Document:

exv4w2

 

EXECUTION COPY

Exhibit 4.2

 

 

CONCHO RESOURCES INC.,

as Issuer,

COG OPERATING LLC,

COG REALTY LLC,

CONCHO ENERGY SERVICES LLC

and

QUAIL RANCH LLC,

as Subsidiary Guarantors,

and

WELL FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

FIRST SUPPLEMENTAL INDENTURE

dated as of September 18, 2009

to Senior Indenture

dated as of September 18, 2009

$300,000,000 8.625% Senior Notes due 2017

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 	 
	TIA	 	 	 	Indenture
	Section	 	 	 	Section
	310

	 	(a)(1)
	 	709 

	 

	 	(a)(2)
	 	 	709	 
	 

	 	(a)(3)
	 	 	N.A.	 
	 

	 	(a)(4)
	 	 	N.A.	 
	 

	 	(b)
	 	708 

	 

	 	 	 	710 

	311

	 	(a)
	 	713 

	 

	 	(b)
	 	713 

	312

	 	(a)
	 	801 

	 

	 	 	 	802 

	 

	 	(b)
	 	802 

	 

	 	(c)
	 	802 

	313

	 	(a)
	 	803 

	 

	 	(b)
	 	803 

	 

	 	(c)
	 	803 

	 

	 	(d)
	 	803 

	314

	 	(a)
	 	804 

	 

	 	(a)(4)
	 	201 

	 

	 	 	 	1104 

	 

	 	(b)
	 	 	N.A.	 
	 

	 	(c)(1)
	 	202 

	 

	 	(c)(2)
	 	202 

	 

	 	(c)(3)
	 	 	N.A.	 
	 

	 	(d)
	 	 	N.A.	 
	 

	 	(e)
	 	202 

	315

	 	(a)
	 	701; 703 

	 

	 	(b)
	 	702 

	 

	 	(c)
	 	701 

	 

	 	(d)
	 	701 

	 

	 	(e)
	 	614 

	316

	 	(a)
	 	201 

	316

	 	(a)(1)(A)
	 	602 

	 

	 	 	 	612 

	 

	 	(a)(1)(B)
	 	613 

	 

	 	(a)(2)
	 	 	N.A.	 
	 

	 	(b)
	 	608 

	 

	 	(c)
	 	204 

	317

	 	(a)(1)
	 	603 

	 

	 	(a)(2)
	 	604 

	 

	 	(b)
	 	1103 

	318

	 	(a)
	 	207 

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE
	 	 	 	 
	APPLICATION OF SUPPLEMENTAL INDENTURE
	 	 	 	 
	AND CREATION OF THE INITIAL NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 101. Application of This Supplemental Indenture
	 	 	2	 
	Section 102. Effect of Supplemental Indenture
	 	 	2	 
	 
	 	 	 	 
	ARTICLE TWO
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS
	 	 	 	 
	OF GENERAL APPLICATION
	 	 	 	 
	 
	 	 	 	 
	Section 201. Definitions
	 	 	3	 
	Section 202. Compliance Certificates and Opinions
	 	 	37	 
	Section 203. Form of Documents Delivered to Trustee
	 	 	38	 
	Section 204. Acts of Holders; Record Dates
	 	 	38	 
	Section 205. Notices, Etc., to Trustee and Company
	 	 	40	 
	Section 206. Notice to Holders; Waiver
	 	 	40	 
	Section 207. Conflict with Trust Indenture Act
	 	 	41	 
	Section 208. Effect of Headings and Table of Contents
	 	 	41	 
	Section 209. Successors and Assigns
	 	 	41	 
	Section 210. Separability Clause
	 	 	41	 
	Section 211. Benefits of Indenture
	 	 	41	 
	Section 212. Governing Law
	 	 	41	 
	Section 213. Legal Holidays
	 	 	42	 
	Section 214. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	42	 
	Section 215. No Adverse Interpretation of Other Agreements
	 	 	42	 
	Section 216. U.S.A. Patriot Act
	 	 	42	 
	Section 217. Counterpart Originals
	 	 	42	 
	 
	 	 	 	 
	ARTICLE THREE
	 	 	 	 
	NOTE FORMS
	 	 	 	 
	 
	 	 	 	 
	Section 301. Forms Generally
	 	 	43	 
	Section 302. Form of Legend for Global Notes
	 	 	43	 
	 
	 	 	 	 
	ARTICLE FOUR
	 	 	 	 
	THE NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 401. Title and Terms
	 	 	44	 
	Section 402. Denominations
	 	 	44	 
	Section 403. Execution, Authentication, Delivery and Dating
	 	 	44	 
	Section 404. Temporary Securities
	 	 	45	 
	Section 405. Registration, Registration of Transfer and Exchange
	 	 	45	 
	Section 406. Mutilated, Destroyed, Lost and Stolen Notes
	 	 	47	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 407. Payment of Interest; Interest Rights Preserved
	 	 	47	 
	Section 408. Persons Deemed Owners
	 	 	48	 
	Section 409. Cancellation
	 	 	48	 
	Section 410. Computation of Interest
	 	 	49	 
	 
	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	 	 	 	 
	Section 501. Satisfaction and Discharge of Indenture
	 	 	49	 
	Section 502. Application of Trust Money
	 	 	50	 
	 
	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	REMEDIES
	 	 	 	 
	 
	 	 	 	 
	Section 601. Events of Default
	 	 	50	 
	Section 602. Acceleration of Maturity; Rescission and Annulment
	 	 	52	 
	Section 603. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	53	 
	Section 604. Trustee May File Proofs of Claim
	 	 	54	 
	Section 605. Trustee May Enforce Claims Without Possession of Notes
	 	 	54	 
	Section 606. Application of Money Collected
	 	 	54	 
	Section 607. Limitation on Suits
	 	 	55	 
	Section 608. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	55	 
	Section 609. Restoration of Rights and Remedies
	 	 	55	 
	Section 610. Rights and Remedies Cumulative
	 	 	56	 
	Section 611. Delay or Omission Not Waiver
	 	 	56	 
	Section 612. Control by Holders
	 	 	56	 
	Section 613. Waiver of Past Defaults
	 	 	56	 
	Section 614. Undertaking for Costs
	 	 	57	 
	Section 615. Waiver of Usury, Stay or Extension Laws
	 	 	57	 
	 
	 	 	 	 
	ARTICLE SEVEN
	 	 	 	 
	THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 701. Certain Duties and Responsibilities
	 	 	57	 
	Section 702. Notice of Defaults
	 	 	57	 
	Section 703. Certain Rights of Trustee
	 	 	58	 
	Section 704. Not Responsible for Recitals or Issuance of Notes
	 	 	59	 
	Section 705. May Hold Notes
	 	 	59	 
	Section 706. Money Held in Trust
	 	 	59	 
	Section 707. Compensation and Reimbursement
	 	 	59	 
	Section 708. Conflicting Interests
	 	 	60	 
	Section 709. Corporate Trustee Required; Eligibility
	 	 	60	 
	Section 710. Resignation and Removal; Appointment of Successor
	 	 	60	 
	Section 711. Acceptance of Appointment by Successor
	 	 	61	 
	Section 712. Merger, Conversion, Consolidation or Succession to Business
	 	 	62	 
	Section 713. Preferential Collection of Claims Against Company
	 	 	62	 
	Section 714. Appointment of Authenticating Agent
	 	 	62	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE EIGHT
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	 	 
	 
	 	 	 	 
	Section 801. Company to Furnish Trustee Names and Addresses of Holders
	 	 	63	 
	Section 802. Preservation of Information; Communications to Holders
	 	 	64	 
	Section 803. Reports by Trustee
	 	 	64	 
	Section 804. Reports by Company
	 	 	64	 
	 
	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	 	 
	 
	 	 	 	 
	Section 901. Company May Consolidate, Etc., Only on Certain Terms
	 	 	65	 
	Section 902. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms
	 	 	66	 
	Section 903. Certain Permitted Consolidations, Etc
	 	 	66	 
	Section 904. Successor Substituted
	 	 	66	 
	 
	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 1001. Supplemental Indentures Without Consent of Holders
	 	 	67	 
	Section 1002. Supplemental Indentures With Consent of Holders
	 	 	68	 
	Section 1003. Execution of Supplemental Indentures
	 	 	69	 
	Section 1004. Effect of Supplemental Indentures
	 	 	69	 
	Section 1005. Conformity with Trust Indenture Act
	 	 	69	 
	Section 1006. Reference in Notes to Supplemental Indentures
	 	 	69	 
	 
	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	Section 1101. Payment of Principal, Premium and Interest
	 	 	69	 
	Section 1102. Maintenance of Office or Agency
	 	 	70	 
	Section 1103. Money for Notes Payments to Be Held in Trust
	 	 	70	 
	Section 1104. Annual Compliance Certificate; Statement by Officers as to Default
	 	 	71	 
	Section 1105. Existence
	 	 	71	 
	Section 1106. [Reserved]
	 	 	72	 
	Section 1107. Payment of Taxes
	 	 	72	 
	Section 1108. [Reserved]
	 	 	72	 
	Section 1109. [Reserved]
	 	 	72	 
	Section 1110. Purchase of Notes Upon a Change of Control
	 	 	72	 
	Section 1111. Limitation on Indebtedness and Preferred Stock
	 	 	74	 
	Section 1112. Limitation on Restricted Payments
	 	 	77	 
	Section 1113. Limitation on Liens
	 	 	82	 
	Section 1114. Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	82	 
	Section 1115. Limitation on Sales of Assets and Subsidiary Stock
	 	 	85	 
	Section 1116. Limitation on Affiliate Transactions
	 	 	88	 
	Section 1117. Future Subsidiary Guarantors
	 	 	90	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 1118. Payments for Consent
	 	 	90	 
	Section 1119. Covenant Termination
	 	 	91	 
	 
	 	 	 	 
	ARTICLE TWELVE
	 	 	 	 
	REDEMPTION OF NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 1201. Applicability of Article
	 	 	91	 
	Section 1202. Election to Redeem; Notice to Trustee
	 	 	91	 
	Section 1203. Optional Redemption
	 	 	91	 
	Section 1204. Selection by Trustee of Notes to Be Redeemed
	 	 	92	 
	Section 1205. Notice of Redemption
	 	 	92	 
	Section 1206. Deposit of Redemption Price
	 	 	93	 
	Section 1207. Notes Payable on Redemption Date
	 	 	93	 
	Section 1208. Notes Redeemed in Part
	 	 	93	 
	 
	 	 	 	 
	ARTICLE THIRTEEN
	 	 	 	 
	[INTENTIONALLY DELETED]
	 	 	 	 
	 
	 	 	 	 
	ARTICLE FOURTEEN
	 	 	 	 
	DEFEASANCE AND COVENANT DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	Section 1401. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	94	 
	Section 1402. Defeasance and Discharge
	 	 	94	 
	Section 1403. Covenant Defeasance
	 	 	94	 
	Section 1404. Conditions to Defeasance or Covenant Defeasance
	 	 	95	 
	Section 1405. Deposited Money and U.S. Government Obligations to Be Held in
Trust; Miscellaneous Provisions
	 	 	96	 
	Section 1406. Reinstatement
	 	 	96	 
	 
	 	 	 	 
	ARTICLE FIFTEEN
	 	 	 	 
	[INTENTIONALLY DELETED]
	 	 	 	 
	 
	 	 	 	 
	ARTICLE SIXTEEN
	 	 	 	 
	SUBSIDIARY GUARANTEES
	 	 	 	 
	 
	 	 	 	 
	Section 1601. Unconditional Guarantee
	 	 	97	 
	Section 1602. Execution and Delivery of Notation of Subsidiary Guarantee
	 	 	98	 
	Section 1603. Limitation on Subsidiary Guarantors’ Liability
	 	 	99	 
	Section 1604. Release of Subsidiary Guarantors from Guarantee
	 	 	99	 
	Section 1605. Subsidiary Guarantor Contribution
	 	 	100	 

iv

 

	 	 	 	 	 
	 	 	Page
	ANNEX A
	 	 	 	 
	 
	 	 	 	 
	FORM OF NOTE
	 	 	A-1	 
	 
	 	 	 	 
	ANNEX B
	 	 	 	 
	 
	 	 	 	 
	NOTATION OF GUARANTEE
	 	 	B-1	 
	 
	 	 	 	 
	ANNEX C
	 	 	 	 
	 
	 	 	 	 
	FORM OF SUPPLEMENTAL INDENTURE
	 	 	C-1	 

v

 

     THIS FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of September 18,
2009, is among Concho Resources Inc., a Delaware corporation (herein called the “Company”), having
its principal office at 550 West Texas Avenue, Suite 100, Midland, Texas 79701, and COG Operating
LLC, a Delaware limited liability company, COG Realty LLC, a Texas limited liability company,
Concho Energy Services LLC, a Texas limited liability company, and Quail Ranch LLC, a Texas limited
liability company (together, the “Subsidiary Guarantors”), and Wells Fargo Bank, National
Association, as Trustee (herein called the “Trustee”) under the indenture, dated as of September
18, 2009, among the Company, the Subsidiary Guarantors and the Trustee (the “Base Indenture” and,
as amended and supplemented by this Supplemental Indenture, in respect of the Notes, the
“Indenture”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

     The Company and the Subsidiary Guarantors have duly authorized, executed and delivered the
Base Indenture to provide for the issuance from time to time of the Company’s unsecured debentures,
notes or other evidences of indebtedness (herein called the “Securities”), to be issued in one or
more series, and the Guarantee by each of the Subsidiary Guarantors of the Securities, as the Base
Indenture provides.

     Section 901(7) of the Base Indenture provides, among other things, that the Company, the
Subsidiary Guarantors and the Trustee may enter into indentures supplemental to the Base Indenture,
without the consent of any Holders of Securities, to establish the form or terms of any Security as
permitted by Sections 201 and 301 of the Base Indenture.

     Pursuant to Sections 201 and 301 of the Base Indenture, the Company desires to execute this
Supplemental Indenture to establish the form and terms, and to provide for the issuance, of a
series of senior notes designated as 8.625% Senior Notes due 2017 in an aggregate principal amount
of $300,000,000 (the “Initial Notes”).

     From time to time subsequent to the Issue Date, the Company may, if permitted to do so
pursuant to the terms of the Indenture, the Initial Notes and the terms of its other indebtedness
existing on such future date, issue additional senior notes of the same series as the Initial Notes
in accordance with this Supplemental Indenture (the “Additional Notes” and, together with the
Initial Notes, the “Notes”), pursuant to this Supplemental Indenture.

     The Company and the Subsidiary Guarantors are members of the same consolidated group of
companies. The Subsidiary Guarantors will derive direct and indirect economic benefit from the
issuance of the Securities. Accordingly, each Subsidiary Guarantor has duly authorized the
execution and delivery of this Supplemental Indenture to provide for its full, unconditional and
joint and several Guarantee of the Notes to the extent provided in or pursuant to the Indenture.

     This Supplemental Indenture is subject to the provisions of the Trust Indenture Act of 1939,
as amended, that are required to be a part of this Supplemental Indenture and shall, to the extent
applicable, be governed by such provisions.

     All things necessary have been done to make the Notes, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the
Company, and all things necessary have been done to make the Subsidiary Guarantees thereof, when
the Notes have been executed by the Company and authenticated and delivered hereunder and duly
issued by the Company, the valid obligations of the Subsidiary Guarantors. All things necessary to
make this

1

 

Supplemental Indenture a valid agreement of each of the Company and the Subsidiary Guarantors,
in accordance with its terms, have been done.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes, as
follows:

ARTICLE ONE

APPLICATION OF SUPPLEMENTAL INDENTURE

AND CREATION OF THE INITIAL NOTES

Section 101. Application of This Supplemental Indenture.

     Notwithstanding any other provision of this Supplemental Indenture, the provisions of this
Supplemental Indenture, including as provided in Section 102 below, are expressly and solely for
the benefit of the Holders of the Notes and the Subsidiary Guarantees and shall not apply to any
other series of Securities that may be issued hereafter under the Base Indenture. The Notes
constitute a series of Securities (as defined in the Base Indenture) as provided in Section 301 of
the Base Indenture. Unless otherwise expressly specified, references in this Supplemental
Indenture to specific Article numbers or Section numbers refer to Articles and Sections contained
in this Supplemental Indenture, and not the Base Indenture or any other document.

Section 102. Effect of Supplemental Indenture.

     With respect to the Notes (and any notation of Subsidiary Guarantee endorsed thereon) only,
the Base Indenture shall be supplemented and amended pursuant to Section 901 thereof to establish
the form and terms of the Notes (and any notation of Subsidiary Guarantee endorsed thereon) as set
forth in this Supplemental Indenture, including as follows:

	 	(a)	 	Definitions. The definitions and other provisions of general application set forth in
Section 101 of the Base Indenture are deleted and replaced in their entirety by the
provisions of Section 201 of this Supplemental Indenture;
	 
	 	(b)	 	Provisions of General Application and Security Forms. Sections 102 through 114 and
Article Two of the Base Indenture are deleted and replaced in their entirety by the
provisions of Articles Two and Three, respectively (other than Section 201 of this
Supplemental Indenture) of this Supplemental Indenture;
	 
	 	(c)	 	Transfer and Exchange. The provisions of Article Three of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article Four of this
Supplemental Indenture;
	 
	 	(d)	 	Satisfaction and Discharge. The provisions of Article Four of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article Five of this
Supplemental Indenture;
	 
	 	(e)	 	Remedies. The provisions of Article Five of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Six of this Supplemental Indenture;

2

 

	 	(f)	 	The Trustee. The provisions of Article Six of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Seven of this Supplemental
Indenture;
	 
	 	(g)	 	Holders’ Lists and Reports by Trustee and Company. The provisions of Article Seven of
the Base Indenture are deleted and replaced in their entirety by Article Eight of this
Supplemental Indenture;
	 
	 	(h)	 	Consolidation, Merger, Sale of Assets. The provisions of Article Eight of the Base
Indenture are deleted and replaced in their entirety by the provisions of Article Nine of
this Supplemental Indenture;
	 
	 	(i)	 	Supplemental Indentures. The provisions of Article Nine of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article Ten of this
Supplemental Indenture;
	 
	 	(j)	 	Covenants. The provisions of Article Ten of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Eleven of this Supplemental
Indenture;
	 
	 	(k)	 	Redemption. The provisions of Article Eleven of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Twelve of this Supplemental
Indenture;
	 
	 	(l)	 	Subsidiary Guarantee. The provisions of Article Thirteen of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article Sixteen of this
Supplemental Indenture;
	 
	 	(m)	 	Defeasance and Covenant Defeasance. The provisions of Article Fifteen of the Base
Indenture are deleted and replaced in their entirety by the provisions of Article Fourteen
of this Supplemental Indenture; and
	 
	 	(n)	 	Sinking Fund. The provisions of Article Sixteen of the Base Indenture are deleted in
their entirety.

     Articles Thirteen and Fifteen of this Supplemental Indenture are intentionally omitted.

     To the extent that the provisions of this Supplemental Indenture (including those referred to
in clauses (a) through (n) above) conflict with any provision of the Base Indenture, the provisions
of this Supplemental Indenture shall govern and be controlling, solely with respect to the Notes
(and any notation of Subsidiary Guarantee endorsed thereon).

ARTICLE TWO

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 201. Definitions.

     For all purposes of this Supplemental Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

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

3

 

     (2) all other terms used herein which are defined in the Trust Indenture Act, or the
Securities Act of 1933, either directly or by reference therein, have the meanings assigned
to them therein;

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

     (4) unless the context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or a Section, as the case may be, of this Supplemental Indenture; and

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

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

     “Act”, when used with respect to any Holder, has the meaning specified in Section 204.

     “Additional Assets” means:

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

     (2) capital expenditures by the Company or a Restricted Subsidiary in the Oil and Gas
Business;

     (3) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or

     (4) Capital Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary;

provided, however, that, in the case of clauses (3) and (4), such Restricted Subsidiary is
primarily engaged in the Oil and Gas Business.

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

     (a) the sum of: (i)  discounted future net revenues from proved oil and gas reserves
of the Company and its Restricted Subsidiaries calculated in accordance with SEC guidelines
before any state or federal income taxes, as estimated by the Company in a reserve report

4

 

prepared as of the end of the Company’s most recently completed fiscal year for which
audited financial statements are available, as increased by, as of the date of
determination, the estimated discounted future net revenues from (A) estimated proved oil
and gas reserves acquired since such year end, which reserves were not reflected in such
year end reserve report, and (B) estimated oil and gas reserves attributable to extensions,
discoveries and other additions and upward revisions of estimates of proved oil and gas
reserves since such year end due to exploration, development or exploitation, production or
other activities, which would, in accordance with standard industry practice, cause such
revisions (including the impact to proved reserves and future net revenues from estimated
development costs incurred and the accretion of discount since such year end), and decreased
by, as of the date of determination, the estimated discounted future net revenues from
(C) estimated proved oil and gas reserves produced or disposed of since such year end, and
(D) estimated oil and gas reserves attributable to downward revisions of estimates of proved
oil and gas reserves since such year end due to changes in geological conditions or other
factors which would, in accordance with standard industry practice, cause such revisions, in
each case calculated on a pre-tax basis and substantially in accordance with SEC guidelines,
in the case of clauses (A) through (D) utilizing prices and costs calculated in accordance
with SEC guidelines as if the end of the most recent fiscal quarter preceding the date of
determination for which such information is available to the Company were year end;
provided, however, that in the case of each of the determinations made pursuant to clauses
(A) through (D), such increases and decreases shall be as estimated by the Company’s
petroleum engineers; (ii) the capitalized costs that are attributable to Oil and Gas
Properties of the Company and its Restricted Subsidiaries to which no proved oil and gas
reserves are attributable, based on the Company’s books and records as of a date no earlier
than the date of the Company’s latest available annual or quarterly financial statements;
(iii) the Net Working Capital of the Company and its Restricted Subsidiaries on a date no
earlier than the date of the Company’s latest annual or quarterly financial statements; and
(iv) the greater of (A) the net book value of other tangible assets of the Company and its
Restricted Subsidiaries, as of a date no earlier than the date of the Company’s latest
annual or quarterly financial statements, and (B) the appraised value, as estimated by
independent appraisers, of other tangible assets of the Company and its Restricted
Subsidiaries, as of a date no earlier than the date of the Company’s latest audited
financial statements; provided, that, if no such appraisal has been performed the Company
shall not be required to obtain such an appraisal and only clause (iv)(A) of this definition
shall apply; minus

     (b) the sum of: (i)  Minority Interests; (ii) any net gas balancing liabilities of the
Company and its Restricted Subsidiaries reflected in the Company’s latest annual or
quarterly balance sheet (to the extent not deducted in calculating Net Working Capital of
the Company in accordance with clause (a)(iii) above of this definition); (iii) to the
extent included in (a)(i) above, the discounted future net revenues, calculated in
accordance with SEC guidelines (but utilizing prices and costs calculated in accordance with
SEC guidelines as if the end of the most recent fiscal quarter preceding the date of
determination for which such information is available to the Company were year end),
attributable to reserves which are required to be delivered to third parties to fully
satisfy the obligations of the Company and its Restricted Subsidiaries with respect to
Volumetric Production Payments (determined, if applicable, using the schedules specified
with respect thereto); and (iv) the discounted future net revenues, calculated in accordance
with SEC guidelines, attributable to reserves subject to Dollar-Denominated Production
Payments which, based on the estimates of production and price assumptions included in
determining the discounted future net revenues specified in (a)(i) above, would be necessary
to fully satisfy the payment obligations of the Company and its Subsidiaries with respect to
Dollar-Denominated
Production Payments (determined, if applicable, using the schedules specified with
respect thereto).

5

 

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

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

     “Applicable Premium” means, with respect to any Note on any applicable Redemption Date, the
greater of:

     (1) 1.0% of the principal amount of such Note; or

     (2) the excess, if any, of:

     (a) the present value at such Redemption Date of (i) the Redemption Price of
such Note at October 1, 2013 (such Redemption Price being set forth in the table
appearing in the first paragraph of Section 1203) plus (ii) all required interest
payments (excluding accrued and unpaid interest to such Redemption Date) due on such
Note through October 1, 2013 computed using a discount rate equal to the Treasury
Rate as of such Redemption Date plus 50 basis points; over

     (b) the principal amount of such Note.

     “Asset Disposition” means any direct or indirect sale, lease (including by means of Production
Payments and Reserve Sales and a Sale/Leaseback Transaction) (other than an operating lease entered
into in the ordinary course of the Oil and Gas Business), transfer, issuance or other disposition,
or a series of related sales, leases, transfers, issuances or dispositions that are part of a
common plan, of (A) shares of Capital Stock of a Restricted Subsidiary (other than Preferred Stock
of Restricted Subsidiaries issued in compliance with Section 1111, and directors’ qualifying shares
or shares required by applicable law to be held by a Person other than the Company or a Restricted
Subsidiary), (B) all or substantially all the assets of any division or line of business of the
Company or any Restricted Subsidiary (excluding any division or line of business the assets of
which are owned by an Unrestricted Subsidiary) or (C) any other assets of the Company or any
Restricted Subsidiary outside of the ordinary course of business of the Company or such Restricted
Subsidiary (each referred to for the purposes of this definition as a “disposition”), in each case
by the Company or any of its Restricted Subsidiaries, including any disposition by means of a
merger, consolidation or similar transaction.

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

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

6

 

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

     (3) a disposition of Hydrocarbons or mineral products inventory in the ordinary course
of business;

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

     (5) transactions in accordance with Section 901 or 902;

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

     (7) the making of a Permitted Investment or a Restricted Payment (or a disposition that
would constitute a Restricted Payment but for the exclusions from the definition thereof)
permitted by Section 1112;

     (8) an Asset Swap;

     (9) dispositions of assets with a Fair Market Value of less than $10.0 million;

     (10) Permitted Liens;

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

     (12) the licensing or sublicensing of intellectual property (including, without
limitation, the licensing of seismic data) or other general intangibles and licenses, leases
or subleases of other property in the ordinary course of business which do not materially
interfere with the business of the Company and its Restricted Subsidiaries;

     (13) foreclosure on assets;

     (14) any Production Payments and Reserve Sales; provided that any such Production
Payments and Reserve Sales, other than incentive compensation programs on terms that are
reasonably customary in the Oil and Gas Business for geologists, geophysicists and other
providers of technical services to the Company or a Restricted Subsidiary, shall have been
created, Incurred, issued, assumed or Guaranteed in connection with the financing of, and
within 60 days after the acquisition of, the property that is subject thereto;

     (15) a disposition of oil and natural gas properties in connection with tax credit
transactions complying with Section 29 or any successor or analogous provisions of the Code;

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

7

 

     (17) the abandonment, farmout, lease or sublease of developed or undeveloped Oil and
Gas Properties in the ordinary course of business; and

     (18) a disposition (whether or not in the ordinary course of business) of any Oil and
Gas Property or interest therein to which no proved reserves are attributable at the time of
such disposition.

     “Asset Swap” means any substantially contemporaneous (and in any event occurring within 180
days of each other) purchase and sale or exchange of any oil or natural gas properties or assets or
interests therein between the Company or any of its Restricted Subsidiaries and another Person;
provided that any cash received must be applied in accordance with Section 1115 as if the Asset
Swap were an Asset Disposition.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 714 to
act on behalf of the Trustee to authenticate Notes.

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

     “Base Indenture” has the meaning specified in the initial paragraph of this Supplemental
Indenture.

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

     “Board of Directors” means, as to any Person that is a corporation, the board of directors of
such Person or any duly authorized committee thereof or as to any Person that is not a corporation,
the board of managers or such other individual or group serving a similar function.

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

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

     “Capital Stock” of any Person means any and all shares, units, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into, or exchangeable for, such equity.

8

 

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

     “Cash Equivalents” means:

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

     (2) marketable general obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition and, at the time of acquisition,
having a credit rating of “A” (or the equivalent thereof) or better from either S&P or
Moody’s;

     (3) certificates of deposit, time deposits, eurodollar time deposits, overnight bank
deposits or bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank the short-term deposit of which is
rated at the time of acquisition thereof at least “A-2” or the equivalent thereof by S&P, or
“P-2” or the equivalent thereof by Moody’s, and having combined capital and surplus in
excess of $100.0 million;

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

     (5) commercial paper rated at the time of acquisition thereof at least “A-2” or the
equivalent thereof by S&P or “P-2” or the equivalent thereof by Moody’s, or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two named Rating
Agencies cease publishing ratings of investments, and in any case maturing within one year
after the date of acquisition thereof; and

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

     “Change of Control” means:

     (1) any “person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), is or becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of the Company
(or its successor by merger, consolidation or purchase of all or substantially all of its
assets) (for the purposes of this clause (1), such person or group shall be deemed to
Beneficially Own any Voting Stock of the Company held by a parent entity, if such person or
group Beneficially Owns, directly or indirectly, more than 50% of the total voting power of
the Voting Stock of such parent entity);

9

 

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

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

     (4) the adoption by the shareholders of the Company of a plan or proposal for the
liquidation or dissolution of the Company.

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

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

     “Common Stock” means, with respect to any Person, any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or nonvoting) of
such Person’s common stock whether or not outstanding on the Issue Date, and includes, without
limitation, all series and classes of such common stock.

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

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by an Officer and delivered to the Trustee.

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

     (1) if the Company or any Restricted Subsidiary:

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

10

 

the date of creation of such revolving Credit Facility to the date of such calculation,
in each case, provided that such average daily balance shall take into account any repayment
of Indebtedness under such revolving Credit Facility as provided in clause (b)); or

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

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

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

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

11

 

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

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

     (1) Consolidated Interest Expense;

     (2) Consolidated Income Tax Expense;

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

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

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

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

if applicable for such period; and less, to the extent included in calculating such Consolidated
Net Income and in excess of any costs or expenses attributable thereto that were deducted (and not
added back) in calculating such Consolidated Net Income, the sum of (x) the amount of deferred
revenues that are

12

 

amortized during such period and are attributable to reserves that are subject to Volumetric
Production Payments, (y) amounts recorded in accordance with GAAP as repayments of principal and
interest pursuant to Dollar-Denominated Production Payments and (z) other non-cash gains (excluding
any non-cash gain to the extent it represents the reversal of an accrual or reserve for a potential
cash item that reduced Consolidated EBITDAX in any prior period).

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

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

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

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

     (2) amortization of debt discount and debt issuance cost (provided that any
amortization of bond premium will be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such amortization of bond premium has otherwise reduced
Consolidated Interest Expense);

     (3) non-cash interest expense;

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

     (5) the interest expense on Indebtedness of another Person that is Guaranteed by the
Company or one of its Restricted Subsidiaries or secured by a Lien on assets of the Company
or one of its Restricted Subsidiaries, to the extent such Guarantee becomes payable or such
Lien becomes subject to foreclosure;

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

13

 

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

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

minus, to the extent included above, any interest attributable to Dollar-Denominated Production
Payments.

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

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

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

     (a) subject to the limitations contained in clauses (3) and (4) below, the
Company’s equity in the net income of any such Person for such period will be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a dividend
or other distribution to a Restricted Subsidiary, to the limitations contained in
clause (2) below); and

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

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

     (a) subject to the limitations contained in clauses (3), (4) and (5) below, the
Company’s equity in the net income of any such Restricted Subsidiary for such period
will be included in such Consolidated Net Income up to the aggregate amount of cash
that could have been distributed by such Restricted Subsidiary during such period to
the Company or another Restricted Subsidiary as a dividend or other distribution
(subject, in the case of a dividend or other distribution paid to another Restricted
Subsidiary, to the limitation contained in this clause); and

14

 

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

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

     (4) any extraordinary or nonrecurring gains or losses, together with any related
provision for taxes on such gains or losses and all related fees and expenses;

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

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

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

     (8) income or loss attributable to discontinued operations (including, without
limitation, operations disposed of during such period whether or not such operations were
classified as discontinued);

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

     (10) any non-cash compensation charge arising from any grant of stock, stock options or
other equity based awards; provided that the proceeds resulting from any such grant will be
excluded from Section 1112(c)(ii).

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

     “Corporate Trust Office” means the office of the Trustee in Fort Worth, Texas at which at any
particular time its corporate trust business in relation to the Notes shall be administered, which
office on the date hereof is located at 201 Main Street, 3rd Floor, Fort Worth, Texas
76102-5489, or such other address as the Trustee may designate from time to time by notice to the
Holders and the Company, or the principal corporate trust office of any successor Trustee (or such
other address as such successor Trustee may designate from time to time by notice to the Holders
and the Company).

     “Covenant Defeasance” has the meaning specified in Section 1403.

15

 

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

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

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

     “Defaulted Interest” has the meaning specified in Section 407.

     “Defeasance” has the meaning specified in Section 1402.

     “Depositary” means, with respect to Notes issued in whole or in part in the form of one or
more Global Notes, The Depository Trust Company or any other clearing agency registered under the
Exchange Act that is designated to act as successor Depositary for such Notes.

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

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

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

     (3) is redeemable at the option of the holder of the Capital Stock in whole or in part,

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

16

 

the Company with the provisions of Sections 1110 and 1115 and (ii) such repurchase or redemption
will be permitted solely to the extent also permitted in accordance with Section 1112.

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

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

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

     “Equity Offering” means a public or private offering for cash by the Company of Capital Stock
(other than Disqualified Stock), other than public offerings registered on Form S-8.

     “Event of Default” has the meaning specified in Section 601.

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

     “Expiration Date” has the meaning specified in Section 204.

     “Fair Market Value” means, with respect to any asset or property, the sale value that would be
obtained in an arm’s-length free market transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair Market Value
of an asset or property in excess of $10.0 million shall be determined by the Board of Directors of
the Company acting in good faith, whose determination shall be conclusive and evidenced by a
resolution of such Board of Directors, and any lesser Fair Market Value may be determined by an
officer of the Company acting in good faith.

     “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the laws of
the United States of America or any state thereof or the District of Columbia.

     “Funding Guarantor” has the meaning specified in Section 1605.

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

     “Global Note” means a Note that evidences all or part of the Notes and bears the legend set
forth in Section 302.

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

     (1) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or

17

 

by agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise); or

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

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

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

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

     “Holder” means a Person in whose name a Note is registered on the Security Registrar’s books.

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

     “Immaterial Subsidiary” means, as of any date, any Restricted Subsidiary whose total assets,
as of the end of the most recent month for which financial statements are available, are less than
$1,000,000 and whose total revenues for the most recent 12-month period for which financial
statements are available do not exceed $1,000,000; provided that a Restricted Subsidiary will not
be considered to be an Immaterial Subsidiary if it, directly or indirectly, Guarantees or otherwise
provides direct credit support for any Indebtedness of the Company.

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

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

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

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

18

 

     (3) the principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates
to a trade payable, to the extent such letters of credit are not drawn upon or, if and to
the extent drawn upon, such obligation is satisfied within 30 days of payment on the letter
of credit);

     (4) the principal component of all obligations of such Person (other than obligations
payable solely in Capital Stock that is not Disqualified Stock) to pay the deferred and
unpaid purchase price of property (except as described in clause (8) of the penultimate
paragraph of this definition of “Indebtedness”), which purchase price is due more than six
months after the date of placing such property in service or taking delivery and title
thereto to the extent such obligations would appear as a liabilities upon the consolidated
balance sheet of such Person in accordance with GAAP;

     (5) Capitalized Lease Obligations of such Person to the extent such Capitalized Lease
Obligations would appear as liabilities on the consolidated balance sheet of such Person in
accordance with GAAP;

     (6) the principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any Disqualified Stock or,
with respect to any Subsidiary that is not a Subsidiary Guarantor, any Preferred Stock (but
excluding, in each case, any accrued dividends);

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

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

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

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

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

19

 

     Notwithstanding the preceding, “Indebtedness” shall not include:

     (1) Production Payments and Reserve Sales;

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

     (3) any obligations under Currency Agreements, Commodity Agreements and Interest Rate
Agreements; provided that such agreements are entered into for bona fide hedging purposes of
the Company or its Restricted Subsidiaries (as determined in good faith by the Board of
Directors or senior management of the Company, whether or not accounted for as a hedge in
accordance with GAAP) and, in the case of Currency Agreements or Commodity Agreements, such
Currency Agreements or Commodity Agreements are related to business transactions of the
Company or its Restricted Subsidiaries entered into in the ordinary course of business and,
in the case of Interest Rate Agreements, such Interest Rate Agreements substantially
correspond in terms of notional amount, duration and interest rates, as applicable, to
Indebtedness of the Company or its Restricted Subsidiaries Incurred without violation of the
Indenture;

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

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

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

     (7) all contracts and other obligations, agreements, instruments or arrangements
described in clauses (19), (20), (21) or (28)(a) of the definition of “Permitted Liens”; and

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

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

20

 

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

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

     (3) there is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted Subsidiary of such
Person; and then such Indebtedness shall be included in an amount not to exceed:

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

     (b) if less than the amount determined pursuant to clause (a) immediately
above, the actual amount of such Indebtedness that is with recourse to such Person
or a Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a
writing and is for a determinable amount and the related interest expense shall be
included in Consolidated Interest Expense to the extent actually paid by such Person
and its Restricted Subsidiaries.

     “Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture.

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

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

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

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

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

21

 

     (3) an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock of
the Company.

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

     For purposes of the definition of “Unrestricted Subsidiary” and Section 1112,

     (1) “Investment” will include the portion (proportionate to the Company’s equity
interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
Fair Market Value of the net assets of such Restricted Subsidiary at the time that such
Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon
a redesignation of such Subsidiary as a Restricted Subsidiary, the Company will be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if
positive) equal to (a) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (b) the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time that
such Subsidiary is so redesignated a Restricted Subsidiary; and

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

     “Investment Company Act” means the Investment Company Act of 1940 and any statute successor
thereto, in each case as amended from time to time.

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

     (1) Baa3 (or the equivalent) with a stable or better outlook by Moody’s; and

     (2) BBB– (or the equivalent) with a stable or better outlook by S&P,

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

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

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

     “Lien” means, with respect to any asset, any mortgage, lien (statutory or otherwise), pledge,
hypothecation, charge, security interest, preference, priority or encumbrance of any kind in
respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in the nature thereof,
any option or other agreement to sell or give a security interest in and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction; provided that in no event shall an operating lease be deemed to constitute a Lien.

22

 

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

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

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

     (1) all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing agreements),
as a consequence of such Asset Disposition;

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

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

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

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

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

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

23

 

     “Net Working Capital” means (a) all current assets of the Company and its Restricted
Subsidiaries, except current assets from commodity price risk management activities arising in the
ordinary course of the Oil and Gas Business, less (b) all current liabilities of the Company and
its Restricted Subsidiaries, except current liabilities (i) associated with asset retirement
obligations relating to Oil and Gas Properties, (ii) included in Indebtedness and (iii) any current
liabilities from commodity price risk management activities arising in the ordinary course of the
Oil and Gas Business, in each case as set forth in the consolidated financial statements of the
Company prepared in accordance with GAAP.

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

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

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

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

     “Notice of Default” means a written notice of the kind specified in Section 601(4).

     “Obligations” has the meaning specified in Section 1601.

     “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company.
Officer of any Subsidiary Guarantor has a correlative meaning.

     “Officers’ Certificate” means a certificate signed by two Officers of the Company, one of whom
must be, in the case of the Officers’ Certificate referred to in Section 1104(a), the principal
executive officer, the principal financial officer or the principal accounting officer of the
Company, and that meets the requirements of Section 202.

     “Oil and Gas Business” means:

     (1) the business of acquiring, exploring, exploiting, developing, producing, operating
and disposing of interests in oil, natural gas, liquefied natural gas and other Hydrocarbon
and mineral properties or products produced in association with any of the foregoing;

     (2) the business of gathering, marketing, distributing, treating, processing, storing,
refining, selling and transporting of any production from such interests or properties and
products produced in association therewith and the marketing of oil, natural gas, other
Hydrocarbons and minerals obtained from unrelated Persons;

24

 

     (3) any other related energy business, including power generation and electrical
transmission business, directly or indirectly, from oil, natural gas and other Hydrocarbons
and minerals produced substantially from properties in which the Company or its Restricted
Subsidiaries, directly or indirectly, participate;

     (4) any business relating to oil field sales and service; and

     (5) any business or activity relating to, arising from, or necessary, appropriate or
incidental to the activities described in the foregoing clauses (1) through (4) of this
definition.

     “Oil and Gas Properties” means all properties, including equity or other ownership interests
therein, owned by a Person which contain or are believed to contain oil and gas reserves.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee and that meets the requirements of Section 202. The counsel may be an employee of or
counsel to the Company or the Trustee.

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

     (1) Notes theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (2) Notes for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company or an
Affiliate of the Company) in trust or set aside and segregated in trust by the Company (if
the Company or an Affiliate of the Company shall act as its own Paying Agent) for the
Holders of such Notes; provided that, if such Notes are to be redeemed, notice of such
redemption has been duly given pursuant to the Indenture or provision therefor satisfactory
to the Trustee has been made;

     (3) Notes as to which Defeasance has been effected pursuant to Section 1402; and

     (4) Notes which have been paid pursuant to Section 406 or in exchange for or in lieu of
which other Notes have been authenticated and delivered pursuant to the Indenture, other
than any such Notes in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Notes are held by a protected purchaser in whose hands such
Notes are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Notes have given, made or taken any request, demand, authorization, direction, notice,
consent, waiver or other Act hereunder as of any date, Notes owned by the Company or any other
obligor upon the Notes or any Affiliate of the Company or such other obligor shall be disregarded
and deemed not to be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction, notice, consent,
waiver or other action, only Notes which the Trustee knows to be so owned shall be so disregarded.
Notes so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the Notes or any Affiliate
of the Company or of such other obligor.

25

 

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

     “Paying Agent” means any Person authorized by the Company to pay the principal of or any
premium or interest on any Notes on behalf of the Company.

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

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

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

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

     (a) the Restricted Subsidiary or the Company, as applicable, would be permitted to
incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of Section
1111, or

     (b) the Consolidated Coverage Ratio for the Company would be greater than the
Consolidated Coverage Ratio for the Company immediately prior to such transaction.

     “Permitted Business Investment” means any Investment made in the ordinary course of, and of a
nature that is or shall have become customary in, the Oil and Gas Business including investments or
expenditures for actively exploiting, exploring for, acquiring, developing, producing, processing,
gathering, marketing or transporting oil, natural gas or other Hydrocarbons and minerals through
agreements, transactions, interests or arrangements which permit one to share risks or costs,
comply with regulatory requirements regarding local ownership or satisfy other objectives
customarily achieved through the conduct of the Oil and Gas Business jointly with third parties
including:

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

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

26

 

     (3) direct or indirect ownership interests in drilling rigs and related equipment,
including, without limitation, transportation equipment.

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

     (1) the Company, a Restricted Subsidiary or a Person which will, upon the making of
such Investment, become a Restricted Subsidiary; provided, however, that the primary
business of such Restricted Subsidiary is the Oil and Gas Business;

     (2) another Person whose primary business is the Oil and Gas Business if as a result of
such Investment such other Person becomes a Restricted Subsidiary or is merged or
consolidated with or into, or transfers or conveys all or substantially all its assets to,
the Company or a Restricted Subsidiary and, in each case, any Investment held by such
Person; provided that such Investment was not acquired by such Person in contemplation of
such acquisition, merger, consolidation or transfer;

     (3) cash and Cash Equivalents;

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

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

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

     (7) Capital Stock, obligations or securities received in settlement of debts
(x) created in the ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments or (y) pursuant to any plan of reorganization or
similar arrangement in a bankruptcy or insolvency proceeding;

     (8) any Person as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 1115;

     (9) Investments in existence on the Issue Date;

     (10) Commodity Agreements, Currency Agreements, Interest Rate Agreements and related
Hedging Obligations, which transactions or obligations are Incurred in compliance with
Section 1111;

     (11) Guarantees issued in accordance with Section 1111;

     (12) Permitted Business Investments;

27

 

     (13) any Person where such Investment was acquired by the Company or any of its
Restricted Subsidiaries (a) in exchange for any other Investment or accounts receivable held
by the Company or any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such other
Investment or accounts receivable or (b) as a result of a foreclosure by the Company or any
of its Restricted Subsidiaries with respect to any secured Investment or other transfer of
title with respect to any secured Investment in default;

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

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

     (16) Investments in the Notes; and

     (17) Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (17), in an aggregate amount outstanding at
the time of such Investment not to exceed the greater of $20.0 million and 1.0% of the
Company’s Adjusted Consolidated Net Tangible Assets (with the Fair Market Value of such
Investment being measured at the time such Investment is made and without giving effect to
subsequent changes in value).

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

     (1) Liens securing Indebtedness under a Credit Facility permitted to be Incurred under
the Indenture;

     (2) pledges or deposits by such Person under workers’ compensation laws, unemployment
insurance laws, social security or old age pension laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits (which may be secured
by a Lien) to secure public or statutory obligations of such Person including letters of
credit and bank guarantees required or requested by the United States, any State thereof or
any foreign government or any subdivision, department, agency, organization or
instrumentality of any of the foregoing in connection with any contract or statute
(including lessee or operator obligations under statutes, governmental regulations,
contracts or instruments related to the ownership, exploration and production of oil,
natural gas, other Hydrocarbons and minerals on State, Federal or foreign lands or waters),
or deposits of cash or United States government bonds to secure indemnity performance,
surety or appeal bonds or other similar bonds to which such Person is a party, or deposits
as security for contested taxes or import or customs duties or for the payment of rent, in
each case Incurred in the ordinary course of business;

     (3) statutory and contractual Liens of landlords and Liens imposed by law, including
carriers’, warehousemen’s, mechanics’, materialmen’s and repairmen’s Liens, in each case for

28

 

sums not yet due or being contested in good faith by appropriate proceedings if a
reserve or other appropriate provisions, if any, as shall be required by GAAP shall have
been made in respect thereof;

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

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

     (6) survey exceptions, encumbrances, ground leases, easements or reservations of, or
rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other restrictions
(including, without limitation, minor defects or irregularities in title and similar
encumbrances) as to the use of real properties or Liens incidental to the conduct of the
business of such Person or to the ownership of its properties which do not in the aggregate
materially adversely affect the value of the assets of such Person and its Restricted
Subsidiaries, taken as a whole, or materially impair their use in the operation of the
business of such Person;

     (7) Liens securing Hedging Obligations;

     (8) leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) which do not materially
interfere with the ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;

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

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

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

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

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

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

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

     (12) Liens arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Company and its Restricted Subsidiaries in the ordinary
course of business;

     (13) Liens existing on the Issue Date;

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

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

     (16) Liens securing the Notes, Subsidiary Guarantees and other obligations under the
Indenture;

     (17) Liens securing Refinancing Indebtedness Incurred to refinance Indebtedness that
was previously so secured, provided that any such Lien is limited to all or part of the same
property or assets (plus improvements, accessions, proceeds or dividends or distributions in
respect thereof) that secured (or, under the written arrangements under which the original
Lien arose, could secure) the Indebtedness being refinanced or is in respect of property or
assets that is the security for a Permitted Lien hereunder;

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

     (19) Liens in respect of Production Payments and Reserve Sales, which Liens shall be
limited to the property that is the subject of such Production Payments and Reserve Sales;

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

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

     (22) Liens securing Indebtedness in an aggregate principal amount outstanding at any
one time, added together with all other Indebtedness secured by Liens Incurred pursuant to
this clause (22), not to exceed the greater of $20.0 million and 1.0% of the Company’s
Adjusted Consolidated Net Tangible Assets, as determined on the date of Incurrence of such
Indebtedness after giving pro forma effect to such Incurrence and the application of the
proceeds therefrom;

     (23) Liens in favor of the Company or any Subsidiary Guarantor;

     (24) deposits made in the ordinary course of business to secure liability to insurance
carriers;

     (25) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods in the ordinary
course of business;

     (26) Liens deemed to exist in connection with Investments in repurchase agreements
permitted by Section 1111; provided that such Liens do not extend to any assets other than
those that are the subject of such repurchase agreement;

     (27) Liens encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage accounts incurred
in the ordinary course of business and not for speculative purposes;

     (28) any (a) interest or title of a lessor or sublessor under any lease, liens reserved
in oil, gas or other Hydrocarbons, minerals, leases for bonus, royalty or rental payments
and for compliance with the terms of such leases; (b) restriction or encumbrance that the
interest or title of such lessor or sublessor may be subject to (including, without
limitation, ground leases or other prior leases of the demised premises, mortgages,
mechanics’ liens, tax liens, and easements); or (c) subordination of the interest of the
lessee or sublessee under such lease to any restrictions or encumbrance referred to in the
preceding clause (b);

     (29) Liens upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;

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     (30) Liens arising under the Indenture in favor of the Trustee for its own benefit and
similar Liens in favor of other trustees, agents and representatives arising under
instruments governing Indebtedness permitted to be incurred under the Indenture, provided,
however, that such Liens are solely for the benefit of the trustees, agents or
representatives in their capacities as such and not for the benefit of the holders of such
Indebtedness;

     (31) Liens arising from the deposit of funds or securities in trust for the purpose of
decreasing or defeasing Indebtedness so long as such deposit of funds or securities and such
decreasing or defeasing of Indebtedness are permitted by Section 1112; and

     (32) Liens in favor of collecting or payer banks having a right of setoff, revocation,
or charge back with respect to money or instruments of the Company or any Subsidiary of the
Company on deposit with or in possession of such bank.

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

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

     “Place of Payment”, when used with respect to the Notes, means the place or places where the
principal of and any premium and interest on the Notes are payable as specified in Section 1102.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 406 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Note.

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

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

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     “Rating Agency” means each of S&P and Moody’s, or if S&P or Moody’s or both shall not make a
rating on the Notes publicly available, a nationally recognized statistical rating agency or
agencies, as the case may be, selected by the Company (as certified by a Board Resolution) which
shall be substituted for S&P or Moody’s, or both, as the case may be.

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

     “Redemption Price”, when used with respect to any Note to be redeemed, means the price at
which it is to be redeemed pursuant to the Indenture.

     “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace,
exchange, renew, repay, extend, prepay, redeem or retire (including pursuant to any defeasance or
discharge mechanism) (collectively, “refinance” and “refinances” and “refinanced” shall have
correlative meanings) any Indebtedness (including Indebtedness of the Company that refinances
Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that
refinances Indebtedness of another Restricted Subsidiary, but excluding Indebtedness of a
Subsidiary that is not a Restricted Subsidiary that refinances Indebtedness of the Company or a
Restricted Subsidiary), including Indebtedness that refinances Refinancing Indebtedness, provided,
however, that:

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

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

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Notes means
the date specified for that purpose as contemplated by Section 401.

     “Reporting Failure” means the failure of the Company to file with the SEC and make available
or otherwise deliver to the Trustee and each Holder of Notes, within the time periods specified in
Section 804 (after giving effect to any grace period specified under Rule 12b-25 under the Exchange
Act), the
periodic reports, information, documents or other reports which the Company may be required to
file with the SEC pursuant to such provision.

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     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

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

     “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

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

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

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

     “Securities” has the meaning stated in the first recital of the Indenture and more
particularly means any Securities authenticated and delivered under the Base Indenture.

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

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
405.

     “Senior Secured Credit Agreement” means the Amended and Restated Credit Agreement dated as of
July 31, 2008 among the Company, as Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent,
and the lenders parties thereto from time to time, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements, refundings or refinancings thereof and any
indentures or credit facilities or commercial paper facilities with banks or other institutional
lenders or investors that replace, refund or refinance any part of the loans, notes, other credit
facilities or commitments thereunder, including any such replacement, refunding or refinancing
facility or indenture that increases the amount borrowable thereunder or alters the maturity
thereof (provided that such increase in borrowings is permitted under Section 1111).

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

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 407.

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

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

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

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

     “Subsidiary Guarantor” means any Subsidiary of the Company that is a guarantor of the Notes,
including each of the four Subsidiaries party to this Supplemental Indenture and any Person that is
required after the Issue Date to guarantee the Notes pursuant to Section 1117, in each case until a
successor replaces such Person pursuant to the applicable provisions of the Indenture and,
thereafter, means such successor.

     “Supplemental Indenture” has the meaning set forth in the first paragraph of this instrument.

     “Treasury Rate” means, as of any Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source or similar market data)) most nearly
equal to the period from the redemption date to October 1, 2013; provided, however, that if the
period from the Redemption Date to October 1, 2013 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Rate shall
be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the Redemption Date to October 1, 2013 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used. The Company will (a) calculate the Treasury Rate as of the second
Business Day preceding the applicable Redemption Date and (b) prior to such Redemption Date file
with the Trustee an Officers’ Certificate setting forth the Applicable Premium and the Treasury
Rate and showing the calculation of each in reasonable detail.

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     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

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

     “Unrestricted Subsidiary” means:

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

     (2) any Subsidiary of an Unrestricted Subsidiary.

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

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

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

     (3) on the date of such designation, such designation and the Investment of the Company
or a Restricted Subsidiary in such Subsidiary complies with Section 1112;

     (4) such Subsidiary is a Person with respect to which neither the Company nor any of
its Restricted Subsidiaries has any direct or indirect obligation:

     (a) to subscribe for additional Capital Stock of such Person; or

     (b) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and

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

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     Any such designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a Board Resolution of the Company giving effect to such
designation and an Officers’ Certificate certifying that such designation complies with the
foregoing conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the foregoing
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of the Indenture and any Indebtedness of such Subsidiary shall be deemed to
be Incurred as of such date.

     The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness under the first
paragraph of Section 1111 on a pro forma basis taking into account such designation.

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

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

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

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

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

Section 202. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take or refrain from taking
any action under any provision of the Indenture, the Company shall furnish to the Trustee such
certificates and opinions as may be required under the Trust Indenture Act. Each such certificate
or opinion shall be given in the form of an Officers’ Certificate, if to be given by an Officer of
the Company, or an Opinion
of Counsel, if to be given by counsel, and shall comply with the requirements of the Trust
Indenture Act and any other requirements set forth in the Indenture.

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     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in the Indenture shall include,

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

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

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

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 203. Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an Officer or Officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under the Indenture, they may,
but need not, be consolidated and form one instrument.

Section 204. Acts of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by the Indenture to be given, made or taken by Holders of the Notes may be
embodied in and evidenced by one or more instruments of substantially similar tenor signed (either
physically or by means of a facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) by such Holders in person or by
agent duly appointed in writing; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the Trustee and, where
it is hereby expressly required, to the Company or the Subsidiary Guarantors. Such instrument or
instruments (and the action embodied therein

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and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
the Indenture and conclusive in favor of the Trustee and the Company and, if applicable, the
Subsidiary Guarantors, if made in the manner provided in this Section.

     The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

     The ownership, principal amount and serial numbers of Notes held by any Person, and the date
of commencement of such Person’s holding of same, shall be proved by the Security Register.

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Note shall bind every future Holder of Notes and the Holder of every Note issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company or, if applicable, the
Subsidiary Guarantors in reliance thereon, whether or not notation of such action is made upon such
Note.

     The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Notes entitled to give, make or take any request, demand, authorization, direction,
notice, consent, waiver or other Act provided or permitted by the Indenture to be given, made or
taken by Holders of Notes, provided that the Company may not set a record date for, and the
provisions of this paragraph shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Notes on such record date, and no other
Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders
after such record date; provided that no such action shall be effective hereunder unless taken on
or prior to the applicable Expiration Date by Holders of the requisite principal amount of
Outstanding Notes on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Notes on the date such action is taken. Promptly after any record date is set pursuant
to this paragraph, the Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing
and to each Holder of Notes in the manner set forth in Section 206.

     The Trustee may set any day as a record date for the purpose of determining the Holders of
Notes entitled to join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 602, (iii) any request to institute proceedings referred to
in Section 607(2) or (iv) any direction referred to in Section 612. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Notes on such record date, and no other
Holders, shall be entitled to join in such notice, declaration, request or direction, whether or
not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable

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Expiration Date by Holders of the
requisite principal amount of Outstanding Notes on such record date. Nothing in this paragraph
shall be construed to prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Notes on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense,
shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of Notes in the manner set
forth in Section 206.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record date may designate any day as the “Expiration Date” and from time to time may change the
Expiration Date to any earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to each other party hereto in writing, and to
each Holder of Notes in the manner set forth in Section 206, on or prior to the existing Expiration
Date. If an Expiration Date is not designated with respect to any record date set pursuant to this
Section, the party hereto which set such record date shall be deemed to have initially designated
the 180th day after such record date as the Expiration Date with respect thereto, subject to its
right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing,
no Expiration Date shall be later than the 180th day after the applicable record date.

     Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to the Notes may do so with regard to all or any part of the principal amount of such Note
or by one or more duly appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.

Section 205. Notices, Etc., to Trustee and Company.

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

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

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

Section 206. Notice to Holders; Waiver.

     Where the Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing in the English
language and mailed, first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security

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Register, not later than the latest date (if any), and not
earlier than the earliest date (if any), 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. If notice is mailed to Holders in the manner provided in this Section
206, it is duly given, whether or not the addressee receives it. Where the Indenture provides for
notice in any manner, such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such waiver.

     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 with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 207. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under the Trust Indenture Act to be a part of and govern the Indenture, the
latter provision shall control. If any provision of the Indenture modifies or excludes any
provision of the Trust Indenture Act which may be so modified or excluded, the latter provision
shall be deemed to apply to the Indenture as so modified or to be excluded, as the case may be.

Section 208. Effect of Headings and Table of Contents.

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

Section 209. Successors and Assigns.

     All covenants and agreements in the Indenture by the Company, the Subsidiary Guarantors or the
Trustee shall bind their respective successors and assigns, whether so expressed or not.

Section 210. Separability Clause.

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

Section 211. Benefits of Indenture.

     Nothing in the Indenture or the Notes, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or
equitable right, remedy or claim under the Indenture.

Section 212. Governing Law.

     The Indenture, the Notes and the Subsidiary Guarantees shall be governed by and construed in
accordance with the laws of the State of New York.

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Section 213. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, purchase date or Stated Maturity
of any Note shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of the Indenture or of the Notes (other than a provision of any Note which specifically
states that such provision shall apply in lieu of this Section)) payment of interest or principal
(and premium, if any) need not be made at such Place of Payment on such date, but may be made on
the next succeeding Business Day at such Place of Payment with the same force and effect as if made
on the Interest Payment Date, Redemption Date or purchase date, or at the Stated Maturity.

Section 214. No Personal Liability of Directors, Officers, Employees and
Stockholders.

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

Section 215. No Adverse Interpretation of Other Agreements.

     The Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret the Indenture.

Section 216. U.S.A. Patriot Act.

     The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act,
the Trustee, like all financial institutions and in order to help fight the funding of terrorism
and money laundering, is required to obtain, verify, and record information that identifies each
person or legal entity that establishes a relationship or opens an account with the Trustee. The
parties to this Supplemental Indenture agree that they will provide the Trustee with such
information within their possession or control as it may reasonably request in order for the
Trustee to satisfy the requirements of the U.S.A. Patriot Act.

Section 217. Counterpart Originals.

     The parties may sign any number of copies of this Supplemental Indenture, and each party
hereto may sign any number of separate copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement. The exchange of
copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto
and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for
all purposes.

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ARTICLE THREE

NOTE FORMS

Section 301. Forms Generally.

     The Notes and the Trustee’s certificate of authentication shall be in substantially the
respective forms set forth in Annex A hereto, and the notations of Subsidiary Guarantee shall be in
substantially the form set forth in Annex B hereto. The Notes may have such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by the
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor or as may, consistently herewith, be determined by the officers executing
such Notes as evidenced by their execution thereof.

     The definitive Notes shall be printed, lithographed or engraved on steel engraved borders or
may be produced in any other manner, all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     The Initial Notes shall be issued initially in the form of a Global Note, which shall be
deposited with the Trustee, as custodian for the Depositary. The aggregate principal amount of any
Global Note may from time to time be increased or decreased by adjustments made on the schedule
attached to such Global Note or on other records of the Trustee, acting as custodian for the
Depositary.

Section 302. Form of Legend for Global Notes.

     Every Global Note authenticated and delivered under the Indenture shall bear a legend in
substantially the following form:

THIS NOTE IS A NOTE SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

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ARTICLE FOUR

THE NOTES

Section 401. Title and Terms.

     The Notes shall be entitled the “8.625% Senior Notes due 2017.” The Trustee shall
authenticate the Notes to be authenticated and delivered under this Supplemental Indenture on the
Issue Date in an aggregate amount equal to $300,000,000, upon delivery of a Company Order. The
Trustee shall authenticate Additional Notes thereafter from time to time in unlimited amount for
original issue upon receipt of a Company Order (subject to compliance with Section 1111). Any such
Company Order shall also specify the date on which the original issue of Notes is to be
authenticated and, in relation to any Additional Notes, it shall also specify the principal amount
thereof to be issued and shall certify that such issuance is not prohibited by Section 1111.

     The Notes will mature on October 1, 2017. Interest on the Notes will accrue at the rate of
8.625% per annum and will be payable semiannually in cash on each April 1 and October 1, commencing
on April 1, 2010 in the case of the Initial Notes, to the Persons who are registered Holders of
Notes at the close of business on the March 15 and September 15 immediately preceding the
applicable Interest Payment Date. Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from and including the date of
issuance to but excluding the actual Interest Payment Date.

     The Notes shall be redeemable as provided in Article Twelve and subject to Defeasance and
Covenant Defeasance as provided in Article Fourteen. The Notes shall have such other terms as are
indicated in Annex A.

Section 402. Denominations.

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

Section 403. Execution, Authentication, Delivery and Dating.

     The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its President or one of its Vice Presidents. If its corporate seal is
reproduced thereon, it shall be attested by the Secretary or an Assistant Secretary of the Company.
The signature of any of these officers on the Notes may be manual or facsimile.

     If the Company elects to reproduce its corporate seal on the Notes, then such seal may be in
the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on
the Notes.

     Notes bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding the fact that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Notes or did not hold such offices at the date of such Notes.

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     At any time and from time to time after the execution and delivery of this Supplemental
Indenture and as provided in Section 401, the Company may deliver Notes executed by the Company to
the Trustee for authentication, together with a Company Order for the authentication and delivery
of such Notes, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Notes.

     Each Note shall be dated the date of its authentication.

     No Note shall be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose unless there appears on such Note a certificate of authentication substantially in the form
provided for in Annex A, signed manually in the name of the Trustee by an authorized signatory, and
such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note
has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Note
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and
the Company shall deliver such Note to the Trustee for cancellation as provided in Section 409, for
all purposes of the Indenture such Note shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of the Indenture.

Section 404. Temporary Securities.

     Pending the preparation of definitive Notes, the Company may execute, and upon Company Order
the Trustee shall authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of
the
tenor of the definitive Notes in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the Officers executing such Notes may
determine, as evidenced by their execution of such Notes.

     If temporary Notes are issued, the Company will cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of
the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Notes, the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor one or more definitive Notes of any authorized
denominations and of like tenor and aggregate principal amount. Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits under the Indenture as definitive
Notes.

Section 405. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company being
herein sometimes collectively referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes
and of transfers of Notes. The Trustee is hereby appointed “Security Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided.

     Upon surrender for registration of transfer of any Note at the office of the Security
Registrar, Company shall execute and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes, of any authorized denominations and of
like tenor and aggregate principal amount.

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     All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Company evidencing the same debt, and entitled to the same benefits under the
Indenture, as the Notes surrendered upon such registration of transfer or exchange.

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

     No service charge shall be made for any registration of transfer or exchange of Notes, but the
Company may require payment of a sum sufficient to cover any transfer tax or other governmental
taxes and fees that may be imposed by law or the Indenture in connection with any registration of
transfer or exchange of Notes, other than exchanges pursuant to Section 404, 1006, 1110, 1115 or
1208 not involving any transfer.

     If the Notes are to be redeemed in part, the Company shall not be required (A) to register the
transfer of or exchange any Notes during a period of 15 days before a selection of Notes for
redemption under Section 1204, or (B) to register the transfer of or exchange any Note so selected
for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in
part.

     The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Notes:

     (1) Each Global Note authenticated under the Indenture shall be registered in the name
of the Depositary designated for such Global Note or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global Note shall
constitute a single Note for all purposes of the Indenture.

     (2) Notwithstanding any other provision in the Indenture, no Global Note may be
exchanged in whole or in part for Notes registered, and no transfer of a Global Note in
whole or in part may be registered, in the name of any Person other than the Depositary for
such Global Note or a nominee thereof, unless (A) such Depositary (i) has notified the
Company that it is no longer willing or able to discharge its responsibilities properly as
Depositary for such Global Note or (ii) has ceased to be a clearing agency registered under
the Exchange Act, and in either case the Company has not appointed a qualified successor
within 90 days, (B) an Event of Default has occurred and is continuing and the Depositary
has notified the Company and the Trustee of its desire to exchange such Global Note for
Notes in certificated form or (C) subject to the Depositary’s rules, the Company, at its
option, has elected to terminate the book-entry system through the Depositary.

     (3) Subject to clause (2) above, any exchange of a Global Note for other Notes may be
made in whole or in part, and all Notes issued in exchange for a Global Note or any portion
thereof shall be registered in such names as the Depositary for such Global Note shall
direct.

     (4) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this
Section, Section 404, 406, 1006, 1110, 1115 or 1207 or otherwise, shall be authenticated and
delivered in

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the form of, and shall be, a Global Note, unless such Note is registered in the
name of a Person other than the Depositary for such Global Note or a nominee thereof.

Section 406. Mutilated, Destroyed, Lost and Stolen Notes.

     If any mutilated Note is surrendered to the Trustee, the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor a new Note of like tenor and principal amount
and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Note and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Note has been acquired by a protected
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Note, a new Note of like tenor and principal amount and bearing a
number not contemporaneously outstanding.

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

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

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

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

Section 407. Payment of Interest; Interest Rights Preserved.

     Interest on any Note which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Note (or one or more
Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest.

     Any interest on any Note which is payable, but is not punctually paid or duly provided for, on
any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable
to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause
(1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an amount of money

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equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be given to each
Holder of Notes in the manner set forth in Section 206, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Notes (or their respective Predecessor Notes) are registered
at the close of business on such Special Record Date and shall no longer be payable pursuant
to the following clause (2).

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

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

Section 408. Persons Deemed Owners.

     Prior to due presentment of a Note for registration of transfer, the Company, the Subsidiary
Guarantors, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name such Note is registered as the owner of such Note for the purpose of receiving payment of
principal of and any premium and (subject to Section 407) any interest on such Note and for all
other purposes whatsoever, whether or not such Note be overdue, and none of the Company, the
Subsidiary Guarantors, the Trustee nor any of their respective agents shall be affected by notice
to the contrary.

     None of the Company, the Subsidiary Guarantors, the Trustee, nor any of their respective
agents will have any responsibility or liability for any aspect of the records relating to, or
payments made on account of, beneficial ownership interests of a Note or for maintaining,
supervising or reviewing any records relating to such beneficial ownership interests.

Section 409. Cancellation.

     All Notes surrendered for payment, redemption, purchase, registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall
be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation
any Notes previously authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Notes previously authenticated hereunder which the Company has not
issued and sold, and all Notes so delivered shall be promptly cancelled by the Trustee. No Notes
shall be authenticated in

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lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by the Indenture. All cancelled Notes held by the Trustee
shall be disposed of in accordance with the Trustee’s standard provisions or as directed by a
Company Order.

Section 410. Computation of Interest.

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

ARTICLE FIVE

SATISFACTION AND DISCHARGE

Section 501. Satisfaction and Discharge of Indenture.

     The Indenture shall upon Company Request cease to be of further effect as to all Notes issued
hereunder, and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of the Indenture, when

     (1) either

     (A) all Notes theretofore authenticated and delivered (other than (i) Notes
which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 406 and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in Section 1103),
have been delivered to the Trustee for cancellation; or

     (B) all such Notes not theretofore delivered to the Trustee for cancellation

     (i) have become due and payable, or

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

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

     and the Company in the case of (i), (ii) or (iii), has irrevocably deposited or caused to be
irrevocably deposited with the Trustee as trust funds in trust solely for such purpose cash in U.S.
dollars, U.S. Government Obligations, or a combination thereof in such amounts as will be
sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for principal
and any premium and interest to the date of such deposit (in the case of Notes which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company in respect of the Notes; and

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

     Notwithstanding the satisfaction and discharge of the Indenture in respect of the Notes, the
obligations of the Company to the Holders under Sections 405 and 406, the obligations of the
Company to the Trustee under Section 707, the obligations of the Trustee to any Authenticating
Agent under Section 714 and, if cash or U.S. Government Obligations shall have been deposited with
the Trustee
pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under
Section 502 and the last paragraph of Section 1103 shall survive.

Section 502. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1103, all cash and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 501
shall be held in trust and applied by it, in accordance with the provisions of the Notes and the
Indenture, to the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal and any premium and interest for whose payment such cash and U.S. Government
Obligations (including the proceeds thereof) have been deposited with the Trustee.

ARTICLE SIX

REMEDIES

Section 601. Events of Default.

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

     (1) default in the payment of any interest upon any Note when it becomes due and
payable, and continuance of such default for a period of 30 days; or

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

     (3) failure by the Company or any Subsidiary Guarantor to comply with its obligations
under Article Nine; or

     (4) failure by the Company to comply for 30 days (or 180 days in the case of a
Reporting Failure) after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Notes a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder, with any of its obligations under Sections 1110 through 1118 of Article Eleven or
Section 804 (in each case, other than a failure to purchase Notes which will constitute an
Event of Default under clause

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(2) above and other than a failure to comply with Article Nine
which is covered by clause (3) above); or

     (5) failure by the Company to comply with any agreement in the Indenture (other than an
agreement, a default in or failure to comply with is elsewhere in this Section specifically
dealt with) and continuance of such default or breach for a period of 60 days after
there has been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Notes a written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; or

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

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

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

and, in each case, the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a payment default or the maturity
of which has been so accelerated, aggregates $30.0 million or more; or

     (7) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the last audited consolidated financial statements
for the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary
in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order adjudging the
Company a bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the Company or a
Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
last audited consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary, under any applicable Federal or
State law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the last audited consolidated financial statements
for the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary,
or of any substantial part of its or their property, or ordering the winding up or
liquidation of its or their affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60
consecutive days; or

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

     (9) failure by the Company or any Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $30.0 million (to the extent not
covered by insurance by a reputable and creditworthy insurer as to which the insurer has not
disclaimed coverage), which judgments are not paid or discharged, and there shall be any
period of 60 consecutive days following entry of such final judgment or decree during which
a stay of enforcement of such final judgment or decree, by reason of pending appeal or
otherwise, shall not be in effect; or

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

Section 602. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 601(7) or 601(8))
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Notes may declare the Notes to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and
upon any such declaration the principal of, premium, if any, and accrued and unpaid interest, if
any, on all of the Outstanding Notes shall become immediately due and payable. If an Event of
Default specified in

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Section 601(7) or 601(8) occurs, the principal of, premium, if any, and
accrued and unpaid interest, if any, on all of the Outstanding Notes shall automatically, and
without any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

     At any time after such a declaration of acceleration with respect to the Notes has been made,
the Holders of a majority in principal amount of the Outstanding Notes, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its consequences if

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

     (b) the Company has paid or deposited with the Trustee a sum sufficient to pay

     (A) all overdue interest on all the Notes,

     (B) the principal of (and premium, if any, on) any Notes which have become due
otherwise than by such declaration of acceleration and any interest thereon at the
rate or rates prescribed therefor in such Notes,

     (C) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate prescribed therefor in such Notes, and

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

     (c) all Events of Default with respect to the Notes, other than the non-payment of the
principal of, premium, if any, and interest on the Notes that have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 613.

     Notwithstanding the foregoing, if an Event of Default specified in Section 601(6) above shall
have occurred and be continuing, such Event of Default and any consequential acceleration (to the
extent not in violation of any applicable law or in conflict with any judgment or decree of a court
of competent jurisdiction) shall be automatically rescinded if (i) the Indebtedness that is the
subject of such Event of Default has been repaid or (ii) if the default relating to such
Indebtedness is waived by the holders of such Indebtedness or cured and if such Indebtedness has
been accelerated, then the holders thereof have rescinded their declaration of acceleration in
respect of such Indebtedness, in each case within 20 days after the declaration of acceleration
with respect thereto, and (iii) any other existing Events of Default, except nonpayment of
principal, premium or interest on the Notes that became due solely because of the acceleration of
the Notes, have been cured or waived.

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

Section 603. Collection of Indebtedness and Suits for Enforcement by Trustee.

     If an Event of Default occurs and is continuing, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any action or proceedings at law
or in equity for the collection of the sums so due and unpaid or enforce the performance of any
provision of the Notes or the Indenture, and may prosecute any such action or proceedings to
judgment or final decree, and may

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enforce any such judgment or final decree against the Subsidiary
Guarantors or the Company or any other obligor upon the Notes (and collect in the manner provided
by law out of the property of the Subsidiary
Guarantors or the Company or any other obligor upon the Notes wherever situated the moneys
adjudged or decreed to be payable).

Section 604. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company, the Subsidiary Guarantors or any
other obligor upon the Notes, or the property or creditors of the Company or the Subsidiary
Guarantors, the Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have
claims of the Holders and the Trustee allowed in any such proceeding. In particular, the Trustee
shall be authorized to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due it for the compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 707.

     No provision of the Indenture shall be deemed to authorize the Trustee to authorize or consent
to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment
or composition affecting the Notes or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding; provided, however, that the
Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar
official and be a member of a creditors’ or other similar committee.

Section 605. Trustee May Enforce Claims Without Possession of Notes.

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

Section 606. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the Notes and the notation
thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 707;

     SECOND: To the payment of the amounts then due and unpaid for principal of and any
premium and interest on the Notes, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Notes for principal and any premium and
interest, respectively; and

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     THIRD: The remainder, if any, shall be paid to the Subsidiary Guarantors or the
Company, as applicable, or to whomsoever may be lawfully entitled to receive the same, or as
a court of competent jurisdiction may direct.

Section 607. Limitation on Suits.

     No Holder shall have any right to institute any proceeding, judicial or otherwise, with
respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

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

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

     (3) such Holder or Holders have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request;

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

     (5) the holders of a majority in principal amount of the Outstanding Notes have not
waived such Event of Default or otherwise given the Trustee a direction that, in the opinion
of the Trustee, is inconsistent with such request within such 60-day period;

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

Section 608. Unconditional Right of Holders to Receive Principal, Premium and
Interest.

     Notwithstanding any other provision in the Indenture, the Holder of any Notes shall have the
right, which is absolute and unconditional, to receive payment of the principal of and any premium
and (subject to Section 407) interest on such Notes on the Stated Maturity expressed in such Notes
(or, in the case of redemption or offer by the Company to purchase the Notes pursuant to the terms
of the Indenture,
on the Redemption Date or purchase date, as applicable), and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.

Section 609. Restoration of Rights and Remedies.

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

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Section 610. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 406, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

Section 611. Delay or Omission Not Waiver.

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

Section 612. Control by Holders.

     Subject to Section 703(5), the Holders of a majority in principal amount of the Outstanding
Notes shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Notes, provided that

     (1) the Trustee may refuse to follow any direction that conflicts with any rule of law
or with the Indenture or that the Trustee determines is unduly prejudicial to the rights of
any other Holder or would involve the Trustee in personal liability, and

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

Section 613. Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Notes may on
behalf of the Holders of all the Notes waive any past default hereunder and its consequences or
compliance with any covenant or provision hereof, except a default

     (1) in the payment of the principal of or any premium or interest on the Notes
(including any Note which is required to have been purchased by the Company pursuant to an
offer to purchase by the Company made pursuant to the terms of the Indenture), or

     (2) in respect of a covenant or provision hereof which under Article Ten cannot be
modified or amended without the consent of the Holder of each Outstanding Note affected.

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

Section 614. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under the Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be deemed to
authorize any court to require such an undertaking or to make such an assessment in any suit
instituted by the Company.

Section 615. Waiver of Usury, Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of the Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

ARTICLE SEVEN

THE TRUSTEE

Section 701. Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as provided by the Trust Indenture
Act. Notwithstanding the foregoing, no implied covenants shall be read into the Indenture against
the Trustee, and no provision of the Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. Whether or not therein expressly so provided, every provision of the
Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

Section 702. Notice of Defaults.

     If a default occurs hereunder with respect to the Notes which is known to the Trustee, the
Trustee shall give the Holders of the Notes notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 601(5) with respect to the Notes, no such notice to Holders shall be given
until at least 30 days after the occurrence thereof. For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to the Notes.

     The Trustee shall not be deemed to have notice of any default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event which is in fact
such a default
is received by the Trustee from the Company or a Holder at the Corporate Trust
Office of the Trustee, and such notice references the Notes and the Indenture.

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Section 703. Certain Rights of Trustee.

     Subject to the provisions of Section 701:

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

     (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order, and any resolution of the Board of
Directors shall be sufficiently evidenced by a Board Resolution;

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

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

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by the Indenture at the request or direction of any of the Holders pursuant to
the Indenture, unless such Holders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

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

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

     (8) The Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes authorized or within its rights.

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Section 704. Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of the Indenture or of the Notes. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company
of Notes or the proceeds thereof.

Section 705. May Hold Notes.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Notes and, subject to Sections 708 and 713, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

Section 706. Money Held in Trust.

     Money and U.S. Government Obligations held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed with the
Company.

Section 707. Compensation and Reimbursement.

     The Company agrees

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

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

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without gross negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. When the Trustee
incurs expenses or renders services after the occurrence of an Event of Default specified in
paragraph (7) or (8) of Section 601 of the Indenture, such expenses and the compensation for
such services are intended to constitute expenses of administration under any Insolvency or
Liquidation Proceeding. For the purposes of this paragraph, “Insolvency” or “Liquidation
Proceeding” means, with respect to any Person, (a) an insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or similar case or proceeding
in connection therewith, relative to such Person or its creditors, as such, or its assets,
or (b) any liquidation, dissolution or other winding-up proceeding of such Person, whether
voluntary or involuntary and whether or not involving insolvency or
bankruptcy or (c) any
assignment for the benefit of creditors or any other marshaling of assets and liabilities of
such Person.

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Section 708. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or, except as otherwise provided in
Section 310(b) of the Trust Indenture Act, resign, to the extent and in the manner provided by, and
subject to the provisions of, the Trust Indenture Act and the Indenture. To the extent permitted
by the Trust Indenture Act, the
Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under
the Base Indenture with respect to Securities of more than one series.

Section 709. Corporate Trustee Required; Eligibility.

     There shall at all times be one (and only one) Trustee hereunder with respect to the Notes.
Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such,
and has a combined capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements of its supervising
or examining authority, then for the purposes of this Section and to the extent permitted by the
Trust Indenture Act, the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee with respect to the Notes shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

Section 710. Resignation and Removal; Appointment of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 711.

     The Trustee may resign at any time with respect to the Notes by giving written notice thereof
to the Company. If the instrument of acceptance by a successor Trustee required by Section 711
shall not have been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Notes.

     The Trustee may be removed at any time by Act of the Holders of a majority in principal amount
of the Outstanding Notes, delivered to the Trustee and to the Company.

     If at any time:

     (1) the Trustee shall fail to comply with Section 708 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Note for at least six
months, or

     (2) the Trustee shall cease to be eligible under Section 709 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

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

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee, or (B)
subject to Section 614, any Holder who has been a bona fide Holder of a Note for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Notes and the appointment of a
successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Notes, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Notes and
shall comply with the applicable requirements of Section 711. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Notes shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 711, become the successor Trustee with respect to the Notes and
to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee
with respect to the Notes shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 711, any Holder who has been a bona fide Holder of a
Note for at least six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Notes.

     The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders of Notes in the manner provided in Section 206.
Each notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

Section 711. Acceptance of Appointment by Successor.

     In case of the appointment hereunder of a successor Trustee, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder.

     Upon request of any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as the case may be.

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

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Section 712. Merger, Conversion, Consolidation or Succession to Business.

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

Section 713. Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company or any other obligor upon
the Notes, the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company or any such other obligor.

Section 714. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on
behalf of the Trustee to authenticate Notes issued upon original issue and upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section 406, and Notes so
authenticated shall be entitled to the benefits of the Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this
Supplemental Indenture to the authentication and delivery of Notes by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal or State authority.
If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of
this Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

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

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     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 206 to all Holders of Notes with
respect to which such Authenticating Agent will serve. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights, powers and duties
of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 707.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Notes may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

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

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	 	As Trustee

	 
	 	By:  	 	 
	 	 	As Authenticating Agent 
	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 
	 
	 	 	 	 
	 

ARTICLE EIGHT

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 801. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee

     (1) semi-annually, not later than each Interest Payment Date for the Notes in each
year, a list, in such form as the Trustee may reasonably require, of the names and addresses
of the Holders of Notes as of the preceding Regular Record Date, and

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

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

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Section 802. Preservation of Information; Communications to Holders.

     The Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 801 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 801
upon receipt of a new list so furnished.

     The rights of Holders to communicate with other Holders with respect to their rights under the
Indenture or under the Notes, and the corresponding rights and privileges of the Trustee, shall be
as provided by the Trust Indenture Act.

     Every Holder of Notes, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of any of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

Section 803. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under the Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which the Notes are listed, with the SEC and with the
Company. The Company will notify the Trustee when any Notes are listed on any stock exchange

Section 804. Reports by Company.

     (a) Whether or not the Company is subject to the reporting requirements of Section 13 or
Section 15(d) of the Exchange Act, to the extent not prohibited by the Exchange Act, the Company
will file with the SEC, and make available to the Trustee and the Holders of the Notes without cost
to any Holder, the annual reports and the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that are
specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation within
the time periods specified therein with respect to an accelerated filer. In the event that the
Company is not permitted to file such
reports, documents and information with the SEC pursuant to the Exchange Act, the Company will
nevertheless make available such Exchange Act information to the Trustee and the Holders of the
Notes without cost to any Holder as if the Company were subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act within the time periods specified therein with respect to a
non-accelerated filer. The Company shall also comply with the provisions of Trust Indenture Act
Section 314(a).

     (b) The Company may request the Trustee on behalf of the Company at the Company’s expense to
mail the foregoing to Holders. In such case, the Company shall provide the Trustee with a
sufficient number of copies of all reports and other documents and information that the Trustee may
be required to deliver to Holders under this Section.

     (c) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then
the financial information required will include a reasonably detailed presentation, either on the
face of the

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

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

ARTICLE NINE

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 901. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge with or into or wind up into (whether or not
the Company is the surviving Person), or convey, transfer or lease all or substantially all its
assets in one or more related transactions to, any Person, unless:

     (1) the resulting, surviving or transferee Person (for purposes of this Article Nine, a
“Successor Company”) will be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any State of the
United States or the District of Columbia and the Successor Company (if not the Company)
will expressly assume, by supplemental indenture, executed and delivered to the Trustee, in
form reasonably satisfactory to the Trustee, all the obligations of the Company under the
Notes and the Indenture;

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

     (3) either (A) immediately after giving effect to such transaction, the Successor
Company would be able to Incur at least an additional $1.00 of Indebtedness pursuant to the
first paragraph of Section 1111 or (B) immediately after giving effect to such transaction
on a pro
forma basis and any related financing transactions as if the same had occurred at the
beginning of the applicable four quarter period, the Consolidated Coverage Ratio of the
Company is equal to or greater than the Consolidated Coverage Ratio of the Company
immediately before such transaction;

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

     (5) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and such supplemental indenture (if any) comply with the Indenture and that all
conditions precedent herein provided for relating to such transaction have been complied
with.

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

Section 902. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

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

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

     (2) the transaction is made in compliance with this Section 902, Section 1115 and
Article Sixteen; and

     (3) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and such supplemental indenture (if any) comply with the Indenture and that all
conditions precedent herein provided for relating to such transaction have been complied
with.

Section 903. Certain Permitted Consolidations, Etc.

     Notwithstanding the preceding Section 901(3), (x) any Restricted Subsidiary may consolidate
with, merge into or transfer all or part of its properties and assets to the Company and the
Company may consolidate with, merge into or transfer all or part of its properties and assets to a
Subsidiary Guarantor and (y) the Company may merge with an Affiliate incorporated solely for the
purpose of reincorporating the Company in another jurisdiction; and provided further that, in the
case of a Restricted Subsidiary that consolidates with, merges into or transfers all or part of its
properties and assets to the Company, the Company will not be required to comply with the preceding
Section 901(5).

Section 904. Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the assets of the Company in
accordance with Section 901, the Successor Company shall succeed to, and be substituted for, and
may exercise every right and power of, the Company under the Indenture with the same effect as if
such successor Person had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor Person shall be relieved of all obligations and covenants under the
Indenture and the Notes.

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ARTICLE TEN

SUPPLEMENTAL INDENTURES

Section 1001. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, the Subsidiary Guarantors and the Trustee, at
any time and from time to time, may enter into one or more indentures supplemental hereto for any
of the following purposes:

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

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

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

     (4) add Guarantors with respect to the Notes, including Subsidiary Guarantors, or
release a Subsidiary Guarantor from its Subsidiary Guarantee and terminate such Subsidiary
Guarantee; provided that the release and termination is in accordance with Section 1604;

     (5) secure the Notes or the Subsidiary Guarantees;

     (6) add to the covenants of the Company or a Subsidiary Guarantor for the benefit of
the holders or surrender any right or power conferred upon the Company or a Subsidiary
Guarantor;

     (7) make any change that does not adversely affect the rights of any holder; provided,
however, that any change to conform the Indenture to the “Description of notes” in the final
prospectus of the Company relating to the Initial Notes will not be deemed to adversely
affect such legal rights;

     (8) comply with any requirement of the SEC in connection with the qualification of the
Indenture under the Trust Indenture Act; or

     (9) provide for the succession of a successor Trustee, provided that the successor
Trustee is otherwise qualified and eligible to act as such under the Indenture.

     The Trustee is hereby authorized to join with the Company and the Subsidiary Guarantors in the
execution of any such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance, transfer, assignment,
mortgage or pledge of any property thereunder.

     Any supplemental indenture authorized by the provisions of this Section 1001 may be executed
by the Company, the Subsidiary Guarantors and the Trustee without the consent of the Holders,
notwithstanding any of the provisions of Section 1002.

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Section 1002. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Notes, the Company, the Subsidiary Guarantors and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner
the rights of the Holders under the Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Note affected thereby:

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

     (2) reduce the stated rate of or extend the stated time for payment of interest on any
Note;

     (3) reduce the principal of or extend the Stated Maturity of any Note;

     (4) reduce the premium payable upon the redemption of any Note pursuant to Section 1203
or change the time at which any Note may be redeemed pursuant to Section 1203;

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

     (6) impair the right of any holder to receive payment of the principal of, premium, if
any, and interest on such holder’s Notes on or after the due dates therefor or to institute
suit for the enforcement of any payment on or with respect to such holder’s Notes;

     (7) make any change in this Section 1002 or in Section 613;

     (8) modify the Subsidiary Guarantees in any manner adverse to the holders of the Notes;
or

     (9) make any change to or modify the ranking of the Notes that would adversely affect
the holders.

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

     A consent to any amendment or waiver under the Indenture by any Holder of Notes given in
connection with a tender of such Holder’s Notes, or a purchase of, or tender offer or exchange
offer for, other Notes, will not be rendered invalid thereby.

     After an amendment under this Section 1002 becomes effective, the Company is required to mail
to the Holders a notice briefly describing such amendment. However, the failure to give such
notice to all the Holders, or any defect in the notice will not impair or affect the validity of
the amendment.

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Section 1003. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by the Indenture, the
Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Officers’
Certificate and Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by the Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under the Indenture or otherwise.

Section 1004. Effect of Supplemental Indentures.

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

Section 1005. Conformity with Trust Indenture Act.

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

Section 1006. Reference in Notes to Supplemental Indentures.

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

ARTICLE ELEVEN

COVENANTS

Section 1101. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of the Notes that it will duly and punctually
pay the principal of and any premium and interest on the Notes in accordance with the terms of the
Notes and the Indenture. Principal, premium, if any, and interest will be considered paid on the
date due if a Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 11 a.m.,
New York City time, on the due date money deposited by the Company in immediately available funds
and designated for and sufficient to pay all principal, premium, if any, and interest then due.

     The Company will pay interest (including post-petition interest in any proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or similar law) on overdue
principal and premium, if any, at the interest rate specified in the Notes to the extent lawful;
and it will pay interest (including post-petition interest in any proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or similar law) on overdue installments of
interest (without regard to any applicable grace period) at the same rate to the extent lawful.

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Section 1102. Maintenance of Office or Agency.

     The Company will maintain, in the City and State of New York and in any other Place of
Payment, an office or agency where Notes may be presented or surrendered for payment, and it will
maintain an office or agency in the continental United States where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and the Indenture may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at
any time the Company shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate
Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands. The Company hereby irrevocably
designates as a Place of Payment for the Notes the City and State of New York, and initially
appoints Wells Fargo Bank, National Association at its corporate trust office in the City of New
York, which, at the date hereof, is located at 45 Broadway, 14th Floor, New York, New
York 10006-3007, as the Company’s office or agency in such city where the Notes may be presented or
surrendered for payment.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain in the City and State of New York, a Place
of Payment for the Notes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

Section 1103. Money for Notes Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, it will, before 11 a.m., New
York City time, on each due date of the principal of or any premium or interest on any of the
Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient
to pay the principal and any premium and interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of
its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for the Notes, it will, prior to
11 a.m., New York City time, on each due date of the principal of or any premium or interest on the
Notes, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will (1) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent and (2) during the continuance of any default by
the Company or any other obligor upon the Notes in the making of any payment in respect of the
Notes, upon the written request of the Trustee, forthwith pay to the Trustee all sums held in trust
by such Paying Agent for payment in respect of the Notes.

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on the Notes and remaining
unclaimed for two years after such principal, premium or interest has become due and payable shall
be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust;
and the Holder of such Notes shall thereafter, as an unsecured general creditor, look only to
the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect
to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that, if there are then outstanding any Notes not in global form, the Trustee
or such Paying Agent, before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in the City and State of New York notice
that such money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

Section 1104. Annual Compliance Certificate; Statement by Officers as to Default.

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

     (b) The Company shall, so long as any Note is Outstanding, deliver to the Trustee within
thirty days after the occurrence of a Default, an Officers’ Certificate setting forth the details
of such Default, and what action the Company is taking or proposing to take with respect thereto.

Section 1105. Existence.

     Subject to Article Nine, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect the existence, rights (charter and statutory) and
franchises of the Company; provided, however, that the Company shall not be required to preserve
any such right or franchise if it shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company.

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Section 1106. [Reserved].

Section 1107. Payment of Taxes.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, all material taxes, assessments and governmental charges levied or imposed upon
the Company or any Subsidiary or upon the income, profits or property of the Company or any
Subsidiary; provided, however, that the Company shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment or charge whose amount, applicability or validity
is being contested in good faith by appropriate proceedings.

Section 1108. [Reserved].

Section 1109. [Reserved].

Section 1110. Purchase of Notes Upon a Change of Control.

     If a Change of Control occurs, unless the Company has previously or concurrently exercised its
right to redeem all of the Notes pursuant to Section 1203, each Holder will have the right to
require the Company to purchase all or any part (equal to $2,000 or an integral multiple of $1,000
in excess of $2,000) of such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount of the Notes plus accrued and unpaid interest, if any, to the date of purchase
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date).

     Within 30 days following any Change of Control, unless the Company has previously or
concurrently exercised its right to redeem all of the Notes pursuant to Section 1203, the Company
will mail a notice (the “Change of Control Offer”) to each Holder, with a copy to the Trustee,
stating:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     The Company is not required to make a Change of Control Offer upon a Change of Control if a
third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with this Section 1110 applicable to a Change of Control Offer made by the Company and
purchases all Notes validly tendered and not properly withdrawn under such Change of Control Offer.

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

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     The Company will comply, to the extent applicable, with the requirements of Rule 14e-1 of the
Exchange Act and any other securities laws or regulations in connection with the purchase of Notes
as a result of a Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 1110, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under this Section 1110 by virtue of its compliance with such securities laws or regulations.

     If Holders of not less than 90% in aggregate principal amount of the outstanding Notes validly
tender and do not withdraw such Notes in a Change of Control Offer and the Company, or any third
party making a Change of Control Offer in lieu of the Company as described above, purchases all of
the Notes validly tendered and not withdrawn by such Holders, the Company will have the right, upon
not less than 30 nor more than 60 days’ prior notice, given not more than 30 days following such
purchase pursuant to the Change of Control Offer described above, to redeem all Notes that remain
outstanding following such purchase at a Redemption Price in cash equal to the applicable Change of
Control Payment plus, to the extent not included in the Change of Control Payment, accrued and
unpaid interest, if any, to the Redemption Date.

     The Company’s obligation to make a Change of Control Offer pursuant to this Section 1110 may
be waived or modified or terminated with the written consent of the Holders of a majority in
principal amount of the Notes then outstanding (including consents obtained in connection with a
tender offer or exchange offer for the Notes) prior to the occurrence of such Change of Control.

Section 1111. Limitation on Indebtedness and Preferred Stock.

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

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

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

     The first paragraph of this Section 1111 will not prohibit the Incurrence of the following
Indebtedness:

     (1) Indebtedness under one or more Credit Facilities of (a) the Company or any
Subsidiary Guarantor Incurred pursuant to this clause (1) in an aggregate amount not to
exceed the greater of (i) $1,000.0 million or (ii) the sum of $500.0 million and 25.0% of
the Company’s Adjusted Consolidated Net Tangible Assets determined as of the date of the
Incurrence of such Indebtedness after giving effect to the application of the proceeds
therefrom and (b) any Foreign Subsidiary Incurred pursuant to this clause (1) in an
aggregate amount not to exceed $50.0 million, in each case outstanding at any one time;

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

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

     (4) Indebtedness represented by (a) the Notes issued on the Issue Date and all
Subsidiary Guarantees, (b) any Indebtedness (other than the Indebtedness described in
clauses (1), (2) and 4(a)) outstanding on the Issue Date and (c) any Refinancing
Indebtedness Incurred in respect of any Indebtedness described in this clause (4) or clause
(5) or Incurred pursuant to the first paragraph of this Section 1111;

     (5) Permitted Acquisition Indebtedness;

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

     (7) Preferred Stock (other than Disqualified Stock) of any Restricted Subsidiary; and

     (8) in addition to the items referred to in clauses (1) through (7) above, Indebtedness
of the Company and its Restricted Subsidiaries in an aggregate outstanding principal amount
which, when taken together with the principal amount of all other Indebtedness Incurred
pursuant to this clause (8) and then outstanding, will not exceed the greater of $70.0
million or 2.5% of the Company’s Adjusted Consolidated Net Tangible Assets, determined as of
the date of Incurrence of such Indebtedness after giving effect to such Incurrence and the
application of the proceeds therefrom.

     For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section 1111:

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     (1) in the event an item of that Indebtedness meets the criteria of more than one of
the types of Indebtedness described in the first and second paragraphs of this Section 1111,
the Company, in its sole discretion, will classify such item of Indebtedness on the date of
Incurrence and, subject to clause (2) below may later classify, reclassify or redivide all
or a portion of such item of Indebtedness, in any manner that complies with this Section
1111;

     (2) all Indebtedness outstanding on the date of the Indenture under the Senior Secured
Credit Agreement shall be deemed Incurred on the Issue Date under clause (1) of the second
paragraph of this Section 1111;

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

     (4) if obligations in respect of letters of credit are Incurred pursuant to a Credit
Facility and are being treated as Incurred pursuant to clause (1) of the second paragraph
above and the letters of credit relate to other Indebtedness, then such other Indebtedness
shall not be included;

     (5) the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary
Guarantor, will be equal to the greater of the maximum mandatory redemption or repurchase
price (not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;

     (6) Indebtedness permitted by this Section 1111 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by one
such provision and in part by one or more other provisions of this Section 1111 permitting
such Indebtedness; and

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

     Accrual of interest, accrual of dividends, the amortization of debt discount or the accretion
of accreted value, the payment of interest in the form of additional Indebtedness, the payment of
dividends in the form of additional shares of Preferred Stock or Disqualified Stock and unrealized
losses or charges in respect of Hedging Obligations (including those resulting from the application
of Statement of Financial Accounting Standard No. 133) will not be deemed to be an Incurrence of
Indebtedness for purposes of this Section 1111.

     The Company will not permit any of its Unrestricted Subsidiaries to Incur any Indebtedness, or
issue any shares of Disqualified Stock, other than Non-Recourse Debt. If at any time an
Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary shall
be deemed to be Incurred by a Restricted Subsidiary as of such date (and, if such Indebtedness is
not permitted to be Incurred as of such date under this Section 1111, the Company shall be in
Default of this Section 1111).

     For purposes of determining compliance with any U.S. dollar-denominated restriction on the
Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on
the date

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such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the
case of revolving credit Indebtedness; provided that if such Indebtedness is Incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated
restriction shall be deemed not to have been exceeded so long as the principal amount of such
refinancing Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced. Notwithstanding any other provision of this Section 1111, the maximum amount of
Indebtedness that the Company may Incur pursuant to this Section 1111 shall not be deemed to be
exceeded solely as a result of fluctuations in the exchange rates of currencies. The principal
amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different
currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange
rate applicable to the currencies in which such Refinancing Indebtedness is denominated that is in
effect on the date of such refinancing.

     Unsecured Indebtedness will not be treated by the Indenture as subordinated or junior to
secured Indebtedness merely because it is unsecured, and senior Indebtedness will not be treated as
subordinated or junior to any other senior Indebtedness merely because it has a junior priority
with respect to the same collateral.

Section 1112. Limitation on Restricted Payments.

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

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

     (a) dividends or distributions by the Company payable solely in Capital Stock
of the Company (other than Disqualified Stock but including options, warrants or
other rights to purchase such Capital Stock of the Company); and

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

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

     (3) purchase, repurchase, redeem, defease or otherwise acquire or retire for value,
prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than (x) Indebtedness
permitted under clause (3) of the second paragraph of Section 1111 or (y) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of Subordinated
Obligations or Guarantor Subordinated Obligations purchased in anticipation of satisfying a
sinking fund

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obligation, principal installment or final maturity, in each case due within one year
of the date of purchase, repurchase, redemption, defeasance or other acquisition or
retirement); or

     (4) make any Restricted Investment in any Person;

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

     (a) a Default shall have occurred and be continuing (or would result therefrom);

     (b) the Company is not able to Incur an additional $1.00 of Indebtedness pursuant to
the first paragraph of Section 1111 after giving effect, on a pro forma basis, to such
Restricted Payment; or

     (c) the aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made subsequent to the Issue Date would exceed the sum of:

     (i) 50% of Consolidated Net Income for the period (treated as one accounting
period) from July 1, 2009 to the end of the most recent fiscal quarter ending prior
to the date of such Restricted Payment for which internal financial statements are
in existence (or, in case such Consolidated Net Income is a deficit, minus 100% of
such deficit);

     (ii) 100% of the aggregate Net Cash Proceeds and the Fair Market Value of
property or securities other than cash (including Capital Stock of Persons engaged
primarily in the Oil and Gas Business or assets used in the Oil and Gas Business),
in each case received by the Company from the issue or sale of its Capital Stock
(other than Disqualified Stock) or other capital contributions subsequent to the
Issue Date (other than Net Cash Proceeds received from an issuance or sale of such
Capital Stock to (x) management, employees, directors or any direct or indirect
parent of the Company, to the extent such Net Cash Proceeds have been used to make a
Restricted Payment pursuant to clause (5)(a) of the next succeeding paragraph, (y) a
Subsidiary of the Company or (z) an employee stock ownership plan, option plan or
similar trust (to the extent such sale to an employee stock ownership plan, option
plan or similar trust is financed by loans from or Guaranteed by the Company or any
Restricted Subsidiary unless such loans have been repaid with cash on or prior to
the date of determination));

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

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

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

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

     (D) the sale by the Company or any Restricted Subsidiary (other than to
the Company or a Restricted Subsidiary) of all or a portion of the Capital
Stock of an Unrestricted Subsidiary or a distribution from an Unrestricted
Subsidiary or a dividend from an Unrestricted Subsidiary (whether any such
distribution or dividend is made with proceeds from the issuance by such
Unrestricted Subsidiary of its Capital Stock or otherwise).

     The provisions of the preceding paragraph will not prohibit:

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

     (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations of the Company or Guarantor Subordinated Obligations of any
Subsidiary Guarantor made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Subordinated Obligations of the Company or any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Guarantor Subordinated
Obligations made by exchange for or out of the proceeds of the substantially concurrent sale
of Guarantor Subordinated Obligations that, in each case, is permitted to be Incurred
pursuant to Section 1111; provided, however, that such purchase, repurchase, redemption,
defeasance, acquisition or retirement will be excluded from subsequent calculations of the
amount of Restricted Payments;

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     (3) any purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Disqualified Stock of the Company or a Restricted Subsidiary made by exchange for, or out
of the proceeds of the substantially concurrent sale of, Disqualified Stock of the Company
or such Restricted Subsidiary, as the case may be, that, in each case, is permitted to be
Incurred pursuant to Section 1111; provided, however, that such purchase, repurchase,
redemption, defeasance, acquisition or retirement will be excluded from subsequent
calculations of the amount of Restricted Payments;

     (4) dividends paid or distributions made within 60 days after the date of declaration
if at such date of declaration such dividend or distribution would have complied with this
Section 1112; provided, however, that such dividends and distributions will be included in
subsequent calculations of the amount of Restricted Payments; and provided further, however,
that for purposes of clarification, this clause (4) shall not include cash payments in lieu
of the issuance of fractional shares included in clause (9) below;

     (5) so long as no Default has occurred and is continuing, (a) the repurchase or other
acquisition of Capital Stock (including options, warrants, equity appreciation rights or
other rights to purchase or acquire Capital Stock) of the Company held by any existing or
former employees, management or directors of the Company or any Restricted Subsidiary of the
Company or their assigns, estates or heirs, in each case pursuant to the repurchase or other
acquisition provisions under employee stock option or stock purchase plans or agreements or
other agreements to compensate management, employees or directors, in each case approved by
the Company’s Board of Directors; provided that such repurchases or other acquisitions
pursuant to this subclause (a) during any calendar year will not exceed $2.0 million in the
aggregate (with unused amounts in any calendar year being carried over to succeeding
calendar years); provided further that such amount in any calendar year may be increased by
an amount not to exceed (A) the cash proceeds received by the Company from the sale of
Capital Stock of the Company to members of management or directors of the Company and its
Restricted Subsidiaries that occurs after the Issue Date (to the extent the cash proceeds
from the sale of such Capital Stock have not otherwise been applied to the payment of
Restricted Payments by virtue of the clause (c) of the preceding paragraph), plus (B) the
cash proceeds of key man life insurance policies received by the Company and its Restricted
Subsidiaries after the Issue Date, less (C) the amount of any Restricted Payments made
pursuant to clauses (A) and (B) of this clause (5)(a); provided further, however, that the
amount of any such repurchase or other acquisition under this subclause (a) will be excluded
in subsequent calculations of the amount of Restricted Payments and the proceeds received
from any such transaction will be excluded from clause (c)(ii) of the preceding paragraph;
and (b) loans or advances to employees or directors of the Company or any Subsidiary of the
Company, in each case as permitted by Section 402 of the Sarbanes-Oxley Act of 2002, the
proceeds of which are used to purchase Capital Stock of the Company or to refinance loans or
advances made pursuant to this clause 5(b), in an aggregate principal amount not in excess
of $2.0 million at any one time outstanding; provided, however, that the amount of such
loans and advances will be included in subsequent calculations of the amount of Restricted
Payments;

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

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connection with any exercise or exchange of warrants, options or rights to acquire
Capital Stock; provided, however, that such acquisitions or retirements will be excluded
from subsequent calculations of the amount of Restricted Payments;

     (7) the purchase, repurchase, redemption, defeasance or other acquisition or retirement
for value of any Subordinated Obligation (i) at a purchase price not greater than 101% of
the principal amount of such Subordinated Obligation in the event of a Change of Control in
accordance with provisions similar to Section 1110 or (ii) at a purchase price not greater
than 100% of the principal amount thereof in accordance with provisions similar to Section
1115; provided that, prior to or simultaneously with such purchase, repurchase, redemption,
defeasance or other acquisition or retirement, the Company has made the Change of Control
Offer or Asset Disposition Offer, as applicable, as provided in such Section with respect to
the Notes and has completed the repurchase or redemption of all Notes validly tendered for
payment in connection with such Change of Control Offer or Asset Disposition Offer;
provided, however, that such acquisitions or retirements will be included in subsequent
calculations of the amount of Restricted Payments;

     (8) payments or distributions to dissenting stockholders pursuant to applicable law or
in connection with the settlement or other satisfaction of legal claims made pursuant to or
in connection with a consolidation, merger or transfer of assets; provided, however, that
any payment pursuant to this clause (8) shall be included in the calculation of the amount
of Restricted Payments;

     (9) cash payments in lieu of the issuance of fractional shares; provided, however, that
any payment pursuant to this clause (9) shall be excluded in the calculation of the amount
of Restricted Payments;

     (10) the declaration and payment of scheduled or accrued dividends to holders of any
class of or series of Disqualified Stock of the Company issued on or after the Issue Date in
accordance with Section 1111, to the extent such dividends are included in Consolidated
Interest Expense; provided, however, that any payment pursuant to this clause (10) shall be
excluded in the calculation of the amount of Restricted Payments; and

     (11) Restricted Payments in an amount not to exceed $30.0 million in the aggregate
since the Issue Date; provided, however, that the amount of such Restricted Payments will be
included in subsequent calculations of the amount of Restricted Payments.

     The amount of all Restricted Payments (other than cash) shall be the Fair Market Value on the
date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The Fair Market Value of any cash Restricted Payment shall be its face amount,
and the Fair Market Value of any non-cash Restricted Payment shall be determined in accordance with
the definition of that term. Not later than the date of making any Restricted Payment in excess of
$15.0 million that will be included in subsequent calculations of the amount of Restricted
Payments, the Company shall deliver to the Trustee an Officers’ Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the calculations required by
the this covenant were computed.

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     In the event that a Restricted Payment meets the criteria of more than one of the exceptions
described in (1) through (11) above or is entitled to be made pursuant to the first paragraph
above, the Company shall, in its sole discretion, classify such Restricted Payment.

     The Company will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to the last sentence of the definition of “Unrestricted Subsidiary.” For purpose
of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments
by the Company and its Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as set forth in the
last sentence of the definition of “Investment.” Such designation will be permitted only if a
Restricted Payment in such amount would be permitted at such time, whether pursuant to the first
paragraph of this Section 1112 or under clause (11) of the second paragraph of this Section 1112,
or pursuant to the definition of “Permitted Investments,” and if such Subsidiary otherwise meets
the definition of an Unrestricted Subsidiary.

Section 1113. Limitation on Liens.

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

     Any Lien created for the benefit of the holders of the Notes pursuant to the preceding
paragraph shall provide by its terms that such Lien shall be automatically and unconditionally
released and discharged upon the release and discharge of the Initial Lien.

Section 1114. Limitation on Restrictions on Distributions from Restricted
Subsidiaries.

     The Company will not, and will not permit any Restricted Subsidiary to, create or otherwise
cause or permit to exist or become effective any consensual encumbrance or consensual restriction
on the ability of any Restricted Subsidiary to:

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

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

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

     The preceding provisions will not prohibit:

     (1) any encumbrance or restriction pursuant to or by reason of an agreement in effect
at or entered into on the Issue Date, including, without limitation, the Indenture as in
effect on such date;

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

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

     (4) any encumbrance or restriction with respect to an Unrestricted Subsidiary pursuant
to or by reason of an agreement that the Unrestricted Subsidiary is a party to entered into
before the date on which such Unrestricted Subsidiary became a Restricted Subsidiary;
provided that such agreement was not entered into in anticipation of the Unrestricted
Subsidiary becoming a Restricted Subsidiary and any such encumbrance or restriction shall
not extend to any assets or property of the Company or any other Restricted Subsidiary other
than the assets and property so acquired;

     (5) with respect to any Foreign Subsidiary, any encumbrance or restriction contained in
the terms of any Indebtedness or any agreement pursuant to which such Indebtedness was
Incurred if either (1) the encumbrance or restriction applies only in the event of a payment
default or a default with respect to a financial covenant in such Indebtedness or agreement
or (2) the Company determines that any such encumbrance or restriction will not materially
affect the Company’s ability to make principal or interest payments on the Notes, as
determined in good faith by the Board of Directors of the Company, whose determination shall
be conclusive;

     (6) any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to
an agreement effecting a refunding, replacement or refinancing of Indebtedness Incurred
pursuant to an agreement referred to in clauses (1) through (5) or clause (12) of this
paragraph or this clause (6) or contained in any amendment, restatement, modification,
renewal, supplemental, refunding, replacement or refinancing of an agreement referred to in
clauses (1) through (5) or clause (12) of this paragraph or this clause (6); provided that
the encumbrances and restrictions with respect to such Restricted Subsidiary contained in
any such agreement taken as a whole are no less favorable in any material respect to the
holders of the Notes than the encumbrances and
restrictions contained in the agreements governing the Indebtedness being refunded,
replaced or refinanced;

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     (7) in the case of clause (3) of the first paragraph of this Section 1114, any
encumbrance or restriction:

     (a) that restricts in a customary manner the subletting, assignment or transfer
of any property or asset that is subject to a lease (including leases governing
leasehold interests or farm-in agreements or farm-out agreements relating to
leasehold interests in Oil and Gas Properties), license or similar contract, or the
assignment or transfer of any such lease (including leases governing leasehold
interests or farm-in agreements or farm-out agreements relating to leasehold
interests in Oil and Gas Properties), license (including, without limitation,
licenses of intellectual property) or other contract;

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

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

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

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

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

     (8) any encumbrance or restriction contained in (a) purchase money obligations for
property acquired in the ordinary course of business and (b) Capitalized Lease Obligations
permitted under the Indenture, in each case, that impose encumbrances or restrictions of the
nature described in clause (3) of the first paragraph of this Section 1114 on the property
so acquired;

     (9) any encumbrance or restriction with respect to a Restricted Subsidiary (or any of
its property or assets) imposed pursuant to an agreement entered into for the direct or
indirect sale or disposition of all or a portion of the Capital Stock or assets of such
Restricted Subsidiary (or the property or assets that are subject to such restriction)
pending the closing of such sale or disposition;

     (10) any customary encumbrances or restrictions imposed pursuant to any agreement of
the type described in the definition of “Permitted Business Investment”;

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     (11) encumbrances or restrictions arising or existing by reason of applicable law or
any applicable rule, regulation or order;

     (12) encumbrances or restrictions contained in agreements governing Indebtedness of the
Company or any of its Restricted Subsidiaries permitted to be Incurred pursuant to an
agreement entered into subsequent to the Issue Date in accordance with Section 1111;
provided that the provisions relating to such encumbrance or restriction contained in such
Indebtedness are not materially less favorable to the Company taken as a whole, as
determined by the Board of Directors of the Company in good faith, than the provisions
contained in the Senior Secured Credit Agreement and in the Indenture as in effect on the
Issue Date;

     (13) the issuance of Preferred Stock by a Restricted Subsidiary or the payment of
dividends thereon in accordance with the terms thereof; provided that issuance of such
Preferred Stock is permitted pursuant to Section 1111 and the terms of such Preferred Stock
do not expressly restrict the ability of a Restricted Subsidiary to pay dividends or make
any other distributions on its Capital Stock (other than requirements to pay dividends or
liquidation preferences on such Preferred Stock prior to paying any dividends or making any
other distributions on such other Capital Stock);

     (14) supermajority voting requirements existing under corporate charters, by-laws,
stockholders agreements and similar documents and agreements;

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

     (16) any encumbrance or restriction contained in the Senior Secured Credit Agreement as
in effect as of the Issue Date, and in any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings thereof; provided
that such amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are no more restrictive with respect to such
dividend and other payment restrictions than those contained in the Senior Secured Credit
Agreement as in effect on the Issue Date.

Section 1115. Limitation on Sales of Assets and Subsidiary Stock.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, make any
Asset Disposition unless:

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

     (2) at least 75% of the aggregate consideration received by the Company or such
Restricted Subsidiary, as the case may be, from such Asset Disposition and all other Asset
Dispositions since the Issue Date, on a cumulative basis, is in the form of cash or Cash
Equivalents or Additional Assets, or any combination thereof; and

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     (3) except as provided in the next paragraph, an amount equal to 100% of the Net
Available Cash from such Asset Disposition is applied, within 365 days from the later of the
date of such Asset Disposition or the receipt of such Net Available Cash, by the Company or
such Restricted Subsidiary, as the case may be:

     (a) to prepay, repay, redeem or purchase Pari Passu Indebtedness of the Company
(including the Notes) or a Subsidiary Guarantor or any Indebtedness (other than
Disqualified Stock) of a Restricted Subsidiary that is not a Subsidiary Guarantor
(in each case, excluding Indebtedness owed to the Company or an Affiliate of the
Company); provided, however, that, in connection with any prepayment, repayment,
redemption or purchase of Indebtedness pursuant to this clause (a), the Company or
such Restricted Subsidiary will retire such Indebtedness and will cause the related
commitment (if any) to be permanently reduced in an amount equal to the principal
amount so prepaid, repaid, redeemed or purchased; or

     (b) to invest in Additional Assets;

provided that pending the final application of any such Net Available Cash in accordance with
clause (a) or (b) of this Section 1115, the Company and its Restricted Subsidiaries may temporarily
reduce Indebtedness or otherwise invest such Net Available Cash in any manner not prohibited by the
Indenture.

     Any Net Available Cash from Asset Dispositions that is not applied or invested as provided in
the preceding paragraph will be deemed to constitute “Excess Proceeds.” Not later than the
366th day from the later of the date of such Asset Disposition or the receipt of such
Net Available Cash, if the aggregate amount of Excess Proceeds exceeds $20.0 million, the Company
will make an offer (“Asset Disposition Offer”) to all Holders of Notes and, to the extent required
by the terms of other Pari Passu Indebtedness, to all Holders of other Pari Passu Indebtedness
outstanding with similar provisions requiring the Company to make an offer to purchase such Pari
Passu Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Notes”) to purchase
the maximum principal amount of Notes and any such Pari Passu Notes to which the Asset Disposition
Offer applies that may be purchased out of the Excess Proceeds, at an offer price in cash in an
amount equal to 100% of the principal amount (or, in the event such Pari Passu Indebtedness of the
Company was issued with significant original issue discount, 100% of the accreted value thereof) of
the Notes and Pari Passu Notes plus accrued and unpaid interest, if any (or in respect of such Pari
Passu Indebtedness, such lesser price, if any, as may be provided for by the terms of such
Indebtedness), to the date of purchase (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant Interest Payment Date), in accordance with the
procedures set forth in this Section 1115 or the agreements governing the Pari Passu Notes, as
applicable, in each case in minimum principal amount of $2,000 and integral multiples of $1,000 in
excess of $2,000. If the aggregate principal amount of Notes surrendered by Holders thereof and
other Pari Passu Notes surrendered by holders or lenders, collectively, exceeds the amount of
Excess Proceeds, the Trustee shall select the Notes to be purchased on a pro rata basis on the
basis of the aggregate principal amount of tendered Notes and Pari Passu Notes. To the extent that
the aggregate amount of Notes and Pari Passu Notes so validly tendered and not properly withdrawn
pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the Company may use any
remaining Excess Proceeds for general corporate purposes, subject to the other Sections of this
Article Eleven. Upon completion of such Asset Disposition Offer, the amount of Excess Proceeds
shall be reset at zero.

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     The Asset Disposition Offer will remain open for a period of 20 Business Days following its
commencement, except to the extent that a longer period is required by applicable law (the “Asset
Disposition Offer Period”). No later than five Business Days after the termination of the
Asset Disposition Offer Period (the “Asset Disposition Purchase Date”), the Company will purchase
the principal amount of Notes and Pari Passu Notes required to be purchased pursuant to this
Section 1115 (the “Asset Disposition Offer Amount”) or, if less than the Asset Disposition Offer
Amount has been so validly tendered and not properly withdrawn, all Notes and Pari Passu Notes
validly tendered and not properly withdrawn in response to the Asset Disposition Offer.

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

     On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Notes and Pari Passu Notes or portions of Notes and Pari Passu Notes so validly tendered and not
properly withdrawn pursuant to the Asset Disposition Offer, or if less than the Asset Disposition
Offer Amount has been validly tendered and not properly withdrawn, all Notes and Pari Passu Notes
so validly tendered and not properly withdrawn, in each case in minimum principal amount of $2,000
and integral multiples of $1,000 in excess of $2,000. The Company will deliver to the Trustee an
Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the
Company in accordance with the terms of this Section 1115 and, in addition, the Company will
deliver all certificates and notes required, if any, by the agreements governing the Pari Passu
Notes. The Company or the paying agent, as the case may be, will promptly (but in any case not
later than five Business Days after the termination of the Asset Disposition Offer Period) mail or
deliver to each tendering Holder of Notes or holder or lender of Pari Passu Notes, as the case may
be, an amount equal to the purchase price of the Notes or Pari Passu Notes so validly tendered and
not properly withdrawn by such Holder of Notes or holder or lender, as the case may be, and
accepted by the Company for purchase, and the Company will promptly issue a new Note, and the
Trustee, upon delivery of an Officers’ Certificate from the Company, will authenticate and mail or
deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the
Note surrendered; provided that each such new Note will be in a minimum principal amount of $2,000
or an integral multiple of $1,000 in excess of $2,000. In addition, the Company will take any and
all other actions required by the agreements governing the Pari Passu Notes. Any Note not so
accepted will be promptly mailed or delivered by the Company to the Holder thereof. The Company
will publicly announce the results of the Asset Disposition Offer on the Asset Disposition Purchase
Date.

     The Company will comply, to the extent applicable, with the requirements of Rule 14e-1 of the
Exchange Act and any other securities laws or regulations in connection with the repurchase of
Notes pursuant to an Asset Disposition Offer. To the extent that the provisions of any securities
laws or regulations conflict with provisions of this Section 1115, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under the Indenture by virtue of its compliance with such securities laws or regulations.

     For the purposes of clause (2) of the first paragraph of this Section 1115, the following will
be deemed to be cash:

     (1) the assumption by the transferee of Indebtedness (other than Subordinated
Obligations or Disqualified Stock) of the Company or Indebtedness of a Restricted Subsidiary
(other than Guarantor Subordinated Obligations or Disqualified Stock of any Restricted
Subsidiary that is a Subsidiary Guarantor) and the release of the Company or such Restricted

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Subsidiary from all liability on such Indebtedness in connection with such Asset
Disposition, in which case the Company will, without further action, be deemed to have
applied such deemed cash to Indebtedness in accordance with clause (3)(a) of the first
paragraph of this Section 1115; and

     (2) securities, notes or other obligations received by the Company or any Restricted
Subsidiary from the transferee that are converted by the Company or such Restricted
Subsidiary into cash within 180 days after receipt thereof.

     Notwithstanding the foregoing, the 75% limitation referred to in clause (2) of the first
paragraph of this Section 1115 shall be deemed satisfied with respect to any Asset Disposition in
which the cash or Cash Equivalents portion of the consideration received therefrom, determined in
accordance with the foregoing provision on an after-tax basis, is equal to or greater than what the
after-tax proceeds would have been had such Asset Disposition complied with the aforementioned 75%
limitation.

     The requirement of clause (3)(b) of the first paragraph of this Section 1115 above shall be
deemed to be satisfied if an agreement (including a lease, whether a capital lease or an operating
lease) committing to make the acquisitions or expenditures referred to therein is entered into by
the Company or its Restricted Subsidiary within the specified time period and such Net Available
Cash is subsequently applied in accordance with such agreement within six months following such
agreement.

     The Company will not, and will not permit any Restricted Subsidiary to, engage in any Asset
Swaps, unless:

     (1) at the time of entering into such Asset Swap and immediately after giving effect to
such Asset Swap, no Default or Event of Default shall have occurred and be continuing or
would occur as a consequence thereof; and

     (2) in the event such Asset Swap involves the transfer by the Company or any Restricted
Subsidiary of assets having an aggregate Fair Market Value in excess of $20.0 million, the
terms of such Asset Swap have been approved by a majority of the members of the Board of
Directors of the Company.

Section 1116. Limitation on Affiliate Transactions.

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

     (1) the terms of such Affiliate Transaction are not materially less favorable to the
Company or such Restricted Subsidiary, as the case may be, than those that could reasonably
be expected to be obtained in a comparable transaction at the time of such transaction in
arm’s-length dealings with a Person who is not such an Affiliate;

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

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

     The preceding paragraph will not apply to:

     (1) any Restricted Payment permitted to be made pursuant to Section 1112 or any
Permitted Investment;

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

     (3) loans or advances to employees, officers or directors in the ordinary course of
business of the Company or any of its Restricted Subsidiaries;

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

     (5) any transaction between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries and Guarantees issued by the Company or a Restricted Subsidiary for
the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance
with Section 1111;

     (6) any transaction with a joint venture or similar entity which would constitute an
Affiliate Transaction solely because the Company or a Restricted Subsidiary owns, directly
or indirectly, an Equity Interest in or otherwise controls such joint venture or similar
entity;

     (7) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the
Company or the receipt by the Company of any capital contribution from its shareholders;

     (8) indemnities of officers, directors and employees of the Company or any of its
Restricted Subsidiaries permitted by bylaw or statutory provisions and any employment
agreement or other employee compensation plan or arrangement entered into in the ordinary
course of business by the Company or any of its Restricted Subsidiaries;

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     (9) the payment of reasonable compensation and fees paid to, and indemnity provided on
behalf of, officers or directors of the Company or any Restricted Subsidiary;

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

     (11) transactions with customers, clients, suppliers, or purchasers or sellers of goods
or services, in each case in the ordinary course of business and otherwise in compliance
with the terms of the Indenture, provided that in the reasonable determination of the Board
of Directors of the Company or the senior management of the Company, such transactions are
on terms not materially less favorable to the Company or the relevant Restricted Subsidiary
than those that could reasonably be expected to be obtained in a comparable transaction at
such time on an arm’s-length basis from a Person that is not an Affiliate of the Company;

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

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

Section 1117. Future Subsidiary Guarantors.

     The Company will cause (a) each Wholly-Owned Subsidiary of the Company (other than a Foreign
Subsidiary) formed or acquired after the Issue Date and (b) any other Domestic Subsidiary that is
not already a Subsidiary Guarantor that Guarantees any Indebtedness of the Company or a Subsidiary
Guarantor, in each case to execute and deliver to the Trustee within 30 days a supplemental
indenture (in substantially the form specified in Annex C to the Indenture) pursuant to which such
Subsidiary will unconditionally Guarantee, on a joint and several basis, the full and prompt
payment of the principal of, premium, if any, and interest on the Notes on a senior basis; provided
that any Restricted Subsidiary that constitutes an Immaterial Subsidiary need not become a
Subsidiary Guarantor until such time as it ceases to be an Immaterial Subsidiary.

Section 1118. Payments for Consent.

     Neither the Company nor any of its Restricted Subsidiaries will, directly or indirectly, pay
or cause to be paid any consideration, whether by way of interest, fees or otherwise, to any Holder
of any Notes for or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of the Indenture or the Notes unless such consideration is offered to be paid or is paid
to all Holders of the

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Notes that consent, waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or amendment.

Section 1119. Covenant Termination.

     From and after the occurrence of an Investment Grade Rating Event, the Company and its
Restricted Subsidiaries will no longer be subject to the provisions of the Indenture described
above in Sections 901(3), 1111, 1112, 1114, 1115 and 1116.

     After the foregoing covenants have been terminated, the Company may not designate any of its
Subsidiaries as Unrestricted Subsidiaries pursuant to the second sentence of the definition of
“Unrestricted Subsidiary.”

ARTICLE TWELVE

REDEMPTION OF NOTES

Section 1201. Applicability of Article.

     The Notes shall be redeemable at the election of the Company in accordance with their terms
and in accordance with this Article.

Section 1202. Election to Redeem; Notice to Trustee.

     In case of any redemption of less than all Notes, the Company shall, at least 60 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal amount of Notes to be
redeemed. In the case of any redemption of Notes prior to the expiration of any restriction on
such redemption provided in the terms of such Notes or elsewhere in the Indenture, the Company
shall furnish the Trustee, prior to giving notice of such redemption, with an Officers’ Certificate
evidencing compliance with such restriction.

Section 1203. Optional Redemption.

     (a) On and after October 1, 2013, the Company may redeem all or, from time to time, a part of
the Notes upon not less than 30 nor more than 60 days’ notice, at the following Redemption Prices
(expressed as a percentage of principal amount of the Notes) plus accrued and unpaid interest on
the Notes, if any, to the applicable Redemption Date (subject to the right of holders of record on
the relevant record date to receive interest due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on October 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	 
	2013
	 	 	104.313	%
	2014
	 	 	102.156	%
	2015 and thereafter
	 	 	100.000	%

     (b) Prior to October 1, 2012 the Company may, at its option, on any one or more occasions
redeem up to 35% of the aggregate principal amount of the Notes (including any Additional Notes)
issued

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under the Indenture with the Net Cash Proceeds of one or more Equity Offerings at a Redemption
Price of 108.625% of the principal amount thereof, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of holders of record on the relevant record date to receive
interest due on the relevant interest payment date); provided that

     (1) at least 65% of the original principal amount of the Notes issued on the Issue Date
remains outstanding after each such redemption; and

     (2) the redemption occurs within 180 days after the closing of the related Equity
Offering.

     (c) In addition, the Notes may be redeemed, in whole or in part, at any time prior to October
1, 2013 at the option of the Company upon not less than 30 nor more than 60 days’ prior notice
mailed by first-class mail to each holder of Notes at its registered address, at a Redemption Price
equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium as of, and
accrued and unpaid interest to, the applicable Redemption Date (subject to the right of holders of
record on the relevant record date to receive interest due on the relevant interest payment date).

     (d) The Notes may be redeemed, as a whole, following certain Change of Control Offers pursuant
to Section 1110, at the Redemption Price and subject to the conditions set forth in such Section.

Section 1204. Selection by Trustee of Notes to Be Redeemed.

     If less than all the Notes are to be redeemed, the particular Notes to be redeemed shall be
selected by the Trustee, from the Outstanding Notes not previously called for redemption, in
compliance with the requirements of the principal national securities exchange, if any, on which
the Notes are listed or, if the Notes are not listed, then on a pro rata basis, by lot or by such
other method as the Trustee, in its sole discretion, shall deem fair and appropriate and which may
provide for the selection for redemption of a portion of the principal amount of any Notes,
provided that the unredeemed portion of the principal amount of any Note shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination) for such Note.

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

Section 1205. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Notes to be redeemed, at
its address appearing in the Security Register.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price, if then determined and otherwise the basis for its
determination,

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     (3) if less than all the Outstanding Notes are to be redeemed, the identification (and,
in the case of partial redemption of any such Notes, the principal amounts) of the
particular Notes to be redeemed,

     (4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Note be redeemed and that interest thereon will cease to accrue on and after said
date,

     (5) the place or places where each such Note is to be surrendered for payment of the
Redemption Price, and

     (6) the CUSIP/ISIN numbers of the Notes.

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

Section 1206. Deposit of Redemption Price.

     Prior to 11:00 a.m., New York City time, on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1103) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Notes which are to be redeemed on that date.

Section 1207. Notes Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Notes so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Notes shall cease to bear interest. Upon surrender of any such Notes for
redemption in accordance with said notice, such Notes shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided, however, that
installments of interest whose Stated Maturity is on or prior to the Redemption Date will be
payable to the Holders of such Notes, or one or more Predecessor Notes, registered as such at the
close of business on the relevant record dates according to their terms and the provisions of
Section 407.

     If any Note called for redemption shall not be so paid upon surrender thereof for redemption,
the principal and any premium shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Note.

Section 1208. Notes Redeemed in Part.

     Any Note which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or its attorney duly authorized in writing), and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new
Note or Notes of like tenor, of any

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authorized denomination as requested by such Holder, in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Note so surrendered.

ARTICLE THIRTEEN

[INTENTIONALLY DELETED]

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE

Section 1401. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1402 or Section 1403 applied
to the Notes, upon compliance with the conditions set forth below in this Article. Any such
election shall be evidenced in or pursuant to a Board Resolution delivered to the Trustee.

Section 1402. Defeasance and Discharge.

     Upon the Company’s exercise of its option to have this Section applied to the Notes, the
Company shall be deemed to have been discharged from its obligations with respect to such Notes as
provided in this Section on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness represented by such
Notes and to have satisfied all its other obligations under such Notes and the Indenture insofar as
the Notes are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following, which shall survive until otherwise
terminated or discharged hereunder: (1) the rights of Holders of such Notes to receive, solely
from the trust fund described in Section 1404 and as more fully set forth in such Section, payments
in respect of the principal of and any premium and interest on such Notes when payments are due,
(2) the Company’s obligations with respect to such Notes under Sections 404, 405, 406, 1102, 1103
and 1104(a) and its obligations under Section 314(a) of the Trust Indenture Act, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (4) this Article. If the
Company exercises its defeasance option pursuant to this Section 1402, the Subsidiary Guarantees
will terminate with respect to the Notes, and payment of the Notes may not be accelerated pursuant
to Section 602 because of an Event of Default. Subject to compliance with this Article, the
Company may exercise its option (if any) to have this Section applied to any Notes notwithstanding
the prior exercise of its option (if any) to have Section 1403 applied to such Notes.

Section 1403. Covenant Defeasance.

     Upon the Company’s exercise of its option to have this Section applied to the Notes, (1) the
Company shall be released from its obligations under Section 901(3), Section 1107, Sections 1110
through 1118, inclusive; (2) the occurrence of any event specified in Sections 601(3) (with respect
only to the obligation under Section 901(3)), 601(4), 601(5), 601(6), 601(7) (with respect only to
Significant Subsidiaries) or (8) (with respect only to Significant Subsidiaries), 601(9) and
601(10) shall be deemed not to be or to result in an Event of Default, and (3) the Subsidiary
Guarantees shall be automatically released, in each case with respect to such Notes as provided in
this Section on and after the date the conditions set forth in Section 1404 are satisfied
(hereinafter called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that,
with respect to such Notes, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such specified Section, whether
directly or indirectly by reason of any reference elsewhere herein to any such

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Section or Article or by reason of any reference in any such Section or Article to any other
provision herein or in any other document, but the remainder of the Indenture and such Notes shall
be unaffected thereby.

Section 1404. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1402 or Section 1403 to
any Notes:

     (1) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee which satisfies the requirements contemplated by Section 709 and
agrees to comply with the provisions of this Article applicable to it) as trust funds in
trust for the purpose of making the following payments and specifically dedicated solely to
the benefit of the Holders of such Notes, (A) money in an amount, or (B) U.S. Government
Obligations which through the scheduled payment of principal and interest in respect thereof
in accordance with their terms will provide, not later than one day before the due date of
any payment, money in an amount, or (C) a combination thereof, in each case sufficient, in
the opinion of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or any such other qualifying trustee) to pay and discharge,
the principal of and any premium and interest on such Notes on the Stated Maturities or
Redemption Date, as applicable, in accordance with the terms of the Indenture and such
Notes.

     (2) In the event of an election to have Section 1402 apply to any Notes, the Company
shall have delivered to the Trustee an Opinion of Counsel stating that (A) the Company has
received from, or there has been published by, the Internal Revenue Service a ruling or (B)
since the date of this instrument, there has been a change in the applicable Federal income
tax law, in either case (A) or (B) to the effect that, and based thereon such opinion shall
confirm that, the Holders of such Notes will not recognize income gain or loss for Federal
income tax purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Notes and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit, Defeasance and
discharge were not to occur.

     (3) In the event of an election to have Section 1403 apply to any Notes, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Notes will not recognize income gain or loss for Federal income tax purposes as a
result of the deposit and Covenant Defeasance to be effected with respect to such Notes and
will be subject to Federal income tax on the same amount, in the same manner and at the same
times as would be the case if such deposit and Covenant Defeasance were not to occur.

     (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that the Notes, if then listed on any securities exchange, will not be delisted as a
result of such deposit.

     (5) No Default with respect to such Notes shall have occurred and be continuing at the
time of such deposit or, with regard to any such event specified in Sections 601(7) and (8),
at any time on or prior to the 121st day after the date of such deposit (it being understood
that this condition shall not be deemed satisfied until after such 121st day), other than a
Default resulting from the borrowing of funds to be applied to such deposit.

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     (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act.

     (7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation
of, or constitute a default under, any other agreement or instrument (other than the
Indenture) to which the Company is a party or by which it is bound.

     (8) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that such deposit shall not cause either the Trustee or the trust so created to be subject
to the Investment Company Act.

     (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

			
	Section 1405.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1103, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1406, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1404 in respect of any Notes shall
be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and
the Indenture, to the payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Notes,
of all sums due and to become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the extent required by
law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Notes.

     Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or U.S. Government Obligations held by
it as provided in Section 1404 with respect to any Notes which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Notes.

Section 1406. Reinstatement.

     If the Trustee or any Paying Agent is unable to apply any money in accordance with this
Article with respect to any Notes by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the obligations
under the Indenture and such Notes from which the Company has been discharged or released pursuant
to Section 1402 or 1403 shall be revived and reinstated as though no deposit had occurred pursuant
to this Article with respect to such Notes, until such time as the Trustee or Paying Agent is
permitted to apply all money held in trust pursuant to Section 1405 with respect to such Notes in
accordance with this Article; provided,

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however, that if the Company makes any payment of principal of or any premium or interest on
any such Note following such reinstatement of its obligations, the Company shall be subrogated to
the rights (if any) of the Holders of such Notes to receive such payment from the money so held in
trust.

ARTICLE FIFTEEN

[INTENTIONALLY DELETED]

ARTICLE SIXTEEN

SUBSIDIARY GUARANTEES

Section 1601. Unconditional Guarantee.

     (a) For value received, each of the Subsidiary Guarantors hereby fully and unconditionally
guarantees (the “Subsidiary Guarantee”) to the Holders and to the Trustee the due and punctual
payment of the principal of, and premium, if any, and interest on the Notes and all other amounts
due and payable under the Indenture and the Notes by the Company (collectively, the “Obligations”),
when and as such principal, premium, if any, and interest shall become due and payable, whether at
the stated maturity or by declaration of acceleration, call for redemption or otherwise, according
to the terms of the Notes and the Indenture, subject to the limitations set forth in Section 1603.

     (b) Failing payment when due of any amount guaranteed pursuant to its Subsidiary Guarantee,
for whatever reason, each of the Subsidiary Guarantors will be jointly and severally obligated to
pay the same immediately. Each Subsidiary Guarantee hereunder is intended to be a general,
unsecured, senior obligation of each of the Subsidiary Guarantors and will rank pari passu in right
of payment with all debt of such Subsidiary Guarantor that is not, by its terms, expressly
subordinated in right of payment to the Subsidiary Guarantee. Each of the Subsidiary Guarantors
hereby agrees that its obligations hereunder shall be full, unconditional and absolute,
irrespective of the validity, regularity or enforceability of the Notes, the Subsidiary Guarantee
of any other Subsidiary Guarantor or the Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company or any other Subsidiary Guarantor, or any action
to enforce the same or any other circumstances which might otherwise constitute a legal or
equitable discharge or defense of the Subsidiary Guarantors. Each of the Subsidiary Guarantors
hereby agrees that in the event of a default in payment of the principal of, or premium, if any, or
interest on the Notes, whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf of the
Holders or, subject to Section 607, by the Holders, on the terms and conditions set forth in the
Indenture, directly against such Subsidiary Guarantor to enforce its Subsidiary Guarantee without
first proceeding against the Company or any other Subsidiary Guarantor.

     (c) The obligations of each of the Subsidiary Guarantors under this Article shall be as
aforesaid full and unconditional and shall not be impaired, modified, released or limited by any
occurrence or condition whatsoever, including, without limitation, (A) any compromise, settlement,
release, waiver, renewal, extension, indulgence or modification of, or any change in, any of the
obligations and liabilities of the Company or any of the other Subsidiary Guarantors contained in
the Notes or the Indenture, (B) any impairment, modification, release or limitation of the
liability of the Company, any of the other Subsidiary Guarantors or any of their estates in
bankruptcy, or any remedy for the enforcement thereof, resulting from the operation of any present
or future provision of any applicable bankruptcy law, or other statute or from the decision of any
court, (C) the assertion or exercise by the Company, any of the other Subsidiary Guarantors or the
Trustee of any rights or remedies under the Notes

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or the Indenture or their delay in or failure to assert or exercise any such rights or
remedies, (D) the assignment or the purported assignment of any property as security for the Notes,
including all or any part of the rights of the Company or any of the other Subsidiary Guarantors
under the Indenture, (E) the extension of the time for payment by the Company or any of the other
Subsidiary Guarantors of any payments or other sums or any part thereof owing or payable under any
of the terms and provisions of the Notes or the Indenture or of the time for performance by the
Company or any of the other Subsidiary Guarantors of any other obligations under or arising out of
any such terms and provisions or the extension or the renewal of any thereof, (F) the modification
or amendment (whether material or otherwise) of any duty, agreement or obligation of the Company or
any of the other Subsidiary Guarantors set forth in the Indenture, (G) the voluntary or involuntary
liquidation, dissolution, sale or other disposition of all or substantially all of the assets,
marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the
benefit of creditors, reorganization, arrangement, composition or readjustment of, or other similar
proceeding affecting, the Company or any of the other Subsidiary Guarantors or any of their
respective assets, or the disaffirmance of the Notes, the Subsidiary Guarantee or the Indenture in
any such proceeding, (H) the release or discharge of the Company or any of the other Subsidiary
Guarantors from the performance or observance of any agreement, covenant, term or condition
contained in any of such instruments by operation of law, (I) the unenforceability of the Notes or
the Indenture or (J) any other circumstances (other than payment in full or discharge of all
amounts guaranteed pursuant to the Subsidiary Guarantees) which might otherwise constitute a legal
or equitable discharge of a surety or guarantor.

     (d) Each of the Subsidiary Guarantors hereby (A) waives diligence, presentment, demand of
payment, filing of claims with a court in the event of the merger, insolvency or bankruptcy of the
Company or any of the Subsidiary Guarantors, and all demands whatsoever, (B) acknowledges that any
agreement, instrument or document evidencing its Subsidiary Guarantee may be transferred and that
the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument
or document evidencing the Subsidiary Guarantee without notice to it and (C) covenants that its
Subsidiary Guarantee will not be discharged except by complete performance of the Subsidiary
Guarantee. Each of the Subsidiary Guarantors further agrees that if at any time all or any part of
any payment theretofore applied by any Person to its Subsidiary Guarantee is, or must be, rescinded
or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of the Company or any of the Subsidiary Guarantors, the Subsidiary Guarantee shall,
to the extent that such payment is or must be rescinded or returned, be deemed to have continued in
existence notwithstanding such application, and the Subsidiary Guarantee shall continue to be
effective or be reinstated, as the case may be, as though such application had not been made.

     (e) Each of the Subsidiary Guarantors shall be subrogated to all rights of the Holders and the
Trustee against the Company in respect of any amounts paid by such Subsidiary Guarantor pursuant to
the provisions of the Indenture, provided, however, that such Subsidiary Guarantor, shall not be
entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Notes and the Subsidiary Guarantees shall have been paid in full or
discharged.

Section 1602. Execution and Delivery of Notation of Subsidiary Guarantee.

     To further evidence its Subsidiary Guarantee set forth in Section 1601, each of the Subsidiary
Guarantors hereby agrees that a notation relating to such Subsidiary Guarantee, substantially in
the form attached hereto as Annex B, shall be endorsed on each Note entitled to the benefits of the
Subsidiary Guarantee authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an Officer of such Subsidiary Guarantor, or in the case of a Subsidiary
Guarantor that is a

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limited partnership, an Officer of the general partner of each Subsidiary Guarantor. Each of
the Subsidiary Guarantors hereby agrees that the Subsidiary Guarantee set forth in Section 1601
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation relating to its Subsidiary Guarantee. If any Officer of the Subsidiary Guarantor, or in
the case of a Subsidiary Guarantor that is a limited partnership, any Officer of the general
partner of the Subsidiary Guarantor, whose signature is on the Indenture or a Note no longer holds
that office at the time the Trustee authenticates such Note or at any time thereafter, the
Subsidiary Guarantee of such Note shall be valid nevertheless. The delivery of any Note by the
Trustee, after the authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantees set forth in the Indenture on behalf of the Subsidiary Guarantors.

Section 1603. Limitation on Subsidiary Guarantors’ Liability.

     Each Subsidiary Guarantor and by its acceptance hereof each Holder of a Note entitled to the
benefits of the Subsidiary Guarantee hereby confirm that it is the intention of all such parties
that the guarantee by such Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute
a fraudulent transfer or conveyance for purposes of any Federal or State law. To effectuate the
foregoing intention, the Holders of a Note entitled to the benefits of the Subsidiary Guarantees
and the Subsidiary Guarantors hereby irrevocably agree that the obligations of each Subsidiary
Guarantor under its Subsidiary Guarantee shall be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any
collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee, result in the
obligations of such Subsidiary Guarantor under the Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under Federal or State law.

Section 1604. Release of Subsidiary Guarantors from Guarantee.

     (a) Notwithstanding any other provisions of the Indenture, the Subsidiary Guarantee of any
Subsidiary Guarantor shall be released upon the terms and subject to the conditions set forth in
this Section 1604. Any Subsidiary Guarantee incurred by a Subsidiary Guarantor pursuant to this
Article shall be unconditionally released and discharged (i) automatically upon (A) any sale,
exchange or other disposition, whether by way of merger, consolidation or otherwise, to any Person
that is not the Company or a Restricted Subsidiary, of all of the Capital Stock of such Subsidiary
Guarantor, (B) any sale, exchange or other disposition (other than a lease) of all or substantially
all of the assets of such Subsidiary Guarantor to any Person that is not the Company or a
Restricted Subsidiary (provided, in respect of both clauses (A) and (B), such sale, exchange or
other disposition is not prohibited by the Indenture), (C) the merger of such Subsidiary Guarantor
into the Company or any other Subsidiary Guarantor or the liquidation and dissolution of such
Subsidiary Guarantor (in each case to the extent not prohibited by the Indenture), (D) the
designation by the Company of such Subsidiary as an Unrestricted Subsidiary in compliance with the
other applicable provisions of the Indenture or (E) in connection with any Covenant Defeasance,
Legal Defeasance or satisfaction and discharge of the Notes as provided under Article Five or
Article Fourteen of the Indenture or (ii) upon delivery of a written notice of such release or
discharge by the Company to the Trustee, following the release or discharge of all Guarantees by
such Subsidiary Guarantor of any Indebtedness that resulted in the creation of such Subsidiary
Guarantee pursuant to Section 1117, except a discharge or release by or as a result of payment
under such Guarantees.

     (b) The Trustee shall deliver an appropriate instrument evidencing any release of a Subsidiary
Guarantor from the Subsidiary Guarantee upon receipt of a Company Request accompanied by
an Officers’ Certificate and an Opinion of Counsel the Subsidiary Guarantor is entitled to
such release in accordance with the provisions of the Indenture.

99

 

     (c) Any Subsidiary Guarantor not released in accordance with the provisions of the Indenture
will remain liable for the full amount of principal of (and premium, if any, on) and interest on
the Notes as provided in this Article Sixteen, subject to the limitations of Section 1603.

Section 1605. Subsidiary Guarantor Contribution.

     In order to provide for just and equitable contribution among the Subsidiary Guarantors, the
Subsidiary Guarantors hereby agree, inter se, that in the event any payment or distribution is made
by any Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee, such Funding
Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor (if any) in a
pro rata amount based on the net assets of each Subsidiary Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging
the Company’s Obligations with respect to the Notes or any other Subsidiary Guarantor’s obligations
with respect to its Subsidiary Guarantee.

 

     The Trustee hereby accepts the trusts in the Indenture upon the terms and conditions herein
set forth.

[Signature Pages Follow]

100

 

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

	 	 	 	 	 
	 	CONCHO RESOURCES INC.

 	 
	 	By:  	/s/ Timothy A. Leach
 	 
	 	 	Timothy A. Leach 	 
	 	 	Chairman, Chief Executive Officer and President 	 
	 
	 	COG OPERATING LLC

COG REALTY LLC

CONCHO ENERGY SERVICES LLC

QUAIL RANCH LLC

 	 
	 	By:  	/s/ Timothy A. Leach
 	 
	 	 	Timothy A. Leach 	 
	 	 	Chief Executive Officer 	 
	 
	 	WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ John C. Stohlmann
 	 
	 	 	John C. Stohlmann 	 
	 	 	Vice President 	 
	 

101

 

ANNEX A

CUSIP 20605PAA9

ISIN US20605PAA93

[Form of Face of Note]

[If a Global Note, insert the Global Note Legend.]

CONCHO RESOURCES INC.

8.625% Senior Note due 2017

			
	 	 	 
	No.
	 	$             

     Concho Resources Inc., a corporation duly organized and existing under the laws of the State
of Delaware (herein called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                     , or
registered assigns, the principal sum of                       Dollars on October 1, 2017, [if this Note is a
Global Note, insert – or such greater or lesser amount as may be indicated on the Schedule of
Exchanges of Interests in the Global Note attached hereto,] and to pay interest thereon from
September 18, 2009 or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on April 1 and October 1 in each year, commencing April 1, 2010,
at the rate of 8.625% per annum, until the principal hereof is paid or made available for payment,
from the dates such amounts are due until they are paid or made available for payment, and such
interest shall be payable on demand. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the close of business on
the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or
not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or
one or more Predecessor Notes) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest on this Note will be
made at the office or agency of the Company maintained for that purpose in the City and State of
New York, [if this Note is a Global Note, insert – in immediately available funds] in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that, unless this Note is a Global Note, at the option
of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

102

 

     Reference is hereby made to the further provisions of this Note 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 the certificate of authentication hereon has been manually signed in the name of the
Trustee referred to on the reverse hereof by an authorized signatory, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

103

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by its
undersigned officer.

	 	 	 	 	 
	 	CONCHO RESOURCES INC.

 	 
	 	By:  	 	 

Trustee’s Certificate of Authentication

     This is one of the 8.625% Senior Notes due 2017 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated:

104

 

[Form of Reverse of Note]

     This Note is one of a duly authorized series of senior notes of the Company (herein called the
“Note”), issued under an Indenture, dated as of September 18, 2009 (the “Base Indenture”), as
supplemented and amended by the First Supplemental Indenture, dated as of September 18, 2009 (the
“Supplemental Indenture” and, together with the Base Indenture, herein called the “Indenture”),
among the Company, the Subsidiary Guarantors named therein and Wells Fargo Bank, National
Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Subsidiary Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered. This Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $300.0 million but subject
to re-opening as provided in the Supplemental Indenture.

     On and after October 1, 2013, the Company may redeem all or, from time to time, a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the following Redemption Prices
(expressed as a percentage of principal amount of the Notes) plus accrued and unpaid interest on
the Notes, if any, to the applicable Redemption Date (subject to the right of holders of record on
the relevant record date to receive interest due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on October 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	 
	2013
	 	 	104.313	%
	2014
	 	 	102.156	%
	2015 and thereafter
	 	 	100.000	%

     Prior to October 1, 2012, the Company may, at its option, on any one or more occasions redeem
up to 35% of the aggregate principal amount of the Notes (including any Additional Notes) issued
under the Indenture with the Net Cash Proceeds of one or more Equity Offerings at a redemption
price of 108.625% of the principal amount thereof, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of holders of record on the relevant record date to receive
interest due on the relevant interest payment date); provided that

     (1) at least 65% of the original principal amount of the Notes issued on the Issue Date
remains outstanding after each such redemption; and

     (2) the redemption occurs within 180 days after the closing of the related Equity
Offering.

In addition, the Notes may be redeemed, in whole or in part, at any time prior to October 1, 2013,
at the option of the Company upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each holder of Notes at its registered address, at a Redemption Price equal to
100% of the principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued
and unpaid interest to, the applicable Redemption Date (subject to the right of holders of record
on the relevant record

105

 

date to receive interest due on the relevant interest payment date). “Applicable Premium” means,
with respect to any Note on any applicable Redemption Date, the greater of:

     (1) 1.0% of the principal amount of such Note; or

     (2) the excess, if any, of:

     (a) the present value at such redemption date of (i) the Redemption Price of
such Note at October 1, 2013 (such Redemption Price being set forth in the table
appearing above) plus (ii) all required interest payments (excluding accrued and
unpaid interest to such Redemption Date) due on such Note through October 1, 2013,
computed using a discount rate equal to the Treasury Rate as of such Redemption Date
plus 50 basis points; over

     (b) the principal amount of such Note.

     “Treasury Rate” means, as of any Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source or similar market data)) most nearly
equal to the period from the Redemption Date to October 1, 2013; provided, however, that if the
period from the redemption date to October 1, 2013 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Rate shall
be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the Redemption Date to October 1, 2013 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

     The Notes may also be redeemed, as a whole, following certain Change of Control Offers, at the
Redemption Price and subject to the conditions set forth in Section 1110 of the Indenture.

     In the event of redemption of this Note in part only, a new Note or Notes of like tenor for
the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Note as well as certain restrictive covenants and Events of Default with respect to this Note,
in each case upon compliance with certain conditions set forth in the Indenture.

     The Indenture 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 the
Notes to be affected under the Indenture at any time by the Company, the Subsidiary Guarantors and
the Trustee with the consent of the Holders of a majority in principal amount of the Notes at the
time Outstanding to be affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the
Holders of all Notes, to waive compliance by the Company with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Note shall be

106

 

conclusive and binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

     If an Event of Default with respect to the Notes shall occur and be continuing, the Notes may
be declared (or shall automatically become) due and payable in the manner and with the effect
provided in the Indenture.

     As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable security or indemnity, and the Trustee shall
not have received from the Holders of a majority in principal amount of Notes at the time
Outstanding a direction inconsistent with such request (and such Holders shall not have waived such
Event of Default), and the Trustee shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of security or indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office of the Security Registrar, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the Security Registrar
duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Notes of like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount
of Notes of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any transfer tax or other governmental
taxes and fees required by law or permitted by the Indenture.

     Prior to due presentment of this Note for registration of transfer, the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors or the
Trustee may treat the Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the Subsidiary Guarantors, the Trustee nor any
such agent shall be affected by notice to the contrary.

107

 

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

     All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Notes, the Subsidiary Guarantees and the Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

108

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Security to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

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

	 	 
	and irrevocably appoint	 

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

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the face

of this Note)

Signature Guarantee:*                                         

 

			
	*	 	Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).

109

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to Section 1110 or
Section 1115 of the Indenture, check the appropriate box below:

	 	 	 
	o Section 1110
	 	o Section 1115

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 1110 or Section 1115 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 
	 

	 	 	(Sign exactly as your name appears on the face

of this Note)

	 

	 	 	 
	 

	 	 	 
	 

	 	Tax Identification No.:	 
	 

	 	 	 	 

Signature Guarantee:*                                         

 

			
	*	 	Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).

110

 

Schedule of Exchanges of Interests in the Global Note*

     The following exchanges of a part of this Global Note for other Notes have been made:

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

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

111

 

ANNEX B

NOTATION OF SUBSIDIARY GUARANTEE

     Each of the Subsidiary Guarantors (which term includes any successor Person under the
Indenture (as defined below)), has fully and unconditionally guaranteed, to the extent set forth in
Article Sixteen of the First Supplemental Indenture dated as of September 18, 2009, by and among
Concho Resources Inc., as issuer, the Subsidiary Guarantors and Wells Fargo Bank, National
Association, as Trustee (the “Supplemental Indenture”) to the Indenture, dated as of September 18,
2009 among the Company, the Subsidiary Guarantors and the Trustee (the “Base Indenture” and as
supplemented by the Supplemental Indenture, the “Indenture”), and subject to the provisions in the
Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on
the Notes and all other amounts due and payable under the Indenture and the Notes by the Company.

     The obligations of the Subsidiary Guarantors to the Holders of Notes and to the Trustee
pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article Sixteen
of the Supplemental Indenture and reference is hereby made to the Indenture for the precise terms
of the Subsidiary Guarantee and the conditions upon which it may be released.

	 	 	 	 	 
	 	[Name of Subsidiary Guarantor(s)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

112

 

ANNEX C

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY FUTURE SUBSIDIARY GUARANTORS

     Supplemental Indenture (this “Supplemental Indenture”), dated as of                                         ,
20___, among [Name of Future Subsidiary Guarantor(s)] (the “New Subsidiary Guarantor”), a
subsidiary of Concho Resources Inc., a Delaware corporation [or its permitted successor] (the
“Company”), the existing Subsidiary Guarantors (as defined in the Indenture referred to herein) and
Wells Fargo Bank, National Association, as trustee under the Indenture referred to herein (the
“Trustee”). The New Subsidiary Guarantor and the existing Subsidiary Guarantors are sometimes
referred to collectively herein as the “Subsidiary Guarantors”, or individually as a “Subsidiary
Guarantor.”

W I T N E S S E T H

     WHEREAS, the Company and the existing Subsidiary Guarantors have heretofore executed and
delivered to the Trustee an indenture, dated as of September 18, 2009, and a First Supplemental
Indenture (herein so called) of even date therewith relating to the 8.625% Senior Notes due 2017
(the “Securities”) of the Company;

     WHEREAS, Section 1117 of the First Supplemental Indenture obligates the Company to cause
certain Restricted Subsidiaries to become Subsidiary Guarantors by executing a supplemental
indenture as provided in such Section; and

     WHEREAS, pursuant to Section 1001 of the First Supplemental Indenture, the Company, the
Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental
Indenture to amend or supplement the Indenture without the consent of any Holder;

     NOW THEREFORE, to comply with the provisions of the First Supplemental Indenture and in
consideration of the foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the New Subsidiary Guarantor, the other Subsidiary Guarantors, the Company
and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the First Supplemental Indenture.

     2. Agreement to Guarantee. The New Subsidiary Guarantor hereby agrees, jointly and
severally, with all other Subsidiary Guarantors, to fully and unconditionally Guarantee to each
Holder and to the Trustee the Obligations, to the extent set forth in Article Sixteen of the First
Supplemental Indenture and subject to the provisions thereof. The obligations of the Subsidiary
Guarantors to the Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees
and the Indenture are expressly set forth in Article Sixteen of the First Supplemental Indenture
and reference is hereby made to such Article for the precise terms of the Subsidiary Guarantees.

     3. NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE AND ENFORCE THIS SUPPLEMENTAL INDENTURE.

     4. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

113

 

This Supplemental Indenture may be executed in multiple counterparts which, when taken
together, shall constitute one instrument.

     5. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     6. The Trustee. Except as otherwise expressly provided herein, no duties,
responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by
reason of this Supplemental Indenture. This Supplemental Indenture is executed and accepted by the
Trustee subject to all the terms and conditions set forth in the Indenture with the same force and
effect as if those terms and conditions were repeated at length herein and made applicable to the
Trustee with respect hereto.

[Remainder of Page Intentionally Left Blank.

Signature Page Follows.]

114

 

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

     Dated:                                         , 20___

	 	 	 	 	 
	 	[NEW SUBSIDIARY GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[OTHER SUBSIDIARY GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Concho Resources Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Wells Fargo Bank, National Association, 

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

115exv10w1

Exhibit 10.1

September 4, 2009

Concho Resources Inc.

550 West Texas Ave., Suite 100

Midland, Texas 79701

Attention: Darin G. Holderness

			
	     Re:	 	Limited Consent and Waiver

Dear Mr. Holderness:

     We refer to that certain Amended and Restated Credit Agreement, dated as of July 31, 2008,
among Concho Resources Inc. (the “Borrower”), the lenders from time to time party thereto
(the “Lenders”), and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in
such capacity, the “Administrative Agent”) (as the same has been and may hereafter be
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings
given such terms in the Credit Agreement. References herein to any Section or Article shall be to
a Section or Article of the Credit Agreement unless otherwise specifically provided.

     We understand that on or before September 30, 2009, and in accordance with Section 7.03(f),
the Borrower intends to issue Senior Notes in an aggregate principal amount not to exceed
$300,000,000 (the “2009 Senior Notes”). Pursuant to Section 3.05, upon the issuance of the
2009 Senior Notes, the Borrowing Base and the Conforming Borrowing Base then in effect must be
reduced by $300 for every $1,000 in stated amount of the 2009 Senior Notes and consequently, the
Aggregate Commitments will be reduced by an amount equal to the reduction in the Borrowing Base.
Currently, the Borrowing Base is equal to the Conforming Borrowing Base. The Borrower has
requested that the Lenders waive the reductions of the Borrowing Base and the Conforming Borrowing
Base required as a result of the issuance of the 2009 Senior Notes and that each Lender consent to
the postponement of any reduction in its Commitment resulting from any reduction in the Borrowing
Base. Subject to the conditions described herein, each Lender a party hereto is willing to waive
the adjustments to the Borrowing Base and Conforming Borrowing Base required as a result of the
issuance of the 2009 Senior Notes and consent to the postponement of any such reduction in its
Commitment as a result of any reduction in the Borrowing Base.

     Accordingly, each Lender a party hereto hereby waives the adjustments to the Borrowing Base
and Conforming Borrowing Base required as a result of the issuance of the 2009 Senior Notes and
consents to the postponement of any reduction in its Commitment as a result of any such reduction
in the Borrowing Base; provided, that, (i) no Default or Event of Default has occurred and
is continuing on the date the 2009 Senior Notes are issued, (ii) the 2009 Senior Notes are issued
in accordance with Section 7.03(f), (iii) the issuance of the 2009 Senior Notes occurs on or before
September 30, 2009 and (iv) on the date the proceeds from the issuance of

 

 

the 2009 Senior Notes are received by Borrower, Borrower pays to the Administrative Agent any
amounts required to eliminate any Borrowing Base Deficiency arising as a result of the issuance of
the 2009 Senior Notes.

     By its signature below, the Borrower agrees that nothing herein shall be construed as a
continuing waiver of the provisions of Section 3.05 or of a waiver of Section 7.03(f) or any other
provision of the Credit Agreement or any other Loan Document. The waiver and consent set forth
herein is expressly limited as follows: (i) such waiver and consent is limited solely to the
adjustments to the Borrowing Base and Conforming Borrowing Base required as a result of the
issuance of the 2009 Senior Notes and (ii) such waiver and consent is a limited one-time waiver and
consent, and nothing contained herein shall obligate any Lender to grant any additional or future
waiver or consent with respect to Section 3.05 or any other provision of the Credit Agreement or
any other Loan Document.

     By its signature below, the Borrower acknowledges and agrees that except as expressly provided
herein, the Credit Agreement and each of the other Loan Documents is hereby ratified and confirmed
in all respects and shall remain in full force and effect.

     If the foregoing is acceptable to you, please execute a copy of this letter in the spaces
provided below to evidence your acceptance and approval of the foregoing and return a
fully-executed counterpart to the attention of the undersigned.

[Remainder of Page Intentionally Left Blank]

 

 

	 	 	 	 	 
	 	Very truly yours,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and a Lender

 	 
	 	By:  	/s/ Kimberly A. Bourgeois
 	 
	 	 	Name:  	Kimberly A. Bourgeois 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Syndication Agent and a Lender

 	 
	 	By:  	/s/ Jeffrey H. Rathkamp
 	 
	 	 	Name:  	Jeffrey H. Rathkamp 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	BNP PARIBAS,

as a Co-Documentation Agent and a Lender

 	 
	 	By:  	/s/ David Dodd
 	 
	 	 	Name:  	David Dodd 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                      /s/ Richard Hawthorne
 	 
	 	 	Name:  	Richard Hawthorn 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH,

as a Co-Documentation Agent and a Lender

 	 
	 	By:  	/s/ Sharada Manne
 	 
	 	 	Name:  	Sharada Manne 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                         /s/ Mark Roche
 	 
	 	 	Name:  	Mark Roche 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	ING CAPITAL LLC,

as a Co-Documentation Agent and a Lender

 	 
	 	By:  	/s/ Charles E. Hall
 	 
	 	 	Name:  	Charles E. Hall 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND, plc,

as a Lender

 	 
	 	By:  	/s/ Karen Weich
 	 
	 	 	Name:  	Karen Weich 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.,

as a Lender

 	 
	 	By:  	/s/ Jeff Olmstead
 	 
	 	 	Name:  	Jeff Olmstead 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

	 	 	 	 	 
	 	CITIBANK, N.A. (formerly Citibank Texas, N.A.), 

as a Lender

 	 
	 	By:  	/s/ Gary T. Brednich
 	 
	 	 	Name:  	Gary T. Brednich 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP.,

as a Lender

 	 
	 	By:  	/s/ Michele Jones
 	 
	 	 	Name:  	Michele Jones 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                       /s/ Darrell Holley
 	 
	 	 	Name:  	Darrell Holley 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	THE FROST NATIONAL BANK,

as a Lender

 	 
	 	By:  	/s/ Alex Zemkoski
 	 
	 	 	Name:  	Alex Zemkoski 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	NATIXIS (formerly Natexis Banques Populaires),

as a Lender

 	 
	 	By:  	/s/ Donovan C. Broussard
 	 
	 	 	Name:  	Donovan C. Broussard 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                    /s/ Liana Tchernysheva
 	 
	 	 	Name:  	Liana Tchernysheva 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	SCOTIABANC INC.,

as a Lender

 	 
	 	By:  	/s/ J.F. Todd
 	 
	 	 	Name:  	J.F. Todd 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	STERLING BANK,

as a Lender

 	 
	 	By:  	/s/ Jeff Forbis
 	 
	 	 	Name:  	Jeff Forbis 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Tara R. McLean
 	 
	 	 	Name:  	Tara R. McLean 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Reed Thompson
 	 
	 	 	Name:  	Reed Thompson 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Timothy Brendel
 	 
	 	 	Name:  	Timothy Brendel 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	COMPASS BANK,

as a Lender

 	 
	 	By:  	/s/ Kathleen J. Bowen
 	 
	 	 	Name:  	Kathleen J. Bowen 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	KEY BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Angela McCracken
 	 
	 	 	Name:  	Angela McCracken 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Reed Thompson
 	 
	 	 	Name:  	Reed Thompson 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	SUNTRUST BANK,

as a Lender

 	 
	 	By:  	/s/ Yann Pirio
 	 
	 	 	Name:  	Yann Pirio 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

as a Lender

 	 
	 	By:  	/s/ Dusan Lazarov
 	 
	 	 	Name:  	Dusan Lazarov 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                     /s/ Michael M. Meagher
 	 
	 	 	Name:  	Michael M. Meagher 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	ACCEPTED AND AGREED TO:

BORROWER:

CONCHO RESOURCES INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Darin G. Holderness
 	 
	 	 	Name:  	Darin G. Holderness 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Treasurer 	 
	 
	 	GUARANTORS:

COG OPERATING LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Darin G. Holderness
 	 
	 	 	Name:  	Darin G. Holderness 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Treasurer 	 
	 
	 	COG REALTY LLC,

a Texas limited liability company

 	 
	 	By:  	/s/ Darin G. Holderness
 	 
	 	 	Name:  	Darin G. Holderness 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Treasurer 	 
	 
	 	CONCHO ENERGY SERVICES LLC,

a Texas limited liability company

 	 
	 	By:  	/s/ Darin G. Holderness
 	 
	 	 	Name:  	Darin G. Holderness 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	QUAIL RANCH LLC,

a Texas limited liability company

 	 
	 	By:  	/s/ Darin G. Holderness
 	 
	 	 	Name:  	Darin G. Holderness 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]