

aggregate number of Warrant Shares issuable upon such exercise (based upon the
aggregate number of Warrants so exercised), determined in accordance with
Section 3.6, together with an amount in cash in lieu of any fractional share(s)
determined in accordance with Section 6.4. The certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as such Holder shall request in such notice of exercise and shall
be registered or otherwise placed in the name of, and delivered to, the Holder
or, subject to Section 2.2 and Section 3.4, such other Person as shall be
designated by the Holder in such notice (the Holder or such other Person being
referred to herein as the "Recipient").

          (f) Time of Exercise. A Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date on which all requirements
set forth in Section 3.2(c) applicable to such exercise have been satisfied.
Subject to Section 6.1(f)(iv), certificate(s) evidencing the Warrant Shares
issued upon the exercise of such Warrant shall be deemed to have been issued
and, for all purposes of this Agreement, the Recipient shall, as between such
Person and the Company, be deemed to be and entitled to all rights of the holder
of record of such Warrant Shares as of such time.

          (g) Exercise of Certain Warrants Evidenced by Unit Certificates. In
the event Warrants continue to be evidenced by Unit Certificates after the
Separation Date, a holder of a Unit Certificate may, from and after the
Separation Date but prior to 5:00 p.m., New York time on the Unit Termination
Date, exercise all (but not less than all) the Warrants evidenced thereby by
complying with Section 3.2 (c) hereof and delivering the Unit Certificate
evidencing the Warrants to the Warrant Agent in lieu of a Warrant Certificate. A
notation shall be placed on the Unit Certificate by the Warrant Agent indicating
that the Warrants evidenced by such Unit Certificate have been fully exercised
and accordingly such Warrants are no longer outstanding. The noted Unit
Certificate shall be delivered by the Warrant Agent to the offices of the
Registrar for cancellation and reissuance to the registered holder in the
appropriate form of Note. Registered holders of Unit Certificates as of the Unit
Termination Date shall also be entitled to exercise the Warrants to which they
are entitled prior to issuance of their Warrant Certificates pursuant to Section
2.1(b) by complying with Section 3.2(c) except that delivery of a Warrant
Certificate shall not be required, whereupon such registered holder shall be
entitled to receive a Warrant Certificate only with respect to any unexercised
Warrants. The Warrant Agent shall keep a record of Unit Certificates (by number
and registered holder) that have been properly tendered to the Warrant Agent for
Warrant exercise pursuant to this Section 3.2(g).

     3.3  Application of Funds Upon Exercise of Warrants

          Any funds delivered to the Warrant Agent upon exercise of any
Warrant(s) shall be held by the Warrant Agent in trust for the Company. The
Warrant Agent shall promptly deliver and pay to or upon the written order of the
Company all funds received by it upon the

                                      -15-
<PAGE>   20

exercise of any Warrants by bank wire transfer to an account designated by the
Company or as the Warrant Agent otherwise may be directed in writing by the
Company.

     3.4  Payment of Taxes

          The Company shall pay any and all taxes (other than income taxes) and
other charges that may be payable in respect of the issue or delivery of Warrant
Shares on exercise of Warrants pursuant hereto. The Company shall not be
required, however, to pay any tax or other charge imposed in respect of any
transfer involved in the issue and delivery of any certificates for Warrant
Shares or payment of cash to any Recipient other than the Holder of the Warrant
Certificate surrendered upon the exercise of a Warrant, and in case of such
transfer or payment, the Warrant Agent and the Company shall not be required to
issue or deliver any certificate or pay any cash until (a) such tax or charge
has been paid or an amount sufficient for the payment thereof has been delivered
to the Warrant Agent or the Company or (b) it has been established to the
Company's satisfaction that any such tax or other charge that is or may become
due has been paid.

     3.5  Surrender of Certificates

          Any Warrant Certificate surrendered for exercise shall, if surrendered
to the Company, be delivered to the Warrant Agent, and all Warrant Certificates
surrendered or so delivered to the Warrant Agent shall be promptly canceled by
such Warrant Agent and shall not be reissued by the Company. The Warrant Agent
shall destroy such canceled Warrant Certificates and deliver its certificate of
destruction to the Company, unless the Company shall otherwise direct.

     3.6  Shares Issuable

          The number of Warrant Shares "issuable upon exercise" of Warrants at
any time shall be the number of Warrant Shares into which such Warrants are then
exercisable. The number of Warrant Shares "into which each Warrant is
exercisable" initially shall be one share, subject to adjustment as provided in
Section 6.1.

4.   REGISTRATION RIGHTS

     The Warrantholders and holders of Warrant Shares shall have the
registration rights provided for in the Warrant Registration Rights Agreement.
The Warrant Agent shall keep copies of the Warrant Registration Rights Agreement
available for inspection by the Holders during normal business hours at its
office. The Company shall supply the Warrant Agent from

                                      -16-
<PAGE>   21

time to time with such numbers of copies of the Warrant Registration Rights
Agreement as the Warrant Agent may request.

5.   DISSOLUTION, LIQUIDATION OR WINDING UP

     If, on or prior to the Expiration Date, the Company (or any other Person
controlling the Company) shall propose a voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, the Company shall give
written notice thereof to the Warrant Agent and all Holders of Warrant
Certificates in the manner provided in Section 13 prior to the date on which
such transaction is expected to become effective or, if earlier, the record date
for such transaction. Such notice shall also specify the date as of which the
holders of record of the Common Shares shall be entitled to exchange their
shares for moneys, securities or other property deliverable upon such
dissolution, liquidation or winding up, as the case may be, on which date each
Holder of Warrant Certificates shall be entitled to receive the moneys,
securities or other property which such Holder would have been entitled to
receive had such Holder been the holder of record of the Warrant Shares into
which the Warrants were exercisable immediately prior to such dissolution,
liquidation or winding up (net of the then applicable Warrant Price) and the
rights to exercise the Warrants shall terminate.

     In case of any such voluntary or involuntary dissolution, liquidation or
winding up of the Company, the Company shall deposit with the Warrant Agent any
moneys, securities or other property which the Holders are entitled to receive
under this Agreement, together with a Company Order as to the distribution
thereof. After receipt of such deposit from the Company and after any Holder has
surrendered a Warrant Certificate to the Warrant Agent, the Warrant Agent shall
make payment in the appropriate amount to such Person or Persons as it may be
directed in writing by the Holder surrendering such Warrant Certificate. The
Warrant Agent shall not be required to pay interest on any money deposited
pursuant to the provisions of this Section 5 except such as it shall agree with
the Company to pay thereon. Any moneys, securities or other property which at
any time shall be deposited by the Company or on its behalf with the Warrant
Agent pursuant to this Section 5 shall be, and are hereby, assigned, transferred
and set over to the Warrant Agent in trust for the purpose for which such
moneys, securities or other property shall have been deposited; provided that
moneys, securities or other property need not be segregated from other moneys,
securities or other property held by the Warrant Agent except to the extent
required by law.

                                      -17-
<PAGE>   22

6.   ADJUSTMENTS

     6.1  Adjustments

          The number of Warrant Shares into which each Warrant is exercisable
and the Warrant Price shall be subject to adjustment from time to time after the
Effective Date in accordance (and only in accordance) with the provisions of
this Section 6:

          (a)  Stock Dividends, Subdivisions and Combinations.  In case at any
time or from time to time after the Effective Date the Company shall:

               (i) pay to the holders of its Common Shares a dividend payable
in, or make any other distribution on any class of its capital stock in, Common
Shares (other than a dividend or distribution upon a merger or consolidation or
sale to which Section 6.1(h) applies);

               (ii) subdivide its outstanding Common Shares into a larger number
of Common Shares (other than a subdivision upon a merger or consolidation or
sale to which Section 6.1(h) applies); or

               (iii) combine its outstanding Common Shares into a smaller number
of Common Shares (other than a combination upon a merger or consolidation or
sale to which Section 6.1(h) applies);

then, (x) in the case of any such dividend or distribution, effective
immediately after the opening of business on the day after the date for the
determination of the holders of Common Shares entitled to receive such dividend
or distribution or (y) in the case of any subdivision or combination, effective
immediately after the opening of business on the day after the day upon which
such subdivision or combination becomes effective, the number of Warrant Shares
into which each Warrant is exercisable shall be adjusted to that number of
Warrant Shares determined by (A) in the case of any such dividend or
distribution, multiplying the number of Warrant Shares into which each Warrant
is exercisable at the opening of business on the day after the day for
determination by a fraction (not to be less than one), (1) the numerator of
which shall be equal to the sum of the number of Common Shares outstanding at
the close of business on such date for determination and the total number of
shares constituting such dividend or distribution and (2) the denominator of
which shall be equal to the number of Common Shares outstanding at the close of
business on such date for determination, or (B) in the case of any such
combination, by proportionately reducing, or, in the case of any such
subdivision, by proportionately increasing, the number of Warrant Shares into
which each Warrant is exercisable at the opening of business on the day after
the day upon which such subdivision or combination becomes effective.

                                      -18-
<PAGE>   23

          (b) Certain Other Dividends and Distributions. In case at any time or
from time to time after the Effective Date the Company shall effect a Non- Stock
Dividend (other than any dividend or distribution of any warrants, options or
rights referred to in Section 6.1(d)), then, and in each such case, effective
immediately after the opening of business on the day after the date for the
determination of the holders of Common Shares entitled to receive such
distribution, the number of Warrant Shares into which each Warrant is
exercisable shall be adjusted to that number determined by multiplying the
number of Warrant Shares into which each Warrant is exercisable immediately
prior to the close of business on the date of determination by a fraction, (i)
the numerator of which shall be the Current Market Price per Common Share on
such date of determination and (ii) the denominator of which shall be such
Current Market Price per Common Share minus the portion applicable to one Common
Share of the fair market value (as determined in good faith by the Board of
Directors of the Company) of such securities or other assets so distributed.

          (c) Reclassifications. A reclassification of the Common Shares (other
than any such reclassification in connection with a merger or consolidation or
sale to which Section 6.1(h) applies) into Common Shares and shares of any other
class of stock shall be deemed a distribution by the Company to the holders of
its Common Shares of such shares of such other class of stock for the purposes
and within the meaning of Section 6.1(b) (and the effective date of such
reclassification shall be deemed to be "the date for the determination of the
holders of Common Shares entitled to receive such distribution" for the purposes
and within the meaning of Section 6.1(b)) and, if the outstanding number of
Common Shares shall be changed into a larger or smaller number of Common Shares
as a part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the outstanding Common Shares for the
purposes and within the meaning of Section 6.1(a) (and the effective date of
such reclassification shall be deemed to be "the day upon which such subdivision
or combination becomes effective" for the purposes and within the meaning of
Section 6.1(a)).

          (d) Distribution of Warrants or Other Rights to Holders of Common
Shares. In case at any time or from time to time after the Effective Date the
Company shall make a distribution to all holders of outstanding Common Shares of
any warrants, options or other rights to subscribe for or purchase any
Additional Common Shares or securities convertible into or exchangeable for
Additional Common Shares (other than a distribution of such warrants, options or
rights upon a merger or consolidation or sale to which Section 6.1(h) applies),
whether or not the rights to subscribe or purchase thereunder are immediately
exercisable, and the consideration per share for which Additional Common Shares
may at any time thereafter be issuable pursuant to such warrants or other rights
shall be less than the Current Market Price per Common Share on the date fixed
for determination of the holders of Common Shares entitled to receive such
distribution, then, and for each such case, effective immediately after the
opening of business on the day after the date for determination, the number of
Warrant Shares into which each Warrant

                                      -19-
<PAGE>   24

is exercisable shall be adjusted to that number determined by multiplying the
number of Warrant Shares into which each Warrant is exercisable at the opening
of business on the day after such date for determination by a fraction (not less
than one), (i) the numerator of which shall be the number of Common Shares
outstanding at the close of business on such date for determination plus the
maximum number of Additional Common Shares issuable pursuant to all such
warrants or other rights and (ii) the denominator of which shall be the number
of Common Shares outstanding at the close of business on such date for
determination plus the number of Common Shares that the minimum consideration
received and receivable by the Company for the issuance of such maximum number
of Additional Common Shares pursuant to the terms of such warrants or other
rights would purchase at such Current Market Price.

          (e) Superseding Adjustment of Number of Warrant Shares into Which Each
Warrant is Exercisable. In case at any time after any adjustment of the number
of Warrant Shares into which each Warrant is exercisable shall have been made
pursuant to Section 6.1(d) on the basis of the distribution of warrants or other
rights or after any new adjustment of the number of Warrant Shares into which
each Warrant is exercisable shall have been made pursuant to this Section
6.1(e), such warrants or rights shall expire, and all or a portion of such
warrants or rights shall not have been exercised, then, and in each such case,
upon the election of the Company by written notice to the Warrant Agent, such
previous adjustment in respect of such warrants or rights which have expired
without exercise shall be rescinded and annulled as to any then outstanding
Warrants, and the Additional Common Shares that were deemed for purposes of the
computations set forth in Section 6.1(d) to have been issued or sold by virtue
of such adjustment in respect of such warrants or rights shall no longer be
deemed to have been distributed.

          (f) Other Provisions Applicable to Adjustments under this Section. The
following provisions shall be applicable to the making of adjustments of the
number of Warrant Shares into which each Warrant is exercisable and to the
Warrant Price under this Section 6.1:

               (i) Treasury Stock. The sale or other disposition (other than any
shares specified in the definition of "Additional Common Shares") of any issued
Common Shares owned or held by or for the account of the Company shall be deemed
an issuance or sale of Additional Common Shares for purposes of this Section 6.
The Company shall not pay any dividend on or make any distribution on Common
Shares held in the treasury of the Company. For the purposes of this Section
6.1, the number of Common Shares at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of Common Shares.

               (ii)  When Adjustments Are to be Made. The adjustments required
by Sections 6.1(a), 6.1(b) 6.1(c) and 6.1(d) shall be made whenever and as often
as any specified

                                      -20-
<PAGE>   25

event requiring an adjustment shall occur, except that no adjustment of the
Warrant Shares into which each Warrant is exercisable that would otherwise be
required shall be made unless and until such adjustment either by itself or with
other adjustments not previously made increases or decreases the Warrant Shares
into which each Warrant is exercisable immediately prior to the making of such
adjustment by at least 1%. Any adjustment representing a change of less than
such minimum amount (except as aforesaid) shall be carried forward and made as
soon as such adjustment, together with other adjustments required by Sections
6.1(a), 6.1(b), 6.1(c) and 6.1(d) and not previously made, would result in such
minimum adjustment.

               (iii) Fractional Interests. In computing adjustments under this
Section 6, fractional interests in Common Shares shall be taken into account to
the nearest one-thousandth of a share.

               (iv) Deferral of Issuance upon Exercise. In any case in which
this Section 6 shall require that an adjustment to the Warrant Shares into which
each Warrant is exercisable be made effective pursuant to Section 6.1(a)(i),
6.1(b) or 6.1(d) prior to the occurrence of a specified event and any Warrant is
exercised after the time at which the adjustment became effective but prior to
the occurrence of such specified event the Company may elect to defer until the
occurrence of such specified event the issuing to the Holder of the Warrant
Certificate evidencing such Warrant (or other Person entitled thereto) of, and
may delay registering such Holder or other Person as the recordholder of, the
Warrant Shares over and above the Warrant Shares issuable upon such exercise
determined in accordance with Section 3.6 on the basis of the Warrant Shares
into which each Warrant is exercisable prior to such adjustment determined in
accordance with Section 3.6; provided, however, that the Company shall deliver
to such Holder or other person a due bill or other appropriate instrument
evidencing the right of such Holder or other Person to receive, and to become
the record holder of, such Additional Common Shares, upon the occurrence of the
event requiring such adjustment.

          (g) Warrant Price Adjustment. Whenever the number of Warrant Shares
into which a Warrant is exercisable is adjusted as provided in this Section 6.1,
the Warrant Price payable upon exercise of the Warrant shall simultaneously be
adjusted by multiplying such Warrant Price immediately prior to such adjustment
by a fraction, the numerator of which shall be the number of Warrant Shares into
which such Warrant was exercisable immediately prior to such adjustment, and the
denominator of which shall be the number of Warrant Shares into which such
Warrant was exercisable immediately thereafter.

          (h) Merger, Consolidation or Combination. In the event the Company
merges, consolidates or otherwise combines with or into any Person, then, as a
condition of such merger, consolidation or combination, lawful and adequate
provisions shall be made whereby Warrantholders shall, in addition to their
other rights hereunder, thereafter have the right to

                                      -21-
<PAGE>   26

purchase and receive upon the basis and upon the terms and conditions specified
in this Agreement upon exercise of the Warrants and in lieu of the Warrant
Shares immediately theretofore purchasable and receivable upon the exercise of
the rights represented hereby, such shares of stock, securities or assets as may
be issued or payable with respect to or in exchange for a number of outstanding
Common Shares equal to the number of Warrant Shares immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby,
and in any such case appropriate provision shall be made with respect to the
rights and interests of the Warrantholders to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the number of
Warrant Shares) shall thereafter be applicable, as nearly as may be practicable,
in relation to any shares of stock, securities or assets thereafter deliverable
upon the exercise hereof.

          (i) Compliance with Governmental Requirements. Before taking any
action that would cause an adjustment reducing the Warrant Price below the then
par value of any of the Warrant Shares into which the Warrants are exercisable,
the Company will take any corporate action that may be necessary in order that
the Company may validly and legally issue fully paid and non-assessable Warrant
Shares at such adjusted Warrant Price.

          (j) Optional Tax Adjustment. The Company may at its option, at any
time during the term of the Warrants, increase the number of Warrant Shares into
which each Warrant is exercisable, or decrease the Warrant Price, in addition to
those changes required by Section 6.1(a), 6.1(b), 6.1(c), 6.1(d) or 6.1(g), as
deemed advisable by the Board of Directors of the Company, in order that any
event treated for Federal income tax purposes as a dividend of stock or stock
rights shall not be taxable to the Recipients.

          (k) Warrants Deemed Exercisable. For purposes solely of this Section
6, the number of Warrant Shares which the holder of any Warrant would have been
entitled to receive had such Warrant been exercised in full at any time or into
which any Warrant was exercisable at any time shall be determined assuming such
Warrant was exercisable in full at such time, although such Warrant may not be
exercisable in full at such time pursuant to Section 3.2(a).

          (l) Limitations on Certain Non-Stock Dividends. The Company agrees
that it will not declare or pay any Non-Stock Dividend subject to Section 6.1(b)
hereof to the extent that the fair market value of the property or other assets
to be distributed in respect of one Common Share equals or exceeds the Current
Market Price per Common Share at the date of determination.

                                      -22-

<PAGE>   27

     6.2  Notice of Adjustment

          Whenever the number of Warrant Shares into which a Warrant is
exercisable is to be adjusted, or the Warrant Price is to be adjusted, in either
case as herein provided, the Company shall compute the adjustment in accordance
with Section 6.1, and shall, promptly after such adjustment becomes effective,
cause a notice of such adjustment or adjustments to be given to all Holders in
accordance with Section 13.1(b) and shall deliver to the Warrant Agent a
certificate of the Chief Financial Officer of the Company setting forth the
number of Warrant Shares into which each Warrant is exercisable after such
adjustment, or the adjusted Warrant Price, as the case may be, and setting forth
in brief a statement of the facts requiring such adjustment and the computation
by which such adjustment was made. As provided in Section 11.1, the Warrant
Agent shall be entitled to rely on such certificate and shall be under no duty
or responsibility with respect to any such certificate, except to exhibit the
same from time to time to any Holder desiring an inspection thereof during
reasonable business hours.

     6.3  Statement on Warrant Certificates

          Irrespective of any adjustment in the number or kind of shares into
which the Warrants are exercisable, Warrant Certificates theretofore or
thereafter issued may continue to express the same price and number and kind of
shares initially issuable pursuant to this Agreement.

     6.4  Fractional Interest

          The Company shall not issue fractional Warrant Shares on the exercise
of Warrants. If Warrant Certificates evidencing more than one Warrant shall be
presented for exercise at the same time by the same Holder, the number of full
Warrant Shares which shall be issuable upon such exercise thereof shall be
computed on the basis of the aggregate number of Warrants so to be exercised. If
any fraction of a Warrant Share would, except for the provisions of this Section
6.4, be issuable on the exercise of any Warrant (or specified portion thereof),
the Company shall, in lieu of issuing any fractional Warrant Shares, pay an
amount in cash calculated by it to be equal to the then Current Market Price per
Common Share on the date of such exercise multiplied by such fraction computed
to the nearest whole cent. The Holders, by their acceptance of the Warrant
Certificates, expressly waive their right to receive any fraction of a Warrant
Share or a stock certificate representing a fraction of a Warrant Share.

                                      -23-
<PAGE>   28

7.   LOSS OR MUTILATION

     Upon (i) receipt by the Company and the Warrant Agent of evidence
satisfactory to them of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and such security or indemnity as may be
required by them to save each of them harmless and (ii) surrender, in the case
of mutilation, of the mutilated Warrant Certificate to the Warrant Agent and
cancellation thereof, then, in the absence of notice to the Company or the
Warrant Agent that the Warrants evidenced thereby have been acquired by a bona
fide purchaser, the Company shall execute and upon its written request the
Warrant Agent shall countersign and deliver to the registered Holder of the
lost, stolen, destroyed or mutilated Warrant Certificate, in exchange therefor
or in lieu thereof, a new Warrant Certificate of the same tenor and for a like
aggregate number of Warrants. At the written request of such registered Holder,
the new Warrant Certificate so issued shall be retained by the Warrant Agent as
having been surrendered for exercise, in lieu of delivery thereof to such
Holder, and shall be deemed for purposes of Section 3.2 to have been surrendered
for exercise on the date the conditions specified in clauses (i) and (ii) of the
preceding sentence were first satisfied.

     Upon the issuance of any new Warrant Certificate under this Section 7, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and other expenses
(including the fees and expenses of the Warrant Agent and of counsel to the
Company) in connection therewith.

     Every new Warrant Certificate executed and delivered pursuant to this
Section 7 in lieu of any lost, stolen or destroyed Warrant Certificate shall
constitute an additional contractual obligation of the Company, whether or not
the allegedly lost, stolen or destroyed Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Warrant Certificates duly
executed and delivered hereunder.

     The provisions of this Section 7 are exclusive and shall preclude (to the
extent lawful) all other rights or remedies with respect to the replacement of
mutilated, lost, stolen, or destroyed Warrant Certificates.

8.   RESERVATION AND AUTHORIZATION OF WARRANT SHARES

     The Company shall at all times reserve and keep available, free from
preemptive rights, solely for issue upon the exercise of Warrants as herein
provided, such number of its authorized but unissued Warrant Shares deliverable
upon the exercise of Warrants as will be sufficient to permit the exercise in
full of all outstanding Warrants. The Company covenants that all Warrant Shares
will, at all times that Warrants are exercisable, be duly approved for listing
subject to

                                      -24-
<PAGE>   29

official notice of issuance on each securities exchange, if any, on which the
Common Shares are then listed. The Company covenants that (i) all Warrant Shares
that may be issued upon exercise of Warrants shall upon issuance be duly and
validly authorized, issued and fully paid and non-assessable and free of
preemptive or similar rights and (ii) the stock certificates issued to evidence
any such Warrant Shares will comply with the Oklahoma General Corporation Act
and any other applicable law.

     The Company hereby authorizes and directs its current and future transfer
agents for the Common Shares at all times to reserve stock certificates for such
number of authorized shares as shall be required for such purpose. The Warrant
Agent is hereby authorized to requisition from time to time from any such
transfer agents stock certificates required to honor outstanding Warrants upon
exercise thereof in accordance with the terms of this Agreement, and the Company
hereby authorizes and directs such transfer agents to comply with all such
requests of the Warrant Agent. The Company will supply such transfer agents with
duly executed stock certificates for such purposes. Promptly after the date of
expiration of all of the Warrants in accordance with Section 3.2(b), the Warrant
Agent shall certify to the Company the aggregate number of Warrants then
outstanding, and thereafter no Warrant Shares shall be reserved in respect of
such Warrants.

9.   WARRANT TRANSFER BOOKS

     The Warrant Agent will maintain an office (the "Corporate Agency Office")
in the United States of America, where Warrant Certificates may be surrendered
for registration of transfer or exchange and where Warrant Certificates may be
surrendered for exercise of Warrants evidenced thereby, which office is 40 Wall
Street, New York, New York 10005, Attention: Michael Karfunkel, on the date
hereof. The Warrant Agent will give prompt written notice to all Holders of
Warrant Certificates of any change in the location of such office.

     The Warrant Certificates evidencing the Warrants shall be issued in
registered form only. The Company shall cause to be kept at the office of the
Warrant Agent designated for such purpose a warrant register (the "Warrant
Register") in which, subject to such reasonable regulations as the Warrant Agent
may prescribe and such regulations as may be prescribed by law, the Company
shall provide for the registration of Warrant Certificates and of transfers or
exchanges of Warrant Certificates as herein provided.

     Subject to Section 2.4, upon surrender for registration of transfer of any
Warrant Certificate at the Corporate Agency Office, the Company shall execute,
and the Warrant Agent shall countersign and deliver, in the name of the
designated transferee or transferees, one or more new Warrant Certificates
evidencing a like aggregate number of Warrants.

                                      -25-
<PAGE>   30

     Subject to Section 2.4, (i) at the option of the Holder, Warrant
Certificates may be exchanged at the office of the Warrant Agent upon payment of
the charges hereinafter provided for other Warrant Certificates evidencing a
like aggregate number of Warrants and (ii) whenever any Warrant Certificates are
so surrendered for exchange, the Company shall execute, and the Warrant Agent
shall countersign and deliver, the Warrant Certificates of the same tenor and
evidencing the same number of Warrants as evidenced by the Warrant Certificates
surrendered by the Holder making the exchange.

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

     Subject to Section 2.4, every Warrant Certificate surrendered for
registration of transfer or exchange shall (if so required by the Company or the
Warrant Agent) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Warrant Agent, duly
executed by the Holder thereof or his attorney duly authorized in writing.

     The Warrant Agent shall, upon request of the Company from time to time,
deliver to the Company such reports of registered ownership of the Warrants and
such records of transactions with respect to the Warrants and the Warrant Shares
as the Company may request. The Warrant Agent shall also make available to the
Company for inspection by the Company's agents or employees, from time to time
as the Company may request, such original books of accounts and records
maintained by the Warrant Agent in connection with the issuance and exercise of
Warrants hereunder, such inspections to occur at the Corporate Agency Office
during normal business hours.

     The Warrant Agent shall keep copies of this Agreement and any notices given
to Holders hereunder available for inspection by the Holders (or any holders of
Unit Certificates) during normal business hours at the Corporate Agency Office.
The Company shall supply the Warrant Agent from time to time with such numbers
of copies of this Agreement as the Warrant Agent may request.

10.  WARRANT HOLDERS

     10.1  Voting or Dividend Rights

           Prior to the exercise of the Warrants, except as may be specifically
provided for herein, (i) no Holder of a Warrant Certificate, as such, shall be
entitled to any of the rights of a holder of Common Shares, including, without
limitation, the right to vote at or to receive any

                                      -26-
<PAGE>   31

notice of any meetings of stockholders; (ii) the consent of any Holder shall not
be required with respect to any action or proceeding of the Company; (iii)
except as provided in Section 5, no Holder, by reason of the ownership or
possession of a Warrant or the Warrant Certificate representing the same, shall
have any right to receive any stock dividends, allotments or rights or other
distributions paid, allotted or distributed or distributable to the stockholders
of the Company prior to, or for which the relevant record date preceded, the
date of the exercise of such Warrant; and (iv) no Holder shall have any right
not expressly conferred by this Agreement or Warrant Certificate held by such
Holder.

     10.2  Rights of Action

           All rights of action against the Company in respect of this
Agreement, except rights of action vested in the Warrant Agent, are vested in
the Holders of the Warrant Certificates, and any Holder of any Warrant
Certificate, without the consent of the Warrant Agent or the Holder of any other
Warrant Certificate, may, in such Holder's own behalf and for such Holder's own
benefit, enforce and may institute and maintain any suit, action or proceeding
against the Company suitable to enforce, or otherwise in respect of, such
Holder's right to exercise, exchange or tender for purchase such Holder's
Warrants in the manner provided in this Agreement.

     10.3  Treatment of Holders of Warrant Certificates

           Every Holder of a Warrant Certificate, by accepting the same,
consents and agrees with the Company, with the Warrant Agent and with every
subsequent holder of such Warrant Certificate that, prior to due presentment of
such Warrant Certificate for registration of transfer, the Company and the
Warrant Agent may treat the Person in whose name the Warrant Certificate is
registered as the owner thereof for all purposes and as the Person entitled to
exercise the rights granted under the Warrants, and neither the Company, the
Warrant Agent nor any agent thereof shall be affected by any notice to the
contrary.

     10.4  Communications to Holders

           (a) If any Holder of a Warrant Certificate applies in writing to the
Warrant Agent and such application states that the applicant desires to
communicate with other Holders with respect to its rights under this Agreement
or under the Warrants, then the Warrant Agent shall, within five (5) Business
Days after the receipt of such application, and upon payment to the Warrant
Agent by such applicant of the reasonable expenses of preparing such list,
provide to such applicant a list of the names and addresses of all Holders of
Warrant Certificates as of the most recent practicable date.

                                      -27-
<PAGE>   32

           (b) Every Holder of Warrant Certificates, by receiving and holding
the same, agrees with the Company and the Warrant Agent that neither the Company
nor the Warrant Agent nor any agent of either of them shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with Section 10.4(a).

11.  CONCERNING THE WARRANT AGENT

     11.1  Nature of Duties and Responsibilities Assumed

           The Company hereby appoints the Warrant Agent to act as agent of the
Company as set forth in this Agreement. The Warrant Agent hereby accepts the
appointment as agent of the Company and agrees to perform that agency upon the
terms and conditions set forth in this Agreement and in the Warrant Certificates
or as the Company and the Warrant Agent may hereafter agree, by all of which the
Company and the Holders of Warrant Certificates, by their acceptance thereof,
shall be bound; provided, however, that the terms and conditions contained in
the Warrant Certificates are subject to and governed by this Agreement or any
other terms and conditions hereafter agreed to by the Company and the Warrant
Agent.

           The Warrant Agent shall not, by countersigning Warrant Certificates
or by any other act hereunder, be deemed to make any representations as to
validity or authorization of (i) the Warrants or the Warrant Certificates
(except as to its countersignature thereon), (ii) any securities or other
property delivered upon exercise of any Warrant, (iii) the accuracy of the
computation of the number or kind or amount of stock or other securities or
other property deliverable upon exercise of any Warrant, (iv) the independence
of any Independent Financial Expert or (v) the correctness of any of the
representations of the Company made in such certificates that the Warrant Agent
receives. The Warrant Agent shall not at any time have any duty to calculate or
determine whether any facts exist that may require any adjustments pursuant to
Section 6 hereof with respect to the kind and amount of shares or other
securities or any property issuable to Holders upon the exercise of Warrants
required from time to time. The Warrant Agent shall have no duty or
responsibility to determine the accuracy or correctness of such calculation or
with respect to the methods employed in making the same. The Warrant Agent shall
not be accountable with respect to the validity or value (or the kind or amount)
of any Warrant Shares or of any securities or property which may at any time be
issued or delivered upon the exercise of any Warrant or upon any adjustment
pursuant to Section 6 hereof, and it makes no representation with respect
thereto. The Warrant Agent shall not be responsible for any failure of the
Company to make any cash payment or to issue, transfer or deliver any Warrant
Shares or stock certificates or other securities or property upon the surrender
of any Warrant Certificate for the purpose of exercise or upon any adjustment
pursuant to Section 6 hereof or to comply with any of the covenants of the
Company contained in Section 12 hereof.

                                      -28-
<PAGE>   33

          The Warrant Agent shall not (i) be liable for any recital or statement
of fact contained herein or in the Warrant Certificates or for any action taken,
offered or omitted by it in good faith on the belief that any Warrant
Certificate or any other documents or any signatures are genuine or properly
authorized, (ii) be responsible for any failure on the part of the Company to
comply with any of its covenants and obligations contained in this Agreement or
in the Warrant Certificates or (iii) be liable for any act or omission in
connection with this Agreement except for its own gross negligence, bad faith or
willful misconduct.

          The Warrant Agent is hereby authorized to accept and is protected in
accepting instructions with respect to the performance of its duties hereunder
by Company Order and to apply to any such officer named in such Company Order
for instructions (which instructions will be promptly given in writing when
requested), and the Warrant Agent shall not be liable for any action taken or
suffered to be taken by it in good faith in accordance with the instructions in
any Company Order.

          The Warrant Agent is hereby authorized to accept and is protected in
accepting, and may rely upon without otherwise verifying, the list of registered
holders of Unit Certificates as of the close of the Unit Termination Date as set
forth in Section 2.1(b) and related information furnished by the Registrar for
the purpose of determining those holders who are entitled to receive Warrant
Certificates, and the Warrant Agent shall not be liable for any action taken or
suffered to be taken by it in good faith in reliance upon such lists and
information furnished by the Registrar.

          The Warrant Agent may execute and exercise any of the rights and
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys, agents or employees, provided that reasonable care has
been exercised in the selection and in the continued employment of any such
attorney, agent or employee. The Warrant Agent shall not be under any obligation
or duty to institute, appear in or defend any action, suit or legal proceeding
in respect hereof, unless first indemnified to its satisfaction, but this
provision shall not affect the power of the Warrant Agent to take such action as
the Warrant Agent may consider proper, whether with or without such indemnity.
The Warrant Agent shall promptly notify the Company in writing of any claim made
or action, suit or proceeding instituted against it arising out of or in
connection with this Agreement.

          The Company shall perform, execute, acknowledge and deliver or cause
to be performed, executed, acknowledged and delivered all such further acts,
instruments and assurances as may reasonably be required by the Warrant Agent in
order to enable it to carry out or perform its duties under this Agreement.

                                      -29-
<PAGE>   34

          The Warrant Agent shall act solely as agent of the Company hereunder
and does not assume any obligation or relationship of agency or trust for or
with any of the Holders or any beneficial owners of Warrants. The Warrant Agent
shall not be liable except for the failure to perform such duties as are
specifically set forth herein or specifically set forth in the Warrant
Certificates, and no implied covenants or obligations shall be read into this
Agreement against the Warrant Agent whose duties and obligations shall be
determined solely by the express provisions hereof or the express provisions of
the Warrant Certificates.

     11.2  Right to Consult Counsel

           The Warrant Agent may at any time consult with legal counsel
satisfactory to it (who may be legal counsel for the Company), and the Warrant
Agent shall incur no liability or responsibility to the Company or to any Holder
for any action taken, suffered or omitted by it in good faith in accordance with
the opinion or advice of such counsel.

     11.3  Compensation, Reimbursement and Indemnification

           The Company agrees to pay the Warrant Agent from time to time
compensation for all fees and expenses relating to its services hereunder as the
Company and the Warrant Agent may agree from time to time and to reimburse the
Warrant Agent for reasonable expenses and disbursements, including reasonable
counsel fees and expenses incurred in connection with the execution and
administration of this Agreement. The Company further agrees to indemnify the
Warrant Agent for and save it harmless against any losses, liabilities or
reasonable expenses arising out of or in connection with the acceptance and
administration of this Agreement, including the reasonable costs, legal fees and
expenses of investigating or defending any claim of such liability, except that
the Company shall have no liability hereunder to the extent that any such loss,
liability or expense results from the Warrant Agent's own gross negligence, bad
faith or willful misconduct.

     11.4  Warrant Agent May Hold Company Securities

           The Warrant Agent, any Countersigning Agent and any stockholder,
director, officer or employee of the Warrant Agent or any Countersigning Agent
may buy, sell or deal in any of the Warrants or other securities of the Company
or its Affiliates, become pecuniarily interested in transactions in which the
Company or its Affiliates may be interested, contract with or lend money to the
Company or its Affiliates or otherwise act as fully and freely as though it were
not the Warrant Agent or the Countersigning Agent, respectively, under this
Agreement. Nothing herein shall preclude the Warrant Agent or any Countersigning
Agent from acting in any other capacity for the Company or for any other legal
entity.

                                      -30-
<PAGE>   35

     11.5  Resignation and Removal; Appointment of Successor

           (a) The Warrant Agent may resign its duties and be discharged from
all further duties and liability hereunder (except liability arising as a result
of the Warrant Agent's own gross negligence or willful misconduct) after giving
thirty (30) days' prior written notice to the Company. The Company may remove
the Warrant Agent upon thirty (30) days' written notice, and the Warrant Agent
shall thereupon in like manner be discharged from all further duties and
liabilities hereunder, except as aforesaid. The Warrant Agent shall, at the
expense of the Company, cause notice to be given in accordance with Section
13.1(b) to each Holder of a Warrant Certificate of said notice of resignation or
notice of removal, as the case may be. Upon such resignation or removal, the
Company shall appoint in writing a new Warrant Agent. If the Company shall fail
to make such appointment within a period of thirty (30) calendar days after it
has been notified in writing of such resignation by the resigning Warrant Agent
or after such removal, then the Holder of any Warrant Certificate may apply to
any court of competent jurisdiction for the appointment of a new Warrant Agent.
Any new Warrant Agent, whether appointed by the Company or by such a court,
shall be a corporation doing business under the laws of the United States or any
state thereof in good standing, authorized under such laws to act as Warrant
Agent, and is ordinarily in the business as a transfer agent for publicly held
securities. After acceptance in writing of such appointment by the new Warrant
Agent, it shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named herein as the Warrant Agent,
without any further assurance, conveyance, act or deed; but if for any reason it
shall be reasonably necessary or expedient to execute and deliver any further
assurance, conveyance, act or deed, the same shall be done at the reasonable
expense of the Company and shall be legally and validly executed and delivered
by the resigning or removed Warrant Agent. Not later than the effective date of
any such appointment, the Company shall file notice thereof with the resigning
or removed Warrant Agent. Failure to give any notice provided for in this
Section 11.5(a), however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Warrant Agent or the
appointment of a new Warrant Agent, as the case may be.

           (b) Any corporation into which the Warrant Agent or any new Warrant
Agent may be merged, or any corporation resulting from any consolidation to
which the Warrant Agent or any new Warrant Agent shall be a party, shall be a
successor Warrant Agent under this Agreement without any further act, provided
that such corporation would be eligible for appointment as successor to the
Warrant Agent under the provisions of Section 11.5(a). Any such successor
Warrant Agent shall promptly cause notice of its succession as Warrant Agent to
be given in accordance with Section 13.1(b) to each Holder of a Warrant
Certificate at such Holder's last address as shown on the Warrant Register.

                                      -31-
<PAGE>   36

     11.6  Appointment of Countersigning Agent

           (a) The Warrant Agent may appoint a Countersigning Agent or Agents
which shall be authorized to act on behalf of the Warrant Agent to countersign
Warrant Certificates issued upon original issue and upon exchange, registration
of transfer or pursuant to Section 7, and Warrant Certificates so countersigned
shall be entitled to the benefits of this Agreement equally and proportionately
with any and all other Warrant Certificates duly executed and delivered
hereunder. Wherever reference is made in this Agreement to the countersignature
and delivery of Warrant Certificates by the Warrant Agent or to Warrant
Certificates countersigned by the Warrant Agent, such reference shall be deemed
to include countersignature and delivery on behalf of the Warrant Agent by a
Countersigning Agent and Warrant Certificates countersigned by a Countersigning
Agent. Each Countersigning Agent shall be acceptable to the Company and shall at
the time of appointment be a corporation doing business under the laws of the
United States of America or any State thereof in good standing, authorized under
such laws to act as Countersigning Agent, and having a combined capital and
surplus of not less than $100,000,000. The combined capital and surplus of any
such new Countersigning Agent shall be deemed to be the combined capital and
surplus as set forth in the most recent annual report of its condition published
by such Countersigning Agent prior to its appointment, provided that such
reports are published at least annually pursuant to law or to the requirements
of a Federal or state supervising or examining authority.

           (b) Any corporation into which a Countersigning Agent may be merged,
or any corporation resulting from any consolidation to which such Countersigning
Agent shall be a party, shall be a successor Countersigning Agent without any
further act, provided that such corporation would be eligible for appointment as
a new Countersigning Agent under the provisions of Section 11.6(a), without the
execution or filing of any paper or any further act on the part of the Warrant
Agent or the Countersigning Agent. Any such successor Countersigning Agent shall
promptly cause notice of its succession as Countersigning Agent to be given in
accordance with Section 13.1(b) to each Holder of a Warrant Certificate at such
Holder's last address as shown on the Warrant Register.

           (c) A Countersigning Agent may resign at any time by giving thirty
(30) days' prior written notice thereof to the Warrant Agent and to the Company.
The Warrant Agent may at any time terminate the agency of a Countersigning Agent
by giving thirty (30) days' prior written notice thereof to such Countersigning
Agent and to the Company.

           (d) The Warrant Agent agrees to pay to each Countersigning Agent from
time to time reasonable compensation for its services under this Section, and
the Warrant Agent shall be entitled to be reimbursed for such payments, subject
to the provisions of Section 11.3.

                                      -32-
<PAGE>   37

           (e) Any Countersigning Agent shall have the same rights and
immunities as those of the Warrant Agent set forth in Section 11.1.

12.  ADDITIONAL COVENANTS OF THE COMPANY

     12.1  Reports to Holders

           (a) Whether or not required by Sections 13 or 15(d) of the Exchange
Act, the Company shall file with the SEC (i) within ninety (90) days after the
end of the last fiscal year such annual reports as would be required by Sections
13 or 15(d) of the Exchange Act, (ii) within forty-five (45) days after the end
of each of the first three fiscal quarters of each fiscal year such quarterly
reports as would be required by Section 13 or 15(d) of the Exchange Act and
(iii) all other reports and information as would be required by Sections 13 or
15(d) of the Exchange Act. Within fifteen (15) days after the same shall be
filed with the SEC, the Company shall file with the Warrant Agent, and make
available to each Holder of Warrants, without cost to such Holder, copies of
such reports or other information. The provisions of this Section 12.1 shall
cease to apply to the Company upon the occurrence of a Non-Surviving Combination
provided the successor to the Company assumes the obligations of the Company
(including under this Section 12.1) in accordance with Section 19.

           (b) The Company shall provide the Warrant Agent with a sufficient
number of copies of all reports and other documents and information that the
Warrant Agent may be required to deliver to the Holders of the Warrants under
this Section 12.1.

     12.2  Compliance with Agreements

           The Company shall comply in all material respects with the terms and
conditions of the Indenture and the Warrant Registration Rights Agreement.

     12.3  Maintenance of Office

           So long as any of the Warrants remain outstanding, the Company will
maintain in the City of New York the following: (a) an office or agency where
the Warrants may be presented for exercise, (b) an office or agency where the
Warrants may be presented for registration of transfer and for exchange as in
this Agreement provided and (c) an office or agency where notices and demands to
or upon the Company in respect of the Warrants or of this Agreement may be
served. The Company will give to the Warrant Agent written notice of the
location of any such office or agency and of any change of location thereof. The
Company hereby initially designates the office of the Warrant Agent at American
Stock Transfer & Trust Company, 40 Wall Street, New York, New York 10005, or
such other location as the Company

                                      -33-
<PAGE>   38

may designate upon notice from the Warrant Agent as the office or agency for
each such purpose. In case the Company shall fail to maintain any such office or
agency or shall fail to give such notice of the location or of any change in the
location thereof, presentations and demands may be made and notices may be
served at the Corporate Agency Office.

13.  NOTICES

     13.1  Notices Generally

           (a) Any request, notice, direction, authorization, consent, waiver,
demand or other communication permitted or authorized by this Agreement to be
made upon, given or furnished to or filed with the Company or the Warrant Agent
by the other party hereto or by any Holder shall be sufficient for every purpose
hereunder if in writing (including telecopy communication) and telecopied or
delivered by hand (including by courier service) as follows:

           If to the Company, to it at:

               Gothic Energy Corporation
               5727 South Lewis Avenue - Suite 700
               Tulsa, Oklahoma  74105
               Attention:  Michael Paulk, President
               Telecopy No.:  (918) 749-5882

               or

           If to the Warrant Agent, to it at:

               American Stock Transfer & Trust Company
               40 Wall Street
               New York, New York  10005
               Attention:  Michael Karfunkel
               Telecopy No.: (718) 236-4588

or, in either case, such other address as shall have been set forth in a notice
delivered in accordance with this Section 13.1(a).

           All such communications shall, when so telecopied or delivered by
hand, be effective when telecopied with confirmation of receipt or received by
the addressee.

                                      -34-
<PAGE>   39

           Any Person that telecopies any communication hereunder to any Person
shall, on the same date as such telecopy is transmitted, also send, by first
class mail, postage prepaid and addressed to such Person as specified above, an
original copy of the communication so transmitted.

           (b) Where this Agreement provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at the address of such Holder as it appears in the
Warrant Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Holders is given by mail, neither the failure to mail such notice, nor
any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Agreement
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice.

           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 made by a method approved by the Warrant
Agent as one which would be most reliable under the circumstances for
successfully delivering the notice to the addressees shall constitute a
sufficient notification for every purpose hereunder.

     13.2  Required Notices to Holders

           In case the Company shall propose (i) to pay any dividend payable in
stock of any class to the holders of its Common Shares or to make any other
distribution to the holders of its Common Shares for which an adjustment is
required to be made pursuant to Section 6, (ii) to distribute to the holders of
its Common Shares rights to subscribe for or to purchase any Additional Common
Shares or shares of stock of any class or any other securities, rights or
options, (iii) to effect any reclassification of its Common Shares, (iv) to
effect any transaction described in Section 6.1(h) or (v) to effect the
liquidation, dissolution or winding up of the Company, then, and in each such
case, the Company shall cause to be filed with the Warrant Agent and shall give
to each Holder of a Warrant Certificate, in accordance with Section 13.1(b), a
notice of such proposed action or event. Such notice shall specify (x) the date
on which a record is to be taken for the purposes of such dividend or
distribution; and (y) the date on which such reclassification, transaction,
event, liquidation, dissolution or winding up is expected to become effective
and the date as of which it is expected that holders of Common Shares of record
shall be entitled to exchange their Common Shares for securities, cash or other
property deliverable upon such reclassification, transaction, event,
liquidation, dissolution or winding up. Such notice shall be given, in the case
of any action covered by clause (i) or (ii) above, at least

                                      -35-
<PAGE>   40

ten (10) days prior to the record date for determining holders of the Common
Shares for purposes of such action or, in the case of any action covered by
clauses (iii) through (v), at least twenty (20) days prior to the applicable
effective or expiration date specified above or, in any such case, prior to such
earlier time as notice thereof shall be required to be given pursuant to Rule
10b-17 under the Exchange Act, if applicable.

           If at any time the Company shall cancel any of the proposed
transactions for which notice has been given under this Section 13.2 prior to
the consummation thereof, the Company shall give each Holder prompt notice of
such cancellation in accordance with Section 13.1(b) hereof.

     13.3  Company Notices to Warrant Agent

           The Company shall notify the Warrant Agent on or prior to the
occurrence of the Separation Date if the Separation Date occurs before October
23, 1998. The Company shall notify the Warrant Agent at least five Business Days
prior to the occurrence of the Unit Termination Date if the Unit Termination
Date will occur before October 23, 1998.

14.  APPLICABLE LAW

     THIS AGREEMENT, EACH WARRANT CERTIFICATE ISSUED HEREUNDER, EACH WARRANT
EVIDENCED THEREBY AND ALL RIGHTS ARISING HEREUNDER SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE APPLICATION OF THE
LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

15.  PERSONS BENEFITING

     This Agreement shall be binding upon and inure to the benefit of the
Company and the Warrant Agent, and their respective successors and assigns and
the Holders from time to time of the Warrant Certificates. Nothing in this
Agreement is intended or shall be construed to confer upon any Person, other
than the Company, the Warrant Agent and the Holders of the Warrant Certificates,
any right, remedy or claim under or by reason of this Agreement or any part
hereof. Each Holder, by acceptance of a Warrant Certificate, agrees to all of
the terms and provisions of this Agreement applicable thereto.

                                      -36-
<PAGE>   41

16.  COUNTERPARTS

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

17.  AMENDMENTS

     The Company and the Warrant Agent may, without the consent or concurrence
of the Holders of the Warrant Certificates, by supplemental agreement or
otherwise, amend this Agreement for the purpose of making any changes or
corrections in this Agreement that (i) are required to cure any ambiguity or to
correct or supplement any defective or inconsistent provision or clerical
omission or mistake or manifest error herein contained or (ii) add to the
covenants and agreements of the Company in this Agreement further covenants and
agreements of the Company thereafter to be observed, or surrender any rights or
powers reserved to or conferred upon the Company in this Agreement; provided,
however, that in either case, such amendment shall not adversely affect the
rights or interests of the Holders of the Warrant Certificates hereunder in any
material respect. This Agreement may otherwise be amended by the Company and the
Warrant Agent only with the consent of the Holders of a majority of the then
outstanding Warrants. Notwithstanding the foregoing, the consent of each Holder
of a Warrant affected shall be required for any amendment pursuant to which the
Warrant Price would be increased or the number of Warrant Shares purchasable
upon exercise of Warrants would be decreased (other than pursuant to adjustments
provided herein).

     The Warrant Agent shall join with the Company in the execution and delivery
of any such amendment unless such amendment affects the Warrant Agent's own
rights, duties or immunities hereunder, in which case the Warrant Agent may, but
shall not be required to, join in such execution and delivery. Upon execution
and delivery of any amendment pursuant to this Section 17, such amendment shall
be considered a part of this Agreement for all purposes and every Holder of a
Warrant Certificate theretofore or thereafter countersigned and delivered
hereunder shall be bound thereby.

     Promptly after the execution by the Company and the Warrant Agent of any
such amendment, the Company shall give notice to the Holders of Warrant
Certificates, setting forth in general terms the substance of such amendment, in
accordance with the provisions of Section 13.1(b). Any failure of the Company to
mail such notice or any defect therein, shall not, however, in any way impair or
affect the validity of any such amendment.

                                      -37-
<PAGE>   42

18.  INSPECTION

     The Warrant Agent shall cause a copy of this Agreement to be available at
all reasonable times at the Corporate Agency Office of the Warrant Agent for
inspection by the Holder of any Warrant Certificate. The Warrant Agent may
require such Holder to submit his Warrant Certificate for inspection by it.

19.  SUCCESSOR TO THE COMPANY

     So long as Warrants remain outstanding, the Company will not enter into any
Non-Surviving Combination unless the acquirer (or its parent company under any
triangular acquisition) shall expressly assume by a supplemental agreement,
executed and delivered to the Warrant Agent, in form reasonably satisfactory to
the Warrant Agent, the due and punctual performance of every covenant of this
Agreement on the part of the Company to be performed and observed and shall have
provided for exercise rights in accordance with Section 6.1(h). Upon the
consummation of such Non-Surviving Combination, the acquirer (or its parent
company under any triangular acquisition) shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Agreement
with the same effect as if such acquirer (or its parent company under any
triangular acquisition) had been named as the Company herein.

20.  ENTIRE AGREEMENT

     This Agreement sets forth the entire agreement of the parties hereto as to
the subject matter hereof and supersedes all previous agreements among all or
some of the parties hereto with respect thereto, whether written, oral or
otherwise.

21.  HEADINGS

     The descriptive headings of the several Sections of this Agreement are
inserted for convenience and shall not control or affect the meaning or
construction of any of the provisions hereof.

                                      -38-
<PAGE>   43

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

                                 Gothic Energy Corporation

                            By:
                                 ----------------------------------------------
                                 Michael Paulk, President

                                 American Stock Transfer & Trust Company

                            By:
                                 ----------------------------------------------
                                 Name:
                                 Title:

                                      -39-
<PAGE>   44

                                                                       EXHIBIT A

                       FORM OF FACE OF WARRANT CERTIFICATE

                           [Restricted Warrant Legend]

     [Unless and until it is exchanged in whole or in part for Securities in
definitive form, this Security may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary. The Depository Trust Company shall act as the Depositary until a
successor shall be appointed by the Company and the Registrar. Unless this
certificate is presented by an authorized representative of The Depository Trust
Company, 55 Water Street, New York, New York ("DTC"), to the issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or such other name as may be requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or
such other entity as may be 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.]/1/

     THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
     EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR OTHERWISE
     TRANSFERRED TO OR FOR THE ACCOUNT OR BENEFIT OF ANY PERSON EXCEPT AS SET
     FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
     REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
     RULE 144A UNDER THE SECURITIES ACT), (B) IT IS AN "ACCREDITED INVESTOR" (AS
     DEFINED IN RULE 501(A) UNDER THE SECURITIES ACT) (AN "ACCREDITED INVESTOR")
     OR (C) IS NOT A U.S. PERSON AND IS PURCHASING IN ACCORDANCE WITH REGULATION
     S UNDER THE SECURITIES ACT AND HAS NOT ENGAGED IN, AND PRIOR TO THE
     EXPIRATION OF THE 40-DAY RESTRICTED PERIOD PROVIDED FOR IN RULE 903 OF
     REGULATION S, WILL NOT OFFER OR SELL THESE SECURITIES OR TO A U.S. PERSON
     OR FOR THE ACCOUNT OF A U.S. PERSON WITHIN THE MEANING OF RULE 902(O) OF
     REGULATION S IN

------------------------
     /1/ Include this legend for Global Warrants.

                                Exhibit A, Page 1
<PAGE>   45

     THE UNITED STATES, (2) AGREES THAT IT WILL NOT PRIOR TO THE DATE WHICH IS
     TWO YEARS (OR SUCH SHORTER PERIOD AS COMPLIES WITH RULE 144 UNDER THE
     SECURITIES ACT) AFTER THE LATER OF THE DATE OF ORIGINAL ISSUANCE OF THIS
     SECURITY AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE
     ISSUER WAS THE OWNER OF THIS SECURITY (THE "RESALE RESTRICTION TERMINATION
     DATE") RESELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY, EXCEPT (A) TO
     THE ISSUER, (B) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
     INSTITUTIONAL BUYER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
     ANOTHER QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH THE RESALE
     PROVISIONS OF RULE 144A UNDER THE SECURITIES ACT, (C) TO AN ACCREDITED
     INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE WARRANT AGENT A
     WRITTEN CERTIFICATION CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
     RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (COPIES OF SUCH
     FORM CAN BE OBTAINED FROM THE WARRANT AGENT), PROVIDED THAT CERTAIN HOLDERS
     SPECIFIED IN THE WARRANT AGREEMENT MAY NOT TRANSFER THIS SECURITY PURSUANT
     TO THIS CLAUSE (C) PRIOR TO THE EXPIRATION OF THE "40-DAY RESTRICTED
     PERIOD" (WITHIN THE MEANING OF RULE 903(C)(3) OF REGULATION S UNDER THE
     SECURITIES ACT, (D) OUTSIDE THE UNITED STATES TO A PERSON OTHER THAN A U.S.
     PERSON IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF
     REGULATION S UNDER THE SECURITIES ACT, AND, IF SUCH TRANSFER IS BEING
     EFFECTED BY CERTAIN TRANSFERORS SPECIFIED IN THE WARRANT AGREEMENT PRIOR TO
     THE EXPIRATION OF THE "40-DAY RESTRICTED PERIOD" DESCRIBED ABOVE, A
     CERTIFICATE (WHICH MAY BE OBTAINED FROM THE WARRANT AGENT ) IS DELIVERED BY
     THE TRANSFEREE TO THE COMPANY AND THE WARRANT AGENT, (E) PURSUANT TO THE
     RESALE LIMITATIONS PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
     AVAILABLE), (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
     SECURITIES ACT, OR (G) 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 ITS
     PROPERTY OR THE PROPERTY OF SUCH ACCOUNT BE AT ALL TIMES WITHIN ITS CONTROL
     AND TO COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, AND (3) AGREES
     THAT IT WILL DELIVER TO EACH

                                Exhibit A, Page 2
<PAGE>   46

     PERSON TO WHICH THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
     EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE IS NOT A QUALIFIED
     INSTITUTIONAL BUYER, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO
     THE WARRANT AGENT AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR
     OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE 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. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY SUBSEQUENT TO THE
     RESALE RESTRICTION TERMINATION DATE.

                            GOTHIC ENERGY CORPORATION

                               WARRANT CERTIFICATE
                                   EVIDENCING
                       WARRANTS TO PURCHASE COMMON SHARES

               (VALID ONLY IF COUNTERSIGNED BY THE WARRANT AGENT
                              AS PROVIDED HEREIN)

No. ______                                              _______________ Warrants

     THIS CERTIFIES THAT, for value received, ________________________________
___________________________, or registered assigns, is the registered owner of
______________________ Warrants to Purchase Common Shares of Gothic Energy
Corporation, an Oklahoma corporation (the "Company," which term includes any
successor thereto under the Warrant Agreement), and is entitled, subject to and
upon compliance with the provisions hereof and of the Warrant Agreement, at such
Holder's option, at any time when the Warrants evidenced hereby are exercisable,
to purchase from the Company one Warrant Share for each Warrant evidenced
hereby, at the purchase price of $2.40 per share (as adjusted from time to time,
the "Warrant Price"), payable in full at the time of purchase, the number of
Warrant Shares into which and the Warrant Price at which each Warrant shall be
exercisable, each being subject to adjustment as provided in Section 6 of the
Warrant Agreement.

     The Holder of this Warrant Certificate may exercise all or any whole number
of the Warrants evidenced hereby, on any Business Day from and after the
Separation Date (as defined in the Warrant Agreement) until 5:00 P.M., New York
City time, on May 1, 2005 (subject to

                                Exhibit A, Page 3
<PAGE>   47

earlier expiration pursuant to Section 5 of the Warrant Agreement, the
"Expiration Date") for the Warrant Shares purchasable hereunder.

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

     Unless this Warrant Certificate has been countersigned by the Warrant Agent
by manual signature of an authorized officer on behalf of the Warrant Agent,
this Warrant Certificate shall not be valid for any purpose and no Warrant
evidenced hereby shall be exercisable.

                                Exhibit A, Page 4
<PAGE>   48

     IN WITNESS WHEREOF, the Company has caused this certificate to be duly
executed under its corporate seal.

                            GOTHIC ENERGY CORPORATION

[SEAL]                        By:
                                    --------------------------------------------
                                    Michael K. Paulk, President

ATTEST:

Dated:

Countersigned:

AMERICAN STOCK TRANSFER &
 TRUST COMPANY, Warrant Agent

By:
     ---------------------------------------
     Authorized Signature

                                Exhibit A, Page 5
<PAGE>   49

                        [REVERSE OF WARRANT CERTIFICATE]

                            GOTHIC ENERGY CORPORATION

                               WARRANT CERTIFICATE
                                   EVIDENCING
                       WARRANTS TO PURCHASE COMMON SHARES

1.   General

     The Warrants evidenced hereby are one of a duly authorized issue of
Warrants of the Company designated as its Warrants to Purchase Common Shares
("Warrants"), limited in aggregate number to 825,000 Warrants issued under and
in accordance with the Warrant Agreement, dated as of April 21, 1998 (the
"Warrant Agreement"), between the Company and American Stock Transfer & Trust
Company, as warrant agent (the "Warrant Agent", which term includes any
successor thereto permitted under the Warrant Agreement), to which Warrant
Agreement and all amendments thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Warrant Agent, the Holders of Warrant Certificates and the
owners of the Warrants evidenced thereby and of the terms upon which the Warrant
Certificates are, and are to be, countersigned and delivered. A copy of the
Warrant Agreement shall be available at all reasonable times at the office of
the Warrant Agent for inspection by the Holder hereof.

     In the event of the exercise of less than all of the Warrants evidenced
hereby, a new Warrant Certificate of the same tenor and for the number of
Warrants which are not exercised shall be issued by the Company in the name or
upon the written order of the Holder of this Warrant Certificate upon the
cancellation hereof.

     All Warrant Shares issuable by the Company upon the exercise of Warrants
shall, upon such issuance, be duly authorized, validly issued, fully paid and
nonassessable and free of preemptive or similar rights. The Company shall pay
any and all taxes (other than income taxes) that may be payable in respect of
the issue or delivery of Warrant Shares on exercise of Warrants. The Company
shall not be required, however, to pay any tax or other charge imposed in
respect of any transfer involved in the issue and delivery of any certificates
for Warrant Shares or payment of cash to any Person other than the Holder of the
Warrant Certificate surrendered upon the exercise of a Warrant, and in case of
such transfer or payment, the Warrant Agent and the Company shall not be
required to issue or deliver any certificate or pay any cash until (a) such tax
or charge has been paid or an amount sufficient for the payment thereof has been
delivered to the Warrant Agent or to the Company or (b) it has been established
to the Company's satisfaction that any such tax or other charge that is or may
become due has been paid.

                                Exhibit A, Page 6
<PAGE>   50

     The Warrant Certificates are issuable only in registered form in
denominations of whole numbers of Warrants. Upon surrender at the office of the
Warrant Agent and payment of the charges specified herein and in the Warrant
Agreement, this Warrant Certificate may be exchanged for Warrant Certificates in
other authorized denominations or the transfer hereof may be registered in whole
or in part in authorized denominations to one or more designated transferees,
subject to the restrictions on transfer set forth herein and in the Warrant
Agreement; provided, however, that such other Warrant Certificates issued upon
exchange or registration of transfer shall evidence the same aggregate number of
Warrants as this Warrant Certificate. The Company shall cause to be kept at the
office of the Warrant Agent the Warrant Register in which, subject to such
reasonable regulations as the Warrant Agent may prescribe and such regulations
as may be prescribed by law, the Company shall provide for the registration of
Warrant Certificates and of transfers or exchanges of Warrant Certificates.

2.   Expiration

     Except as provided in the Warrant Agreement, all outstanding Warrants shall
expire and all rights of the Holders of Warrant Certificates evidencing such
Warrants shall terminate and cease to exist, as of 5:00 p.m., New York time, on
the Expiration Date. "Expiration Date" shall mean May 1, 2005, or such earlier
date as determined in accordance with the Warrant Agreement.

3.   Registration Rights

     The Warrantholders and the holders of Warrant Shares shall have the
registration rights provided for in the Warrant Registration Rights Agreement,
dated as of April 21, 1998 (the "Registration Rights Agreement"), by and among
the Company and the Purchasers named on the execution pages thereof. A copy of
the Registration Rights Agreement is on file at the office of the Warrant Agent.

4.   Liquidation of the Company

     If, on or prior to the Expiration Date, the Company (or any other Person
controlling the Company) shall propose a voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, each Warrantholder
shall receive the securities, money or other property which such Warrantholder
would have been entitled to receive had such Warrantholder been the holder of
record of the Warrant Shares into which the Warrants were exercisable
immediately prior to such dissolution, liquidation or winding up (net of the
then applicable Warrant Price), and the rights to exercise such Warrants shall
terminate.

                                Exhibit A, Page 7
<PAGE>   51

5.   Anti-Dilution Adjustments

     The number of Warrant Shares issuable upon exercise of a Warrant shall be
adjusted on occurrence of certain events, including, without limitation, the
payment of a certain dividends on, or the making of a certain distributions in
respect of, the Common Shares, including the distribution of rights to purchase
Common Shares (or securities convertible into or exchangeable for Common Shares)
at a price below the Current Market Price. An adjustment shall also be made in
the event of a combination, subdivision or reclassification of the Common
Shares. Adjustments will be made whenever and as often as any specified event
requires an adjustment to occur.

6.   Procedure for Exercising Warrant

     Subject to the provisions hereof and of the Warrant Agreement, the Holder
of this Warrant Certificate may exercise all or any whole number of the Warrants
evidenced hereby by either of the following methods:

          (A) The Holder may deliver to the Warrant Agent at the Corporate
Agency Office (i) a written notice of such Holder's election to exercise all or
a portion of the Warrants evidenced hereby, duly executed by such Holder in the
form set forth below, which notice shall specify the number of Warrant Shares to
be purchased, (ii) this Warrant Certificate and (iii) a sum equal to the
aggregate Warrant Price for the Warrant Shares into which the Warrants
represented by this Warrant Certificate are being exercised, which sum shall be
paid in any combination elected by such Holder of (x) certified or official bank
checks in New York Clearing House funds payable to the order of the Company and
delivered to the Warrant Agent at the Corporate Agency Office, or (y) wire
transfers in immediately available funds to the account of the Company at such
banking institution as the Company shall have given notice to the Warrant Agent
and the Holders in accordance with the Warrant Agreement; or

          (B) The Holder may also exercise all or any of the Warrants in a
"cashless" or "net-issue" exercise by delivering to the Warrant Agent at the
Corporate Agency Office (i) a written notice of such Holder's election to
exercise all or a portion of the Warrants evidenced hereby, duly executed by
such Holder in the form set forth below, which notice shall specify the number
of Warrant Shares to be delivered to such Holder and the number of Warrant
Shares with respect to which Warrants represented by this Warrant Certificate
are being surrendered in payment of the aggregate Warrant Price for the Warrant
Shares to be delivered to the Holder, and (ii) this Warrant Certificate. For
purposes of this subparagraph (B), each Warrant Share as to which such Warrants
are surrendered in payment of the aggregate Warrant Price will be attributed a
value equal to (x) the Current Market Price per share of Common Shares minus (y)
the then-current Warrant Price.

                                Exhibit A, Page 8
<PAGE>   52

7.   Registered Holder

     Prior to due presentment of this Warrant Certificate for registration of
transfer, the Company, the Warrant Agent and any agent of the Company or the
Warrant Agent may treat the Person in whose name this Warrant Certificate is
registered as the owner hereof for all purposes, and neither the Company, the
Warrant Agent nor any such agent shall be affected by notice to the contrary.

8.   Amendment

     The Warrant Agreement permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of Warrant Certificates under the Warrant
Agreement at any time by the Company and the Warrant Agent with the consent of
the Holders of Warrant Certificates evidencing a majority of the then
outstanding Warrants.

9.   Status as Warrantholder

     Prior to the exercise of the Warrants, except as may be specifically
provided for in the Warrant Agreement, (i) no Holder of a Warrant Certificate,
as such, shall be entitled to any of the rights of a holder of Common Shares of
the Company, including, without limitation, the right to vote at, or to receive
any notice of, any meetings of stockholders of the Company; (ii) the consent of
any Holder shall not be required with respect to any action or proceeding of the
Company; (iii) except as provided with respect to the dissolution, liquidation
or winding up of the Company, no Holder, by reason of the ownership or
possession of a Warrant or the Warrant Certificate representing the same, shall
have any right to receive any stock dividends, allotments or rights or other
distributions (except as specifically provided in the Warrant Agreement), paid,
allotted or distributed or distributable to the stockholders of the Company
prior to or for which the relevant record date preceded the date of the exercise
of such Warrant; and (iv) no Holder shall have any right not expressly conferred
by the Warrant Agreement or Warrant Certificate held by such Holder.
Notwithstanding anything herein to the contrary, if the Company declares and
pays any cash dividend or makes any distribution in cash in respect of its
Common Shares, it shall pay each Holder of Warrants an amount in cash equal to
the amount that such Holder would have received had it been a holder of record
of the Warrant Shares issuable upon exercise of its Warrants immediately prior
to the record date for such dividend or distribution.

                                Exhibit A, Page 9
<PAGE>   53

10.  Governing Law

     THIS WARRANT CERTIFICATE, EACH WARRANT EVIDENCED THEREBY AND THE WARRANT
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS TO
THE EXTENT THAT APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

11.  Definitions

     All terms used in this Warrant Certificate which are defined in the Warrant
Agreement shall have the meanings assigned to them in the Warrant Agreement.

                               Exhibit A, Page 10
<PAGE>   54

                                FORM OF EXERCISE

     In accordance with and subject to the terms and conditions hereof and of
the Warrant Agreement, the undersigned registered Holder of this Warrant
Certificate hereby irrevocably elects to exercise ____________________ Warrants
evidenced by this Warrant Certificate or represents that such Holder has
tendered the Warrant Price for each of the Warrants evidenced hereby being
exercised in the aggregate amount of $_________ in the indicated combination of:

     (i)    cash ($____________);

     (ii)   certified bank check payable to the order of the Company
     ($________);

     (iii)  official bank check in New York Clearing House funds payable to the
     order of the Company ($_________); or

     (iv)   wire transfer in immediately available funds to the account
     designated by the Company for such purpose ($________).

     The undersigned requests that the Warrant Shares issuable upon exercise be
in fully registered form in such denominations and registered in such names and
delivered, together with any other property receivable upon exercise, in such
manner as is specified in the instructions set forth below.

     If the number of Warrants exercised is less than all of the Warrants
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.

Dated:                                       Name:
      -------------------                         ------------------------------
      -------------------                    (Please Print)
(Insert Social Security or Other
 Identifying Number of Holder)Purchaser      Address:
                                                     ---------------------------
                                             -----------------------------------

                                             -----------------------------------
                                             Signature

                                             (Signature must conform in all
                                             respects to name of Holder as
                                             specified on the face of this
                                             Warrant Certificate and must bear a
                                             signature guarantee

                               Exhibit A, Page 11
<PAGE>   55

                                             by a bank, trust company or member
                                             firm of a national securities
                                             exchange.)

Signature Guaranteed:

     Instructions (i) as to denominations and names of Warrant Shares issuable
upon exercise and as to delivery of such securities and any other property
issuable upon exercise and (ii) if applicable, as to Warrant Certificates
evidencing unexercised Warrants:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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                               Exhibit A, Page 12
<PAGE>   56

                                   Assignment

     (Form of Assignment To Be Executed If Holder Desires To Transfer Warrant
Certificate)

     FOR VALUE RECEIVED _________________________ hereby sells, assigns and
transfers unto

     Please insert social security
     or other identifying number

(Please print name and address including zip code)

the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the within-named Company with full power of
substitution in the premises.

Dated:

                              --------------------------------------------------
                              Signature

                              (Signature must conform in all respects to name of
                              Holder as specified on the face of this Warrant
                              Certificate and must bear a signature guarantee by
                              a bank, trust company or member firm of a national
                              securities exchange.)

Signature Guaranteed:

                               Exhibit A, Page 13
<PAGE>   57

                                                                       EXHIBIT B

               FORM OF ACCREDITED INVESTOR TRANSFEREE CERTIFICATE

           (Transfers Pursuant to (S)2.4(a) of the Warrant Agreement)

                                                           ______________, 199__

American Stock Transfer and Trust
40 Wall Street
New York, New York 10005
Attention:  Herbert Lemmer, Esquire

Re:  Gothic Energy Corporation Warrants to Purchase Common Shares (the
     "Warrants")

     Reference is hereby made to the Warrant Agreement dated as of April 21,
1998 (the "Warrant Agreement") between Gothic Energy Corporation and American
Stock Transfer & Trust Company, as Warrant Agent. Capitalized terms used but not
defined herein shall have the meanings given them in the Warrant Agreement.

     This letter relates to Warrants exercisable for an aggregate of _________
Common Shares ("Warrant Shares"), which Warrants are held in the name of [name
of transferor] (the "Transferor") to effect the transfer of the Warrants to the
undersigned.

     In connection with such request, and in respect of such Warrants, we
confirm that:

          1. We have received a copy of the Offering Memorandum, dated April 21,
1998, relating to the Units and such other information as we deem necessary in
order to make our investment decision.

          2. We understand that the Units, Warrants and Warrant Shares have not
been registered under the Securities Act of 1933, as amended (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 Units, Warrants or Warrant Shares to offer,
sell or otherwise transfer such securities prior to the date which is two years
after the later of the date of original issue and the last date on which the
Company or any affiliate or the Company was the owner of such securities (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) for so long as the Units,

                                Exhibit B, Page 1
<PAGE>   58

Warrants or Warrant Shares are eligible for resale pursuant to Rule 144A under
the Securities Act, to a person we reasonably believe is a Qualified
Institutional Buyer (as defined in Rule 144A) that purchases for its own account
or for the account of a Qualified Institutional Buyer to whom notice is given
that the transfer is being made in reliance on Rule 144A, (d) to an "Accredited
Investor" (as defined in Rule 501(a) under the Securities Act) (an "Accredited
Investor") that is purchasing for his own account or for the account of such an
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 the resale limitations provided by Rule 144 under the Securities
Act (if available), (f) outside the United States to a person who is not a U.S.
person in an offshore transaction meeting the requirements of Rule 904 of the
Securities Act, or (g) 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 to compliance with any applicable state securities law. The
foregoing restrictions on sale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Units,
Warrants or Warrant Shares is proposed to be made pursuant to clause (d) 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
Company and the Warrant Agent which shall provide, among other things, that the
transferee is an Accredited Investor and that it is acquiring such Units,
Warrants or Warrant Shares for investment purposes and not for distribution in
violation of the Securities Act. Each purchaser acknowledges that the Company
and the Warrant Agent reserve the right prior to any offer, sale or other
transfer prior to the Resale Restriction Termination Date of the Units, Warrants
or Warrant Shares pursuant to clauses (d), (e), (f) or (g) above to require the
delivery of an opinion of counsel, certifications and/or other information
satisfactory to the Company and the Warrant Agent.

          3. We are an Accredited Investor or, if the transfer is of a
beneficial interest in the Global Warrant, a Qualified Institutional Buyer, in
either case purchasing for our own account or for the account of such an
Accredited Investor as to each of which we exercise sole investment discretion
and we are acquiring the Units, Warrants or Warrant Shares 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 and we have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Securities, and we and any accounts
for which we are acting are each able to bear the economic risk of our or its
investments for an indefinite period.

                                Exhibit B, Page 2
<PAGE>   59

          4. All of you 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.

                                    Very truly yours,

                                    -------------------------------------------
                                    (Name of Purchaser)

                                       By:
                                          --------------------------------------
                                         Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------
                                      Date:
                                           -------------------------------------

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

Name:
     --------------------------------
Address:
        -----------------------------
Taxpayer ID Number:
                   ------------------

                                Exhibit B, Page 3
<PAGE>   60

                                                                       EXHIBIT C

                                  FORM OF LEGAL
                               OPINION ON TRANSFER

                                                  ______________________, 199___

American Stock & Transfer Company
40 Wall Street
New York, New York 10005
Attention:  Herbert Lemmer, Esquire

Re:  Gothic Energy Corporation Warrants to Purchase Common Shares

Ladies and Gentlemen:

     This opinion is being furnished to you in connection with the sale by
______________ (the "Transferor") to _________________________ (the "Purchaser")
of Warrants to Purchase Common Shares exercisable for an aggregate of _________
Common Shares, par value $.01 per share, of Gothic Energy Corporation (the
"Warrants").

     We have examined such documents and records as we have deemed appropriate.
In our examination of the foregoing, we have assumed the authenticity of all
documents, the genuineness of all signatures and the due authorization,
execution and delivery of the aforementioned by each of the parties thereto. We
have further assumed the accuracy of the representations contained in the
Accredited Investor Transferee Certificate executed and delivered by the
Purchaser in connection with its purchase of the Warrants made by the parties
executing such document. We have also assumed that the sale of the Warrants to
the Transferor was exempt from the registration and prospectus delivery
requirements of the Securities Act of 1933, as amended (the "Securities Act").

     Based on the foregoing, we are of the opinion that the sale to the
Purchaser of the Warrants does not require registration of such Warrants under
the Securities Act.

                                    Very truly yours,
<PAGE>   61
                         SUPPLEMENT TO WARRANT AGREEMENT

         THIS SUPPLEMENT TO WARRANT AGREEMENT is made and entered into as of the
16th day of January, 2001, by and among CHESAPEAKE ENERGY CORPORATION, an
Oklahoma Corporation ("Chesapeake Energy") and AMERICAN STOCK TRANSFER & TRUST
COMPANY, a New York corporation, as Warrant Agent (" Warrant Agent").

                                    RECITALS

                  WHEREAS, Gothic Energy Corporation ("Gothic Energy") and
Warrant Agent entered into that certain Warrant Agreement, dated as of April 21,
1998, under which Gothic Energy issued 825,000 Common Stock Purchase Warrants
(the "Warrant" and collectively referred to as the "Warrants"), each Warrant to
purchase one share of Gothic Energy common stock (the "Warrant Agreement"); and

                  WHEREAS, the Warrant Agent agreed to act on behalf of Gothic
Energy in connection with the Warrants; and

                  WHEREAS, Chesapeake Energy, Chesapeake Merger 2000 Corp.
("Sub"), and Gothic Energy entered into that certain Agreement and Plan of
Merger dated September 8, 2000, as amended by the First Amendment to Agreement
and Plan of Merger dated October 31, 2000 (the "Merger Agreement") providing for
the merger of Sub with and into Gothic Energy and pursuant to which Gothic
Energy will become a wholly owned subsidiary of Chesapeake Energy (the
"Merger"); and

                  WHEREAS, the Warrant Agreement provides that Gothic Energy
cannot enter into any Non-Surviving Combination unless the parent company under
any triangular acquisition expressly assumes by supplemental agreement, executed
and delivered to the Warrant Agent, the due and punctual performance of every
covenant of the Warrant Agreement on the part of Gothic Energy to be performed
and observed; and

                  WHEREAS, the Warrant Agreement provides that in the event
Gothic Energy merges with any company, then, as a condition to such merger,
lawful and adequate provisions must be made that give the Warrant Holders the
right to purchase and receive, upon exercise of the Warrants, such shares of
stock that are issued in exchange for a number of outstanding shares of common
stock equal to the number of shares of common stock that such Warrant Holder
could immediately theretofore purchase and receive upon exercise of the
Warrants; and

                  WHEREAS, the Merger was consummated on January 16, 2001 and as
part of the Merger Agreement, each issued and outstanding share of Gothic Energy
common stock will be converted into the right to receive a portion of a share of
Chesapeake Energy common stock equal to the exchange ratio of .1908;

                  WHEREAS, under the Merger Agreement, Chesapeake Energy agreed
to assume all of Gothic Energy's obligations under the Warrant Agreement and the
parties desire to supplement the Warrant Agreement to reflect such assumption;
and

<PAGE>   62

                  WHEREAS, the parties further desire to supplement the Warrant
Agreement to reflect the number of shares of Chesapeake Energy common stock
acquirable upon exercise of the Warrant after the Merger and the exercise price
per share of Chesapeake Energy common stock after the Merger;

                  NOW, THEREFORE, for and in consideration of the recitals and
the mutual covenants and agreements set forth in the Warrant Agreement and this
Supplement, the parties hereby supplement the Warrant Agreement as follows:

     1.  Definitions. Unless the context otherwise requires or unless otherwise
         expressly defined herein, the terms defined in the Warrant Agreement
         will have the same meanings whenever used in this Supplement.

     2.  Assumption. Chesapeake Energy hereby assumes the due and punctual
         performance of every covenant of the Warrant Agreement on the part of
         Gothic Energy and agrees to perform all of Gothic Energy's covenants
         and obligations under the Warrant Agreement, including the obligation
         to deliver to the Holders such shares of stock, securities or assets
         which the Holders are entitled to purchase in accordance with the terms
         of the Warrant Agreement. Chesapeake Energy shall succeed to, and be
         substituted for, and may exercise every right and power of Gothic
         Energy under the Warrant Agreement.

     3.  Application of Exchange Ratio. Under the Merger Agreement, pursuant to
         the Merger, each share of Gothic Energy common stock will be converted
         into the right to receive .1908 of a share of Chesapeake Energy common
         stock. Accordingly, upon exercise of a Warrant, a Holder will receive
         .1908 of a share of Chesapeake Energy common stock for every one share
         of Gothic Energy common stock that the Warrant Holder would have
         received upon exercise of the Warrants immediately prior to the Merger.
         The exercise price for each share of Chesapeake Energy common stock
         under the Warrant Agreement will be equal to the exercise price for one
         share of Gothic Energy common stock immediately prior to the Merger
         divided by the exchange ratio. Prior to the Merger the exercise price
         for one share of Gothic Energy common stock under the Warrant was $2.40
         which, when divided by the exchange ratio, equals $12.58 per share of
         Chesapeake Energy common stock.

     4.  Miscellaneous. It is further agreed as follows:

         5.1  Effectiveness. This Supplement will become effective as of the
              date first above written.

         5.2  Ratification of Warrant Agreement. The Warrant Agreement as hereby
              supplemented and each other document, instrument or agreement
              executed in connection therewith are hereby ratified and confirmed
              in all respects. Any reference to the Warrant Agreement in any
              other document shall be deemed to be a reference to the Warrant
              Agreement as hereby supplemented. The execution, delivery and
              effectiveness of this Supplement shall not, except as expressly
              provided herein, operate as a waiver of any obligation, right,
              power or remedy of any party to the Warrant Agreement nor
              constitute a waiver of any provision of the Warrant Agreement or
              any other related documents.

<PAGE>   63

         5.3  Applicable Law. This Amendment will be governed in all respects,
              including validity, interpretation and effect, by the laws of the
              State of New York regardless of the laws that might otherwise
              govern under applicable principals of conflicts of law thereof.

         5.5  Full Force and Effect. In all respects, except as specifically
              supplemented hereby, the Warrant Agreement remains in full force
              and effect and unabated.

                  IN WITNESS WHEREOF, Chesapeake Energy has executed and
delivered this Supplement as of the date first above written.

                                CHESAPEAKE ENERGY CORPORATION, an
                                Oklahoma Corporation

                                By /s/ Marcus C. Rowland
                                   ---------------------------------------------
                                Marcus C. Rowland, Executive Vice President and
                                Chief
                                Financial Officer

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