Document:

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                                                                     EXHIBIT 4.9

                                                                  Execution Copy

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                                WARRANT AGREEMENT

                                     BETWEEN

                            GOTHIC ENERGY CORPORATION

                                       AND

                             AMERICAN STOCK TRANSFER

                                & TRUST COMPANY,

                                AS WARRANT AGENT

                                   ----------

                          DATED AS OF SEPTEMBER 9, 1997

                                   ----------

                  WARRANTS TO PURCHASE 1,400,000 COMMON SHARES

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                                TABLE OF CONTENTS
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RECITALS..........................................................................................................1

AGREEMENT.........................................................................................................1

1.      DEFINITIONS...............................................................................................1

2.      WARRANT CERTIFICATES......................................................................................7
        2.1    Issuance of Warrants...............................................................................7
        2.2    Form, Denomination and Date of Warrants............................................................8
        2.3    Execution and Delivery of Warrant Certificates.....................................................8
        2.4    Transfer and Exchange.............................................................................10
        2.5    Temporary Securities..............................................................................11
        2.6    Effective Registration............................................................................11

3.      EXERCISE AND EXPIRATION OF WARRANTS......................................................................12
        3.1    Right to Acquire Warrant Shares Upon Exercise.....................................................12
        3.2    Exercise and Expiration of Warrants...............................................................12

               (a)    Exercise of Warrants.......................................................................12
               (b)    Expiration of Warrants.....................................................................12
               (c)    Method of Exercise.........................................................................12
               (d)    Partial Exercise...........................................................................13
               (e)    Issuance of Warrant Shares.................................................................13
               (f)    Time of Exercise...........................................................................14
               (g)    Exercise of Certain Warrants Evidenced by Unit Certificates................................14
        3.3    Application of Funds Upon Exercise of Warrants....................................................14
        3.4    Payment of Taxes..................................................................................14
        3.5    Surrender of Certificates.........................................................................15
        3.6    Shares Issuable...................................................................................15

4.      REGISTRATION RIGHTS......................................................................................15

5.      DISSOLUTION, LIQUIDATION OR WINDING UP...................................................................15

6.      ADJUSTMENTS..............................................................................................16
        6.1    Adjustments.......................................................................................16

               (a)    Stock Dividends, Subdivisions and Combinations.............................................16
               (b)    Certain Other Dividends and Distributions..................................................17
               (c)    Reclassifications..........................................................................17
               (d)    Distribution of Warrants or Other Rights to Holders of Common Shares.......................17

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               (e)    Superseding Adjustment of Number of Warrant Shares into Which
                      Each Warrant is Exercisable................................................................18
               (f)    Other Provisions Applicable to Adjustments under this Section..............................18
               (g)    Warrant Price Adjustment...................................................................19
               (h)    Merger, Consolidation or Combination.......................................................20
               (i)    Compliance with Governmental Requirements..................................................20
               (j)    Optional Tax Adjustment....................................................................20
               (k)    Warrants Deemed Exercisable................................................................20
               (l)    Limitations on Certain Non-Stock Dividends.................................................20
        6.2    Notice of Adjustment..............................................................................20
        6.3    Statement on Warrant Certificates.................................................................21
        6.4    Fractional Interest...............................................................................21

7.      LOSS OR MUTILATION.......................................................................................21

8.      RESERVATION AND AUTHORIZATION OF WARRANT SHARES..........................................................22

9.      WARRANT TRANSFER BOOKS...................................................................................23

10.     WARRANT HOLDERS..........................................................................................24
        10.1   Voting or Dividend Rights.........................................................................24
        10.2   Rights of Action..................................................................................24
        10.3   Treatment of Holders of Warrant Certificates......................................................24
        10.4   Communications to Holders.........................................................................25

11.     CONCERNING THE WARRANT AGENT.............................................................................25
        11.1   Nature of Duties and Responsibilities Assumed.....................................................25
        11.2   Right to Consult Counsel..........................................................................27
        11.3   Compensation, Reimbursement and Indemnification...................................................27
        11.4   Warrant Agent May Hold Company Securities.........................................................27
        11.5   Resignation and Removal; Appointment of Successor.................................................28
        11.6   Appointment of Countersigning Agent...............................................................28

12.     ADDITIONAL COVENANTS OF THE COMPANY......................................................................29
        12.1   Reports to Holders................................................................................29
        12.2   Compliance with Agreements........................................................................30
        12.3   Maintenance of Office.............................................................................30

13.     NOTICES..................................................................................................30
        13.1   Notices Generally.................................................................................30
        13.2   Required Notices to Holders.......................................................................32
        13.3   Company Notices to Warrant Agent..................................................................32
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14.     APPLICABLE LAW...........................................................................................33

15.     PERSONS BENEFITING.......................................................................................33

16.     COUNTERPARTS.............................................................................................33

17.     AMENDMENTS...............................................................................................33

18.     INSPECTION...............................................................................................34

19.     SUCCESSOR TO THE COMPANY.................................................................................34

20.     ENTIRE AGREEMENT.........................................................................................34

21.     HEADINGS.................................................................................................34

                                    EXHIBITS

A.      Form of Warrant Certificate.............................................................................A-1

B.      Form of Accredited Investor Transferee Certificate......................................................B-1

C.      Form of Legal Opinion on Transfer.......................................................................C-1
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                               WARRANT AGREEMENT

         THIS WARRANT AGREEMENT, dated as of September 9, 1997 (the "Issue
Date"), is entered into between GOTHIC ENERGY CORPORATION, an Oklahoma
corporation (the "Company"), and AMERICAN STOCK TRANSFER & TRUST, a New York
corporation, as warrant agent (the "Warrant Agent").

                                    RECITALS

         A. This Agreement is entered into in connection with the offering by
the Company of 100,000 Units (the "Units") consisting of an aggregate of
$100,000,000 principal amount of 12 1/4% Senior Notes due September 1, 2004 (the
"Notes") and 1,400,000 Common Stock Purchase Warrants (the "Warrants"). Each of
the Units consists of $1,000 principal amount of the Notes and 14 Warrants, each
to purchase one share of Common Stock, par value $.01 per share (the "Common
Stock"), of the Company. The Warrants and the Notes are not detachable or
separately transferable until the Unit Termination Date (as defined below).

         B. The Company proposes to issue 1,400,000 Warrants, as hereinafter
described, each to purchase at the Warrant Exercise Price (as defined below) one
Common Share, par value $.01 per share, of the Company on or after the
Separation Date (as defined below) and prior to the Expiration Date (as defined
below).

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

                                   AGREEMENT

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

1.       DEFINITIONS

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

         "Affiliate" shall mean, as to any Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control of such Person. For 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. Notwithstanding the
foregoing, "Affiliate" shall not include any wholly-owned Subsidiary of the
Company.

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

         "Business Day" shall mean a day which in New York, New York is neither
a legal holiday nor a day on which banking institutions are authorized by law or
regulation to close.

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

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

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

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

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

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

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

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

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

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

                           (1) if the Company does not have a class of equity
                  securities registered under the Exchange Act, the value of
                  such security (a) determined in good faith in the most
                  recently completed arm's-length transaction between the
                  Company and an unaffiliated third party in which such
                  determination is necessary and the closing of which occurs on
                  such date or shall have occurred within the six months
                  preceding such date, (b) if no such transaction shall have
                  occurred on such date or within such six-month period, most
                  recently determined as of a date within the six

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                  months preceding such date by an Independent Financial Expert
                  using one or more valuation methods that such Independent
                  Financial Expert, in its best professional judgment,
                  determines to be most appropriate but without giving effect to
                  the discount for any lack of liquidity of the security or to
                  the fact that the Company may not have any class of equity
                  securities registered under the Exchange Act and assuming that
                  the Warrants are currently exercisable (in the event of more
                  than one such determination, the determination for the later
                  date shall be used) or (c) if no such determination shall have
                  been made within such six-month period, determined as of such
                  date by an Independent Financial Expert as described in (b)
                  above, or

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

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

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

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

         "Expiration Date" shall mean September 1, 2004 or such earlier date as
determined in accordance with Section 5.

         "Exchange Offer Registration Statement" shall have the meaning set
forth in the

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Registration Rights Agreement.

         "Guarantors" shall mean Gothic Energy of Texas, Inc., an Oklahoma
corporation, and Gothic Gas Corporation, an Oklahoma corporation.

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

         "Indenture" shall mean the Indenture dated as of September 9, 1997, by
and among the Company, the Guarantors and The Bank of New York, as trustee.

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

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

         "Initial Purchasers" shall mean Oppenheimer & Co., Inc., Banc One
Capital Corporation and Paribas Corporation.

         "Institutional Accredited Investor" shall mean an institution that is
an "accredited investor" as that term is defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act.

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

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

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

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

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

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

         "Purchase Agreement" shall mean that Purchase Agreement, dated
September 2, 1997, by and among the Company, the Guarantors and the Initial
Purchasers, as such agreement may be amended, modified or supplemented from time
to time.

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

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

         "Registration Rights Agreement" shall mean that certain Registration
Rights Agreement, dated as of September 9, 1997, by and among the Company, the
Guarantors and the Initial Purchasers, as such agreement may be amended,
modified or supplemented from time to time.

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

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

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

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

         "Separation Date" shall mean the date that is the earlier of (i) the
date on which the Exchange Offer Registration Statement is declared effective
under the Securities Act and (ii) March 8, 1998. The Company shall notify the
Warrant Agent promptly if the Separation Date occurs prior to March 8, 1998 in
accordance with Section 13.3. The Company shall notify the Warrant Agent in
accordance with Section 13.3 if the Unit Termination Date occurs prior to March
8, 1998.

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

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

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

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

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

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

         "Unit Termination Date" shall mean (i) March 8, 1998 or (ii) such
earlier date as determined under the Indenture.

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

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

         "Warrant Price" shall mean the exercise price per Warrant Share,
initially set at $3.00, subject to adjustment as provided in Section 6.1(g).

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

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

         "Warrants" shall mean those warrants issued hereunder to purchase
initially up to an aggregate of 1,400,000 Warrant Shares at the Warrant Price,
subject to adjustment pursuant to Section 6.

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

2.       WARRANT CERTIFICATES

         2.1      Issuance of Warrants.

                  (a) An aggregate of 1,400,000 Warrants are deemed issued on
the date of this Agreement to the registered holders of Unit Certificates issued
pursuant to the Indenture on such date. Notwithstanding any provision of this
Agreement to the contrary, on or prior to the Unit Termination Date, the
Warrants shall be evidenced by the Unit Certificates issued pursuant to the
terms of the Indenture and the ownership of which shall be registered by the
Registrar in accordance with the Indenture.

                  (b) After the Unit Termination Date, the Warrant Agent shall
issue Warrant Certificates to each registered owner of Unit Certificates as of
the close of the Unit Termination Date, in the name and number (14 Warrants per
Unit) and in such form (global or definitive) as set forth on a list of
registered holders of Unit Certificates as of the close of the Unit Termination
Date furnished to the Warrant Agent by the Registrar pursuant to Section 2.15
(c) (iii) of the Indenture; provided that no Warrant Certificate shall be issued
to holders in respect of Unit Certificates that have been noted by the Warrant
Agent as having had the Warrants evidenced thereby exercised pursuant to Section
3.2(g) hereof. Each Warrant Certificate issued pursuant to this paragraph (b)
shall evidence 14 Warrants multiplied by the number of Units specified as held
by the holder as set forth in the above list, and each Warrant evidenced thereby
shall represent the right, subject to the provisions contained herein and
therein, to purchase one Warrant Share, subject to adjustment as provided in
Section 6.

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         2.2      Form, Denomination and Date of Warrants.

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

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

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

         2.3      Execution and Delivery of Warrant Certificates.

                  (a) Warrant Certificates evidencing the Warrants which may be
countersigned and delivered under this Agreement are limited to Warrant
Certificates evidencing 1,400,000 Warrants, except for Warrant Certificates
countersigned and delivered upon registration of transfer of, or in exchange
for, or in lieu of, one or more previously countersigned Warrant Certificates
pursuant to Sections 2.6, 3.2(d), 7 and 9.

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

                  (c) The Warrant Certificates shall be executed in the
corporate name and on behalf of the Company by the Chairman (or any Co-Chairman)
of the Board, the Chief Executive Officer, the President or any one of the Vice
Presidents of the Company under corporate seal reproduced thereon and attested
to by the Secretary or one of the Assistant Secretaries of the Company, either
manually or by facsimile signature printed thereon. The Warrant Certificates
shall be countersigned by the Warrant Agent and shall not be valid for any
purpose unless so

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countersigned. In case any officer of the Company whose signature shall have
been placed upon any of the Warrant Certificates shall cease to be such officer
of the Company before countersignature by the Warrant Agent and issue and
delivery thereof, such Warrant Certificates may, nevertheless, be countersigned
by the Warrant Agent and issued and delivered with the same force and effect as
though such person had not ceased to be such officer of the Company, and any
Warrant Certificate may be signed on behalf of the Company by such person as, at
the actual date of the execution of such Warrant Certificate, shall be a proper
officer of the Company, although at the date of the execution of this Agreement
any such person was not such an officer.

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

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

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

                  (f) Except as otherwise provided herein, owners of beneficial
interests in the Global Warrant will not be entitled to receive physical
delivery of certificated Warrants. After the Unit Termination Date, purchasers
of Warrants who are not Qualified Institutional Buyers, or

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holders of Unit Certificates as of the Unit Termination Date and issued in
definitive form, will receive certificated Warrants bearing the Restricted
Warrant Legend ("Restricted Warrants"); provided, however, that upon transfer of
such certificated Warrants to a Qualified Institutional Buyer, such certificated
Warrants will, until the Global Warrant has previously been exchanged, be
exchanged for an interest in the Global Warrant pursuant to the provisions of
Section 2.4 hereof. Restricted Warrants will bear the Restricted Warrant Legend
unless removed in accordance with Section 2.4(b).

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

         2.4      Transfer and Exchange.

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

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

                                       10
<PAGE>   15

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

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

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

         2.5      Temporary Securities.

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

         2.6      Effective Registration.

         In the event the Company has an Effective Registration, the Company
shall notify the Warrant Agent within two Business Days after the Effective
Date. Promptly after delivering to the Warrant Agent notice of the Effective
Registration, the Company shall cause to be delivered to the Warrant Agent
certificates for Warrants without legends and the Warrant Agent shall
authenticate and deliver certificated Warrants without legends to Holders
presenting their

                                       11
<PAGE>   16

certificated Warrants for exchange to transferees of Warrants covered by the
Warrants Shelf Registration in the names and denominations specified by them.

3.       EXERCISE AND EXPIRATION OF WARRANTS

         3.1      Right to Acquire Warrant Shares Upon Exercise.

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

         3.2      Exercise and Expiration of Warrants.

                  (a) Exercise of Warrants. Subject to the terms and conditions
set forth herein, including, without limitation, the exercise procedure
described in Section 3.2(c), a Holder of a Warrant Certificate may exercise all
or any whole number of the Warrants evidenced thereby, on any Business Day from
and after the Separation Date until 5:00 p.m., New York City time, on the
Expiration Date (subject to earlier expiration pursuant to Section 5) for the
Warrant Shares purchasable thereunder. The Company shall notify the Warrant
Agent promptly if the Separation Date occurs prior to March 8, 1998 in
accordance with Section 13.3.

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

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

                           (i) The Holder may deliver to the Warrant Agent at
                  the Corporate Agency Office (A) a written notice of such
                  Holder's election to exercise Warrants, duly executed by such
                  Holder in the form set forth on the reverse of, or attached
                  to, such Warrant Certificate, which notice shall specify the
                  number of Warrant Shares to be purchased, (B) the Warrant
                  Certificate evidencing such Warrants and (C) a sum equal to
                  the aggregate Warrant Price for the Warrant Shares into which
                  such Warrants are being exercised, which sum shall be paid in
                  any combination elected by such Holder of (x) certified or
                  official bank checks in New York Clearing House funds payable
                  to the order of the Company and delivered to the Warrant Agent
                  at the corporate Agency Office, or (y) wire transfers in
                  immediately available funds to the account of the company at
                  such banking

                                       12
<PAGE>   17

                  institution as the company shall have given notice to the
                  Warrant Agent and the Holders in accordance with Section
                  13.1(b); or

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

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

                  (e) Issuance of Warrant Shares. Upon surrender of a Warrant
Certificate evidencing Warrants in conformity with the foregoing provisions and
payment of the Warrant Price in respect of the exercise of one or more Warrants
evidenced thereby, the Warrant Agent shall, when such payment is received,
deliver to the Company the notice of exercise received pursuant to Section
3.2(c), and, in accordance with Section 3.3, deliver or deposit all funds
received as instructed in writing by the Company and advise the Company by
telephone at the end of such day of the amount of funds so deposited to its
account. The Company shall thereupon, as promptly as practicable, and in any
event within five Business Days after receipt by the Company of such notice of
exercise, execute or cause to be executed and deliver or cause to be delivered
to the Recipient (as defined below) a certificate or certificates representing
the aggregate number of Warrant Shares issuable upon such exercise (based upon
the aggregate number of Warrants so exercised), determined in accordance with
Section 3.6, together with an amount in cash in lieu of any fractional share(s)
determined in accordance with Section 6.4. The certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as such Holder shall request in such notice of exercise and shall
be registered or otherwise placed in the name of, and delivered to, the Holder
or, subject to Section 2.2 and Section 3.4, such other Person as shall be
designated by the Holder in such notice (the Holder or

                                       13
<PAGE>   18

such other Person being referred to herein as the "Recipient").

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

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

         3.3      Application of Funds Upon Exercise of Warrants.

         Any funds delivered to the Warrant Agent upon exercise of any
Warrant(s) shall be held by the Warrant Agent in trust for the Company. The
Warrant Agent shall promptly deliver and pay to or upon the written order of the
Company all funds received by it upon the exercise of any Warrants by bank wire
transfer to an account designated by the Company or as the Warrant Agent
otherwise may be directed in writing by the Company.

         3.4      Payment of Taxes.

         The Company shall pay any and all taxes (other than income taxes) and
other charges that may be payable in respect of the issue or delivery of Warrant
Shares on exercise of Warrants pursuant hereto. The Company shall not be
required, however, to pay any tax or other charge imposed in respect of any
transfer involved in the issue and delivery of any certificates for Warrant
Shares or payment of cash to any Recipient other than the Holder of the Warrant
Certificate surrendered upon the exercise of a Warrant, and in case of such
transfer or payment,

                                       14
<PAGE>   19

the Warrant Agent and the Company shall not be required to issue or deliver any
certificate or pay any cash until (a) such tax or charge has been paid or an
amount sufficient for the payment thereof has been delivered to the Warrant
Agent or the Company or (b) it has been established to the Company's
satisfaction that any such tax or other charge that is or may become due has
been paid.

         3.5      Surrender of Certificates.

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

         3.6      Shares Issuable.

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

4.       REGISTRATION RIGHTS

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

5.       DISSOLUTION, LIQUIDATION OR WINDING UP

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

                                       15
<PAGE>   20

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

6.       ADJUSTMENTS

         6.1      Adjustments.

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

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

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

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

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

then, (x) in the case of any such dividend or distribution, effective
immediately after the opening of business on the day after the date for the
determination of the holders of Common Shares entitled to receive such dividend
or distribution or (y) in the case of any subdivision or combination, effective
immediately after the opening of business on the day after the day upon

                                       16
<PAGE>   21

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

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

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

                  (d) Distribution of Warrants or Other Rights to Holders of
Common Shares. In case at any time or from time to time after the Effective Date
the Company shall make a

                                       17
<PAGE>   22

distribution to all holders of outstanding Common Shares of any warrants,
options or other rights to subscribe for or purchase any Additional Common
Shares or securities convertible into or exchangeable for Additional Common
Shares (other than a distribution of such warrants, options or rights upon a
merger or consolidation or sale to which Section 6.1(h) applies), whether or not
the rights to subscribe or purchase thereunder are immediately exercisable, and
the consideration per share for which Additional Common Shares may at any time
thereafter be issuable pursuant to such warrants or other rights shall be less
than the Current Market Price per Common Share on the date fixed for
determination of the holders of Common Shares entitled to receive such
distribution, then, and for each such case, effective immediately after the
opening of business on the day after the date for determination, the number of
Warrant Shares into which each Warrant is exercisable shall be adjusted to that
number determined by multiplying the number of Warrant Shares into which each
Warrant is exercisable at the opening of business on the day after such date for
determination by a fraction (not less than one), (i) the numerator of which
shall be the number of Common Shares outstanding at the close of business on
such date for determination plus the maximum number of Additional Common Shares
issuable pursuant to all such warrants or other rights and (ii) the denominator
of which shall be the number of Common Shares outstanding at the close of
business on such date for determination plus the number of Common Shares that
the minimum consideration received and receivable by the Company for the
issuance of such maximum number of Additional Common Shares pursuant to the
terms of such warrants or other rights would purchase at such Current Market
Price.

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

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

                           (i) Treasury Stock. The sale or other disposition
         (other than any shares specified in the definition of "Additional
         Common Shares") of any issued Common Shares owned or held by or for the
         account of the Company shall be deemed an issuance or sale of
         Additional Common Shares for purposes of this Section 6. The Company
         shall not pay any dividend on or make any distribution on Common Shares

                                       18
<PAGE>   23

         held in the treasury of the Company. For the purposes of this Section
         6.1, the number of Common Shares at any time outstanding shall not
         include shares held in the treasury of the Company but shall include
         shares issuable in respect of scrip certificates issued in lieu of
         fractions of Common Shares.

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

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

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

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

                                       19
<PAGE>   24

                  (h) Merger, Consolidation or Combination. In the event the
Company merges, consolidates or otherwise combines with or into any Person,
then, as a condition of such merger, consolidation or combination, lawful and
adequate provisions shall be made whereby Warrantholders shall, in addition to
their other rights hereunder, thereafter have the right to purchase and receive
upon the basis and upon the terms and conditions specified in this Agreement
upon exercise of the Warrants and in lieu of the Warrant Shares immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby, such shares of stock, securities or assets as may be issued
or payable with respect to or in exchange for a number of outstanding Common
Shares equal to the number of Warrant Shares immediately theretofore purchasable
and receivable upon the exercise of the rights represented hereby, and in any
such case appropriate provision shall be made with respect to the rights and
interests of the Warrantholders to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the number of
Warrant Shares) shall thereafter be applicable, as nearly as may be practicable,
in relation to any shares of stock, securities or assets thereafter deliverable
upon the exercise hereof.

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

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

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

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

         6.2      Notice of Adjustment.

         Whenever the number of Warrant Shares into which a Warrant is
exercisable is to be

                                       20
<PAGE>   25

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

         6.3      Statement on Warrant Certificates.

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

         6.4      Fractional Interest.

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

7.       LOSS OR MUTILATION

         Upon (i) receipt by the Company and the Warrant Agent of evidence
satisfactory to them of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and such security or indemnity as may be
required by them to save each of them harmless and (ii) surrender, in the case
of mutilation, of the mutilated Warrant Certificate to the Warrant Agent and
cancellation thereof, then, in the absence of notice to the Company or the
Warrant Agent that the Warrants evidenced thereby have been acquired by a bona
fide purchaser, the Company shall execute and upon its written request the
Warrant Agent shall countersign and deliver to the registered Holder of the
lost, stolen, destroyed or mutilated Warrant Certificate, in exchange therefor
or in lieu thereof, a new Warrant Certificate of the same tenor and for a like
aggregate

                                       21
<PAGE>   26

number of Warrants. At the written request of such registered Holder, the new
Warrant Certificate so issued shall be retained by the Warrant Agent as having
been surrendered for exercise, in lieu of delivery thereof to such Holder, and
shall be deemed for purposes of Section 3.2 to have been surrendered for
exercise on the date the conditions specified in clauses (i) and (ii) of the
preceding sentence were first satisfied.

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

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

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

8.       RESERVATION AND AUTHORIZATION OF WARRANT SHARES

         The Company shall at all times reserve and keep available, free from
preemptive rights, solely for issue upon the exercise of Warrants as herein
provided, such number of its authorized but unissued Warrant Shares deliverable
upon the exercise of Warrants as will be sufficient to permit the exercise in
full of all outstanding Warrants. The Company covenants that all Warrant Shares
will, at all times that Warrants are exercisable, be duly approved for listing
subject to official notice of issuance on each securities exchange, if any, on
which the Common Shares are then listed. The Company covenants that (i) all
Warrant Shares that may be issued upon exercise of Warrants shall upon issuance
be duly and validly authorized, issued and fully paid and nonassessable and free
of preemptive or similar rights and (ii) the stock certificates issued to
evidence any such Warrant Shares will comply with the Oklahoma General
Corporation Act and any other applicable law.

         The Company hereby authorizes and directs its current and future
transfer agents for the Common Shares at all times to reserve stock certificates
for such number of authorized shares as shall be requisite for such purpose. The
Warrant Agent is hereby authorized to requisition from time to time from any
such transfer agents stock certificates required to honor outstanding Warrants
upon exercise thereof in accordance with the terms of this Agreement, and the
Company hereby authorizes and directs such transfer agents to comply with all
such requests of the Warrant Agent. The Company will supply such transfer agents
with duly executed stock certificates for such purposes. Promptly after the date
of expiration of all of the Warrants in

                                       22
<PAGE>   27

accordance with Section 3.2(b), the Warrant Agent shall certify to the Company
the aggregate number of Warrants then outstanding, and thereafter no Warrant
Shares shall be reserved in respect of such Warrants.

9.       WARRANT TRANSFER BOOKS

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

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

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

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

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

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

         The Warrant Agent shall, upon request of the Company from time to time,
deliver to the

                                       23
<PAGE>   28

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

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

10.      WARRANT HOLDERS

         10.1     Voting or Dividend Rights.

         Prior to the exercise of the Warrants, except as may be specifically
provided for herein, (i) no Holder of a Warrant Certificate, as such, shall be
entitled to any of the rights of a holder of Common Shares, including, without
limitation, the right to vote at or to receive any notice of any meetings of
stockholders; (ii) the consent of any Holder shall not be required with respect
to any action or proceeding of the Company; (iii) except as provided in Section
5, no Holder, by reason of the ownership or possession of a Warrant or the
Warrant Certificate representing the same, shall have any right to receive any
stock dividends, allotments or rights or other distributions paid, allotted or
distributed or distributable to the stockholders of the Company prior to, or for
which the relevant record date preceded, the date of the exercise of such
Warrant; and (iv) no Holder shall have any right not expressly conferred by this
Agreement or Warrant Certificate held by such Holder.

         10.2     Rights of Action.

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

         10.3     Treatment of Holders of Warrant Certificates.

         Every Holder of a Warrant Certificate, by accepting the same, consents
and agrees with the Company, with the Warrant Agent and with every subsequent
holder of such Warrant

                                       24
<PAGE>   29

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

         10.4     Communications to Holders.

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

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

11.      CONCERNING THE WARRANT AGENT

         11.1     Nature of Duties and Responsibilities Assumed.

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

         The Warrant Agent shall not, by countersigning Warrant Certificates or
by any other act hereunder, be deemed to make any representations as to validity
or authorization of (i) the Warrants or the Warrant Certificates (except as to
its countersignature thereon), (ii) any securities or other property delivered
upon exercise of any Warrant, (iii) the accuracy of the computation of the
number or kind or amount of stock or other securities or other property
deliverable upon exercise of any Warrant, (iv) the independence of any
Independent Financial Expert or (v) the correctness of any of the
representations of the Company made in such certificates that the Warrant Agent
receives. The Warrant Agent shall not at any time have any duty to calculate or
determine whether any facts exist that may require any adjustments pursuant to
Section 6 hereof

                                       25
<PAGE>   30

with respect to the kind and amount of shares or other securities or any
property issuable to Holders upon the exercise of Warrants required from time to
time. The Warrant Agent shall have no duty or responsibility to determine the
accuracy or correctness of such calculation or with respect to the methods
employed in making the same. The Warrant Agent shall not be accountable with
respect to the validity or value (or the kind or amount) of any Warrant Shares
or of any securities or property which may at any time be issued or delivered
upon the exercise of any Warrant or upon any adjustment pursuant to Section 6
hereof, and it makes no representation with respect thereto. The Warrant Agent
shall not be responsible for any failure of the Company to make any cash payment
or to issue, transfer or deliver any Warrant Shares or stock certificates or
other securities or property upon the surrender of any Warrant Certificate for
the purpose of exercise or upon any adjustment pursuant to Section 6 hereof or
to comply with any of the covenants of the Company contained in Section 12
hereof.

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

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

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

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

                                       26
<PAGE>   31

any claim made or action, suit or proceeding instituted against it arising out
of or in connection with this Agreement.

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

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

         11.2     Right to Consult Counsel.

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

         11.3     Compensation, Reimbursement and Indemnification.

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

         11.4     Warrant Agent May Hold Company Securities.

         The Warrant Agent, any Countersigning Agent and any stockholder,
director, officer or employee of the Warrant Agent or any Countersigning Agent
may buy, sell or deal in any of the Warrants or other securities of the Company
or its Affiliates, become pecuniarily interested in transactions in which the
Company or its Affiliates may be interested, contract with or lend money to the
Company or its Affiliates or otherwise act as fully and freely as though it were
not

                                       27
<PAGE>   32

the Warrant Agent or the Countersigning Agent, respectively, under this
Agreement. Nothing herein shall preclude the Warrant Agent or any Countersigning
Agent from acting in any other capacity for the Company or for any other legal
entity.

         11.5     Resignation and Removal; Appointment of Successor.

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

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

         11.6     Appointment of Countersigning Agent.

                                       28
<PAGE>   33

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

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

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

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

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

12.      ADDITIONAL COVENANTS OF THE COMPANY

         12.1     Reports to Holders.

                                       29
<PAGE>   34

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

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

         12.2     Compliance with Agreements.

         The Company shall comply in all material respects with the terms and
conditions of the Indenture, dated as of September 9, 1997, by and among the
Company, the Guarantors and The Bank of New York, as trustee, and the
Registration Rights Agreement.

         12.3     Maintenance of Office.

         So long as any of the Warrants remain outstanding, the Company will
maintain in the City of New York the following: (a) an office or agency where
the Warrants may be presented for exercise, (b) an office or agency where the
Warrants may be presented for registration of transfer and for exchange as in
this Agreement provided and (c) an office or agency where notices and demands to
or upon the Company in respect of the Warrants or of this Agreement may be
served. The Company will give to the Warrant Agent written notice of the
location of any such office or agency and of any change of location thereof. The
Company hereby initially designates the office of the Warrant Agent at American
Stock Transfer & Trust Company, 40 Broad Street, New York, New York 10004, or
such other location as the Company may designate upon notice from the Warrant
Agent as the office or agency for each such purpose. In case the Company shall
fail to maintain any such office or agency or shall fail to give such notice of
the location or of any change in the location thereof, presentations and demands
may be made and notices may be served at the Corporate Agency Office.

13.      NOTICES

         13.1     Notices Generally.

                  (a) Any request, notice, direction, authorization, consent,
waiver, demand or

                                       30
<PAGE>   35

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

                  If to the Company, to it at:

                           Gothic Energy Corporation
                           5727 South Lewis Avenue
                           Suite 700
                           Tulsa, Oklahoma  74105

                           Attention: President
                           Telecopy No.:  (918) 749-5882

                                    or

                  If to the Warrant Agent, to it at:

                           American Stock Transfer & Trust Company
                           40 Wall Street
                           New York, New York  10005

                           Attention: Michael Karfunkel
                           Telecopy No.: (718) 236-4588

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

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

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

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

                                       31
<PAGE>   36

Where this Agreement provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.

         In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made by a method approved by the Warrant
Agent as one which would be most reliable under the circumstances for
successfully delivering the notice to the addressees shall constitute a
sufficient notification for every purpose hereunder.

         13.2     Required Notices to Holders.

         In case the Company shall propose (i) to pay any dividend payable in
stock of any class to the holders of its Common Shares or to make any other
distribution to the holders of its Common Shares for which an adjustment is
required to be made pursuant to Section 6, (ii) to distribute to the holders of
its Common Shares rights to subscribe for or to purchase any Additional Common
Shares or shares of stock of any class or any other securities, rights or
options, (iii) to effect any reclassification of its Common Shares, (iv) to
effect any transaction described in Section 6.1(h) or (v) to effect the
liquidation, dissolution or winding up of the Company, then, and in each such
case, the Company shall cause to be filed with the Warrant Agent and shall give
to each Holder of a Warrant Certificate, in accordance with Section 13.1(b), a
notice of such proposed action or event. Such notice shall specify (x) the date
on which a record is to be taken for the purposes of such dividend or
distribution; and (y) the date on which such reclassification, transaction,
event, liquidation, dissolution or winding up is expected to become effective
and the date as of which it is expected that holders of Common Shares of record
shall be entitled to exchange their Common Shares for securities, cash or other
property deliverable upon such reclassification, transaction, event,
liquidation, dissolution or winding up. Such notice shall be given, in the case
of any action covered by clause (i) or (ii) above, at least ten (10) days prior
to the record date for determining holders of the Common Shares for purposes of
such action or, in the case of any action covered by clauses (iii) through (v),
at least twenty (20) days prior to the applicable effective or expiration date
specified above or, in any such case, prior to such earlier time as notice
thereof shall be required to be given pursuant to Rule 10b-17 under the Exchange
Act, if applicable.

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

         13.3     Company Notices to Warrant Agent.

         The Company shall notify the Warrant Agent on or prior to the
occurrence of the Separation Date if the Separation Date occurs before March 8,
1998. The Company shall notify

                                       32
<PAGE>   37

the Warrant Agent at least five Business Days prior to the occurrence of the
Unit Termination Date if the Unit Termination Date will occur before March 8,
1998.

14.      APPLICABLE LAW

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

15.      PERSONS BENEFITING

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

16.      COUNTERPARTS

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

17.      AMENDMENTS

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

                                       33
<PAGE>   38

would be increased or the number of Warrant Shares purchasable upon exercise of
Warrants would be decreased (other than pursuant to adjustments provided
herein).

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

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

18.      INSPECTION

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

19.      SUCCESSOR TO THE COMPANY

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

20.      ENTIRE AGREEMENT

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

21.      HEADINGS

                                       34
<PAGE>   39

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

                                       35
<PAGE>   40

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

                                        GOTHIC ENERGY CORPORATION

                                        By:
                                           ----------------------------------
                                           Michael K. Paulk
                                           President

                                        AMERICAN STOCK TRANSFER &
                                        TRUST COMPANY

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

<PAGE>   41

                                                                       EXHIBIT A

                       FORM OF FACE OF WARRANT CERTIFICATE

                           [Restricted Warrant Legend]

         [Unless and until it is exchanged in whole or in part for Securities in
definitive form, this Security may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary. The Depository Trust Company shall act as the Depositary until a
successor shall be appointed by the Company and the Registrar. Unless this
certificate is presented by an authorized representative of The Depository Trust
Company (55 Water Street, New York, New York) ("DTC"), to the issuer or its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as may be
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or such other entity as may be requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]/1/

         THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
         TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES
         ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR
         OTHERWISE TRANSFERRED TO OR FOR THE ACCOUNT OR BENEFIT OF ANY PERSON
         EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION
         HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A "QUALIFIED
         INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
         ACT), (B) IT IS AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1),
         (2), (3) OR (7) UNDER THE SECURITIES ACT) WHICH IS AN INSTITUTION (AN
         "INSTITUTIONAL ACCREDITED INVESTOR") OR (C) IS NOT A U.S. PERSON AND IS
         PURCHASING IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT AND
         HAS NOT ENGAGED IN, AND PRIOR TO THE EXPIRATION OF THE 40-DAY
         RESTRICTED PERIOD PROVIDED FOR IN RULE 903 OF REGULATION S, WILL NOT
         OFFER OR SELL THESE SECURITIES OR TO A U.S. PERSON OR FOR THE ACCOUNT
         OF A U.S. PERSON WITHIN THE MEANING OF RULE 902(O) OF REGULATION S IN
         THE UNITED STATES, (2) AGREES THAT IT WILL NOT PRIOR TO THE DATE WHICH
         IS TWO YEARS (OR SUCH SHORTER PERIOD AS COMPLIES

----------

         /1/        Include this legend for Global Warrants.

<PAGE>   42

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

                                      A-2
<PAGE>   43

         OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE
         TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
         FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
         OF THE SECURITIES ACT. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT
         APPLY SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE.

                            GOTHIC ENERGY CORPORATION

                               WARRANT CERTIFICATE

                                   EVIDENCING

                       WARRANTS TO PURCHASE COMMON SHARES

                (VALID ONLY IF COUNTERSIGNED BY THE WARRANT AGENT

                               AS PROVIDED HEREIN)

No.   ________________                         _______________ Warrants

         THIS CERTIFIES THAT, for value received, _______________________
___________________________, or registered assigns, is the registered owner of
______________________ Warrants to Purchase Common Shares of Gothic Energy
Corporation, an Oklahoma corporation (the "Company," which term includes any
successor thereto under the Warrant Agreement), and is entitled, subject to and
upon compliance with the provisions hereof and of the Warrant Agreement, at such
Holder's option, at any time when the Warrants evidenced hereby are exercisable,
to purchase from the Company one Warrant Share for each Warrant evidenced
hereby, at the purchase price of $3.00 per share (as adjusted from time to time,
the "Warrant Price"), payable in full at the time of purchase, the number of
Warrant Shares into which and the Warrant Price at which each Warrant shall be
exercisable, each being subject to adjustment as provided in Section 6 of the
Warrant Agreement.

         The Holder of this Warrant Certificate may exercise all or any whole
number of the Warrants evidenced hereby, on any Business Day from and after the
Separation Date (as defined in the Warrant Agreement) until 5:00 p.m., New York
City time, on September 1, 2004 (subject to earlier expiration pursuant to
Section 5 of the Warrant Agreement, the "Expiration Date") for the Warrant
Shares purchasable hereunder.

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

         Unless this Warrant Certificate has been countersigned by the Warrant
Agent by manual

                                      A-3
<PAGE>   44

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

                                      A-4
<PAGE>   45

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

                                        GOTHIC ENERGY CORPORATION
[SEAL]                                  By:
                                            ----------------------------------
                                            Michael K. Paulk
                                            President

ATTEST:

Dated:

Countersigned:

AMERICAN STOCK TRANSFER & TRUST COMPANY

Warrant Agent

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

                                      A-5
<PAGE>   46

                        [REVERSE OF WARRANT CERTIFICATE]

                            GOTHIC ENERGY CORPORATION

                               WARRANT CERTIFICATE

                                   EVIDENCING

                       WARRANTS TO PURCHASE COMMON SHARES

1.       General.

         The Warrants evidenced hereby are one of a duly authorized issue of
Warrants of the Company designated as its Warrants to Purchase Common Shares
("Warrants"), limited in aggregate number to 1,400,000 Warrants issued under and
in accordance with the Warrant Agreement, dated as of September 9, 1997 (the
"Warrant Agreement"), between the Company and American Stock Transfer & Trust
Company, as warrant agent (the "Warrant Agent", which term includes any
successor thereto permitted under the Warrant Agreement), to which Warrant
Agreement and all amendments thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Warrant Agent, the Holders of Warrant Certificates and the
owners of the Warrants evidenced thereby and of the terms upon which the Warrant
Certificates are, and are to be, countersigned and delivered. A copy of the
Warrant Agreement shall be available at all reasonable times at the office of
the Warrant Agent for inspection by the Holder hereof.

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

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

         The Warrant Certificates are issuable only in registered form in
denominations of whole numbers of Warrants. Upon surrender at the office of the
Warrant Agent and payment of the charges specified herein and in the Warrant
Agreement, this Warrant Certificate may be

                                      A-6
<PAGE>   47

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

2.       Expiration.

         Except as provided in the Warrant Agreement, all outstanding Warrants
shall expire and all rights of the Holders of Warrant Certificates evidencing
such Warrants shall terminate and cease to exist, as of 5:00 p.m., New York
time, on the Expiration Date. "Expiration Date" shall mean September 1, 2004, or
such earlier date as determined in accordance with the Warrant Agreement.

3.       Registration Rights.

         The Warrantholders and the holders of Warrant Shares shall have the
registration rights provided for in the Registration Rights Agreement, dated as
of September 9, 1997 (the "Registration Rights Agreement"), by and among the
Company, the Subsidiary Guarantors named on the execution pages thereof and the
Purchasers named on the execution pages thereof. A copy of the Registration
Rights Agreement is on file at the office of the Warrant Agent.

4.       Liquidation of the Company.

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

5.       Anti-Dilution Adjustments.

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

                                      A-7
<PAGE>   48

Adjustments will be made whenever and as often as any specified event requires
an adjustment to occur.

6.       Procedure for Exercising Warrant.

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

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

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

7.       Registered Holder.

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

8.       Amendment.

                                      A-8
<PAGE>   49

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

9.       Status as Warrantholder.

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

10.      Governing Law.

         This Warrant Certificate, each Warrant evidenced thereby and the
Warrant Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without giving effect to principles of conflicts of
laws to the extent that application of the law of another jurisdiction would be
required thereby.

11.      Definitions.

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

                                      A-9
<PAGE>   50

                                FORM OF EXERCISE

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

                           (i)      cash ($____________);

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

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

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

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

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

Dated:                                      Name:
      -----------------------------              ------------------------------
                                                     (Please Print)

         ----------------------------
         (Insert Social Security or Other
         Identifying Number of Holder)                  Address:
                                                                ---------------

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

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

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

                                      A-10
<PAGE>   51

Signature Guaranteed:

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

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

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

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

                                      A-11
<PAGE>   52

                                   Assignment

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

         FOR VALUE RECEIVED _________________________ hereby sells, assigns and
transfers unto

                  Please insert social security
                  or other identifying number

(Please print name and address including zip code)

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

Dated:

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

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

Signature Guaranteed:

                                      A-12
<PAGE>   53

                                                                       EXHIBIT B

               FORM OF ACCREDITED INVESTOR TRANSFEREE CERTIFICATE

           (Transfers Pursuant to ss.2.4(a) of the Warrant Agreement)

                                                           ______________, 199__

American Stock Transfer and Trust 40 Wall Street New York, New York 10005
Attention: ________________________

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

         Reference is hereby made to the Warrant Agreement dated as of September
9, 1997 (the "Warrant Agreement") between Gothic Energy Corporation and American
Stock Transfer & Trust Company, as Warrant Agent. Capitalized terms used but not
defined herein shall have the meanings given them in the Warrant Agreement.

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

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

1. We have received a copy of the Offering Memorandum, dated September 2, 1997,
relating to the Units and such other information as we deem necessary in order
to make our investment decision.

2. We understand that the Units, Warrants and Warrant Shares have not been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
and unless so registered, may not be sold except as permitted in the following
sentence. We agree on our own behalf and on behalf of any investor account for
which we are purchasing Units, Warrants or Warrant Shares to offer, sell or
otherwise transfer such securities prior to the date which is two years after
the later of the date of original issue and the last date on which the Company
or any affiliate or the Company was the owner of such securities (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) for so long as the Units, Warrants or
Warrant Shares are eligible for resale pursuant to Rule 144A under the
Securities Act, to a person we reasonably believe is a Qualified Institutional
Buyer (as defined in Rule 144A) that purchases for its own account or for the
account of a Qualified Institutional Buyer to whom notice is given that

                                      B-1
<PAGE>   54

the transfer is being made in reliance on Rule 144A, (d) to an "Accredited
Investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) which is an institution (an "Institutional Accredited Investor") that is
purchasing for his own account or for the account of such an Institutional
Accredited Investor for investment purposes and not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act,
(e) pursuant to the resale limitations provided by Rule 144 under the Securities
Act (if available), (f) outside the United States to a person who is not a U.S.
person in an offshore transaction meeting the requirements of Rule 904 of the
Securities Act, or (g) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property
or the property of such investor account or accounts be at all times within our
or their control and to compliance with any applicable state securities law. The
foregoing restrictions on sale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Units,
Warrants or Warrant Shares is proposed to be made pursuant to clause (d) above
prior to the Resale Restriction Termination Date, the transferor shall deliver a
letter from the transferee substantially in the form of this letter to the
Company and the Trustee which shall provide, among other things, that the
transferee is an Institutional Accredited Investor and that it is acquiring such
Units, Warrants or Warrant Shares for investment purposes and not for
distribution in violation of the Securities Act. Each purchaser acknowledges
that the Company and the Warrant Agent reserve the right prior to any offer,
sale or other transfer prior to the Resale Restriction Termination Date of the
Units, Warrants or Warrant Shares pursuant to clauses (d), (e), (f) or (g) above
to require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Warrant Agent.

3. We are an Institutional Accredited Investor or, if the transfer is of a
beneficial interest in the Global Warrant, a Qualified Institutional Buyer, in
either case purchasing for our own account or for the account of such an
Institutional Accredited Investor as to each of which we exercise sole
investment discretion and we are acquiring the Units, Warrants or Warrant Shares
for investment purposes and not with a view to, or for offer or sale in
connection with, any distribution in violation of the Securities Act and we have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Securities, and we
and any accounts for which we are acting are each able to bear the economic risk
of our or its investments for an indefinite period.

4. All of you are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

                                                Very truly yours,

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

                                      B-2
<PAGE>   55

                                        By:
                                           ------------------------------

                                           Name:
                                                -------------------------

                                           Title:
                                                 ------------------------

                                        Date:
                                             ----------------------------

                                      B-3
<PAGE>   56

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

Name:
     -----------------------------------------

Address:
        --------------------------------------

Taxpayer ID Number:
                   ---------------------------

                                      B-4
<PAGE>   57

                                                                       EXHIBIT C

                                 FORM OF LEGAL
                              OPINION ON TRANSFER

                                                  ______________________, 199___

American Stock & Transfer Company
40 Wall Street
New York, New York 10005
Attention: ________________________

Re:      Gothic Energy Corporation Warrants to Purchase Common Shares

Ladies and Gentlemen:

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

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

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

                                            Very truly yours,

                                      C-1

<PAGE>   58
                         SUPPLEMENT TO WARRANT AGREEMENT

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

                                    RECITALS

                  WHEREAS, Gothic Energy Corporation ("Gothic Energy") and
Warrant Agent entered into that certain Warrant Agreement, dated as of September
9, 1997, under which Gothic Energy issued 1,400,000 Common Stock Purchase
Warrants (the "Warrant" and collectively referred to as the "Warrants"), each
Warrant to purchase one share of Gothic Energy common stock (the "Warrant
Agreement"); and

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

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

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

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

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

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

<PAGE>   59

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

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

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

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

     3.  Application of Exchange Ratio. Under the Merger Agreement, pursuant to
         the Merger, each share of Gothic Energy common stock will be converted
         into the right to receive .1908 of a share of Chesapeake Energy common
         stock. Accordingly, upon exercise of a Warrant, a Holder will receive
         .1908 of a share of Chesapeake Energy common stock for every one share
         of Gothic Energy common stock that the Warrant Holder would have
         received upon exercise of the Warrants immediately prior to the Merger.
         The exercise price for each share of Chesapeake Energy common stock
         under the Warrant Agreement will be equal to the exercise price for one
         share of Gothic Energy common stock immediately prior to the Merger
         divided by the exchange ratio. Prior to the Merger the exercise price
         for one share of Gothic Energy common stock under the Warrant was $3.00
         which, when divided by the exchange ratio, equals $15.72 per share of
         Chesapeake Energy common stock.

     4.  Miscellaneous.  It is further agreed as follows:

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

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

<PAGE>   60

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

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

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

                                 CHESAPEAKE ENERGY CORPORATION, an
                                 Oklahoma Corporation

                                 By /s/ Marcus C. Rowland
                                   ---------------------------------------------
                                 Marcus C. Rowland, Executive Vice President and
                                 Chief Financial Officer<PAGE>   1

                                                                    EXHIBIT 4.10

                                                                  Execution Copy

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and
entered as of September 9, 1997, among GOTHIC ENERGY CORPORATION, an Oklahoma
corporation (the "Company"), GOTHIC ENERGY OF TEXAS, INC., an Oklahoma
corporation, and GOTHIC GAS CORPORATION, an Oklahoma corporation, and
OPPENHEIMER & CO., INC., BANC ONE CAPITAL CORPORATION and PARIBAS CORPORATION
(the "Initial Purchasers"). Collectively, Gothic Energy of Texas, Inc. and
Gothic Gas Corporation are referred to herein as the "Guarantors."

         This Agreement is made pursuant to the Purchase Agreement dated
September 2, 1997 among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of 100,000 units ("Units"), each consisting of $1,000
principal amount of the Company's 12 1/4% Series A Senior Notes due 2004
(together with the related guarantees of the Guarantors, the "Notes") and 14
warrants (the "Warrants") to purchase, at a price of $3.00 per share, shares
(the "Warrant Shares") of the Company's common stock, par value $.01 per share
(the "Common Stock") of the Company, exercisable on or before September 1, 2004.
The Notes will be issued pursuant to an indenture, to be dated as of September
9, 1997 (the "Indenture") by and among the Company, the Guarantors and the Bank
of New York, as trustee (the "Trustee"), and the Warrants will be issued
pursuant to a warrant agreement, to be dated as of September 9, 1997, by and
between the Company and American Stock Transfer & Trust Company, as warrant
agent (the "Warrant Agent"), each in the form previously furnished to the
Initial Purchasers. The Notes and the Warrants shall be detachable and
separately transferable on or after the Separation Date (as defined below). In
order to induce the Initial Purchasers to enter into the Purchase Agreement, the
Company has agreed to provide to the Initial Purchasers and their direct and
indirect transferees the registration rights set forth in this Agreement. The
execution of this Agreement is a condition to the closing under the Purchase
Agreement.

         In consideration of the foregoing, the parties hereto agree, and all
other holders of the Units, Notes, Warrants and Warrant Shares (as each term is
defined below) from time to time, by their acceptance thereof, shall be
conclusively deemed to have agreed, as follows:

SECTION  1.       Definitions.

         As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

         "1933 Act" shall mean the Securities Act of 1933, as amended from time
to time.

         "1934 Act" shall mean the Securities Exchange Act of 1934, as amended
from time to time.

<PAGE>   2

         "Agreement" shall have the meaning set forth in the preamble.

         "Closing Date" shall mean the date on which the Closing Time (as
defined in the Purchase Agreement) occurs.

         "Company" shall have the meaning set forth in the preamble and also
includes the Company's successors.

         "Depositary" shall mean the Trustee, or any other exchange agent
appointed by the Company.

         "Exchange Offer" shall mean the exchange offer by the Company of
Exchange Notes for Registrable Notes pursuant to Section 2(a) hereof.

         "Exchange Offer Registration" shall mean a registration under the 1933
Act effected pursuant to Section 2(a) hereof.

         "Exchange Offer Registration Statement" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement, in
each case including the Prospectus contained therein, all exhibits thereto and
all material incorporated by reference therein.

         "Exchange Notes" shall mean 12 1/4% Series B Senior Notes due 2004
issued by the Company (and related guarantees of the Guarantors) under the
Indenture containing terms identical in all material respects to the Notes
(except that (i) interest on the Exchange Notes shall accrue from the last date
on which interest was paid or duly provided for on the Notes or, if no such
interest has been paid, from September 9, 1997, (ii) the transfer restrictions
on the Notes shall be eliminated and (iii) certain provisions relating to an
increase in the stated rate of interest on the Notes shall be eliminated), to be
offered to Holders in exchange for Notes pursuant to the Exchange Offer.

         "Guarantors" shall have the meaning set forth in the preamble.

         "Indenture" shall mean the Indenture relating to the Notes and the
Exchange Notes dated as of September 9, 1997 between the Company and The Bank of
New York, as trustee, as the same may be amended from time to time in accordance
with the terms thereof.

         "Initial Purchasers" shall have the meaning set forth in the preamble.

         "Majority Note Holders" shall mean the Note Holders of a majority of
the aggregate principal amount of outstanding Registrable Notes; provided,
however, that whenever the consent or approval of the Note Holders of a
specified percentage of Registrable Notes is required hereunder, Registrable
Notes directly or indirectly held by the Company shall be disregarded in
determining whether such consent or approval was given by the Note Holders of
such required percentage or amount; and provided, further, that whenever the
consent or

<PAGE>   3

approval of Note Holders of Registrable Notes is required hereunder with regard
to matters related to a registered underwritten or similar offering or with
regard to matters pertaining to a Registration Statement, Registrable Notes held
by Note Holders not participating in such registered underwritten or similar
offering, or Registrable Notes not registered pursuant to such Registration
Statement (or, at any time prior to the filing of a Subject Registration
Statement and after the determination to file such Subject Registration
Statement is made, Registrable Notes whose Note Holders have not requested that
such Registrable Notes be included in such Subject Registration Statement), as
the case may be, shall be disregarded in determining whether such consent or
approval was given by the Note Holders of such required percentage or amount.

         "Majority Warrant Holders" shall have the meaning set forth in Section
4(d) hereof.

         "Note Holders" shall mean each of the Initial Purchasers, for so long
as they own any Registrable Notes, and each of its successors, assigns and
direct and indirect transferees who shall at the time be owners of Registrable
Notes under the Indenture; provided, however, that the term Note Holder shall
exclude any underwriter who purchased Registrable Notes for distribution in an
underwritten public offering pursuant to an effective Registration Statement.

         "Notes" shall have the meaning set forth in the preamble.

         "Notes Liquidated Damages" shall have the meaning set forth in Section
2(d) hereof.

         "Notes Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(b)(i) or (ii)
of this Agreement which covers all of the Registrable Notes (except Registrable
Notes which the Note Holders have elected not to include in such Notes Shelf
Registration Statement or the Note Holders of which have not complied with their
obligations under the penultimate paragraph of Section 4 hereof or under the
penultimate sentence of Section 2(b) hereof) on an appropriate form under Rule
415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and
all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated or deemed to be
incorporated by reference therein.

         "Participating Broker Dealer" shall have the meaning set forth in
Section 4(g)(i) hereof.

         "Person" shall mean an individual, partnership, corporation, trust,
unincorporated organization, limited liability company, joint stock company,
joint venture, charitable foundation or other entity, or a government or any
agency or political subdivision thereof.

         "Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of (i) any portion of the
Registrable Notes covered by a Subject Registration Statement or (ii) any
portion of the Registrable Warrants or Registrable Warrant Shares covered by the

<PAGE>   4

Warrants Shelf Registration Statement, and by all other amendments and
supplements to a prospectus, including post-effective amendments, and in each
case including all material incorporated or deemed to be incorporated by
reference therein.

         "Purchase Agreement" shall have the meaning set forth in the preamble.

         "Purchaser Shelf Registration Statement" shall mean a "shelf"
registration statement of the Company pursuant to the provisions of Section
2(b)(iii) of this Agreement with respect to offers and sales of Registrable
Notes held by any or all of the Initial Purchasers (except Registrable Notes
which the Initial Purchasers have elected not to include in such Purchaser Shelf
Registration Statement or the Initial Purchasers of which have not complied with
their obligations under the penultimate paragraph of Section 4 hereof or under
the penultimate sentence of Section 2(b) hereof) after completion of the
Exchange Offer on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements
to such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated or deemed to be incorporated by reference therein.

         "Registrable Notes" shall mean the Notes; provided, however, that any
Notes shall cease to be Registrable Notes when (i) a Registration Statement with
respect to such Notes shall have been declared effective under the 1933 Act and
such Notes shall have been disposed of pursuant to such Registration Statement,
(ii) such Notes shall have been sold to the public pursuant to Rule 144 (or any
similar provision then in force, but not Rule 144A) under the 1933 Act, (iii)
such Notes shall have become eligible for resale pursuant to Rule 144(k) under
the 1933 Act, (iv) such Notes shall have ceased to be outstanding or (v) such
Notes have been exchanged for Exchange Notes upon consummation of the Exchange
Offer.

         "Registrable Warrant" or "Registrable Warrant Share" shall mean,
subject to the last sentence of Section 3(c), each Warrant or Warrant Share,
until the earlier to occur of (i) the date on which Warrant or Warrant Share has
been effectively registered under the 1933 Act and disposed of pursuant to the
Warrant Shelf Registration Statement (as defined below) and (ii) such Warrant or
Warrant Shares shall have become eligible for resale pursuant to Rule 144(k)
under the 1933 Act.

         "Registration Default" shall have the meaning set forth in Section 3(c)
hereof.

         "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement with respect to
the Registrable Notes, the Exchange Notes, the Registrable Warrants and the
Registrable Warrant Shares, including without limitation: (i) all SEC or
National Association of Securities Dealers, Inc. ("NASD") registration and
filing fees, (ii) all fees and expenses incurred in connection with compliance
with state securities or blue sky laws (including reasonable fees and
disbursements of one firm of legal counsel for any underwriters, Note Holders
and holders of the Warrants and Warrant Shares in connection with blue sky
qualification of any of the Exchange Notes, Registrable Notes,

<PAGE>   5

Warrants, Registrable Warrants, Warrant Shares or Registrable Warrant Shares),
(iii) all expenses of printing and distributing any Registration Statement, any
Prospectus and any amendments or supplements thereto, (iv) all rating agency
fees, (v) the fees and disbursements of counsel(s) for the Company and of the
independent public accountants of the Company, including the expenses of "cold
comfort" letters required by this Agreement, (vi) the fees and expenses of the
Trustee and Warrant Agent, and any escrow agent or custodian, (vii) all fees and
expenses incurred in connection with listing the Notes or the Exchange Notes, as
the case may be, on any securities exchange or on any securities quotation
system, (viii) all fees and expenses incurred in connection with listing the
Warrants and the Warrant Shares on any securities exchange or on any securities
quotation system and (ix) the reasonable fees and expenses of any special
experts retained by the Company in connection with any Registration Statement,
but excluding fees of counsel to the underwriters or the Note Holders and
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of (a) Registrable Notes, Registrable Warrants or
Registrable Warrant Shares by any holder.

         "Registration Statement" shall mean any registration statement of the
Company which covers any of the Exchange Notes, Registrable Notes, Warrants,
Registrable Warrants, Warrant Shares or Registrable Warrant Shares pursuant to
the provisions of this Agreement, and all amendments and supplements to any such
Registration Statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated or deemed to be incorporated by reference therein.

         "SEC" shall mean the Securities and Exchange Commission.

         "Shelf Registration Statement" shall mean a Purchaser Shelf
Registration Statement, the Notes Registration Statement or the Warrants Shelf
Registration Statement.

         "Subject Registration Statement" shall mean a Notes Shelf Registration
Statement or a Purchaser Shelf Registration Statement or both (as the context
requires).

         "Separation Date" shall mean the earlier of (i) 180 days from the date
of this Agreement or (ii) the effective date of the Exchange Offer Registration
Statement.

         "Trustee" shall mean the trustee with respect to the Notes under the
Indenture.

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

         "Warrants" shall have the meaning set forth in the preamble.

         "Warrant Agent" shall mean the warrant agent with respect to the
Warrants under the Warrant Agreement.

         "Warrant Agreement" shall mean the Warrant Agreement relating to the
Warrants dated as of September 9, 1997 between the Company and American Stock
Transfer & Trust Company, as warrant agent, as the same may be amended from time
to time in accordance with the terms thereof.

<PAGE>   6

         "Warrant Shares" shall have the meaning set forth in the preamble.

         "Warrant Shelf Registration Statement" shall have the meaning set forth
in Section 3 hereof.

         All references herein to information which is "included" or "contained"
in a Registration Statement or Prospectus, and all references of like import,
shall include the information (including financial statements) incorporated or
deemed to be incorporated by reference therein, and all references herein to
amendments or supplements to a Registration Statement or Prospectus shall
include any documents filed by the Company under the 1934 Act which are deemed
to be incorporated by reference therein.

SECTION  2.       Registration Under the 1933 Act for the Registrable Notes.

                  (a) Exchange Offer Registration. To the extent not prohibited
by law (including, without limitation, any applicable interpretation of the
staff of the SEC), the Company shall use its reasonable best efforts (i) to file
within 45 days after the Closing Date an Exchange Offer Registration Statement
covering the offer by the Company to the Note Holders to exchange all of the
Registrable Notes (except Registrable Notes held by an Initial Purchaser and
acquired directly from the Company if such Initial Purchaser is not permitted,
in the reasonable opinion of counsel to the Initial Purchasers, pursuant to
applicable law or SEC interpretation, to participate in the Exchange Offer) for
Exchange Notes, (ii) to cause such Exchange Offer Registration Statement to be
declared effective by the SEC within 105 days after the Closing Date, (iii) to
cause such Exchange Offer Registration Statement to remain effective until the
closing of the Exchange Offer and (iv) to consummate the Exchange Offer within
180 days following the Closing Date. The Exchange Notes will be issued under the
Indenture. Upon the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Exchange Offer, it being the objective
of such Exchange Offer to enable each Note Holder (other than Participating
Broker-Dealers (as defined in Section 4(f) hereof) and broker-dealers who
purchased Notes directly from the Company to resell pursuant to Rule 144A or any
other available exemption under the 1933 Act) eligible and electing to exchange
Registrable Notes for Exchange Notes (assuming that such Note Holder is not an
affiliate of the Company, acquires the Exchange Notes in the ordinary course of
such Note Holder's business and has no arrangements or understandings with any
person to participate in the distribution (within the meaning of the 1933 Act)
of Exchange Notes) to trade or sell such Exchange Notes from and after their
receipt without any limitations or restrictions under the 1933 Act and without
material restrictions under the securities laws of a substantial proportion of
the several states of the United States.

         In connection with the Exchange Offer, the Company shall:

                                    (A) mail to each Note Holder a copy of the
                  Prospectus forming

<PAGE>   7

                  part of the Exchange Offer Registration Statement, together
                  with an appropriate letter of transmittal and related
                  documents;

                                    (B) keep the Exchange Offer open for not
                  less than 30 days after the date notice thereof is mailed to
                  the Note Holders (or longer if required by applicable law);

                                    (C) use the services of the Depositary for
                  the Exchange Offer;

                                    (D) permit Note Holders to withdraw tendered
                  Registrable Notes at any time prior to the close of business,
                  New York City time, on the last business day on which the
                  Exchange Offer shall remain open, by sending to the
                  institution specified in the notice, a telegram, telex,
                  facsimile transmission or letter setting forth the name of
                  such Note Holder, the principal amount of Registrable Notes
                  delivered for exchange and a statement that such Note Holder
                  is withdrawing his election to have such Notes exchanged; and

                                    (E) otherwise comply in all respects with
                  all applicable laws relating to the Exchange Offer.

         As soon as practicable after the close of the Exchange Offer, the
Company shall:

                                            (x) accept for exchange Registrable
                           Notes duly tendered and not validly withdrawn
                           pursuant to the Exchange Offer in accordance with the
                           terms of the Exchange Offer Registration Statement
                           and the letter of transmittal which is an exhibit
                           thereto;

                                            (y) deliver, or cause to be
                           delivered, to the Trustee for cancellation all
                           Registrable Notes so accepted for exchange by the
                           Company; and

                                            (z) cause the Trustee promptly to
                           authenticate and deliver Exchange Notes to each Note
                           Holder of Registrable Notes equal in amount to the
                           Registrable Notes of such Note Holder so accepted for
                           exchange.

         Interest on each Exchange Security will accrue from the last date on
which interest was paid or duly provided for on the Registrable Notes
surrendered in exchange therefor or, if no interest has been paid on the
Registrable Notes, from September 9, 1997. The Exchange Offer shall not be
subject to any conditions, other than (1) that the Exchange Offer, or the making
of any exchange by a Note Holder, does not violate applicable law or any
applicable interpretation of the staff of the SEC, (2) that no action or
proceeding shall have been instituted or threatened in any court or by or before
any governmental agency or body with respect to the Exchange Offer, (3) that
there shall not have been adopted or enacted any law, statute, rule or
regulation

<PAGE>   8

prohibiting or limiting the Exchange Offer, (4) that there shall not have been
declared by United States federal or Texas or New York state authorities a
banking moratorium, (5) that trading on the New York Stock Exchange or generally
in the United States over-the-counter market shall not have been suspended by
order of the SEC or any other governmental authority and (6) such other
conditions as may be reasonably acceptable to Oppenheimer & Co., Inc. which, in
the Company's judgment, would reasonably be expected to impair the ability of
the Company to proceed with the Exchange Offer. In addition, each Note Holder
(other than Participating Broker-Dealers) who wishes to exchange such
Registrable Notes for Exchange Notes in the Exchange Offer will be required to
represent that (I) it is not an affiliate of the Company or a broker-dealer who
intends to tender Registerable Securities acquired directly from the Company for
its own account, (II) any Exchange Notes to be received by it were acquired in
the ordinary course of business and (III) it is not engaged in, and does not
intend to engage in, and has no arrangement or understanding with any person to
participate in, the distribution (within the meaning of the 1933 Act) of the
Exchange Notes. Each Participating Broker-Dealer shall be required to make such
representations as, in the reasonable judgment of the Company, may be necessary
under applicable SEC rules, regulations or interpretations or customary in
connection with similar exchange offers. Each Note Holder (including
Participating Broker-Dealers) shall be required to make such other
representations as may be reasonably necessary under applicable SEC rules,
regulations or interpretations to render the use of Form S-4 or another
appropriate form under the 1933 Act available and will be required to agree to
comply with their agreements and covenants set forth in this Agreement. The
Exchange Offer shall be subject to the further condition that no stop order,
injunction or similar order shall have been issued or obtained by the SEC or any
state securities authority suspending the effectiveness of the Exchange Offer
Registration Statement and no proceedings shall have been initiated or, to the
knowledge of the Company, threatened for that purpose. To the extent permitted
by law, the Company shall, upon request of Oppenheimer & Co., Inc., inform the
Initial Purchasers of the names and addresses of the Note Holders to whom the
Exchange Offer is made, and the Initial Purchasers shall have the right to, and,
if requested by the Company, shall, contact such Note Holders and otherwise
facilitate the tender of Registrable Notes in the Exchange Offer.

         Prior to effectiveness of the Exchange Offer Registration Statement,
the Company shall, if requested by the staff of the SEC, provide a supplemental
letter to the SEC (aa) stating that the Company is registering the Exchange
Offer in reliance on the position of the SEC enunciated in Exxon Capital
Holdings Corporation (available May 13, 1988) and Morgan Stanley and Co., Inc.
(available June 5, 1991) and (bb) including a representation that the Company
has not entered into any arrangement or understanding with any Person to
distribute the Exchange Notes and that, to the best of the Company's information
and belief, each Note Holder participating in the Exchange Offer is acquiring
the Exchange Notes in its ordinary course of business and has no arrangement or
understanding with any Person to participate in the distribution of the Exchange
Notes received in the Exchange Offer.

         If in the opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, the Company hereby
agrees to seek a no-action

<PAGE>   9

letter or other favorable decision from the SEC allowing the Company to
consummate the Exchange Offer. The Company hereby agrees to pursue the issuance
of such a decision to the SEC staff level, but shall not be required to take
action to effect a change of stated or recognized SEC policy. The Company hereby
agrees, however, to (xx) participate in telephonic conferences with the SEC and
the staff of the SEC, (yy) deliver to the staff of the SEC an analysis prepared
by counsel to the Company setting forth the legal bases, if any, upon which such
counsel has concluded that the Exchange Offer should be permitted and (zzz)
diligently pursue a resolution (which need not be favorable) by the staff of the
SEC of such submission.

                  (b) Notes Shelf Registration Statement. (i) If, because of any
change in law or applicable interpretations thereof by the staff of the SEC, the
Company is not permitted to effect the Exchange Offer as contemplated by Section
2(a) hereof, or (ii) if for any other reason the Exchange Offer Registration
Statement is not declared effective within 105 days after the Closing Date or
the Exchange Offer is not consummated within 180 days after the Closing Date, or
(iii) upon the request of Oppenheimer & Co., Inc. (but only with respect to any
Registrable Notes which the Initial Purchasers acquired directly from the
Company) following the consummation of the Exchange Offer if any of the Initial
Purchasers shall hold Registrable Notes which such Initial Purchaser acquired
directly from the Company and if such Initial Purchaser is not permitted, in the
opinion of counsel to the Initial Purchasers, pursuant to applicable law or
applicable interpretation of the staff of the SEC to participate in the Exchange
Offer, then the Company shall, at its cost:

                                    (A) In the event clause (i) or (ii) is
                  applicable, as promptly as practicable (but in no event (x)
                  more than 30 days from the date on which the Company
                  determined that it is not permitted to effect the Exchange
                  Offer as contemplated by Section 2(a) hereof in the case of
                  clause (i) or (y) on the 150th day after the Closing Date in
                  the case of clause (ii)), use its best efforts to file with
                  the SEC a Notes Shelf Registration Statement relating to the
                  offer and sale of the Registrable Notes (other than
                  Registrable Notes owned by Note Holders who have elected not
                  to include such Registrable Notes in such Notes Shelf
                  Registration Statement or who have not complied with their
                  obligations under the penultimate paragraph of Section 4
                  hereof or under the penultimate sentence of this Section 2(b))
                  by the Note Holders from time to time in accordance with the
                  methods of distribution elected by the Majority Note Holders
                  of such Registrable Notes and set forth in such Notes Shelf
                  Registration Statement, and use its best efforts to cause such
                  Notes Shelf Registration Statement to be declared effective by
                  the SEC by the 180th day after the Closing Date. In the event
                  that the Company is required to file a Purchaser Shelf
                  Registration Statement upon the request of Oppenheimer & Co.,
                  Inc. pursuant to clause (iii) above, the Company shall use its
                  best efforts (unless clause (i) or (ii) above is applicable)
                  to file and have declared effective by the SEC an Exchange
                  Offer Registration Statement pursuant to Section 2(a) with
                  respect to all Registrable Notes (other than Registrable Notes
                  acquired directly from the Company and held by the Initial
                  Purchasers) and use its best efforts to

<PAGE>   10

                  file, promptly after any such request from Oppenheimer & Co.,
                  Inc., and have declared effective, a Purchaser Shelf
                  Registration Statement (which may be a combined Registration
                  Statement with the Exchange Offer Registration Statement or,
                  if clause (i) or (ii) above is applicable, a combined
                  Registration Statement with the Notes Shelf Registration
                  Statement);

                                    (B) use its best efforts to keep the
                  relevant Subject Registration Statement continuously effective
                  in order to permit the Prospectus forming part thereof to be
                  usable by Note Holders for a period of two years from the date
                  a Notes Shelf Registration Statement is declared effective by
                  the SEC (or, in the case of a Purchaser Shelf Registration
                  Statement, one year from the date a Purchaser Shelf
                  Registration Statement is declared effective) or in each case
                  such shorter period which will terminate when all of the
                  Registrable Notes covered by the relevant Subject Registration
                  Statement have been sold pursuant to such Subject Registration
                  Statement or otherwise are no longer Registrable Notes; and

                                    (C) notwithstanding any other provisions
                  hereof, use its best efforts to ensure that (x) any Subject
                  Registration Statement and any amendment thereto and any
                  Prospectus forming part thereof and any supplement thereto
                  complies in all material respects with the 1933 Act and the
                  rules and regulations thereunder, (y) any Subject Registration
                  Statement and any amendment thereto does not, when it becomes
                  effective, contain an untrue statement of a material fact or
                  omit to state a material fact required to be stated therein or
                  necessary to make the statements therein not misleading and
                  (z) any Prospectus forming part of any Subject Registration
                  Statement, and any supplement to such Prospectus (as amended
                  or supplemented from time to time), does not include an untrue
                  statement of a material fact or omit to state a material fact
                  necessary in order to make the statements, in light of the
                  circumstances under which they were made, not misleading.

         To the extent permitted by law, the Company further agrees, if
necessary, to supplement or amend the Notes Shelf Registration Statement (if
reasonably requested by one firm of legal counsel selected by the Majority Note
Holders) or the Purchaser Shelf Registration Statement (if reasonably requested
by Oppenheimer & Co., Inc.), as the case may be, with respect to information
relating to the Note Holders or the Initial Purchasers, respectively, and
otherwise as required by Section 4(b) below, to use its best efforts to cause
any such amendment to become effective and such Subject Registration Statement
to become usable as soon as thereafter practicable and to furnish to the Note
Holders of Registrable Notes registered thereby or the relevant Initial
Purchasers, as the case may be, copies of any such supplement or amendment
promptly after its being used or filed with the SEC. The Company may require, as
a condition to including the Registrable Notes of any Note Holder in any Subject
Registration Statement, that such Note Holder shall have furnished to the
Company a written agreement to the effect that such Note Holder agrees to comply
with and be bound by the provisions of this Agreement. For further clarity, the
Company shall have no obligation to keep the Notes Shelf Registration

<PAGE>   11

Statement effective after consummation of the Exchange Offer, and the Company's
obligations to use its best efforts to file a Notes Shelf Registration Statement
and to keep such Notes Shelf Registration Statement effective shall immediately
terminate upon effectiveness of the Exchange Offer Registration Statement
(regardless of when such effectiveness shall occur).

                  (c) Effective Registration Statement. (i) The Company will be
deemed not to have used its best efforts to cause the Exchange Offer
Registration Statement or any Subject Registration Statement, as the case may
be, to become, or to remain, effective during the requisite period if the
Company voluntarily takes any action that would result in any such Registration
Statement not being declared effective or in the Note Holders of Registrable
Notes covered thereby not being able to exchange or offer and sell such
Registrable Notes during that period unless such action is, in the reasonable
judgment of the Company, required by applicable law (including, without
limitation, any interpretation of the SEC).

         (ii) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Subject Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that if, after it has been declared effective, the
offering of Registrable Notes pursuant to such Subject Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Subject Registration
Statement will be deemed not to have been effective during the period of such
interference, until the offering of Registrable Notes pursuant to such Subject
Registration Statement may legally resume.

                  (d) Increase in Interest Rate. In the event that (i) the
Exchange Offer Registration Statement is not filed with the SEC on or prior to
the 45th calendar day after the Closing Date, (ii) the Exchange Offer
Registration Statement is not declared effective by the SEC on or prior to the
120th calendar day after the Closing Date or (iii) the Exchange Offer is not
consummated or a Notes Shelf Registration Statement required to be filed is not
declared effective by the SEC on or prior to the 180th calendar day after the
Closing Date, the interest rate borne by the Notes shall be increased by 0.50%
per annum, as liquidated damages ("Notes Liquidated Damages"), following the
occurrence of each of such 45th day in the case of clause (i) above, such 120th
day in the case of clause (ii) above, or such 180th day in the case of clause
(iii) above; provided, however, that the aggregate amount of any such increase
in such interest rate will in no event exceed 1.50% per annum; and provided,
further that if the Exchange Offer Registration Statement is not declared
effective by the SEC on or prior to the 120th day following the Closing Date,
then Notes owned by Persons who do not comply in all material respects with
their obligations under the penultimate paragraph of Section 4 will not be
entitled to any such increase in the interest rate for any day after the 180th
day following the Closing Date. Upon (A) the filing of the Exchange Offer
Registration Statement after the 45th day described in clause (i) above, (B) the
effectiveness of the Exchange Offer Registration Statement after the 120th day
described in clause (ii) above or (C) the consummation of the Exchange Offer

<PAGE>   12

or the effectiveness of a Notes Shelf Registration Statement, as the case may
be, after the 180th day described in clause (iii) above, the interest rate borne
by the Notes from the date of such filing, effectiveness or consummation
(effective immediately preceding such consummation), as the case may be, will be
reduced to the original interest rate; provided, however, that the interest rate
borne by the Notes will be reduced to the original interest rate only if there
is not then continuing a default with respect to any of the events set forth in
the immediately preceding sentence causing the interest rate borne by the Notes
to increase.

                  (e) Specific Enforcement. Without limiting the remedies
available to the Initial Purchasers and the Note Holders, the Company
acknowledges that any failure by the Company to comply with its obligations
under Section 2(a) and Section 2(b) hereof may result in material irreparable
injury to the Initial Purchasers or the Note Holders for which there is no
adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may, to the extent permitted by law, obtain such relief
as may be required to specifically enforce the Company's obligations under
Section 2(a) and Section 2(b) hereof.

SECTION 3. Warrants Shelf Registration.

                  (a) Warrants Shelf Registration Statement. Promptly (and in
any event not more than 45 days) following the Closing Date, the Company shall
file with the Commission and thereafter use its best efforts to have declared
effective not later than 105 days after the Closing Date, a registration
statement on an appropriate form under the 1933 Act relating to (i) the offer
and sale of the Registrable Warrant Shares by the Company to the holders of the
Registrable Warrants upon exercise thereof and (ii) the offer and sale of the
Registrable Warrants and Registrable Warrant Shares by the holders thereof, in
each case from time to time in accordance with the methods of distribution set
forth in such registration statement and Rule 415 under the 1933 Act (the
"Warrants Shelf Registration Statement"). For purposes of this Agreement, the
term "Registrable Warrant Shares" shall be deemed to include any Warrant Shares
issued and sold by the Company to any holder (other than the holders who
purchased directly from the Initial Purchasers) of Registrable Warrants upon the
exercise thereof.

                  (b) Effectiveness. The Company agrees to use its best efforts
to keep the Warrants Shelf Registration Statement continuously effective in
order to permit the Prospectus included therein to be usable by the holders of
the Registrable Warrants and the Registrable Warrant Shares for nine years from
the Closing Date or such shorter period that will terminate when all Registrable
Warrants and Registrable Warrant Shares covered by the Warrants Registration
Statement have been sold pursuant to such registration statement; provided, that
the Company shall be deemed not to have used its best efforts to keep the
Warrants Registration Statement effective during the requisite period if it
voluntarily takes any action that would result in holders of the Registrable
Warrants and Registrable Warrant Shares covered thereby not being able to offer
and sell such Registrable Warrants and Registrable Warrant Shares during that
period, unless such action is required by applicable law, and provided, further,
that the foregoing shall not apply to actions if the Company determines, in its
reasonable judgment, upon advice of

<PAGE>   13

counsel, as authorized by a resolution of its Board of Directors, that the
continued effectiveness and usability of such registration statement would (i)
require the disclosure of material information, which the Company has a bona
fide business reason for preserving as confidential, or (ii) interfere with any
financing, acquisition, corporate reorganization or other material transaction
involving the Company or any of its Affiliates (as defined in the rules and
regulations adopted under the 1934 Act); provided, however, that the failure to
keep the registration statement effective and usable for offers and sales of
Registrable Warrants and Registrable Warrant Shares for such reasons shall last
no longer than 60 days in any 12-month period (whereafter Warrant Liquidated
Damages (as defined in Section 3(c)) shall accrue and be payable).

                  (c) Warrants Liquidated Damages. If the Company fails to file
within 45 days, or cause to become effective within 105 days, the Warrants Shelf
Registration Statement, or (subject to Section 3(b)) the Warrants Shelf
Registration Statement is declared effective but thereafter ceases to be
effective in connection with resales of the Registrable Warrants or Registrable
Warrant Shares (each, a "Registration Default"), then the Company agrees to pay
to each holder of Registrable Warrants or Registrable Warrant Shares, liquidated
damages in an amount equal to (i) one-tenth of one cent ($.001) per day per
Registrable Warrant or such Registrable Warrant Share held by such holder during
the two week period immediately following a Registration Default, (ii)
three-tenths of one cent ($.003) per day per Registrable Warrant or such
Registrable Warrant Share held by such holder during the four week period
immediately following the two week period referred to in clause (i) and (iii)
thereafter, five-tenths of one cent ($.005) per day per Registrable Warrant or
such Registrable Warrant Share held by such holder (the "Warrant Liquidated
Damages"), accruing in each case from the date of such Registration Default and
ceasing to accrue on the date such Registration Default has been cured by, by as
applicable, the filing, declaration of effectiveness or withdrawal of suspension
of effectiveness of the applicable Registration Statement. The Company shall
deliver the Warrant Liquidated Damages to the Warrant Agent on the first day of
each month next following a month as to which Warrant Liquidated Damages have
accrued for the benefit of the holders of Registrable Warrants and to a paying
agent (which may be the Company) for the benefit of the holders of Registrable
Warrant Shares and cause the Warrant Agent and such paying agent to promptly
deliver such funds to the holders of Registrable Warrants and Registrable
Warrant Shares entitled thereto. For purposes of this Agreement, the term
"Registration Default" shall not include the failure of the Company to register
the offer and sale of the Registrable Warrant Shares of the Company to the
holders of the Registrable Warrants as set forth under Section 3(a)(i) hereof if
such registration is against the current policies of the staff of the SEC.

                  (d) Notwithstanding any other provisions of this Agreement to
the contrary, the Company will cause the Warrants Shelf Registration Statement
and the related Prospectus and any amendment or supplement thereto, as of the
effective date of such Registration Statement, amendment or supplement, (i) to
comply in all material respects with the applicable requirements of the 1933 Act
and the rules and regulations of the Commission and (ii) not to contain any
untrue statement of a material fact or omit to state a material fact required to
be

<PAGE>   14

stated herein or necessary to make the statements therein not misleading.

                  (e) Specific Enforcement. Without limiting the remedies
available to the Initial Purchasers and the holders of the Warrants and Warrant
Shares, the Company acknowledges that t any failure by the Company to comply
with its obligations under this Section 3 may result in material irreparable
injury to the Initial Purchases or the holders of the Warrant sand Warrant
Shares for which there is not adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any holder of Warrants or Warrant
Shares may, to the extent permitted by law, obtain such relief as may be
required to specifically enforce the Company's obligations under this Section 3.

SECTION 4. Registration Procedures.

         In connection with the obligations of the Company with respect to the
Exchange Offer Registration Statement pursuant to Sections 2(a), the Notes Shelf
Registration Statement pursuant to Section 2(b) and the Warrants Shelf
Registration Statement pursuant to Section 3(a) hereof, but only so long as the
Company shall have an obligation under this Agreement to keep a Registration
Statement effective, the Company shall:

                  (a) use its best efforts to prepare and file with the SEC a
Registration Statement, within the relevant time period specified in Section 2
or 3, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall, in the case of a Notes Shelf Registration,
be available for the sale of the Registrable Notes by the selling Note Holders
thereof, (iii) shall, in the case of a Warrants Shelf Registration Statement, be
available for the sale of the Registrable Warrants and Registrable Warrant
Shares by the selling holders thereof, and (iv) shall comply as to form in all
material respects with the requirements of the applicable form and include or
incorporate by reference all financial statements required by the SEC to be
filed therewith, and use its best efforts to cause such Registration Statement
to become effective and use its best efforts to cause such Registration
Statement to remain effective in accordance with Section 2 or 3 hereof;

                  (b) to the extent permitted by law, use its best efforts to
(i) prepare and file with the SEC such amendments and post-effective amendments
to each Registration Statement as may be necessary under applicable law to keep
such Registration Statement effective for the applicable period, (ii) cause each
Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed (if required) pursuant to Rule 424 under the 1933 Act,
and (iii) comply with the provisions of the 1933 Act with respect to the
disposition of all securities covered by each Registration Statement during the
applicable period in accordance with the intended method or methods of
distribution by the selling Note Holders or selling holders of the Registrable
Warrants or Registrable Warrant Shares;

                  (c) in the case of a Notes Shelf Registration Statement, (i)
notify each Note Holder, at least ten business days prior to filing, that the
Shelf Registration Statement with

<PAGE>   15

respect to the Registrable Notes is being filed and advising such Note Holders
that the distribution of Registrable Notes will be made in accordance with the
method elected by the Majority Note Holders; and (ii) furnish to each Note
Holder of registered under the Notes Shelf Registration Statement, to a single
firm of legal counsel for the Note Holders (including the Initial Purchasers)
and to the managing underwriters of an underwritten offering of Registrable
Notes, if any, and their counsel, without charge, as many copies of each
Prospectus, including each preliminary prospectus, and any amendment or
supplement thereto and documents incorporated by reference therein as such Note
Holder, counsel or underwriters may reasonably request and, if the Note Holder
so requests, all exhibits thereto (including those incorporated by reference) in
order to facilitate the public sale or other disposition of the Registrable
Notes; and (iii) subject to Section 4(m) hereof and the last paragraph of this
Section 4, hereby consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Note Holders of Registrable Notes in
connection with the offering and sale of the Registrable Notes covered by the
Prospectus or any amendment or supplement thereto but only during the period of
time that the Company is required to keep the Shelf Registration Statement
effective pursuant to this Agreement;

                  (d) in the case of a Warrants Shelf Registration Statement,
(i) notify each holder of Registrable Warrants and Registrable Warrant Shares,
at least 10 business days prior to filing, that the Warrants Shelf Registration
Statement with respect to the Registrable Warrants and Registrable Warrant
Shares is being filed and advising such holders that the distribution of
Registrable Warrants and Registrable Warrant Shares will be made in accordance
with the method elected by the majority of the holders of the Registrable
Warrants and Registrable Warrant Shares acting as a single Class (the "Majority
Warrant Holders") and (ii) furnish to each holder of Registrable Warrants and
Registrable Warrant Shares registered under the Warrants Shelf Registration
Statement, to a single firm of legal counsel for the holders of the Registrable
Warrants and Registrable Warrant Shares (including the Initial Purchasers) and
to the managing underwriters of an underwritten offering of Registrable Warrants
and Registrable Warrant Shares, if any, and their counsel, without charge, as
many copies of each Prospectus, including each preliminary prospectus, and any
amendment or supplement thereto and documents incorporated by reference therein
as such holders of Registrable Warrants and Registrable Warrant Shares, such
holders' counsel or underwriters may reasonably request and, if such holders so
request, all exhibits thereto (including those incorporated by reference) in
order to facilitate the public sale or other disposition of the Registrable
Warrants and Registrable Warrant Shares; and (iii) subject to Section 4(m)
hereof and the last paragraph of this Section 4, hereby consent to the use of
the Prospectus or any amendment or supplement thereto by each of the selling
holders of Registrable Warrants and Registrable Warrant Shares in connection
with the offering and sale of the Registrable Warrants and Registrable Warrant
Shares covered by the Prospectus or any amendment or supplement thereto but only
during the period of time that the Company is required to keep the Warrants
Shelf Registration Statement effective pursuant to this Agreement;

                  (e) use its best efforts to register or qualify the
Registrable Notes, Registrable

<PAGE>   16

Warrants and Registrable Warrant Shares under all applicable state securities or
"blue sky" laws, to the extent not preempted by federal law, of such
jurisdictions in the United States as (i) the Majority Note Holders of
Registrable Notes covered by a Registration Statement and the managing
underwriter of an underwritten offering of Registrable Notes and (ii) the
Majority Warrant Holders covered by the Warrants Shelf Registration Statement
shall reasonably request prior to the time the applicable Registration Statement
is declared effective by the SEC, to cooperate with the Note Holders and holders
of the Registrable Warrants and Registrable Warrant Shares in connection with
any filings required to be made with the NASD, and do any and all other acts and
things which may be reasonably necessary or advisable to enable such holder to
consummate the disposition of such Registrable Notes, Registrable Warrants and
Registrable Warrant Shares in the jurisdiction of such holder pursuant to such
Registration Statement; provided, however, that the Company shall not be
required to (a) qualify as a foreign corporation or as a dealer in securities in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 4(e) or (b) take any action that would subject it to general
service of process or taxation in any such jurisdiction if it is not then so
subject;

                  (f) in the case of a Shelf Registration Statement, promptly
notify a single firm of legal counsel for the Note Holders or the holders of
Registrable Warrants and Registrable Warrant Shares, as the case may be,
registered thereby (including any Initial Purchasers) and Oppenheimer & Co.,
Inc. and, if requested by such counsel or Oppenheimer & Co., Inc., promptly
confirm such advice in writing (by notice to such counsel or to Oppenheimer &
Co., Inc.) (i) when such Registration Statement has become effective and when
any post-effective amendments thereto become effective, (ii) of any request by
the SEC or any state securities authority for post-effective amendments and
supplements to such Registration Statement and the related Prospectus or for
additional information after such Registration Statement has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of such Registration Statement or the
initiation of any proceedings for that purpose, (iv) if, between the effective
date of such Registration Statement and the closing of any sale of Registrable
Notes or Registrable Warrants and Registrable Warrant Shares covered thereby
pursuant to an underwriting agreement to which the Company is a party, the
representations and warranties of the Company contained in such underwriting
agreement cease to be true and correct in all material respects, (v) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of the Registrable Notes or Registrable Warrants and Registrable
Warrant Shares covered by such Registration Statement for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose
and (vi) upon the Company becoming aware thereof, of the happening of any event
or the discovery of any facts during the period such Registration Statement is
effective which (A) makes any statement made in such Registration Statement or
the related Prospectus untrue in any material respect or (B) causes such
Registration Statement or the related Prospectus to omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

                  (g) (i) in the case of the Exchange Offer, (A) include in the
Exchange

<PAGE>   17

Offer Registration Statement a "Plan of Distribution" section covering the use
of the Prospectus included in the Exchange Offer Registration Statement by
Participating Broker-Dealers (as defined below) who have exchanged their
Registrable Notes for Exchange Notes for the resale of such Exchange Notes, (B)
furnish to each Participating Broker-Dealer who notifies the Company in writing
that it desires to participate in the Exchange Offer, without charge, as many
copies of each Prospectus included in the Exchange Offer Registration Statement,
including any preliminary prospectus, and any amendment or supplement thereto,
as such broker-dealer may reasonably request, (C) include in the Exchange Offer
Registration Statement a statement that any broker-dealer who holds Registrable
Notes acquired for its own account as a result of market-making activities or
other trading activities (a "Participating Broker-Dealer"), and who receives
Exchange Notes for Registrable Notes pursuant to the Exchange Offer, may be a
statutory underwriter and must deliver a prospectus meeting the requirements of
the 1933 Act in connection with any resale of such Exchange Notes, (D) subject
to Section 3(m) hereof and the last paragraph of this Section 4, hereby consent
to the use of the Prospectus forming part of the Exchange Offer Registration
Statement or any amendment or supplement thereto by any Participating Broker-
Dealer in connection with the sale or transfer of the Exchange Notes covered by
the Prospectus or any amendment or supplement thereto for a period ending 180
days following consummation of the Exchange Offer or, if earlier, when all
Exchange Notes received by such Participating Broker-Dealer in exchange for
Registrable Notes acquired for their own account as a result of market-making or
other trading activities have been disposed of by such Participating Broker-
Dealer, and (E) include in the letter of transmittal or similar documentation to
be executed by an exchange offeree in order to participate in the Exchange Offer
a provision substantially in the following form (or such similar provision as is
reasonably acceptable to counsel for the Initial Purchasers and as, in the
reasonable opinion of the Company, may at the time be required by applicable law
or SEC interpretation):

                  "If the undersigned is not a broker-dealer, the undersigned
                  represents that it is not engaged in, and does not intend to
                  engage in, a distribution of Exchange Notes. If the
                  undersigned is a broker-dealer that will receive Exchange
                  Notes for its own account in exchange for Registrable Notes,
                  it represents that the Registrable Notes to be exchanged for
                  Exchange Notes were acquired by it as a result of
                  market-making activities or other trading activities and
                  acknowledges that it will deliver a prospectus meeting the
                  requirements of the 1933 Act in connection with any resale of
                  such Exchange Notes pursuant to the Exchange Offer; however,
                  by so acknowledging and by delivering a prospectus, the
                  undersigned will not be deemed to admit that it is an
                  "underwriter" within the meaning of the 1933 Act"; and

                           (ii) to the extent any Participating Broker-Dealer
         participates in the Exchange Offer, the Company shall use its best
         efforts to cause to be delivered at the request of an entity
         representing the Participating Broker-Dealers (which entity shall be

<PAGE>   18

         Oppenheimer & Co., Inc. or another Initial Purchaser) (A) a "cold
         comfort" letter addressed to the Participating Broker-Dealers from the
         Company's independent certified public accountants with respect to the
         Prospectus in the Exchange Offer Registration Statement in the form
         existing on the last date for which exchanges are accepted pursuant to
         the Exchange Offer, (B) a comfort letter addressed to the Participating
         Broker-Dealers from the Company's independent petroleum engineers in a
         form similar to the letter of such engineers delivered pursuant to the
         Purchase Agreement; and (C) an opinion of counsel to the Company
         addressed to the Participating Broker-Dealers in customary form
         relating to the Exchange Notes; and

                           (iii) to the extent any Participating Broker-Dealer
         participates in the Exchange Offer and notifies the Company or causes
         the Company to be notified in writing that it is a Participating
         Broker-Dealer, the Company shall use its best efforts to maintain the
         effectiveness of the Exchange Offer Registration Statement for a period
         of 180 days following the last date on which exchanges are accepted
         pursuant to the Exchange Offer, or, if earlier, when all Exchange Notes
         received by Participating Broker-Dealers in exchange for Registrable
         Notes acquired for their own account as a result of market-making or
         other trading activities have been disposed of by such Participating
         Broker-Dealers; and

                           (iv) not be required, however, to amend or supplement
         the Prospectus contained in the Exchange Offer Registration Statement
         as would otherwise be contemplated by Section 4(b) hereof, or take any
         other action as a result of this Section 4(g), at any time after 180
         days after the last date for which exchanges are accepted pursuant to
         the Exchange Offer (or such earlier date referred to in Paragraph (C)
         above), and Participating Broker-Dealers shall not be authorized by the
         Company to, and shall not, deliver such Prospectus after such period in
         connection with resales contemplated by this Section 4 or otherwise;

         it being understood that, notwithstanding anything in this Agreement to
the contrary, the Company shall not be required to comply with any provision of
this Section 4(g) or any other provision of this Agreement relating to the
distribution of Exchange Notes by Participating Broker-Dealers, to the extent
that the Company reasonably concludes (with the consent of Oppenheimer & Co.,
Inc., not to be unreasonably withheld) that compliance with such provision is no
longer required by applicable law or interpretation of the staff of the SEC;

                  (h) in the case of an Exchange Offer, furnish to one firm of
legal counsel for the Initial Purchasers and in the case of a Shelf Registration
Statement, furnish to one firm of legal counsel for the Note Holders or one firm
of legal counsel for the holders of the Registrable Warrants and Registrable
Warrant Shares, as the case may be, covered thereby copies of any request
received by or on behalf of the Company, from the SEC or any state securities
authority for amendments or supplements to the relevant Registration Statement
and Prospectus or for additional information;

<PAGE>   19

                  (i) make every reasonable effort to obtain the withdrawal of
any order suspending the effectiveness of a Registration Statement as soon as
practicable and provide prompt notice to one firm of legal counsel for the Note
Holders or holders of the Registrable Warrants and Registrable Warrant Shares,
as the case may be, of the withdrawal of any such order;

                  (j) in the case of a Shelf Registration Statement, furnish to
each Holder of Registrable Notes or holders of the Registrable Warrants and
Registrable Warrant Shares, as the case may be, registered or holders of the
Registrable Warrants and Registrable Warrant Shares, as the case may be,
thereby, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (without documents
incorporated therein by reference or exhibits thereto, unless requested);

                  (k) in the case of a Subject Shelf Registration Statement
cooperate with the selling Note Holders of Registrable Notes to facilitate the
timely preparation and delivery of certificates representing Registrable Notes
to be sold and not bearing any restrictive legend (except any customary legend
borne by securities held through The Depository Trust Company or any similar
depository); and cause such Registrable Notes to be in such denominations
(consistent with the provisions of the Indenture) and registered in such names
as the selling Note Holders or the underwriters, if any, may request at least
two business days prior to the closing of any sale of Registrable Notes;

                  (l) in the case of a Warrants Shelf Registration Statement,
cooperate with the selling holders of the Registrable Warrants and Registrable
Warrant Shares to facilitate the timely preparation and delivery of certificates
representing Registrable Warrants and Registrable Warrant Shares to be sold and
not bearing any restrictive legend (except any customary legend borne by
securities held through the Depository Trust Company or any similar depository);
and cause such Registrable Warrants and Registrable Warrant Shares to be in such
denominations (consistent with the provisions of the Warrant Agreement) and
registered in such names as the selling holders of the Registrable Warrants and
Registrable Warrant Shares or the underwriters, if any, may request at least two
business days prior to the closing of any sale of Registrable Warrants and
Registrable Warrant Shares;

                  (m) in the case of a Shelf Registration, upon the Company
becoming aware of the occurrence of any event or the discovery of any facts,
each as contemplated by Section 4(e)(vi) hereof, use its best efforts to prepare
a supplement or post-effective amendment to the relevant Registration Statement
or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Notes or purchasers of the Registrable Warrants
and Registrable Warrant Shares, as the case may be, such Prospectus will not
contain at the time of such delivery any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading. The Company
agrees to notify each Note Holder registered under the relevant Shelf
Registration Statement to suspend use of the Prospectus as promptly as
practicable after the Company

<PAGE>   20

becomes aware of the occurrence of such an event, and each Note Holder
registered under the relevant Shelf Registration Statement hereby agrees to
suspend use of the Prospectus after receipt of such notice until the Company has
amended or supplemented the Prospectus to correct such misstatement or omission
or has advised such holders that use of such Prospectus may be resumed. At such
time as such public disclosure is otherwise made or the Company determines that
such disclosure is not necessary, in each case to correct any misstatement of a
material fact or to include any omitted material fact, or the Company otherwise
determines that use of such Prospectus may be resumed, the Company agrees
promptly to notify each holder registered under the relevant Shelf Registration
Statement of such determination and (if applicable) to furnish each such holder
such numbers of copies of the Prospectus, as amended or supplemented, as such
holder may reasonably request;

                  (n) not later than the effective date of the applicable
registration statement, the Company will provide a CUSIP number for the
Registrable Notes, the Exchange Notes, the Registrable Warrants or the
Registrable Warrant Shares, as the case may be, and provide (x) the Trustee or
Warrant Agent with printed certificates for the Registrable Notes, the Exchange
Noes, the Registrable Warrants or the Registrable Warrant Shares, as the case
may be, and (y) the transfer agent and registration for the Common Stock with
printed certificates for the Registrable Warrants Shares in a form eligible for
deposit with The Depository Trust Company; provided, however, that the Company
shall not be required to provide printed certificates for any Exchange Notes or
Registrable Notes to be so-called "book-entry only" securities;

                  (o) unless the Indenture, as it relates to the Exchange Notes
or the Registrable Notes, as the case may be, has already been so qualified, use
its best efforts to (i) cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended (the "TIA"), in connection with the
registration of the Exchange Notes or Registrable Notes, as the case may be,
(ii) cooperate with the Trustee and the Note Holders to effect such changes to
the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the TIA and (iii) execute, and use its best efforts
to cause the Trustee to execute, all documents as may be required to effect such
changes, and all other forms and documents required to be filed with the SEC to
enable the Indenture to be so qualified in a timely manner;

                  (p) in the case of a Shelf Registration Statement, take all
customary and appropriate actions reasonably required (including those
reasonably requested by the Majority Note Holders or Majority Warrant Holders,
as the case may be) in order to expedite or facilitate the disposition of the
Registrable Notes or Registrable Warrants and Registrable Warrant Shares, as the
case may be, registered thereby. If requested as set forth below, the Company
agrees that it will in good faith negotiate the terms of an Underwriting
Agreement, which shall be in form and scope as is customary for similar
offerings of notes with similar credit ratings (including, without limitation,
representations and warranties to the underwriters) and shall otherwise be
reasonably satisfactory to the Company and the managing underwriters; and:

                           (i) if requested by the managing underwriters, obtain
         opinions of counsel to the Company (which counsel shall be reasonably
         satisfactory to the managing

<PAGE>   21

         underwriters) addressed to such underwriters, covering the matters
         customarily covered in opinions requested in underwritten sales of
         securities in substantially the forms specified in the Underwriting
         Agreement;

                           (ii) if requested by the managing underwriters,
         obtain a "cold comfort" letter and an update thereto not later than two
         weeks after the date of the original letter (or if not available under
         applicable accounting pronouncements or standards, a single
         "procedures" letter and a single update thereto) from the Company's
         independent certified public accountants addressed to the underwriters
         named in the Underwriting Agreement and use its best efforts to have
         such letter addressed to the selling Note Holders or selling holders of
         Registrable Warrants and Registrable Warrant Shares, as the case may
         be, (provided, however, that such letter need not be addressed to any
         Note Holders or holders of Registrable Warrants and Registrable Warrant
         Shares, as the case may be, to whom, in the reasonable opinion of the
         Company's independent certified public accountants, addressing such
         letter is not permissible under applicable accounting standards), such
         letters to be in customary form and covering matters of the type
         customarily covered in "cold comfort" (or "procedures") letters to
         underwriters in connection with similar underwritten offerings;

                           (iii) if requested by the managing underwriters,
         obtain a comfort letter from the Company's independent petroleum
         engineers addressed to the underwriters named in the Underwriting
         Agreement, such letter to be in a form similar to the letter of such
         engineers delivered pursuant to the Purchase Agreement; and

                           (iv) deliver such documents and certificates as may
         be reasonably requested and as are customarily delivered in similar
         underwritten offerings.

         Notwithstanding anything herein to the contrary, the Company shall have
no obligation to enter into any underwriting agreement or permit an underwritten
offering of Registrable Notes or Registrable Warrants and Registrable Warrant
Shares unless a request therefor shall have been received from the Majority Note
Holders or the Majority Warrant Holders, as the case may be, then outstanding
within ten business days of the date of the notice from the Company as required
by Section 4(c) or 4(d). In the case of such a request for an underwritten
offering, the Company shall provide reasonable advance written notice to the
Note Holders or holders of Registrable Warrants and Registrable Warrant Shares,
as the case may be, of such proposed underwritten offering. Such notice shall
(A) offer each such holder the right to participate in such underwritten
offering (but may indicate that whether or not all Registrable Notes or all
Registrable Warrants and Registrable Warrant Shares, as the case may be, are
included will be at the discretion of the underwriters), (B) specify a date,
which shall be no earlier than ten business days following the date of such
notice, by which such holder must inform the Company of its intent to
participate in such underwritten offering and (C) include the instructions such
holder must follow in order to participate in such underwritten offering;

                  (q) in the case of a Shelf Registration, (in the case of a
Notes Shelf

<PAGE>   22

Registration Statement, to the extent customary in connection with a "due
diligence" investigation for an offering of Notes with a similar credit rating
to that of the Registrable Notes) make available for inspection by
representatives appointed by the Majority Note Holders or the Majority Warrant
Holders, as the case may be, and any underwriters participating in any
disposition pursuant to a Shelf Registration Statement and one firm of legal
counsel retained for all Note Holders or holders of Registrable Warrants and
Registrable Warrant Shares, as the case may be, participating in such Shelf
Registration, and one firm of legal counsel to the underwriters, if any, all
financial and other records, pertinent corporate documents and properties of the
Company reasonably requested by any such persons, and cause the respective
officers, employees and any other agents of the Company to supply all
information reasonably requested by any such representative, underwriters or
counsel in connection with the Shelf Registration Statement; provided, however,
that, if any such records, documents or other information relates to pending or
proposed acquisitions or dispositions, or otherwise relates to matters
reasonably considered by the Company to constitute sensitive or proprietary
information, the Company need not provide such records, documents or information
unless the foregoing parties enter into a confidentiality agreement in customary
form and reasonably acceptable to such parties and the Company;

                  (r) (i) a reasonable time prior to the filing of any Exchange
Offer Registration Statement, any Prospectus forming a part thereof, any
amendment to an Exchange Offer Registration Statement or amendment or supplement
to such Prospectus, provide copies of such document to the Initial Purchasers,
and make such changes in any such document prior to the filing thereof as
Oppenheimer & Co., Inc. or one firm of legal counsel to the Initial Purchasers
may reasonably request; (ii) in the case of a Shelf Registration Statement, a
reasonable time prior to filing any Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to such Shelf Registration Statement or
amendment or supplement to such Prospectus, provide copies of such document to
Oppenheimer & Co., Inc., one firm of legal counsel appointed by the Majority
Note Holders or Majority Warrant Holders to represent the Note Holders or the
Majority Warrant Holders, as the case may be, participating in such Shelf
Registration Statement, the managing underwriters of an underwritten offering of
Registrable Notes or Registrable Warrants and Registrable Warrant Shares, as the
case may be, if any, and their counsel, and make such changes in any such
document prior to the filing thereof as Oppenheimer & Co., Inc., such one firm
of legal counsel for the Note Holders or holders of Registrable Warrants and
Registrable Warrant Shares, as the case may be, such managing underwriters or
their counsel may reasonably request; and (iii) cause the representatives of the
Company to be available for discussion of such document as shall be reasonably
requested by Oppenheimer & Co., Inc., one firm of legal counsel to the Note
Holders, the holders of the Registrable Warrants and Registrable Warrant Shares,
the managing underwriters and their counsel; and shall not at any time make any
filing of any such document of which Oppenheimer & Co., Inc., one firm of legal
counsel to the Note Holders, the holders of the Registrable Warrants and
Registrable Warrant Shares, the managing underwriters and their counsel shall
not have previously been advised and furnished a copy or to which Oppenheimer &
Co., Inc., one firm of legal counsel to the Note Holders, the holders of the
Registrable Warrants and

<PAGE>   23

Registrable Warrant Shares, the managing underwriters and their counsel shall
reasonably object; provided, however, that the provisions of this paragraph (p)
shall not apply to any document filed by the Company pursuant to the 1934 Act
which is incorporated or deemed to be incorporated by reference in any
Registration Statement or Prospectus;

                  (s) in the case of a Shelf Registration Statement and if
requested by the managing underwriters, if any, or the Majority Note Holders or
the Majority Warrant Holders, as the case may be, (i) as soon as practicable
incorporate in a prospectus supplement or post-effective amendment such
information or revisions to information therein relating to such underwriters,
selling Note Holders or selling holders of the Registrable Warrants and
Registrable Warrant Shares, as the case may be, as the managing underwriters, if
any, or such holders or their counsel reasonably request to be included or made
therein, (ii) make all required filings of such prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment and (iii) if required, supplement or make amendments to
such Shelf Registration Statement;

                  (t) upon delivery of the Registrable Notes by Note Holders to
the Company (or to such other Person as directed by the Company) in exchange for
the Exchange Notes, the Company shall mark, or cause to be marked, on such
Registrable Notes that such Registrable Notes are being canceled in exchange for
the Exchange Notes; in no event shall such Registrable Notes be marked as paid
or otherwise satisfied;

                  (u) use its best efforts to cause the Exchange Notes, if
applicable, and, in the event of a Shelf Registration Statement, the Notes to be
rated with not more than two rating agencies selected by the Company, if so
requested by the Majority Note Holders or by the managing underwriters of an
underwritten offering of Registrable Notes, if any, unless the Exchange Notes or
the Registrable Notes, as the case may be, are already so rated or unless the
Company has obtained such ratings for its long-term Notes generally;

                  (v) otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering at
least 12 months which shall satisfy the provisions of Section 11(a) of the 1933
Act and Rule 158 thereunder; and

                  (w) cooperate and assist in any filings required to be made
with the NASD and in the performance of any due diligence investigation by any
managing underwriters and their counsel.

         In the case of a Shelf Registration Statement, the Company may (as a
condition to such holder's participation in the Shelf Registration Statement)
(i) require each holder of Registrable Notes, Registrable Warrants or
Registrable Warrant Shares to furnish to the Company such information regarding
such holder and the proposed distribution by such Holder of such Registrable
Notes, Registrable Warrants or Registrable Warrant Shares as the Company may

<PAGE>   24

from time to time reasonably request in writing and such other information as,
in the reasonable opinion of the Company, is required for inclusion in the Shelf
Registration Statement, and (ii) further require each holder of Registrable
Notes, Registrable Warrants or Registrable Warrant Shares through one firm of
legal counsel on behalf of all such holders of Registrable Notes, Registrable
Warrants or Registrable Warrant Shares, to furnish to the Company any comments
on the Shelf Registration Statement and the Prospectus included therein or any
amendment or supplement to any of the foregoing not later than such times as the
Company reasonably may request. Each holder of securities included in a Shelf
Registration Statement agrees promptly to notify the Company of any inaccuracy
or change in information previously furnished to the Company or the occurrence
of any event, in either case, as a result of which the relevant Registration
Statement or the related Prospectus contains or would contain an untrue
statement of a material fact or omits or would omit to state any material fact
regarding such Holder, its intended method of distribution of Registrable Notes,
Registrable Warrants or Registrable Warrant Shares or otherwise that is required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing. As soon as practicable, the Company
will, subject to the reasonable approval of its counsel, incorporate in a
supplement or post-effective amendment to the relevant Registration Statement or
related Prospectus such information furnished in writing to the Company and
requested to be included therein, and furnish to such holder copies of the
Prospectus, as amended or supplemented, as reasonably requested.

         In the case of a Shelf Registration Statement, each holder agrees and,
in the case of the Exchange Offer Registration Statement, each Participating
Broker-Dealer agrees that, upon receipt of any notice from the Company of the
happening of any event or the discovery of any facts, each of the kind described
in Section 4(f)(ii)-(vi) or Section 4(m) hereof (it being understood and agreed
that, for purposes of this paragraph, all references in Sections 4(f)(ii)-(vi)
and Section 4(m) to a "Shelf Registration Statement" or a "Registration
Statement" shall be deemed to mean and include the Shelf Registration Statement,
the Purchaser Shelf Registration Statement or the Exchange Offer Registration
Statement or all or any combination thereof (as the context requires), mutatis
mutandis), such holder or Participating Broker-Dealer, as the case may be, will
forthwith discontinue disposition of Registrable Notes, Registrable Warrants or
Registrable Warrant Shares pursuant to such Registration Statement and
discontinue use of the Prospectus included therein until such holder's or
Participating Broker-Dealer's receipt, as the case may be, of (A) copies of the
supplemented or amended Prospectus contemplated by Section 4(m) hereof or (B)
notice from the Company that the sale of the Registrable Notes, Registrable
Warrants or Registrable Warrant Shares may be resumed, and, if so directed by
the Company, such holder or Participating Broker-Dealer, as the case may be,
will deliver to the Company (at its expense) all copies in its possession, other
than permanent file copies then in its possession, of the Prospectus covering
such Registrable Notes, Registrable Warrants or Registrable Warrant Shares
current at the time of receipt of such notice. If the Company shall give any
such notice to suspend the disposition of Registrable Notes, Registrable
Warrants or Registrable Warrant Shares pursuant to a Registration Statement as a
result of the happening of any event or the discovery of any facts, each of the
kind described in Section 4(f) (ii)- (vi) or 4(m) hereof, the

<PAGE>   25

Company shall be deemed to have used its best efforts to keep such Registration
Statement effective during such period of suspension, provided that the Company
shall use its best efforts to file and have declared effective (if an amendment)
as soon as practicable an amendment or supplement to such Registration Statement
or the related Prospectus and shall extend the period during which such
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Note Holders or holders
of the Registrable Warrants or Registrable Warrant Shares shall have received
copies of the supplemented or amended Prospectus necessary to resume such
dispositions or the date on which the Company has given notice that the sale of
Registrable Notes or Registrable Warrants and Registrable Warrant Shares may be
resumed, as the case may be. Each holder of Registrable Notes or Registrable
Warrants and Registrable Warrant Shares hereby agrees that it will at all times
use the then most current Prospectus, as then amended or supplemented, which has
been provided to it by the Company in connection with the resale or transfer of
any Registrable Notes or Registrable Warrants and Registrable Warrant Shares
pursuant to a Registration Statement or Prospectus.

SECTION 5. Expenses.

         The Company (i) shall pay all Registration Expenses in connection with
the performance of its obligations under Section 2, Section 3 and Section 4, and
(ii) in connection with the Exchange Offer Registration Statement and the Notes
Shelf Registration Statement, shall reimburse the Note Holders of Registrable
Notes being tendered in the Exchange Offer and/or resold pursuant to the "Plan
of Distribution" contained in the Exchange Offer Registration Statement or
registered pursuant to the Notes Shelf Registration Statement, as applicable (or
to the extent such fees and disbursements are paid to such counsel by the
Initial Purchasers, the Initial Purchasers), for the reasonable fees and
disbursements of not more than one counsel, to be chosen by the Note Holders of
a majority in principal amount of the Registrable Notes for whose benefit such
Registration Statement is being prepared. Each Note Holder (including each
Initial Purchaser) shall pay all expenses of its counsel other than as set forth
in the preceding sentence, underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of such Note Holder's
Registrable Notes pursuant to any Subject Registration Statement or the exchange
of its Registrable Notes pursuant to any Exchange Offer Registration Statement.
Notwithstanding anything in this Agreement to the contrary, the Company shall
not be required to pay the fees and disbursements of legal counsel for any Note
Holders or holder of Registrable Warrants or Registrable Warrant Shares
(including Initial Purchasers) except (A) as provided in clause (ii) of the
first sentence of this paragraph, (B) to the extent such fees and disbursements
constitute Registration Expenses which the Company is required to pay pursuant
to the other provisions of this Agreement and (C) to the extent required by
Section 7 hereof. In the case of the Warrants Shelf Registration Statement, the
Company shall bear or reimburse the holders of the Registrable Warrants and the
Registrable Warrant Shares for the reasonable fees and expenses of the one firm
of counsel designated by holders of a majority of the Registrable Warrants or
Warrant Shares (voting together as a class) to act as counsel.

<PAGE>   26

SECTION 6. Underwritten Registrations.

         If any of the Registrable Notes or Registrable Warrants and Registrable
Warrant Shares covered by a Shelf Registration Statement are to be sold in an
underwritten offering, the underwriter or underwriters and manager or managers
that will manage the offering will be selected by the Company and shall be
reasonably acceptable to the Majority Note Holders or the Majority Warrant
Holders included in such offering, as the case may be.

         No holder of Registrable Notes or Registrable Warrants and Registrable
Warrant Shares may participate in any underwritten offering hereunder unless
such holder (a) agrees to sell such holder's Registrable Notes or Registrable
Warrants and Registrable Warrant Shares on the basis provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

SECTION 7. Indemnification and Contribution.

                  (a) The Company shall indemnify and hold harmless each Initial
Purchaser, each holder of Notes, Exchange Notes, Warrants and Warrant Shares and
each Person, if any, who controls any such Person within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act as follows:

                           (i) against any and all losses, liabilities, claims,
         damages and expenses whatsoever, as incurred, arising out of any untrue
         statement or alleged untrue statement of a material fact contained in
         any Registration Statement (or any amendment thereto) pursuant to which
         (A) Exchange Notes or Registrable Notes were registered under the 1933
         Act or (B) the Warrants or Warrant Shares were registered under the
         1933 Act, including all documents incorporated therein by reference, or
         the omission or alleged omission therefrom of a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading or arising out of any untrue statement or alleged untrue
         statement of a material fact contained in any Prospectus (or any
         amendment or supplement thereto) or the omission or alleged omission
         therefrom of a material fact necessary in order to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading;

                           (ii) against any and all losses, liabilities, claims,
         damages and expenses whatsoever, as incurred, to the extent of the
         aggregate amount paid in settlement of any litigation, or any
         investigation or proceeding by any governmental agency or body,
         commenced or threatened, or of any claim whatsoever based upon any such
         untrue statement or omission, or any such alleged untrue statement or
         omission; provided that (subject to Section 7(e) below) any such
         settlement is effected with the written consent of the Company; and

<PAGE>   27

                           (iii) against any and all expenses whatsoever, as
         incurred (including (subject to Section 7(c) below) the fees and
         disbursements of counsel chosen by Oppenheimer & Co., Inc. or, in the
         event that Oppenheimer & Co., Inc. is not an indemnified party, by a
         majority of the indemnified parties), reasonably incurred in
         investigating, preparing or defending against any litigation, or any
         investigation or proceeding by any governmental agency or body,
         commenced or threatened, or any claim whatsoever based upon any such
         untrue statement or omission, or any such alleged untrue statement or
         omission, to the extent that any such expense is not paid under
         subparagraph (i) or (ii) of this Section 7(a);

         provided, however, that this indemnity does not apply to any loss,
liability, claim, damage or expense to the extent arising out of an untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of any Initial Purchaser, any Note Holder, any holder of a Warrant or
Warrant Shares or any underwriter expressly for use in the Registration
Statement (or any amendment thereto) or the Prospectus (or any amendment or
supplement thereto); and provided, further, that this indemnity agreement with
respect to any Prospectus shall not inure to the benefit of any Initial
Purchaser or holder from whom the person asserting any such losses, claims,
damages or liabilities purchased Registrable Notes, Exchange Notes, Registrable
Warrants, Warrants, Registrable Warrant Shares or Warrant Shares (or any person
who controls such Initial Purchaser or Holder within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act) if a copy of the Prospectus (as
then amended or supplemented and furnished by the Company to such Initial
Purchaser or Bite Holder, as the case may be) was not sent or given by or on
behalf of such Initial Purchaser or Holder, as the case may be, to such person
at or prior to the sale of such securities and if the Prospectus (as so amended
or supplemented) would have corrected any untrue statement or omission, or
alleged untrue statement or omission, giving rise to such loss, liability,
claim, damage or expense (provided the Company has delivered the Prospectus (as
then amended or supplemented) to the several Initial Purchasers or applicable
holders in requisite quantity on a timely basis to permit such delivery or
sending).

                  (b) In the case of a Notes Shelf Registration Statement or a
Warrants Registration Statement, each Note Holder and holders of Warrants or
Warrant Shares, as the case may be, agrees, severally and not jointly, to
indemnify and hold harmless the Company, each Initial Purchaser, each
underwriter who participates in an offering of Registrable Notes, Registrable
Warrants or Registrable Warrant Shares and the other Note Holders and holders of
Warrants or Warrant Shares, as the case may be, and each of their respective
directors and officers (including each officer of the Company who signed the
Registration Statement in question) and each Person, if any, who controls the
Company, any Initial Purchaser, any underwriter or any other Holder or holders
of Warrants or Warrant Shares, within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act, against any and all losses, liabilities, claims,
damages and expenses described in the indemnity contained in Section 9(a)
hereof, as incurred, but only with respect to untrue statements or omissions, or
alleged untrue statements or

<PAGE>   28

omissions, made in the Registration Statement (or any amendment thereto) or the
Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such holder expressly for use in the Registration Statement (or any amendment
thereto) or the Prospectus (or any amendment or supplement thereto); provided,
however, that no such holder shall be liable for any claims hereunder in excess
of the amount of net proceeds received by such holder from the sale of
securities pursuant to such Registration Statement.

                  (c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it
may have other than on account of this indemnity agreement or the contribution
agreement set forth in Section 7(d) below. In the case of parties indemnified
pursuant to Section 7(a) above, counsel to the indemnified parties shall be
selected by Oppenheimer & Co., Inc. (or, in the event that Oppenheimer & Co.,
Inc. is not an indemnified party, by a majority in interest of the indemnified
parties), and, in the case of parties indemnified pursuant to Section 7(b)
above, counsel to the indemnified parties shall be selected by the Company.
Notwithstanding the foregoing, in case any action or proceeding shall be
instituted and the indemnified party shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
therein, and, after written notice from the indemnifying party to such
indemnified party, to assume the defense thereof with counsel of its choice
reasonably acceptable to the indemnified parties in such action. Notwithstanding
the election of the indemnifying party to assume defense of such action or
proceeding, the indemnified party shall have the right, at its own expense, to
employ one additional firm as separate counsel and to participate in the defense
of the action or proceeding; provided that the indemnifying party shall pay the
reasonable fees and expenses of such separate counsel reasonably satisfactory to
the indemnifying party if (i) the indemnifying party shall have failed to employ
counsel to represent the indemnified party in a reasonably timely manner or (ii)
the defendants in any such action or proceeding include both the indemnified
party and the indemnifying party and counsel to the indemnified party shall have
concluded and notified the indemnifying party that in its reasonable judgment
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. In no event shall the
indemnifying parties be liable for the fees and expenses of more than one
counsel (in addition to any local counsel) (which counsels shall be selected by
Oppenheimer & Co., Inc. or, in the event that Oppenheimer & Co., Inc. is not an
indemnified party, by a majority in interest of the indemnified parties)
separate from their own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could

<PAGE>   29

be sought under this Section 7 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or
a failure to act by or on behalf of any indemnified party.

                  (d) In order to provide for just and equitable contribution in
circumstances in which any of the indemnity provisions set forth in this Section
6 are for any reason held to be unenforceable by the indemnified parties
although applicable in accordance with its terms, the Company, the Initial
Purchasers, the Note Holders and the holders of the Warrants and Warrant Shares
shall contribute to the aggregate losses, liabilities, claims, damages and
expenses of the nature contemplated by such indemnity agreement incurred by the
Company, the Initial Purchasers, the Note Holders, and the holders of the
Warrants and Warrant Shares as incurred; provided, however, that no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person that was not
guilty of such fraudulent misrepresentation. As between the Company, the Initial
Purchasers, the Note Holders, and the holders of the Warrants and Warrant
Shares, such parties shall contribute to such aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity
agreement in such proportion as shall be appropriate to reflect the relative
fault of the Company on the one hand, the Initial Purchasers on another hand,
and the Note Holders and the holders of the Warrants and Warrant Shares on
another hand, with respect to the statements or omissions which resulted in such
loss, liability, claim, damage or expense, or action in respect thereof, as well
as any other relevant equitable considerations. The relative fault of the
Company on the one hand, the Initial Purchasers on another hand, and the Note
Holders and the holders of the Warrants and Warrant Shares on another hand shall
be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or by the Initial
Purchasers or by the Note Holders and the holders of the Warrants and Warrant
Shares and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue or alleged untrue statement or
omission. The Company, the Initial Purchasers and the Note Holders and the
holders of the Warrants and Warrant Shares agree that it would not be just and
equitable if contribution pursuant to this Section 7(d) were to be determined by
pro rata allocation or by any other method of allocation that does not take into
account the relevant equitable considerations. For purposes of this Section
7(d), each Person, if any, who controls an Initial Purchaser, a Note Holder or a
holder of a Warrant or Warrant Shares within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as such Initial Purchaser or such Holder, and each director of the
Company, each officer of the Company who signed the Registration Statement in
question, and each Person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company.

                  (e) If at any time an indemnified party shall have requested
an indemnifying

<PAGE>   30

party to reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the
nature contemplated by Section 7(a)(ii) effected without its written consent if
(i) such settlement is entered into more than 45 days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall
have received notice of the terms of such settlement at least 30 days prior to
such settlement being entered into and (iii) such indemnifying party shall not
have reimbursed such indemnified party in accordance with such request prior to
the date of such settlement.

SECTION 8. Miscellaneous.

                  (a) Rule 144 and Rule 144A. Until the earliest of (i) the
completion of the Exchange Offer, (ii) two years following the Closing Date (or
such shorter period as may be specified in Rule 144(k) as then amended) and
(iii) the date when all Registrable Notes have been sold pursuant to the Subject
Registration Statement or are no longer Registrable Notes, the Company covenants
that it will file the reports required to be filed by it under Section 13(a) or
15(d) of the 1934 Act and the rules and regulations adopted by the SEC
thereunder for so long as the Company is subject to the reporting requirements
of Section 13 or 15 of the 1934 Act, and if the Company ceases to be so required
to file such reports, it will upon the request of any holder of Registrable
Notes, Registrable Warrants or Registrable Warrant Shares (i) make publicly
available such information as is necessary to permit sales pursuant to Rule 144
under the 1933 Act, (ii) deliver such information to a prospective purchaser as
is necessary to permit sales pursuant to Rule 144A under the 1933 Act and (iii)
take such further action that is reasonable in the circumstances, in each case,
to the extent required from time to time to enable such holder to sell its
Registrable Notes, Registrable Warrants or Registrable Warrant Shares without
registration under the 1933 Act within the limitation of the exemptions provided
by (A) Rule 144 under the 1933 Act, as such Rule may be amended from time to
time, (B) Rule 144A under the 1933 Act, as such Rule may be amended from time to
time or (C) any similar rules or regulations hereafter adopted by the SEC
(provided that the obligations of the Company under any such similar rules or
regulations shall not be more burdensome in any substantial respect than those
referred to in clauses (A) or (B)). Upon the request of any holder of
Registrable Notes, Registrable Warrants or Registrable Warrant Shares, the
Company will deliver to such holder a written statement as to whether it has
complied with such requirements.

                  (b) No Inconsistent Agreements. The Company has not entered
into nor will the Company on or after the date of this Agreement enter into any
agreement which is inconsistent with the rights granted to the holders of
Registrable Notes, Registrable Warrants or Registrable Warrant Shares in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted
to the Note Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company's other
issued and outstanding securities under any such agreements.

                  (c) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has

<PAGE>   31

obtained the written consent of Note Holders of at least a majority in aggregate
principal amount of the outstanding Registrable Notes affected by such
amendment, modification, supplement, waiver or departure; provided, however,
that to the extent any provision of this Agreement relates to the Purchaser
Shelf Registration Statement or otherwise to the Initial Purchasers, such
provision may be amended, modified or supplemented, and waivers or consents to
departures from such provisions thereof may be given, by Oppenheimer & Co.,
Inc.; and provided, further, that no amendment, modification, supplement or
waiver or consent to any departure from the provisions of Section 7 hereof shall
be effective as against any holder of Registrable Notes, Registrable Warrants or
Registrable Warrant Shares unless consented to in writing by such holder.
Notwithstanding anything in this Agreement to the contrary, this Agreement may
be amended, modified or supplemented, and waivers and consents to departures
from the provisions hereof may be given, by written agreement signed by the
Company and Oppenheimer & Co., Inc. to the extent that any such amendment,
modification, supplement, waiver or consent is, in their reasonable judgment,
necessary or appropriate to comply with applicable law (including any
interpretation of the staff of the SEC) or any change therein.

                  (d) Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, registered or
certified first-class mail, telex, telecopier or any courier providing overnight
delivery (i) if to a Note Holder, at its address appearing in the register of
the Notes and/or Exchange Notes kept by the Registrar (as defined in the
Indenture) or at such other address as shall have been given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 8(d), which address initially is, with respect to the Initial
Purchasers, the address care of Oppenheimer & Co., Inc. set forth in the
Purchase Agreement, if to a holder of a Warrant or Warrant Share, at its address
appearing in the register kept by the Warrant Agent and (iii) if to the Company
initially at or in care of the Company's address set forth in the Purchase
Agreement, or in each case to such other address notice of which is given in
accordance with the provisions of this Section 6(d).

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the next business day if timely delivered to an air courier providing overnight
delivery.

                  (e) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Note Holders; provided, however, that nothing
herein shall be deemed to permit any assignment, transfer or other disposition
of Registrable Notes in violation of the terms hereof or of the Purchase
Agreement, the Indenture or the Offering Memorandum dated September 2, 1997; and
provided, further, that Note Holders may not assign their rights under this
Agreement except in connection with the permitted transfer of Registrable Notes
and then only insofar as relates to such Registrable Notes. If any transferee of
any Holder shall acquire Registrable Notes, in any manner, whether by operation
of law or otherwise, such Registrable Notes shall be held subject to all of the
terms of

<PAGE>   32

this Agreement, and by taking and holding such Registrable Notes, such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of
the terms and provisions of this Agreement, including the restrictions on resale
set forth in this Agreement and, if applicable, the Purchase Agreement, and such
Person shall be entitled to receive the benefits hereof.

                  (f) Third-Party Beneficiary. The holders of the Notes,
Warrants and Warrant Shares from time to time shall each be a third-party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and Oppenheimer & Co., Inc.
shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of
such holders hereunder.

                  (g) Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  (h) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  (j) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                  (k) Guarantees. Each of the Guarantors agrees to take all such
actions necessary to include its guarantee of the Notes or the Exchange Notes in
any Exchange Offer Registration Statement, Shelf Registration Statement or
Purchaser Shelf Registration Statement to the extent required under the 1933 Act
or as may be required in order for the Company to comply with its obligations
hereunder.

<PAGE>   33

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                       GOTHIC ENERGY CORPORATION

                                       By:
                                           ----------------------------------
                                           Michael K. Paulk
                                           President

                                       GOTHIC ENERGY OF TEXAS, INC.

                                       By:
                                           ----------------------------------
                                           Michael K. Paulk
                                           President

                                       GOTHIC GAS CORPORATION

                                       By:
                                           ----------------------------------
                                           Michael K. Paulk
                                           President

                                       OPPENHEIMER & CO., INC.

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

                                       BANC ONE CAPITAL CORPORATION

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

                                       PARIBAS CORPORATION

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

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