Document:

exv4w2

Exhibit 4.2

Execution Version

 

 

OASIS PETROLEUM INC.,

as Issuer,

OASIS PETROLEUM LLC,

OASIS PETROLEUM NORTH AMERICA LLC,

OASIS PETROLEUM MARKETING LLC

and

OASIS PETROLEUM WELL SERVICES LLC,

as Subsidiary Guarantors,

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

FIRST SUPPLEMENTAL INDENTURE

dated as of November 10, 2011

to Senior Indenture

dated as of November 10, 2011

$400,000,000 6.5% Senior Notes due 2021

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310	(a)(1) 	 	709
	 	(a)(2) 	 	709
	 	(a)(3) 	 	N.A.
	 	(a)(4) 	 	N.A.
	 	(b) 	 	708
	 	 	 	710
	311	(a) 	 	713
	 	(b) 	 	713
	312	(a) 	 	801
	 	 	 	802
	 	(b) 	 	802
	 	(c) 	 	802
	313	(a) 	 	803
	 	(b) 	 	803
	 	(c) 	 	803
	 	(d) 	 	803
	314	(a) 	 	804
	 	(a)(4) 	 	201
	 	 	 	1104
	 	(b) 	 	N.A.
	 	(c)(1) 	 	202
	 	(c)(2) 	 	202
	 	(c)(3) 	 	N.A.
	 	(d) 	 	N.A.
	 	(e) 	 	202
	315	(a) 	 	701; 703
	 	(b) 	 	702
	 	(c) 	 	701
	 	(d) 	 	701
	 	(e) 	 	614
	316	(a) 	 	201
	316	(a)(1)(A) 	 	602
	 	 	 	612
	 	(a)(1)(B) 	 	613
	 	(a)(2) 	 	N.A.
	 	(b) 	 	608
	 	(c) 	 	204
	317	(a)(1) 	 	603
	 	(a)(2) 	 	604
	 	(b) 	 	1103
	318	(a) 	 	207

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE	 
	APPLICATION OF SUPPLEMENTAL INDENTURE AND CREATION OF THE INITIAL NOTES	 
	 
	 	 	 	 
	Section 101. Application of This Supplemental Indenture
	 	 	2	 
	Section 102. Effect of Supplemental Indenture
	 	 	2	 
	 
	 	 	 	 
	ARTICLE TWO	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 
	 
	 	 	 	 
	Section 201. Definitions
	 	 	3	 
	Section 202. Compliance Certificates and Opinions
	 	 	36	 
	Section 203. Form of Documents Delivered to Trustee
	 	 	36	 
	Section 204. Acts of Holders; Record Dates
	 	 	37	 
	Section 205. Notices, Etc., to Trustee and Company
	 	 	38	 
	Section 206. Notice to Holders; Waiver
	 	 	39	 
	Section 207. Conflict with Trust Indenture Act
	 	 	39	 
	Section 208. Effect of Headings and Table of Contents
	 	 	39	 
	Section 209. Successors and Assigns
	 	 	39	 
	Section 210. Separability Clause
	 	 	39	 
	Section 211. Benefits of Indenture
	 	 	40	 
	Section 212. Governing Law
	 	 	40	 
	Section 213. Legal Holidays
	 	 	40	 
	Section 214. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	40	 
	Section 215. No Adverse Interpretation of Other Agreements
	 	 	40	 
	Section 216. U.S.A. Patriot Act
	 	 	40	 
	Section 217. Force Majeure
	 	 	40	 
	Section 218. Waiver of Jury Trial
	 	 	41	 
	Section 219. Counterpart Originals
	 	 	41	 
	 
	 	 	 	 
	ARTICLE THREE	 
	NOTE FORMS	 
	 
	 	 	 	 
	Section 301. Forms Generally
	 	 	41	 
	Section 302. Form of Legend for Global Notes
	 	 	41	 
	 
	 	 	 	 
	ARTICLE FOUR	 
	THE NOTES	 
	 
	 	 	 	 
	Section 401. Title and Terms
	 	 	42	 
	Section 402. Denominations
	 	 	42	 
	Section 403. Execution, Authentication, Delivery and Dating
	 	 	42	 
	Section 404. Temporary Securities
	 	 	43	 
	Section 405. Registration, Registration of Transfer and Exchange
	 	 	43	 
	Section 406. Mutilated, Destroyed, Lost and Stolen Notes
	 	 	45	 
	Section 407. Payment of Interest; Interest Rights Preserved
	 	 	46	 
	Section 408. Persons Deemed Owners
	 	 	47	 
	Section 409. Cancellation
	 	 	47	 
	Section 410. Computation of Interest
	 	 	47	 
	Section 411. CUSIP or CINS Numbers
	 	 	47	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE FIVE	 
	SATISFACTION AND DISCHARGE	 
	 
	 	 	 	 
	Section 501. Satisfaction and Discharge of Indenture
	 	 	48	 
	Section 502. Application of Trust Money
	 	 	49	 
	 
	 	 	 	 
	ARTICLE SIX	 
	REMEDIES	 
	 
	 	 	 	 
	Section 601. Events of Default
	 	 	49	 
	Section 602. Acceleration of Maturity; Rescission and Annulment
	 	 	51	 
	Section 603. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	52	 
	Section 604. Trustee May File Proofs of Claim
	 	 	52	 
	Section 605. Trustee May Enforce Claims Without Possession of Notes
	 	 	53	 
	Section 606. Application of Money Collected
	 	 	53	 
	Section 607. Limitation on Suits
	 	 	53	 
	Section 608. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	54	 
	Section 609. Restoration of Rights and Remedies
	 	 	54	 
	Section 610. Rights and Remedies Cumulative
	 	 	54	 
	Section 611. Delay or Omission Not Waiver
	 	 	54	 
	Section 612. Control by Holders
	 	 	54	 
	Section 613. Waiver of Past Defaults
	 	 	55	 
	Section 614. Undertaking for Costs
	 	 	55	 
	Section 615. Waiver of Usury, Stay or Extension Laws
	 	 	55	 
	 
	 	 	 	 
	ARTICLE SEVEN	 
	THE TRUSTEE	 
	 
	 	 	 	 
	Section 701. Certain Duties and Responsibilities
	 	 	56	 
	Section 702. Notice of Defaults
	 	 	56	 
	Section 703. Certain Rights of Trustee
	 	 	56	 
	Section 704. Not Responsible for Recitals or Issuance of Notes
	 	 	57	 
	Section 705. May Hold Notes
	 	 	58	 
	Section 706. Money Held in Trust
	 	 	58	 
	Section 707. Compensation and Reimbursement
	 	 	58	 
	Section 708. Conflicting Interests
	 	 	58	 
	Section 709. Corporate Trustee Required; Eligibility
	 	 	59	 
	Section 710. Resignation and Removal; Appointment of Successor
	 	 	59	 
	Section 711. Acceptance of Appointment by Successor
	 	 	60	 
	Section 712. Merger, Conversion, Consolidation or Succession to Business
	 	 	60	 
	Section 713. Preferential Collection of Claims Against Company
	 	 	61	 
	Section 714. Appointment of Authenticating Agent
	 	 	61	 
	 
	 	 	 	 
	ARTICLE EIGHT	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 
	 
	 	 	 	 
	Section 801. Company to Furnish Trustee Names and Addresses of Holders
	 	 	62	 
	Section 802. Preservation of Information; Communications to Holders
	 	 	62	 
	Section 803. Reports by Trustee
	 	 	63	 
	Section 804. Reports by Company
	 	 	63	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE NINE	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 
	 
	 	 	 	 
	Section 901. Company May Consolidate, Etc., Only on Certain Terms
	 	 	63	 
	Section 902. Successor Substituted
	 	 	64	 
	 
	 	 	 	 
	ARTICLE TEN	 
	SUPPLEMENTAL INDENTURES	 
	 
	 	 	 	 
	Section 1001. Supplemental Indentures Without Consent of Holders
	 	 	64	 
	Section 1002. Supplemental Indentures With Consent of Holders
	 	 	66	 
	Section 1003. Execution of Supplemental Indentures
	 	 	67	 
	Section 1004. Effect of Supplemental Indentures
	 	 	68	 
	Section 1005. Conformity with Trust Indenture Act
	 	 	68	 
	Section 1006. Reference in Notes to Supplemental Indentures
	 	 	68	 
	Section 1007. Effect of Consents
	 	 	68	 
	 
	 	 	 	 
	ARTICLE ELEVEN	 
	COVENANTS	 
	 
	 	 	 	 
	Section 1101. Payment of Principal, Premium and Interest
	 	 	68	 
	Section 1102. Maintenance of Office or Agency
	 	 	68	 
	Section 1103. Money for Notes Payments to Be Held in Trust
	 	 	69	 
	Section 1104. Annual Compliance Certificate; Statement by Officers as to Default
	 	 	70	 
	Section 1105. Existence
	 	 	70	 
	Section 1106. Reports
	 	 	70	 
	Section 1107. Payment of Taxes
	 	 	71	 
	Section 1108. [Reserved]
	 	 	71	 
	Section 1109. [Reserved]
	 	 	71	 
	Section 1110. Repurchase of Notes Upon a Change of Control
	 	 	71	 
	Section 1111. Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	73	 
	Section 1112. Restricted Payments
	 	 	76	 
	Section 1113. Limitation on Liens
	 	 	80	 
	Section 1114. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	81	 
	Section 1115. Asset Sales
	 	 	83	 
	Section 1116. Transactions with Affiliates
	 	 	86	 
	Section 1117. Subsidiary Guarantees
	 	 	88	 
	Section 1118. Designation of Restricted and Unrestricted Subsidiaries
	 	 	88	 
	Section 1119. Termination of Certain Covenants
	 	 	89	 
	 
	 	 	 	 
	ARTICLE TWELVE	 
	REDEMPTION OF NOTES	 
	 
	 	 	 	 
	Section 1201. Applicability of Article
	 	 	89	 
	Section 1202. Election to Redeem; Notice to Trustee
	 	 	89	 
	Section 1203. Optional Redemption
	 	 	89	 
	Section 1204. Selection by Trustee of Notes to Be Redeemed
	 	 	89	 
	Section 1205. Notice of Redemption
	 	 	90	 
	Section 1206. Deposit of Redemption Price
	 	 	91	 
	Section 1207. Notes Payable on Redemption Date
	 	 	91	 
	Section 1208. Notes Redeemed in Part
	 	 	91	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE THIRTEEN	 
	[INTENTIONALLY DELETED]	 
	 
	 	 	 	 
	ARTICLE FOURTEEN	 
	DEFEASANCE AND COVENANT DEFEASANCE	 
	 
	 	 	 	 
	Section 1401. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	91	 
	Section 1402. Defeasance and Discharge
	 	 	91	 
	Section 1403. Covenant Defeasance
	 	 	92	 
	Section 1404. Conditions to Defeasance or Covenant Defeasance
	 	 	92	 
	Section 1405. Deposited Money and Government Securities to Be Held in Trust;
Miscellaneous Provisions
	 	 	93	 
	Section 1406. Reinstatement
	 	 	94	 
	 
	 	 	 	 
	ARTICLE FIFTEEN	 
	[INTENTIONALLY DELETED]	 
	 
	 	 	 	 
	ARTICLE SIXTEEN	 
	SUBSIDIARY GUARANTEES	 
	 
	 	 	 	 
	Section 1601. Unconditional Guarantee
	 	 	94	 
	Section 1602. Execution and Delivery of Notation of Subsidiary Guarantee
	 	 	96	 
	Section 1603. Limitation on Subsidiary Guarantors’ Liability
	 	 	96	 
	Section 1604. Release of Subsidiary Guarantors from Guarantee
	 	 	96	 
	Section 1605. Subsidiary Guarantor Contribution
	 	 	97	 
	Section 1606. Subsidiary Guarantors May Consolidate, etc., on Certain Terms
	 	 	97	 
	 
	 	 	 	 
	ANNEX A	 
	 
	 	 	 	 
	FORM OF NOTE
	 	 	A-1	 
	 
	 	 	 	 
	ANNEX B	 
	 
	 	 	 	 
	NOTATION OF SUBSIDIARY GUARANTEE
	 	 	B-1	 
	 
	 	 	 	 
	ANNEX C	 
	 
	 	 	 	 
	FORM OF SUPPLEMENTAL INDENTURE
	 	 	C-1	 

iv

 

     THIS FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of November 10,
2011, is among OASIS PETROLEUM INC., a Delaware corporation (herein called the “Company”), having
its principal office in First City Tower, 1001 Fannin, Suite 1500, Houston, Texas 77002, and OASIS
PETROLEUM LLC, a Delaware limited liability company, OASIS PETROLEUM NORTH AMERICA LLC, a Delaware
limited liability company, OASIS PETROLEUM MARKETING LLC, a Delaware limited liability company, and
OASIS PETROLEUM WELL SERVICES LLC, a Delaware limited liability company (together, the “Subsidiary
Guarantors”), and U.S. Bank National Association, as Trustee (herein called the “Trustee”) under
the indenture, dated as of November 10, 2011, among the Company, the Subsidiary Guarantors and the
Trustee (the “Base Indenture” and, as amended and supplemented by this Supplemental Indenture in
respect of the Notes, the “Indenture”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

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

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

     Pursuant to Sections 201 and 301 of the Base Indenture, the Company desires to execute this
Supplemental Indenture to establish the form and terms, and to provide for the issuance, of a
series of senior notes designated as 6.5% Senior Notes due 2021 in an aggregate principal amount of
$400,000,000 (the “Initial Notes”).

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

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

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

     All things necessary have been done to make the Notes, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the
Company, and all things necessary have been done to make the Subsidiary Guarantees thereof, when
the Notes have been executed by the Company and authenticated and delivered hereunder and duly
issued by the Company, the valid obligations of the Subsidiary Guarantors. All things necessary to
make this Supplemental Indenture a valid agreement of each of the Company and the Subsidiary
Guarantors, in accordance with its terms, have been done.

 

 

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

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

ARTICLE ONE

APPLICATION OF SUPPLEMENTAL INDENTURE

AND CREATION OF THE INITIAL NOTES

Section 101. Application of This Supplemental Indenture.

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

Section 102. Effect of Supplemental Indenture.

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

	 	(a)	 	Definitions and Other Provisions of General Application. The definitions and
other provisions of general application set forth in Article One of the Base Indenture
are deleted and replaced in their entirety by the provisions of Article Two of this
Supplemental Indenture;

	 	(b)	 	Security Forms. Article Two of the Base Indenture is deleted and replaced in
its entirety by the provisions of Article Three of this Supplemental Indenture;

	 	(c)	 	The Securities. The provisions of Article Three of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article Four of this
Supplemental Indenture;

	 	(d)	 	Satisfaction and Discharge. The provisions of Article Four of the Base
Indenture are deleted and replaced in their entirety by the provisions of Article Five
of this Supplemental Indenture;

	 	(e)	 	Remedies. The provisions of Article Five of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Six of this Supplemental
Indenture;

	 	(f)	 	The Trustee. The provisions of Article Six of the Base Indenture are deleted
and replaced in their entirety by the provisions of Article Seven of this Supplemental
Indenture;

	 	(g)	 	Holders’ Lists and Reports by Trustee and Company. The provisions of Article
Seven of the Base Indenture are deleted and replaced in their entirety by Article Eight
of this Supplemental Indenture;

2

 

	 	(h)	 	Consolidation, Merger, Sale of Assets. The provisions of Article Eight of the
Base Indenture are deleted and replaced in their entirety by the provisions of Article
Nine of this Supplemental Indenture;

	 	(i)	 	Supplemental Indentures. The provisions of Article Nine of the Base Indenture
are deleted and replaced in their entirety by the provisions of Article Ten of this
Supplemental Indenture;

	 	(j)	 	Covenants. The provisions of Article Ten of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article Eleven of this Supplemental
Indenture;

	 	(k)	 	Redemption. The provisions of Article Eleven of the Base Indenture are deleted
and replaced in their entirety by the provisions of Article Twelve of this Supplemental
Indenture;

	 	(l)	 	Subsidiary Guarantee. The provisions of Article Thirteen of the Base Indenture
are deleted and replaced in their entirety by the provisions of Article Sixteen of this
Supplemental Indenture;

	 	(m)	 	Defeasance and Covenant Defeasance. The provisions of Article Fifteen of the
Base Indenture are deleted and replaced in their entirety by the provisions of Article
Fourteen of this Supplemental Indenture; and

	 	(n)	 	Sinking Fund. The provisions of Article Sixteen of the Base Indenture are
deleted in their entirety.

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

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

ARTICLE TWO

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 201. Definitions.

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

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

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

     (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP, and references to any Statement of Financial Accounting
Standards shall be deemed to include the successor statement or rule adopted by the
Financial Accounting Standards Board as part of its Accounting Standards Codification;

3

 

     (4) “or” is not exclusive;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions;

     (7) references to sections of or rules under the Securities Act will be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time;

     (8) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative definitions;

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

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

     Whenever this Supplemental Indenture refers to a provision of the Trust Indenture Act, the
provision is incorporated by reference in and made a part of this Supplemental Indenture. The
following Trust Indenture Act terms used in this Supplemental Indenture have the following
meanings:

     “indenture securities” means the Notes;

     “indenture security holder” means a Holder;

     “indenture to be qualified” means the Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes means the Company, any Subsidiary Guarantor or any other obligor
on the Securities.

     The following additional terms used in this Supplemental Indenture have the following
meanings:

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person, regardless of
whether such Indebtedness is incurred in connection with, or in contemplation of,
such other Person merging with or into, or becoming a Restricted Subsidiary of, such
specified Person, but excluding Indebtedness which is extinguished, retired or
repaid in connection with such Person merging with or becoming a Subsidiary of such
specified Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such
specified Person.

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

4

 

     “Additional Assets” means:

     (1) any property or assets (other than Indebtedness and Capital Stock) to be
used by the Company or a Restricted Subsidiary in a Related Business;

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

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

     (4) Capital Stock of any Restricted Subsidiary; provided that all the Capital
Stock of such Subsidiary held by the Company or any of its Restricted Subsidiaries
shall entitle the Company or such Restricted Subsidiary to not less than a pro rata
portion of all dividends or other distributions made by such Subsidiary upon any of
such Capital Stock;

provided, however, that in the case of clauses (2), (3) and (4), such Subsidiary is
primarily engaged in a Related Business.

     “Additional Notes” has the meaning indicated in the recitals to this Supplemental
Indenture.

     “Adjusted Consolidated Net Tangible Assets” means, with respect to any specified Person
or Persons (all of such specified Persons, whether one or more, being referred to in this
definition as the “Referent Person”), as of the date of determination (without duplication),
the remainder of:

     (1) the sum of:

     (a) discounted future net revenues from proved oil and gas reserves of
such Person and its Restricted Subsidiaries calculated in accordance with
SEC guidelines before any provincial, territorial, state, federal or foreign
income taxes, as estimated by the Company in a reserve report prepared as of
the end of the Company’s most recently completed fiscal year for which
audited financial statements are available and giving effect to applicable
Oil and Natural Gas Hedging Contracts, as increased by, as of the date of
determination, the estimated discounted future net revenues from:

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

     (ii) estimated oil and gas reserves attributable to upward
revisions of estimates of proved oil and gas reserves (including
previously estimated development costs incurred during the period and
the accretion of discount since the prior period end) since such year
end due to exploration, development, exploitation or other
activities;

5

 

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

     (iii) estimated proved oil and gas reserves reflected in such
reserve report produced or disposed of since such year end; and

     (iv) estimated oil and gas reserves attributable to downward
revisions of estimates of proved oil and gas reserves reflected in
such reserve report since such year end due to changes in geological
conditions or other factors that would, in accordance with standard
industry practice, cause such revisions, in each case described in
this clause (a) calculated in accordance with SEC guidelines and
estimated by the Company’s petroleum engineers or any independent
petroleum engineers engaged by the Company for that purpose;

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

     (c) the Net Working Capital of the Referent Person on a date no earlier
than the date of the Company’s latest annual or quarterly financial
statements; and

     (d) the greater of:

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

     (ii) the appraised value, as estimated by independent
appraisers, of other tangible assets of the Referent Person and its
Restricted Subsidiaries, as of a date no earlier than the date of the
Company’s latest audited financial statements (provided that the
Company shall not be required to obtain such appraisal solely for the
purpose of determining this value); minus

     (2) the sum of:

     (a) the net book value of any Capital Stock of a Restricted Subsidiary
of the Referent Person that is not owned by the Referent Person or another
Restricted Subsidiary of the Referent Person;

     (b) to the extent not otherwise taken into account in determining
Adjusted Consolidated Net Tangible Assets of the Referent Person, any net
gas-balancing liabilities of the Referent Person and its Restricted
Subsidiaries reflected in the Company’s latest audited financial statements;

     (c) to the extent included in (1)(a) above, the discounted future net
revenues, calculated in accordance with SEC guidelines (utilizing the prices

6

 

utilized in the Company’s year-end reserve report), attributable to
reserves that are required to be delivered by the Referent Person to third
parties to fully satisfy the obligations of the Referent Person and its
Restricted Subsidiaries with respect to Volumetric Production Payments
(determined, if applicable, using the schedules specified with respect
thereto); and

     (d) the discounted future net revenues, calculated in accordance with
SEC guidelines, attributable to reserves subject to Dollar-Denominated
Production Payments that, based on the estimates of production and price
assumptions included in determining the discounted future net revenues
specified in (1)(a) above, would be necessary to fully satisfy the payment
obligations of the Referent Person and its Subsidiaries with respect to
Dollar-Denominated Production Payments (determined, if applicable, using the
schedules specified with respect thereto).

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

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

     “Affiliate Transaction” has the meaning specified in Section 1116 of this Supplemental
Indenture.

     “Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any assets or rights
(including by way of a Production Payment or a sale and leaseback transaction);
provided that the sale, lease, conveyance or other disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries taken
as a whole will be governed by the provisions of Article Nine and/or Section 1110 of
this Supplemental Indenture and not by the provisions of the Asset Sale covenant set
forth in Section 1115 of this Supplemental Indenture; and

     (2) the issuance of Equity Interests in any of the Company’s Restricted
Subsidiaries (other than directors’ qualifying shares) or the sale of Equity
Interests held by the Company or its Subsidiaries in any of its Subsidiaries.

     Notwithstanding the preceding, none of the following items will be deemed to be an
Asset Sale:

     (1) any single transaction or series of related transactions that involves
assets having a Fair Market Value of less than $10.0 million;

7

 

     (2) a transfer of assets between or among the Company and its Restricted
Subsidiaries;

     (3) an issuance of Equity Interests by a Restricted Subsidiary to the Company
or to a Restricted Subsidiary;

     (4) the sale, lease or other disposition of equipment, inventory, products,
services, accounts receivable or other assets in the ordinary course of business,
including in connection with any compromise, settlement or collection of accounts
receivable, and any sale or other disposition of damaged, worn-out or obsolete
assets or assets that are no longer useful in the conduct of the business of the
Company and its Restricted Subsidiaries;

     (5) the sale or other disposition of cash or Cash Equivalents;

     (6) a Restricted Payment that does not violate Section 1112 of this
Supplemental Indenture, including the issuance or sale of Equity Interests or the
sale, lease or other disposition of products, services, equipment, inventory,
accounts receivable or other assets pursuant to any such Restricted Payment;

     (7) the consummation of a Permitted Investment, including, without limitation,
unwinding any Hedging Obligations, and including the issuance or sale of Equity
Interests or the sale, lease or other disposition of products, services, equipment,
inventory, accounts receivable or other assets pursuant to any such Permitted
Investment;

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

     (9) the farm-out, lease or sublease of developed or undeveloped crude oil or
natural gas properties owned or held by the Company or any Restricted Subsidiary in
exchange for crude oil and natural gas properties owned or held by another Person;

     (10) the creation or perfection of a Lien (but not, except as contemplated in
clause (11) below, the sale or other disposition of the properties or assets subject
to such Lien);

     (11) the creation or perfection of a Permitted Lien and the exercise by any
Person in whose favor a Permitted Lien is granted of any of its rights in respect of
that Permitted Lien;

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

     (13) surrender or waiver of contract rights or the settlement, release or
surrender of contract, tort or other claims of any kind;

     (14) any Production Payments and Reserve Sales; provided that all such
Production Payments and Reserve Sales (other than incentive compensation programs on
terms that are reasonably customary in the oil and gas business for geologists,
geophysicists and other providers of technical services to the Company or a
Restricted Subsidiary) shall have been created, incurred, issued, assumed or
Guaranteed in

8

 

connection with the financing of, and within 60 days after the acquisition of,
the oil and gas properties that are subject thereto;

     (15) the sale or other disposition (regardless of whether in the ordinary
course of business) of oil and gas properties; provided that, at the time of such
sale or other disposition, such properties do not have attributed to them any proved
reserves; and

     (16) any trade or exchange by the Company or any Restricted Subsidiary of
properties or assets used or useful in a Related Business for other properties or
assets used or useful in a Related Business owned or held by another Person
(including Capital Stock of a Person engaged in a Related Business that is or
becomes a Restricted Subsidiary), including any cash or Cash Equivalents necessary
in order to achieve and exchange equivalent value, provided that the Fair Market
Value of the properties or assets traded or exchanged by the Company or such
Restricted Subsidiary (including any cash or Cash Equivalents to be delivered by the
Company or such Restricted Subsidiary) is reasonably equivalent to the Fair Market
Value of the properties or assets (together with any cash or Cash Equivalents) to be
received by the Company or such Restricted Subsidiary, and provided, further, that
any cash received in the transaction must be applied in accordance with Section 1115
as if such transaction were an Asset Sale.

     “Asset Sale Offer” has the meaning set forth in Section 1115 of this Supplemental
Indenture.

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

     “Bankruptcy Law” means any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law.

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

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

     “Board of Directors” means:

     (1) with respect to a corporation, the board of directors of the corporation or
any committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the board of directors of the general
partner of the partnership;

     (3) with respect to a limited liability company, the managers or managing
member or members of such limited liability company (as applicable) or any duly
authorized committee of managers or managing members (as applicable) thereof; and

9

 

     (4) with respect to any other Person, the board of directors or duly authorized
committee of such Person serving a similar function.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company or a Subsidiary Guarantor, the principal financial
officer of the Company or a Subsidiary Guarantor, any other authorized officer of the
Company or a Subsidiary Guarantor, or a person duly authorized by any of them, in each case
as applicable, to have been duly adopted by the Board of Directors and to be in full force
and effect on the date of such certification, and delivered to the Trustee. Where any
provision of the Indenture refers to action to be taken pursuant to a Board Resolution, such
action may be taken by any committee, officer or employee of the Company or a Subsidiary
Guarantor, as applicable, authorized to take such action by the Board of Directors as
evidenced by a Board Resolution.

     “Business Day” means any day other than a Legal Holiday.

     “Calculation Date” has the meaning set forth below in the definition of “Fixed Charge
Coverage Ratio.”

     “Capital Lease Obligation” means, at the time any determination is to be made, the
amount of the liability in respect of a capital lease that would at that time be required to
be capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity thereof
shall be the date of the last payment of rent or any other amount due under such lease prior
to the first date upon which such lease may be prepaid by the lessee without payment of a
penalty.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock;

     (3) in the case of a partnership or limited liability company, partnership
interests (whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the
issuing Person, but excluding from all of the foregoing any debt securities
convertible into Capital Stock, regardless of whether such debt securities include
any right of participation with Capital Stock.

     “Cash Equivalents” means:

     (1) United States dollars;

     (2) Government Securities having maturities of not more than one year from the
date of acquisition;

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

10

 

     (4) certificates of deposit, demand deposit accounts and eurodollar time
deposits with maturities of one year or less from the date of acquisition, bankers’
acceptances with maturities not exceeding one year and overnight bank deposits, in
each case, with any domestic commercial bank having capital and surplus in excess of
$500.0 million and a Thomson Bank Watch Rating of “B” or better;

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

     (6) commercial paper having one of the two highest ratings obtainable from
Moody’s or S&P and, in each case, maturing within one year after the date of
acquisition;

     (7) money market funds at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (1) through (6) of this definition;
and

     (8) deposits in any currency available for withdrawal on demand with any
commercial bank that is organized under the laws of any country in which the Company
or any Restricted Subsidiary maintains its chief executive office or is engaged in
the Related Business; provided that all such deposits are made in such accounts in
the ordinary course of business.

     “Change of Control” means:

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

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

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

     (4) the adoption or approval by the stockholders of the Company of a plan for
the liquidation or dissolution of the Company.

     “Change of Control Offer” has the meaning set forth in Section 1110 of this
Supplemental Indenture.

     “Change of Control Payment” has the meaning set forth in Section 1110 of this
Supplemental Indenture.

11

 

     “Change of Control Payment Date” has the meaning set forth in Section 1110 of
this Supplemental Indenture.

     “CINS” means CUSIP International Numbering System.

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

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

     “Company Request” or “Company Order” means, in the case of the Company, a written
request or order signed in the name of the Company by its Chairman of the Board, its Chief
Executive Officer, its President, any of its Vice Presidents or any other duly authorized
officer of the Company or any person duly authorized by any of them, and delivered to the
Trustee and, in the case of a Guarantor, a written request or order signed in the name of
such Guarantor by its Chairman of the Board, its Chief Executive Officer, its President, any
of its Vice Presidents or any other duly authorized officer of such Guarantor or any person
duly authorized by any of them, and delivered to the Trustee.

     “Consolidated Cash Flow” means, with respect to any specified Person for any period,
the Consolidated Net Income of such Person for such period plus, without duplication:

     (1) provision for taxes based on income or profits of such Person and its
Restricted Subsidiaries for such period, to the extent that such provision for taxes
was deducted in computing such Consolidated Net Income; plus

     (2) the Fixed Charges of such Person and its Restricted Subsidiaries for such
period, to the extent that such Fixed Charges were deducted in computing such
Consolidated Net Income; plus

     (3) exploration and abandonment expense (if applicable) to the extent deducted
in calculating Consolidated Net Income; plus

     (4) depreciation, depletion, amortization (including amortization of
intangibles but excluding amortization of prepaid cash expenses that were paid in a
prior period), impairment, other non-cash expenses and other non-cash items
(excluding any such non-cash expense to the extent that it represents an accrual of
or reserve for cash expenses in any future period or amortization of a prepaid cash
expense that was paid in a prior period) of such Person and its Restricted
Subsidiaries for such period to the extent that such depreciation, depletion,
amortization, impairment and other non-cash expenses were deducted in computing such
Consolidated Net Income; plus

     (5) any interest expense attributable to any Oil and Natural Gas Hedging
Contract, to the extent that such interest expense was deducted in computing such
Consolidated Net Income; minus

     (6) non-cash items increasing such Consolidated Net Income for such period,
other than items that were accrued in the ordinary course of business; and minus

12

 

     (7) the sum of (a) the amount of deferred revenues that are amortized during
such period and are attributable to reserves that are subject to Volumetric
Production Payments and (b) amounts recorded in accordance with GAAP as repayments
of principal and interest pursuant to Dollar-Denominated Production Payments;

     in each case, on a consolidated basis and determined in accordance with GAAP.

     Notwithstanding the preceding sentence, clauses (1) through (5) relating to amounts of
a Restricted Subsidiary of the referent Person will be added to Consolidated Net Income to
compute Consolidated Cash Flow of such Person only to the extent (and in the same
proportion) that the Net Income of such Restricted Subsidiary was included in calculating
the Consolidated Net Income of such Person and, to the extent the amounts set forth in
clauses (1) through (5) are in excess of those necessary to offset a net loss of such
Restricted Subsidiary or if such Restricted Subsidiary has net income for such period
included in Consolidated Net Income, only if a corresponding amount would be permitted at
the date of determination to be dividended to the referent Person by such Restricted
Subsidiary without prior governmental approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes,
rules and governmental regulations applicable to that Restricted Subsidiary or the holders
of its Capital Stock.

     “Consolidated Net Income” means, with respect to any specified Person for any period,
the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such
period, on a consolidated basis, determined in accordance with GAAP; provided that:

     (1) the Net Income (but not loss) of any Person that is not a Restricted
Subsidiary or that is accounted for by the equity method of accounting will be
included only to the extent of the amount of dividends or similar distributions paid
in cash to the specified Person or a Restricted Subsidiary of the Person;

     (2) the Net Income of any Restricted Subsidiary will be excluded to the extent
that the declaration or payment of dividends or similar distributions by that
Restricted Subsidiary of that Net Income is not at the date of determination
permitted without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Restricted Subsidiary or its stockholders, members or partners;

     (3) the cumulative effect of a change in accounting principles will be
excluded;

     (4) any gain (loss) realized upon the sale or other disposition of any
property, plant or equipment of such Person or its consolidated Restricted
Subsidiaries (including pursuant to any sale or leaseback transaction) that is not
sold or otherwise disposed of in the ordinary course of business and any gain (loss)
realized upon the sale or other disposition of any Capital Stock of any Person will
be excluded;

     (5) any asset impairment writedowns on oil and gas properties under GAAP or SEC
guidelines will be excluded;

     (6) any non-cash mark-to-market adjustments to assets or liabilities resulting
in unrealized gains or losses in respect of Hedging Obligations (including those
resulting from the application of SFAS 133) shall be excluded; and

13

 

     (7) to the extent deducted in the calculation of Net Income, any non-cash or
other charges associated with any premium or penalty paid, write-off of deferred
financing costs or other financial recapitalization charges in connection with
redeeming or retiring any Indebtedness will be excluded.

     “Consolidated Tangible Assets” means, with respect to any Person as of any date, the
amount which, in accordance with GAAP, would be set forth under the caption “Total Assets”
(or any like caption) on a consolidated balance sheet of such Person and its Restricted
Subsidiaries, less all goodwill, patents, tradenames, trademarks, copyrights, franchises,
experimental expenses, organization expenses and any other amounts classified as intangible
assets in accordance with GAAP.

     “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors of the Company who:

     (1) was a member of such Board of Directors on the Issue Date; or

     (2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

     “Corporate Trust Office” means the office of the Trustee at which at any particular
time its corporate trust business in relation to the Indenture shall be principally
administered, which office at the date of the execution of this instrument is located at
5555 San Felipe, Suite 1150, Houston, Texas 77056, Attention: Corporate Trust Services, or
such other address as the Trustee may designate from time to time by notice to the Company,
or the principal corporate trust office of any successor Trustee (or such other address as
such successor Trustee may designate from time to time by notice to the Company).

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

     “Credit Facilities” means, with respect to the Company or any of its Restricted
Subsidiaries, one or more debt facilities (including, without limitation, the Senior Credit
Agreement), commercial paper facilities or Debt Issuances providing for revolving credit
loans, term loans, receivables financing (including through the sale of receivables to any
lenders, other financiers or to special purpose entities formed to borrow from (or sell such
receivables to) any lenders or other financiers against such receivables), letters of
credit, bankers’ acceptances, other borrowings or Debt Issuances, in each case, as amended,
restated, modified, renewed, extended, refunded, replaced or refinanced (in each case,
without limitation as to amount), in whole or in part, from time to time (including through
one or more Debt Issuances).

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

14

 

     “CUSIP” means the Committee on Uniform Securities Identification Procedures.

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

     “Debt Issuances” means, with respect to the Company or any Restricted Subsidiary, one
or more issuances after the Issue Date of Indebtedness evidenced by notes, debentures, bonds
or other similar securities or instruments.

     “De Minimis Amount” means a principal amount of Indebtedness that does not exceed $1.0
million.

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

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

     “Defeasance” has the meaning specified in Section 1402.

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

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event, matures or
is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder of the Capital Stock, in whole or in part, on or prior to the
date that is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock solely
because the holders of the Capital Stock have the right to require the Company to repurchase
or redeem such Capital Stock upon the occurrence of a Change of Control or an Asset Sale
will not constitute Disqualified Stock if the terms of such Capital Stock provide that the
Company may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 1112 of this Supplemental
Indenture. The amount of Disqualified Stock deemed to be outstanding at any time for
purposes of the Indenture will be the maximum amount that the Company and its Restricted
Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.

     “Dollar” or “$” means the coin or currency of the United States of America, which at
the time of payment is legal tender for the payment of public and private debts.

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

     “Domestic Restricted Subsidiary” means any Restricted Subsidiary that was formed under
the laws of the United States or any state of the United States or the District of Columbia
or that Guarantees or otherwise provides direct credit support for any Indebtedness of the
Company or any Restricted Subsidiary (other than a Foreign Subsidiary).

15

 

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

     “Equity Offering” means (1) an offering for cash by the Company of its Capital Stock
(other than Disqualified Stock), or options, warrants or rights with respect to its Capital
Stock or (2) a cash contribution to the Company’s common equity capital from any Person.

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

     “Excess Proceeds” has the meaning specified in Section 1115 of this Supplemental
Indenture.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries (other
than Indebtedness under the Senior Credit Agreement, the Notes and the Subsidiary
Guarantees) in existence on the Issue Date, until such amounts are repaid.

     “Expiration Date” has the meaning specified in Section 204 of this Supplemental
Indenture.

     “Fair Market Value” means the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or necessity of either
party. Fair Market Value of an asset or property in excess of $10.0 million shall be
determined by the Board of Directors of the Company acting in good faith, whose
determination shall be conclusive and evidenced by a resolution of such Board of Directors,
and any lesser Fair Market Value may be determined by an officer of the Company acting in
good faith.

     “Farm-In Agreement” means an agreement whereby a Person agrees to pay all or a share of
the drilling, completion or other expenses of an exploratory or development well (which
agreement may be subject to a maximum payment obligation, after which expenses are shared in
accordance with the working or participation interests therein or in accordance with the
agreement of the parties) or perform the drilling, completion or other operation on such
well in exchange for an ownership interest in an oil or gas property.

     “Farm-Out Agreement” means a Farm-In Agreement, viewed from the standpoint of the party
that transfers an ownership interest to another.

     “Fixed Charge Coverage Ratio” means with respect to any specified Person for any
four-quarter reference period, the ratio of the Consolidated Cash Flow of such Person for
such period to the Fixed Charges of such Person for such period. In the event that the
specified Person or any of its Restricted Subsidiaries incurs, assumes, Guarantees, repays,
repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary
working capital borrowings) or issues, repurchases or redeems preferred stock subsequent to
the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated
and on or prior to the date on which the event for which the calculation of the Fixed Charge
Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will
be calculated giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the

16

 

use of the proceeds therefrom, as if the same had occurred at the beginning of the
applicable four-quarter reference period.

In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) acquisitions that have been made by the specified Person or any of its
Restricted Subsidiaries, including through mergers, consolidations or otherwise
(including acquisitions of assets used or useful in a Related Business), or any
Person or any of its Restricted Subsidiaries acquired by the specified Person or any
of its Restricted Subsidiaries, and including in each case any related financing
transactions and increases in ownership of Restricted Subsidiaries, during the
four-quarter reference period or subsequent to such reference period and on or prior
to the Calculation Date will be given pro forma effect as if they had occurred on
the first day of the four-quarter reference period, and any Consolidated Cash Flow
for such period will be calculated giving pro forma effect to any operating
improvements or cost savings that have occurred or are reasonably expected to occur
in the reasonable judgment of the principal accounting officer or Chief Financial
Officer of the Company (regardless of whether those operating improvements or cost
savings could then be reflected in pro forma financial statements prepared in
accordance with Regulation S-X under the Securities Act or any other regulation or
policy of the SEC related thereto);

     (2) the Consolidated Cash Flow attributable to discontinued operations, as
determined in accordance with GAAP, and operations or businesses (and ownership
interests therein) disposed of prior to the Calculation Date, will be excluded;

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the extent
that the obligations giving rise to such Fixed Charges will not be obligations of
the specified Person or any of its Restricted Subsidiaries following the Calculation
Date;

     (4) any Person that is a Restricted Subsidiary on the Calculation Date will be
deemed to have been a Restricted Subsidiary at all times during such four-quarter
period;

     (5) any Person that is not a Restricted Subsidiary on the Calculation Date will
be deemed not to have been a Restricted Subsidiary at any time during such
four-quarter period; and

     (6) if any Indebtedness bears a floating rate of interest, the interest expense
on such Indebtedness will be calculated as if the rate in effect on the Calculation
Date had been the applicable rate for the entire period (taking into account any
Hedging Obligation applicable to such Indebtedness, but if the remaining term of
such Hedging Obligation is less than 12 months, then such Hedging Obligation shall
only be taken into account for that portion of the period equal to the remaining
term thereof).

     “Fixed Charges” means, with respect to any specified Person for any period, the sum,
without duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (excluding (i) any interest
attributable to Production Payments and Reserve Sales, (ii) write-off of deferred
financing costs and (iii) accretion of interest charges on future plugging and
abandonment

17

 

obligations, future retirement benefits and other obligations that do not
constitute Indebtedness, but including, without limitation, amortization of debt
issuance costs and original issue discount, noncash interest payments, the interest
component of any deferred payment obligations other than that attributable to any
Oil and Natural Gas Hedging Contract, the interest component of all payments
associated with Capital Lease Obligations, commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers’ acceptance financings),
and net of the effect of all payments made or received pursuant to Interest Rate
Agreements; plus

     (2) the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period; plus

     (3) any interest on Indebtedness of another Person that is Guaranteed by the
specified Person or one or more of its Restricted Subsidiaries or secured by a Lien
on assets of such specified Person or one or more of its Restricted Subsidiaries,
regardless of whether such Guarantee or Lien is called upon; plus

     (4) all dividends, whether paid or accrued and regardless of whether in cash,
on any series of preferred stock of such Person or any of its Restricted
Subsidiaries, other than dividends on Equity Interests payable solely in Equity
Interests of the Company (other than Disqualified Stock) or to the Company or a
Restricted Subsidiary,

in each case, on a consolidated basis and determined in accordance with GAAP.

     “Foreign Subsidiary” means any Restricted Subsidiary other than a Domestic Restricted
Subsidiary.

     “Funding Guarantor” has the meaning specified in Section 1605 of this Supplemental
Indenture.

     “GAAP” means generally accepted accounting principles in the United States, which are
in effect from time to time. All ratios and computations based on GAAP contained in the
Indenture will be computed in conformity with GAAP. At any time after the Issue Date, the
Company may elect to apply International Financial Reporting Standards (“IFRS”), accounting
principles in lieu of GAAP and, upon any such election, references herein to GAAP shall
thereafter be construed to mean IFRS (except as otherwise provided in the Indenture);
provided that any such election, once made, shall be irrevocable; provided, further, that
any calculation or determination in the Indenture that requires the application of GAAP for
periods that include fiscal quarters ended prior to the Company’s election to apply IFRS
shall remain as previously calculated or determined in accordance with GAAP. The Company
shall give notice of any such election made in accordance with this definition to the
Trustee and the Holders of the Notes.

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

     “Government Securities” means direct obligations of, or obligations Guaranteed by, the
United States of America, and the payment for which the United States pledges its full faith
and credit.

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including,
without limitation, by way of a pledge of assets or through letters of credit or
reimbursement agreements

18

 

in respect thereof, of all or any part of any Indebtedness (whether arising by virtue
of partnership arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services or to take or pay or to maintain financial statement conditions or
otherwise), or entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part). “Guarantee” used as a verb has a correlative meaning.

     “Hedging Obligations” of any Person means the obligations of such Person pursuant to
any Interest Rate and Currency Hedges and any Oil and Natural Gas Hedging Contracts.

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

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

     “Indebtedness” means, with respect to any specified Person, without duplication, any
indebtedness of such Person, regardless of whether contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, credit agreements, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect thereof);

     (3) in respect of bankers’ acceptances;

     (4) representing Capital Lease Obligations;

     (5) in respect of any Guarantee by such Person of production or payment with
respect to a Production Payment (but not any other contractual obligation in respect
of such Production Payment);

     (6) representing the balance deferred and unpaid of the purchase price of any
property or services due more than six months after such property is acquired or
such services are completed, except any such balance that constitutes an accrued
expense or a trade payable; or

     (7) representing any Interest Rate and Currency Hedges,

if and to the extent any of the preceding items (other than letters of credit and Interest
Rate and Currency Hedges) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes (a)
all Indebtedness of any other Person, of the types described in clauses (1) through (7)
above, secured by a Lien on any asset of the specified Person (regardless of whether such
Indebtedness is assumed by the specified Person), provided that the amount of such
Indebtedness will be the lesser of (i) the Fair Market Value of such asset at such date of
determination and (ii) the amount of such Indebtedness of such other Person, and (b) to the
extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of
any other Person, of the types described above in clauses (1) through (7) above.
Furthermore, the amount of any Indebtedness outstanding as of any date will be the accreted
value thereof, in the case of any Indebtedness issued with

19

 

original issue discount; and the principal amount thereof, together with any interest
thereon that is more than 30 days past due, in the case of any other Indebtedness.

     Notwithstanding the foregoing, the following shall not constitute “Indebtedness”:

     (1) accrued expenses and trade accounts payable arising in the ordinary course
of business;

     (2) except as provided in clause (5) of the first paragraph of this definition,
any obligation in respect of any Production Payment and Reserve Sales;

     (3) any obligation in respect of any Farm-In Agreement;

     (4) any indebtedness which has been defeased in accordance with GAAP or
defeased pursuant to the deposit of cash or Government Securities (in an amount
sufficient to satisfy all such indebtedness obligations at maturity or redemption,
as applicable, and all payments of interest and premium, if any) in a trust or
account created or pledged for the sole benefit of the holders of such indebtedness,
and subject to no other Liens, and the other applicable terms of the instrument
governing such indebtedness;

     (5) oil or natural gas balancing liabilities incurred in the ordinary course of
business and consistent with past practice;

     (6) any obligation in respect of any Oil and Natural Gas Hedging Contract;

     (7) any unrealized losses or charges in respect of Hedging Obligations
(including those resulting from the application of the Financial Standards
Accounting Board’s Accounting Standards Codification (ASC) 815);

     (8) any obligations in respect of (a) bid, performance, completion, surety,
appeal and similar bonds, (b) obligations in respect of bankers acceptances, (c)
insurance obligations or bonds and other similar bonds and obligations and (d) any
Guaranties or letters of credit functioning as or supporting any of the foregoing
bonds or obligations; provided, however, that such bonds or obligations mentioned in
subclause (a), (b), (c) or (d) of this clause (viii), are incurred in the ordinary
course of the business of the Company and its Restricted Subsidiaries and do not
relate to obligations for borrowed money;

     (9) any Disqualified Stock of the Company or preferred stock of a Restricted
Subsidiary;

     (10) any obligation arising from any agreement providing for indemnities,
guarantees, purchase price adjustments, holdbacks, contingency payment obligations
based on the performance of the acquired or disposed assets or similar obligations
(other than Guarantees of Indebtedness) incurred by any Person in connection with
the acquisition or disposition of assets; and

     (11) all contracts and other obligations, agreements instruments or
arrangements described in clauses (20), (21), (22) and (23) of the definition of
“Permitted Liens.”

20

 

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

     “Initial Lien” has the meaning specified in Section 1113 of this Supplemental
Indenture.

     “Initial Notes” has the meaning specified in the recitals to this Supplemental
Indenture.

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

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

     “Interest Rate and Currency Hedges” of any Person means the obligations of such Person
pursuant to any Interest Rate Agreement or Currency Agreement.

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

     (1) Baa3 (or the equivalent) by Moody’s; or

     (2) BBB- (or the equivalent) by S&P,

or, if either such entity ceases to rate the Notes for reasons outside of the control of the
Company, the equivalent investment grade credit rating from any other Rating Agency.

     “Investment Grade Rating Event” means the first day on which (a) the Notes have an
Investment Grade Rating from at least two Rating Agencies, (b) no Default with respect to
the Notes has occurred and is then continuing under the Indenture and (c) the Company has
delivered to the Trustee an Officers’ Certificate certifying as to the satisfaction of the
conditions set forth in clauses (a) and (b) of this definition.

     “Investments” means, with respect to any Person, all direct or indirect investments by
such Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations, advances or capital contributions (excluding endorsements
of negotiable instruments and documents in the ordinary course of business, and commission,
travel and similar advances to officers, employees and consultants made in the ordinary
course of business), purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that are or would be
classified as investments on a balance sheet of such Person prepared in accordance with
GAAP. If the Company or any Restricted Subsidiary sells or otherwise disposes of any Equity
Interests of any direct or indirect Restricted Subsidiary such that, after giving effect to
any such sale or disposition, such Person is no longer a Restricted Subsidiary, the Company
will be deemed to have made an Investment on the date of any such sale or disposition equal
to the Fair Market Value of the Company’s Investments in such Restricted Subsidiary that
were not sold or disposed of in an amount determined as provided in the final paragraph of
Section 1112 of this Supplemental Indenture. The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third Person will be
deemed to be an Investment by the Company or such Subsidiary in such third Person in an
amount equal to the Fair Market Value of the Investments held by the acquired Person in such
third Person in an amount determined as provided in the final paragraph of Section 1112 of
this

21

 

Supplemental Indenture. Except as otherwise provided in the Indenture, the amount of
an Investment will be determined at the time the Investment is made and without giving
effect to subsequent changes in value.

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

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in
the City of New York or at a place of payment are authorized by law, regulation or executive
order to remain closed.

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

     “Material Domestic Subsidiary” means any Domestic Restricted Subsidiary having
Consolidated Tangible Assets that constitute more than 0.5% of the Company’s Consolidated
Tangible Assets.

     “Maturity,” when used with respect to any Security, means the date on which the
principal of such Security or an installment of principal becomes due and payable as therein
or herein provided, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise.

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

     “Net Income” means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of non-cash
preferred stock dividends, excluding, however:

     (1) any gain or loss, together with any related provision for taxes on such
gain or loss, realized in connection with: (a) any Asset Sale (including, without
limitation, any cash received pursuant to any sale and leaseback transaction) or (b)
the disposition of any securities by such Person or the extinguishment of any
Indebtedness of such Person; and

     (2) any extraordinary gain or loss, together with any related provision for
taxes on such extraordinary gain or loss.

     “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any
cash received upon the sale or other disposition of any non-cash consideration received in
any Asset Sale), net of:

     (1) all legal, accounting, investment banking, title and recording tax
expenses, commissions and other fees and expense incurred, and all federal, state,
provincial, foreign and local taxes required to be paid or accrued as a liability
under

22

 

GAAP (after taking into account any available tax credits or deductions and any
tax sharing agreements), as a consequence of such Asset Sale;

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

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

     (4) the deduction of appropriate amounts to be provided by the seller as a
reserve, in accordance with GAAP, or held in escrow, in either case for adjustment
in respect of the sale price or for any liabilities associated with the assets
disposed of in such Asset Sale and retained by the Company or any Restricted
Subsidiary after such Asset Sale.

     “Net Working Capital” means (1) all current assets of the Company and its Restricted
Subsidiaries except current assets from Oil and Natural Gas Hedging Contracts, less (2) all
current liabilities of the Company and its Restricted Subsidiaries, except (a) current
liabilities included in Indebtedness, (b) current liabilities associated with asset
retirement obligations relating to oil and gas properties and (c) any current liabilities
from Oil and Natural Gas Hedging Contracts, in each case as set forth in the consolidated
financial statements of the Company prepared in accordance with GAAP (excluding any
adjustments made pursuant to the Financial Standards Accounting Board’s Accounting Standards
Codification (ASC) 815).

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither the Company nor any Restricted Subsidiary (a) provides
any Guarantee or credit support of any kind (including any undertaking, Guarantee,
indemnity, agreement or instrument that would constitute Indebtedness) or (b) is
directly or indirectly liable (as a guarantor or otherwise), in each case other than
Liens on and pledges of the Equity Interests of any Unrestricted Subsidiary or any
joint venture owned by the Company or any Restricted Subsidiary to the extent
securing otherwise Non-Recourse Debt of such Unrestricted Subsidiary or joint
venture;

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

     (3) the explicit terms of which provide there is no recourse against any of the
assets of the Company or its Restricted Subsidiaries, except for any Equity
Interests referred to in clause (1) of this definition.

     “Notes” has the meaning specified in the recitals of this Supplemental Indenture.

     “Notice of Default” means a written notice of the kind specified in Section 601(4) or
(5).

23

 

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness, as set forth in Section 1601 of this Supplemental Indenture.

     “Offer Amount” has the meaning set forth in Section 1110 of this Supplemental
Indenture.

     “Offer Period” has the meaning set forth in Section 1110 of this Supplemental
Indenture.

     “Officer” means, in the case of the Company, the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer (or, in the absence of any
Chief Financial Officer, the principal financial officer), any Vice President, the Treasurer
or the Secretary of the Company and, in the case of any Subsidiary Guarantor, the Chairman
of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, (or,
in the absence of any Chief Financial Officer, the principal financial officer), any Vice
President, the Treasurer or the Secretary of such Subsidiary Guarantor.

     “Officers’ Certificate” means, in the case of the Company, a certificate signed by two
Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company and, in the case of any Guarantor, a certificate signed by two Officers or by an
Officer and either an Assistant Treasurer or an Assistant Secretary of such Guarantor.

     “Oil and Natural Gas Hedging Contract” means any Hydrocarbon hedging agreements and
other agreements or arrangements entered into in the ordinary course of business in the oil
and gas industry for the purpose of protecting against fluctuations in Hydrocarbon prices.

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

     “OPNA” means Oasis Petroleum North America LLC, a Delaware limited liability company
and a Subsidiary of the Company.

     “Original Issue Discount Security” means any Security which provides for an amount less
than the principal amount thereof to be due and payable upon a declaration of acceleration
of the Maturity thereof.

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

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

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

24

 

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

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

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

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

     “Payment Default” has the meaning specified in Section 601(6)(a) of this Supplemental
Indenture.

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

     (1) a Subsidiary prior to the date on which such Subsidiary became a Restricted
Subsidiary; or

     (2) a Person that was merged or consolidated into the Company or a Restricted
Subsidiary;

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

     (a) the Restricted Subsidiary or the Company, as applicable, would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in the first paragraph of Section
1111 of this Supplemental Indenture, or

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

     “Permitted Business Investments” means Investments and expenditures made in the
ordinary course of, and of a nature that is or shall have become customary in, a Related
Business

25

 

as means of actively exploiting, exploring for, acquiring, developing, processing,
gathering, marketing or transporting oil, natural gas, other Hydrocarbons and minerals
(including with respect to plugging and abandonment) through agreements, transactions,
interests or arrangements that permit one to share risks or costs of such activities or
comply with regulatory requirements regarding local ownership, including without limitation:

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

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

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

     “Permitted Debt” has the meaning specified in Section 1111, clauses (5) and (7) of this
Supplemental Indenture.

     “Permitted Investments” means:

     (1) any Investment in the Company or in a Restricted Subsidiary;

     (2) any Investment in Cash Equivalents;

     (3) any Investment by the Company or any Restricted Subsidiary in a Person, if
as a result of such Investment:

     (a) such Person becomes a Restricted Subsidiary; or

     (b) such Person is merged or consolidated with or into, or transfers or
conveys substantially all of its properties or assets to, or is liquidated
into, the Company or a Restricted Subsidiary;

     (4) any Investment made as a result of the receipt of non-cash consideration
from an Asset Sale that was made pursuant to and in compliance with Section 1115 of
this Supplemental Indenture;

     (5) any Investments received in compromise or resolution of (a) obligations of
trade creditors or customers that were incurred in the ordinary course of business
of the Company or any of its Restricted Subsidiaries, including pursuant to any plan
of reorganization or similar arrangement upon the bankruptcy or insolvency of any
trade creditor or customer, or (b) litigation, arbitration or other disputes with
Persons who are not Affiliates;

26

 

     (6) Investments represented by Hedging Obligations;

     (7) advances to or reimbursements of employees for moving, entertainment and
travel expenses, drawing accounts and similar expenditures in the ordinary course of
business, in each case to the extent they constitute Investments;

     (8) loans or advances to employees in the ordinary course of business or
consistent with past practice, in each case to the extent they constitute
Investments;

     (9) advances and prepayments for asset purchases in the ordinary course of
business in a Related Business of the Company or any of its Restricted Subsidiaries;

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

     (11) surety and performance bonds and workers’ compensation, utility, lease,
tax, performance and similar deposits and prepaid expenses in the ordinary course of
business;

     (12) guarantees by the Company or any of its Restricted Subsidiaries of
operating leases (other than Capital Lease Obligations) or of other obligations that
do not constitute Indebtedness, in each case entered into by the Company or any such
Restricted Subsidiary in the ordinary course of business;

     (13) Investments of a Restricted Subsidiary acquired after the Issue Date or of
any entity merged into the Company or merged into or consolidated with a Restricted
Subsidiary in accordance with Article Nine or Section 1604 (as applicable) of this
Supplemental Indenture to the extent that such Investments were not made in
contemplation of or in connection with such acquisition, merger or consolidation and
were in existence on the date of such acquisition, merger or consolidation;

     (14) Permitted Business Investments;

     (15) Investments received as a result of a foreclosure by the Company or any of
its Restricted Subsidiaries with respect to any secured Investment in default;

     (16) Investments in any units of any oil and gas royalty trust;

     (17) Investments existing on the Issue Date, and any extension, modification or
renewal of any such Investments existing on the Issue Date, but only to the extent
not involving additional advances, contributions or other Investments of cash or
other assets or other increases of such Investments (other than as a result of the
accrual or accretion of interest or original issue discount or the issuance of
pay-in-kind securities, in each case, pursuant to the terms of such Investments as
in effect on the Issue Date);

     (18) repurchases of or other Investments in the Notes; and

     (19) other Investments in any Person having an aggregate Fair Market Value
(measured on the date each such Investment was made and without giving effect to

27

 

subsequent changes in value), when taken together with all other Investments
made pursuant to this clause (19) that are at the time outstanding not to exceed the
greater of (a) 3.0% of Adjusted Consolidated Net Tangible Assets or (b) $20.0
million.

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

     (1) Liens securing Indebtedness incurred under Credit Facilities pursuant to
clause (1) of the second paragraph of Section 1111 of this Supplemental Indenture;
provided that the aggregate amount of such indebtedness does not exceed the
aggregate amount that would be allowed under clause (1) of the second paragraph of
Section 1111 of this Supplemental Indenture;

     (2) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by clause (4) of the second paragraph of Section 1111 of this Supplemental
Indenture covering only the assets acquired with or financed by such Indebtedness;

     (3) pledges or deposits by such Person under workers’ compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits to secure
public or statutory obligations of such Person or deposits or cash or United States
government bonds to secure surety or appeal bonds to which such Person is a party,
or deposits as security for contested taxes or import or customs duties or for the
payment of rent, in each case incurred in the ordinary course of business;

     (4) landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or similar Liens arising by contract or statute in the ordinary course
of business and with respect to amounts which are not yet delinquent or are being
contested in good faith by appropriate proceedings;

     (5) Liens for taxes, assessments or other governmental charges or which are
being contested in good faith by appropriate proceedings provided appropriate
reserves required pursuant to GAAP have been made in respect thereof;

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

     (7) encumbrances, easements or reservations of, or rights of others for,
licenses, rights of way, sewers, electric lines, telegraph and telephone lines and
other similar purposes, or zoning or other restrictions as to the use of real
properties or Liens incidental to the conduct of the business of such Person or to
the ownership of its properties which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the operation
of the business of such Person;

     (8) leases and subleases of real property which do not materially interfere
with the ordinary conduct of the business of the Company and its Restricted
Subsidiaries, taken as a whole;

     (9) any attachment or judgment Liens not giving rise to an Event of Default;

28

 

     (10) Liens for the purpose of securing the payment of all or a part of the
purchase price of, or Capital Lease Obligations with respect to, or the repair,
improvement or construction cost of, assets or property acquired or repaired,
improved or constructed in the ordinary course of business; provided that:

     (a) the aggregate principal amount of Indebtedness secured by such
Liens is otherwise permitted to be incurred under the Indenture and does not
exceed the cost of the assets or property so acquired or repaired, improved
or constructed plus fees and expenses in connection therewith; and

     (b) such Liens are created within 180 days of repair, improvement or
construction or acquisition of such assets or property and do not encumber
any other assets or property of the Company or any Restricted Subsidiary
other than such assets or property and assets affixed or appurtenant thereto
(including improvements);

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

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

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

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

     (13) Liens existing on the Issue Date;

     (14) Liens on property at the time the Company or a Restricted Subsidiary
acquired the property, including any acquisition by means of a merger or
consolidation with or into the Company or a Restricted Subsidiary; provided,
however, that such Liens are not created, incurred or assumed in connection with, or
in contemplation of, such acquisition; provided further, however, that such Liens
may not extend to any other property owned by the Company or any Restricted
Subsidiary other than those of the Person merged or consolidated with the Company or
such Restricted Subsidiary;

     (15) Liens on property or Capital Stock of a Person at the time such Person
becomes a Restricted Subsidiary; provided, however, that such Liens are not created,
incurred or assumed in connection with, or in contemplation of, such other Person
becoming a Restricted Subsidiary; provided further, however, that such Liens may not
extend to any other property owned by the Company or any Restricted Subsidiary;

     (16) Liens securing Indebtedness or other obligations of a Restricted
Subsidiary owing to the Company or a Subsidiary Guarantor;

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

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

     (19) Liens in respect of Production Payments and Reserve Sales;

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

     (21) Liens arising under joint venture agreements, partnership agreements, oil
and gas leases or subleases, assignments, purchase and sale agreements, division
orders, contracts for the sale, purchasing, processing, transportation or exchange
of oil or natural gas, unitization and pooling declarations and agreements,
development agreements, area of mutual interest agreements, licenses, sublicenses,
net profits interests, participation agreements, Farm-Out Agreements, Farm-In
Agreements, carried working interest, joint operating, unitization, royalty, sales
and similar agreements relating to the exploration or development of, or production
from, oil and gas properties entered into in the ordinary course of business in a
Related Business;

     (22) Liens reserved in oil and gas mineral leases for bonus, royalty or rental
payments and for compliance with the terms of such leases;

     (23) Liens on, or related to, properties or assets to secure all or part of the
costs incurred in the ordinary course of a Related Business for exploration,
drilling, development, production, processing, transportation, marketing, storage,
abandonment or operation;

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

     (25) Liens securing obligations of the Company and its Restricted Subsidiaries
under non-speculative Hedging Obligations;

     (26) Liens on and pledges of the Equity Interests of any Unrestricted
Subsidiary or any joint venture owned by the Company or any Restricted Subsidiary to
the extent securing Non-Recourse Debt of such Unrestricted Subsidiary or joint
venture;

     (27) Liens securing Indebtedness of any Foreign Subsidiary which Indebtedness
is permitted by the Indenture; and

     (28) Liens incurred in the ordinary course of business of the Company or any
Restricted Subsidiary with respect to obligations that, at any one time outstanding,
do not

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exceed the greater of (a) $10.0 million and (b) 1.0% of Adjusted Consolidated
Net Tangible Assets of the Company.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of
its Restricted Subsidiaries, any Disqualified Stock of the Company or any preferred stock of
any Restricted Subsidiary (1) issued in exchange for, or the net proceeds of which are used
to extend, renew, refund, refinance, replace, defease, discharge or otherwise retire for
value, in whole or in part, or (2) constituting an amendment, modification or supplement to
or a deferral or renewal of ((1) and (2) above, collectively, a “Refinancing,” and the term
“Refinanced” has a corresponding meaning), any other Indebtedness of the Company or any of
its Restricted Subsidiaries (other than intercompany Indebtedness), any Disqualified Stock
of the Company or any preferred stock of a Restricted Subsidiary in a principal amount or,
in the case of Disqualified Stock of the Company or preferred stock of a Restricted
Subsidiary, liquidation preference, not to exceed (after deduction of reasonable and
customary fees and expenses incurred in connection with the Refinancing) the lesser of:

     (1) the principal amount or, in the case of Disqualified Stock or preferred
stock, liquidation preference, of the Indebtedness, Disqualified Stock or preferred
stock so Refinanced (plus, in the case of Indebtedness, the amount of premium, if
any paid in connection therewith), and

     (2) if the Indebtedness being Refinanced was issued with any original issue
discount, the accreted value of such Indebtedness (as determined in accordance with
GAAP) at the time of such Refinancing.

     Notwithstanding the preceding, no Indebtedness, Disqualified Stock or preferred stock
will be deemed to be Permitted Refinancing Indebtedness, unless:

     (1) such Indebtedness, Disqualified Stock or preferred stock has a final
maturity date or redemption date, as applicable, no earlier than the final maturity
date or redemption date, as applicable, of, and has a Weighted Average Life to
Maturity equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness, Disqualified Stock or preferred stock being Refinanced;

     (2) if the Indebtedness, Disqualified Stock or preferred stock being Refinanced
is contractually subordinated or otherwise junior in right of payment to the Notes,
such Indebtedness, Disqualified Stock or preferred stock has a final maturity date
or redemption date, as applicable, no earlier than the final maturity date or
redemption date, as applicable, of, and is contractually subordinated or otherwise
junior in right of payment to, the Notes, on terms at least as favorable to the
Holders of Notes as those contained in the documentation governing the Indebtedness,
Disqualified Stock or preferred stock being Refinanced at the time of the
Refinancing; and

     (3) such Indebtedness or Disqualified Stock is incurred or issued by the
Company or such Indebtedness, Disqualified Stock or preferred stock is incurred or
issued by the Restricted Subsidiary who is the obligor on the Indebtedness being
Refinanced or the issuer of the Disqualified Stock or preferred stock being
Refinanced; provided that a Restricted Subsidiary that is also a Subsidiary
Guarantor may guarantee Permitted Refinancing Indebtedness incurred by the Company,
regardless of whether such Restricted Subsidiary was an obligor or guarantor of the
Indebtedness being Refinanced.

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

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

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

     “Prior Issue Date” means February 2, 2011, the date of initial issuance of the
Company’s 7.25% Senior Notes due 2019.

     “Production Payments” means Dollar-Denominated Production Payments and Volumetric
Production Payments, collectively.

     “Production Payments and Reserve Sales” means the grant or transfer by the Company or a
Subsidiary of the Company to any Person of a royalty, overriding royalty, net profits
interest, Production Payment, partnership or other interest in oil and gas properties,
reserves or the right to receive all or a portion of the production or the proceeds from the
sale of production attributable to such properties, including any such grants or transfers
pursuant to incentive compensation programs on terms that are reasonably customary in the
oil and gas business for geologists, geophysicists and other providers of technical services
to the Company or a Subsidiary of the Company.

     “Purchase Date” has the meaning set forth in Section 1115 of this Supplemental
Indenture.

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

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

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

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

     “Related Business” means any business which is the same as or related, ancillary or
complementary to any of the businesses of the Company and its Restricted Subsidiaries on the
Issue Date, which includes (1) the acquisition, exploration, exploitation, development,
production, operation and disposition of interests in oil, gas and other hydrocarbon
properties, and the utilization of the Company’s and its Restricted Subsidiaries’
properties, (2) the gathering, marketing, treating, processing, storage, refining, selling
and transporting of any production from

32

 

such interests or properties and products produced in association therewith, (3) any
power generation and electrical transmission business, (4) oil field sales and services and
related activities, (5) development, purchase and sale of real estate and interests therein,
and (6) any business or activity relating to, arising from, or necessary, appropriate or
incidental to the activities described in the foregoing clauses (1) through (5) of this
definition.

     “Reporting Failure” means the failure of the Company to file with the SEC and make
available or otherwise deliver to the Trustee and each Holder of Notes, within the time
periods specified in Section 1106 of this Supplemental Indenture (after giving effect to any
grace period specified under Rule 12b-25 under the Exchange Act), the periodic reports,
information, documents or other reports that the Company may be required to file with the
SEC pursuant to such provision.

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

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

     “Restricted Payment” has the meaning specified in Section 1112, clauses (1) through (4)
of this Supplemental Indenture.

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

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

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

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

     “Securities Act” means the Securities Act of 1933, as amended.

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

     “Senior Credit Agreement” means the Amended and Restated Credit Agreement dated as of
February 26, 2010, as amended by the First through Fifth Amendments thereto, among (1) OPNA,
as borrower, (2) the Company and Oasis Petroleum LLC, a Delaware limited liability company
and a Subsidiary of the Company, as guarantors, (3) BNP Paribas, as administrative agent and
lender, and (4) the lenders party thereto from time to time, and any related notes,
Guarantees, collateral documents, instruments and agreements executed in connection
therewith, and in each case as further amended, restated, modified, supplemented, increased,
renewed, refunded, replaced (including replacement after the termination of such credit
facility), supplemented, restructured or refinanced in whole or in part from time to time in
one or more agreements or instruments.

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“Senior Debt” means:

     (1) all Indebtedness of the Company or any of its Restricted Subsidiaries
outstanding under Credit Facilities and all Hedging Obligations with respect
thereto;

     (2) the Notes and any other Indebtedness of the Company or any of its
Restricted Subsidiaries permitted to be incurred under the terms of the Indenture,
unless the instrument under which such Indebtedness is incurred expressly provides
that it is subordinated in right of payment to the Notes or any Subsidiary
Guarantee; and

     (3) all Obligations with respect to the items listed in the preceding clauses
(1) and (2).

     Notwithstanding anything to the contrary in the preceding sentence, Senior Debt will
not include:

     (1) any intercompany Indebtedness of the Company or any of its Subsidiaries to
the Company or any of its Affiliates;

     (2) any Indebtedness that is incurred in violation of the Indenture; or

     (3) any trade payables or taxes owed or owing by the Company or any Restricted
Subsidiary.

     “Significant Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X under the
Securities Act.

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

     “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which the payment of interest or principal was
scheduled to be paid in the documentation governing such Indebtedness as of its issue date,
and will not include any contingent obligations to repay, redeem or repurchase any such
interest or principal prior to the date originally scheduled for the payment thereof.

     “Subordinated Debt” means Indebtedness of the Company or a Subsidiary Guarantor that is
contractually subordinated in right of payment (by its terms or the terms of any document or
instrument relating thereto), to the Notes or the Subsidiary Guarantee of such Subsidiary
Guarantor, as applicable.

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity (other than a
partnership) of which more than 50% of the total voting power of its Voting Stock is
at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that Person
(or any combination thereof).

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     “Subsidiary Guarantee” means any Guarantee of the Notes by any Subsidiary Guarantor in
accordance with Article Sixteen of this Supplemental Indenture.

     “Subsidiary Guarantor” means each Restricted Subsidiary that has become obligated under
a Subsidiary Guarantee, in accordance with the terms of Article Sixteen of this Supplemental
Indenture, but only for so long as such Subsidiary remains so obligated pursuant to the
terms of the Indenture.

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

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

     “Unrestricted Subsidiary” means any Subsidiary of the Company (including any newly
acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) that is designated by the Board of Directors of the
Company as an Unrestricted Subsidiary pursuant to a resolution of such Board of Directors,
but only to the extent that such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

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

     (3) has not guaranteed or otherwise directly or indirectly provided credit
support for any Indebtedness of the Company or any of its Restricted Subsidiaries,
except to the extent such Guarantee or credit support would be released upon such
designation.

Any Subsidiary of an Unrestricted Subsidiary shall also be an Unrestricted Subsidiary.

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

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

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such
Person that is at the time entitled (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of the Board of Directors of such Person.

35

 

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness, by
(b) the number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

Section 202. Compliance Certificates and Opinions.

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

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

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

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

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

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

Section 203. Form of Documents Delivered to Trustee.

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

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

36

 

reasonable care should know, that the certificate or opinion or representations with respect
to such matters are erroneous.

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

Section 204. Acts of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by the Indenture to be given, made or taken by Holders of the Notes may be
embodied in and evidenced by one or more instruments of substantially similar tenor signed (either
physically or by means of a facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) by such Holders in person or by
agent duly appointed in writing; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the Trustee and, where
it is hereby expressly required, to the Company or the Subsidiary Guarantors. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
the Indenture and conclusive in favor of the Trustee and the Company and, if applicable, the
Subsidiary Guarantors, if made in the manner provided in this Section.

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

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

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

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

37

 

shall automatically and with no action by any Person be cancelled and of no effect), and
nothing in this paragraph shall be construed to render ineffective any action taken by Holders of
the requisite principal amount of Outstanding Notes on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Company, at its own expense, shall
cause notice of such record date, the proposed action by Holders and the applicable Expiration Date
to be given to the Trustee in writing and to each Holder of Notes in the manner set forth in
Section 206.

     The Trustee may set any day as a record date for the purpose of determining the Holders of
Notes entitled to join in the giving or making of (1) any Notice of Default, (2) any declaration of
acceleration referred to in Section 602, (3) any request to institute proceedings referred to in
Section 607(2) or (4) any direction referred to in Section 612. If any record date is set pursuant
to this paragraph, the Holders of Outstanding Notes on such record date, and no other Holders,
shall be entitled to join in such notice, declaration, request or direction, whether or not such
Holders remain Holders after such record date; provided that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Notes on such record date. Nothing in this paragraph shall be
construed to prevent the Trustee from setting a new record date for any action for which a record
date has previously been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be cancelled and of no effect), and nothing in
this paragraph shall be construed to render ineffective any action taken by Holders of the
requisite principal amount of Outstanding Notes on the date such action is taken. Promptly after
any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall
cause notice of such record date, the proposed action by Holders and the applicable Expiration Date
to be given to the Company in writing and to each Holder of Notes in the manner set forth in
Section 206.

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

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

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

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

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

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

Section 206. Notice to Holders; Waiver.

     Where the Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing in the English
language and mailed, first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date (if any), and not
earlier than the earliest date (if any), prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect
in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. If notice is mailed to Holders in the manner provided in this Section
206, it is duly given, whether or not the addressee receives it. Where the Indenture provides for
notice in any manner, such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 207. Conflict with Trust Indenture Act.

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

Section 208. Effect of Headings and Table of Contents.

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

Section 209. Successors and Assigns.

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

Section 210. Separability Clause.

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

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Section 211. Benefits of Indenture.

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

Section 212. Governing Law.

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

Section 213. Legal Holidays.

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

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

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

Section 215. No Adverse Interpretation of Other Agreements.

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

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

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

Section 217. Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, communications or computer (software and hardware) services; it
being understood that the Trustee shall

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use reasonable efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

Section 218. Waiver of Jury Trial.

     EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THE INDENTURE.

Section 219. Counterpart Originals.

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

ARTICLE THREE

NOTE FORMS

Section 301. Forms Generally.

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

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

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

Section 302. Form of Legend for Global Notes.

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

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN

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PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

ARTICLE FOUR

THE NOTES

Section 401. Title and Terms.

     The Notes shall be entitled the “6.5% Senior Notes due 2021.” The Trustee shall authenticate
the Notes to be authenticated and delivered under this Supplemental Indenture on the Issue Date in
an aggregate amount equal to $400,000,000, upon delivery of a Company Order. The Trustee shall
authenticate Additional Notes thereafter from time to time in unlimited amount for original issue
upon receipt of a Company Order (subject to compliance with Section 1111). Any such Company Order
shall also specify the date on which the original issue of Notes is to be authenticated and, in
relation to any Additional Notes, it shall also specify the principal amount thereof to be issued
and shall certify that such issuance is not prohibited by Section 1111.

     The Notes will mature on November 1, 2021. Interest on the Notes will accrue at the rate of
6.5% per annum and will be payable semiannually in cash on each November 1 and May 1, commencing on
May 1, 2012 in the case of the Initial Notes, to the Persons who are registered Holders of Notes at
the close of business on the October 15 and April 15 immediately preceding the applicable Interest
Payment Date. Interest on the Notes will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from and including the date of issuance to but
excluding the actual Interest Payment Date.

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

Section 402. Denominations.

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

Section 403. Execution, Authentication, Delivery and Dating.

     The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its President or one of its Vice Presidents. If its corporate seal is
reproduced

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thereon, it shall be attested by the Secretary or an Assistant Secretary of the Company. The
signature of any of these officers on the Notes may be manual or facsimile.

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

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

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

     Each Note shall be dated the date of its authentication.

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

Section 404. Temporary Securities.

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

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

Section 405. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the office or agency of the Company in a Place of
Payment required by Section 1102 a register (the register maintained in such office or agency being
herein sometimes referred to as the “Security Register”) in which, subject to such reasonable
regulations

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as it may prescribe, the Company shall provide for the registration of Notes and of transfers
of Notes. The Trustee is hereby appointed “Security Registrar” for the purpose of registering
Notes and transfers of Notes as herein provided, and its Corporate Trust Office is the initial
office or agency where the Securities Register will be maintained. The Company may at any time
replace such Security Registrar, change such office or agency or act as its own Security Registrar;
provided, however, that there shall be only one Security Register. The Company will give prompt
written notice to the Trustee of any change of the Security Registrar or of the location of such
office or agency..

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

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

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

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

     If the Notes are to be redeemed in part, the Company shall not be required (1) to register the
transfer of or exchange any Notes during a period of 15 days before a selection of Notes for
redemption under Section 1204, or (2) to register the transfer of or exchange any Note so selected
for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in
part.

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

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

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

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

     (4) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this
Section, Section 404, 406, 1006, 1110, 1115 or 1208 or otherwise, shall be authenticated and
delivered in the form of, and shall be, a Global Note, unless such Note is registered in the
name of a Person other than the Depositary for such Global Note or a nominee thereof.

     The Depositary for a Global Note may surrender such Global Note in exchange in whole or in
part for Notes in definitive registered form on such terms as are acceptable to the Company, the
Trustee and such Depositary. Thereupon, the Company and the Subsidiary Guarantors shall execute,
and the Trustee, upon receipt of a Company Order for the authentication and delivery of Notes in
definitive registered form, shall authenticate and deliver, without service charge:

     (1) to the Person specified by such Depositary a new Note or Notes, with a notation of
the Subsidiary Guarantee executed by the Subsidiary Guarantors, of any authorized
denominations as requested by such Person, in an aggregate principal amount equal to and in
exchange for such Person’s beneficial interest in the Global Note; and

     (2) to such Depositary a new Global Note, with a notation of the Subsidiary Guarantee
executed by the Subsidiary Guarantors, in a denomination equal to the difference, if any,
between the principal amount of the surrendered Global Note and the aggregate principal
amount of Notes authenticated and delivered pursuant to clause (1) above.

Every Person who takes or holds any beneficial interest in a Global Note agrees that:

     (1) the Company, the Subsidiary Guarantors and the Trustee may deal with the Depositary
as sole owner of the Global Note and as the authorized representative of such Person;

     (2) such Person’s rights in the Global Note shall be exercised only through the
Depositary and shall be limited to those rights established by law and agreement between
such Person and the Depositary and/or direct and indirect participants of the Depositary;

     (3) the Depositary and its participants make book-entry transfers of beneficial
ownership among, and receive and transmit distributions of the principal of (and premium, if
any) and interest on the Global Notes to, such Persons in accordance with their own
procedures; and

     (4) none of the Company, the Subsidiary Guarantors, the Trustee, nor any agent of any
of them will have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a Global Note or for
maintaining, supervising or reviewing any records relating to such beneficial ownership
interests.

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

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

     If there shall be delivered to the Company and the Trustee (1) evidence to their satisfaction
of the destruction, loss or theft of any Note and (2) such security or indemnity as may be required
by them to

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save each of them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Note has been acquired by a protected purchaser, the Company
shall execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Note, a new Note of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

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

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

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

Section 407. Payment of Interest; Interest Rights Preserved.

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

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

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be given to each
Holder of Notes in the manner set forth in Section 206, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Notes (or their respective Predecessor

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Notes) are registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).

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

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

Section 408. Persons Deemed Owners.

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

Section 409. Cancellation.

     All Notes surrendered for payment, redemption, purchase, registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall
be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation
any Notes previously authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Notes previously authenticated hereunder which the Company has not
issued and sold, and all Notes so delivered shall be promptly cancelled by the Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by the Indenture. All cancelled Notes held by the Trustee
shall be disposed of in accordance with the Trustee’s standard provisions or as directed by a
Company Order.

Section 410. Computation of Interest.

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

Section 411. CUSIP or CINS Numbers.

     The Company in issuing the Securities may use “CUSIP” or “CINS” numbers (if then generally in
use, and in addition to the other identification numbers printed on the Securities), and, if so,
the Trustee shall use “CUSIP” or “CINS” numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness of such “CUSIP” or “CINS” numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected by any defect in
or omission of such “CUSIP” or “CINS” numbers.

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ARTICLE FIVE

SATISFACTION AND DISCHARGE

Section 501. Satisfaction and Discharge of Indenture.

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

          (1) either

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

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

     (i) have become due and payable, or

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

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

and the Company or any Subsidiary Guarantor in the case of (i), (ii) or (iii) of subclause
(b) of this Section 501(1), has irrevocably deposited or caused to be irrevocably deposited
with the Trustee as trust funds in trust solely for such purpose cash in Dollars,
non-callable Government Securities, or a combination thereof in such amounts as will be
sufficient, without consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation,
for principal and any premium and interest to the date of such deposit (in the case of Notes
which have become due and payable) or to the Stated Maturity or Redemption Date, as the case
may be;

     (2) no Default or Event of Default has occurred and is continuing on the date of the
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit or the grant of liens securing such borrowing);

     (3) such deposit will not result in a breach or violation of, or constitute a default
under, any material agreement or instrument (other than the Indenture) to which the Company
or any Subsidiary Guarantor is a party or by which the Company or any Subsidiary Guarantor
is bound;

     (4) the Company or any Subsidiary Guarantor has paid or caused to be paid all sums
payable by it under the Indenture;

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     (5) the Company has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Securities at their Stated Maturity or on the
Redemption Date, as the case may be; and

     (6) the Company has delivered to the Trustee (i) an Officers’ Certificate, stating that
all conditions precedent set forth in clauses (1) through (5) above have been satisfied, and
(ii) an Opinion of Counsel, stating that all conditions precedent set forth in clauses (3)
and (5) above have been satisfied.

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

Section 502. Application of Trust Money.

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

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 501 by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s and any Subsidiary Guarantor’s obligations under the Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 501;
provided that if the Company has made any payment of principal of, premium, if any, or interest on,
any Notes because of the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

ARTICLE SIX

REMEDIES

Section 601. Events of Default.

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

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

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

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     (3) failure by the Company to comply with its obligations under Article Nine of this
Supplemental Indenture or to consummate a purchase of Notes when required pursuant to
Section 1110 or Section 1115 of this Supplemental Indenture;

     (4) failure by the Company or any of its Restricted Subsidiaries for 30 days after
receipt of a written notice (specifying such failure, requiring it to be remedied and
stating that such notice is a “Notice of Default” under the Indenture) from the Trustee or
the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to
comply with Section 1111 or Section 1112 of this Supplemental Indenture or to comply with
the provisions described under Section 1110 or Section 1115 of this Supplemental Indenture
to the extent not described in clause (3) of this Section 601;

     (5) failure by the Company or any of its Restricted Subsidiaries for 60 days (or 180
days in the case of a Reporting Failure) after receipt of a written notice (specifying such
failure, requiring it to be remedied and stating that such notice is a “Notice of Default”
under the Indenture) from the Trustee or the Holders of at least 25% in aggregate principal
amount of the then Outstanding Notes to comply with any of the other agreements in the
Indenture or the Notes;

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

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

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

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $10.0 million or more;

     (7) failure by the Company or any Significant Subsidiary or any group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $10.0 million (net of any amounts
that a reputable and creditworthy insurance company has acknowledged liability for in
writing), which judgments are not paid, discharged or stayed for a period of 60 days;

     (8) except as permitted by the Indenture, any Subsidiary Guarantee is held in a
judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full
force and effect, or any Subsidiary Guarantor, or any Person acting on behalf of any
Subsidiary Guarantor, denies or disaffirms its obligations under its Subsidiary Guarantee;

     (9) the Company, any Significant Subsidiary or any group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary,
pursuant to or within the meaning of Bankruptcy Law:

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     (a) commences a voluntary case;

     (b) consents to the entry of an order for relief against it in an involuntary
case;

     (c) makes a general assignment for the benefit of its creditors; or

     (d) generally is not paying its debts as they become due; or

     (10) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (a) is for relief against the Company, any Significant Subsidiary or any group
of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted Subsidiaries),
would constitute a Significant Subsidiary, in an involuntary case; or

     (b) appoints a custodian of the Company, any Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted Subsidiaries),
would constitute a Significant Subsidiary, or for all or substantially all of the
property of the Company, any Significant Subsidiary or any group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary; or

     (c) orders the liquidation of the Company, any Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted Subsidiaries),
would constitute a Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days.

Section 602.  Acceleration of Maturity; Rescission and Annulment.

     In the case of an Event of Default specified in Section 601(9) or 601(10), all then
Outstanding Notes will become due and payable immediately without further action or notice. If any
other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then Outstanding Notes may declare all of the Notes to be due and
payable immediately by notice in writing to the Company and, in case of a notice by Holders, also
to the Trustee specifying the respective Event of Default and that it is a notice of acceleration.
Upon any such declaration, the Notes shall become due and payable immediately.

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

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

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

     (a) all overdue interest on all the Notes,

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

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

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

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

     Notwithstanding the foregoing, if an Event of Default specified in Section 601(6) above shall
have occurred and be continuing, such Event of Default and any consequential acceleration (to the
extent not in violation of any applicable law or in conflict with any judgment or decree of a court
of competent jurisdiction) shall be automatically rescinded if (1) the Indebtedness that is the
subject of such Event of Default has been repaid or (2) if the default relating to such
Indebtedness is waived by the holders of such Indebtedness or cured and if such Indebtedness has
been accelerated, then the holders thereof have rescinded their declaration of acceleration in
respect of such Indebtedness, in each case within 20 days after the declaration of acceleration
with respect thereto, and (3) any other existing Events of Default, except nonpayment of principal,
premium or interest on the Notes that became due solely because of the acceleration of the Notes,
have been cured or waived.

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

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

     If an Event of Default occurs and is continuing, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any action or proceedings at law
or in equity for the collection of the sums so due and unpaid or enforce the performance of any
provision of the Notes or the Indenture, and may prosecute any such action or proceedings to
judgment or final decree, and may enforce any such judgment or final decree against the Subsidiary
Guarantors or the Company or any other obligor upon the Notes (and collect in the manner provided
by law out of the property of the Subsidiary Guarantors or the Company or any other obligor upon
the Notes wherever situated the moneys adjudged or decreed to be payable).

Section 604. Trustee May File Proofs of Claim.

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

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

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

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

Section 606. Application of Money Collected.

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

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

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

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

Section 607. Limitation on Suits.

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

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

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

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

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

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

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

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

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

Section 609. Restoration of Rights and Remedies.

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

Section 610. Rights and Remedies Cumulative.

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

Section 611. Delay or Omission Not Waiver.

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

Section 612. Control by Holders.

Subject to Section 703(5), the Holders of a majority in aggregate principal amount of the
Outstanding Notes shall have the right to direct the time, method and place of conducting any
proceeding

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for any remedy available to the Trustee, or exercising any trust or power conferred on the
Trustee, with respect to the Notes, provided that

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

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

Section 613. Waiver of Past Defaults.

     The Holders of a majority in aggregate principal amount of the Outstanding Notes may on behalf
of the Holders of all the Notes waive any past default hereunder and its consequences or compliance
with any covenant or provision hereof, except a default

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

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

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

Section 614. Undertaking for Costs.

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

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

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

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ARTICLE SEVEN

THE TRUSTEE

Section 701. Certain Duties and Responsibilities.

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

Section 702. Notice of Defaults.

     Within 90 days after the occurrence of any Default with respect to the Notes, the Trustee
shall transmit by mail to all Holders of Notes, as their names and addresses appear in the Security
Register, notice of such Default known to the Trustee, unless such Default shall have been cured or
waived; provided, however, that, except in the case of a Default in the payment of the principal of
or any premium or interest with respect to any Note, the Trustee may withhold from Holders of Notes
notice of any continuing Default or Event of Default if the Trustee in good faith determines that
the withholding of such notice is in the interest of the Holders of Notes; and, provided, further,
that (1) in the case of any Default of the character specified in Section 601(4), no such notice to
Holders shall be given until at least 30 days after the occurrence thereof, and (2) in the case of
any Default of the character specified in Section 601(5), no such notice to Holders shall be given
until at least 60 days after the occurrence thereof.

Section 703. Certain Rights of Trustee.

     Subject to the provisions of Section 701:

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

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

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

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

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by the Indenture at the request or direction of any of the Holders pursuant to
the Indenture, unless such Holders shall have offered to the Trustee reasonable security or
indemnity

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against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction;

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

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

     (8) the Trustee may request that the Company and, if applicable, the Guarantors deliver
an Officers’ Certificate setting forth the names of individuals or titles of officers
authorized at such time to take specified actions pursuant to the Indenture, which Officers’
Certificate may be signed by any person authorized to sign an Officers’ Certificate,
including any person specified as so authorized in any such certificate previously delivered
and not superseded;

     (9) the Trustee shall not be deemed to have notice or be charged with knowledge of any
Default or Event of Default unless a Responsible Officer of the Trustee has received written
notice of any event that is in fact such a Default or Event of Default at the Corporate
Trust Office of the Trustee, and such notice references the Notes and the Indenture;

     (10) the Trustee shall not be liable for any action taken, suffered, or omitted to be
taken by it in good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by the Indenture;

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

     (12) anything in the Indenture notwithstanding, in no event shall the Trustee be liable
for special, indirect, punitive or consequential loss or damage of any kind whatsoever
(including but not limited to loss of profit), even if the Trustee has been advised as to
the likelihood of such loss or damage and regardless of the form of action.

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

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

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Section 705. May Hold Notes.

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

Section 706. Money Held in Trust.

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

Section 707. Compensation and Reimbursement.

     The Company agrees

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

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

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without gross negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. When the Trustee
incurs expenses or renders services after the occurrence of an Event of Default specified in
paragraph (9) or (10) of Section 601, such expenses and the compensation for such services
are intended to constitute expenses of administration under any applicable Bankruptcy Law.

     The obligations of the Company and the Subsidiary Guarantors under this Section 707 shall
survive the satisfaction and discharge of the Indenture.

     To secure the Company’s and the Subsidiary Guarantors’ payment obligations in this Section
707, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by
the Trustee, except that held in trust to pay principal and interest on particular Notes. Such Lien
shall survive the satisfaction and discharge of the Indenture.

     “Trustee” for purposes of this Section shall include any predecessor Trustee; provided,
however, that the negligence or bad faith of any Trustee hereunder shall not affect the rights of
any other Trustee hereunder.

Section 708. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act after a Default has occurred and is continuing, the Trustee shall either eliminate
such interest within

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90 days, apply to the SEC for permission to continue as trustee or resign. To the extent
permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under the Base Indenture with respect to Securities of more
than one series.

Section 709. Corporate Trustee Required; Eligibility.

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

Section 710. Resignation and Removal; Appointment of Successor.

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

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

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

     If at any time:

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

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

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

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

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Notes, the Company, by a Board
Resolution,

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shall within 60 days appoint a successor Trustee or Trustees with respect to the Notes and
shall comply with the applicable requirements of Section 711. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Notes shall be appointed by Act of the Holders of a majority in aggregate principal
amount of the Outstanding Notes delivered to the Company and the retiring Trustee, the successor
Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with
the applicable requirements of Section 711, become the successor Trustee with respect to the Notes
and to that extent supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Notes shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 711, any Holder who has been a bona fide
Holder of a Note for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Notes.

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

Section 711. Acceptance of Appointment by Successor.

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

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

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

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

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

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Section 713. Preferential Collection of Claims Against Company.

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

Section 714. Appointment of Authenticating Agent.

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

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

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

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

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

     This is one of the 6.5% Senior Notes due 2021 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

        As Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

ARTICLE EIGHT

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

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

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

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

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

Section 802. Preservation of Information; Communications to Holders.

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

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

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

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Section 803. Reports by Trustee.

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

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

Section 804. Reports by Company.

     The Company shall comply with the provisions of Trust Indenture Act Section 314(a).

ARTICLE NINE

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

     The Company will not (i) consolidate or merge with or into another Person (regardless of
whether the Company is the surviving corporation), convert into another form of entity or continue
in another jurisdiction; or (ii), directly or indirectly, sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets, in one or more related
transactions, to another Person, unless:

     (1) either: (a) the Company is the surviving corporation; or (b) the Person formed by
or surviving any such consolidation or merger or resulting from such conversion (if other
than the Company) or to which such sale, assignment, transfer, lease, conveyance or other
disposition has been made is a corporation, limited liability company or limited partnership
organized or existing under the laws of the United States, any state of the United States or
the District of Columbia;

     (2) the Person formed by or surviving any such conversion, consolidation or merger (if
other than the Company) or the Person to which such sale, assignment, transfer, lease,
conveyance or other disposition has been made assumes all the obligations of the Company
under the Notes and the Indenture pursuant to a supplemental indenture reasonably
satisfactory to the Trustee; provided that, unless such Person is a corporation, a corporate
co-issuer of the Notes will be added to the Indenture by a supplemental indenture reasonably
satisfactory to the Trustee;

     (3) immediately after such transaction or transactions, no Default or Event of Default
exists;

     (4) the Company or the Person formed by or surviving any such consolidation or merger
(if other than the Company), or to which such sale, assignment, transfer, lease, conveyance
or other disposition has been made, would (on the date of such transaction after giving pro
forma effect thereto and to any related financing transactions as if the same had occurred
at the beginning of the applicable four-quarter period) either:

     (a) be permitted to incur at least $1.00 of additional Indebtedness pursuant to
the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section
1111 of this Supplemental Indenture; or

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     (b) have a Fixed Charge Coverage Ratio that is not less than the Fixed Charge
Coverage Ratio of the Company and its Restricted Subsidiaries immediately before
such transaction; and

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

     For purposes of this Section 901, the sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of the properties or assets of one or more Subsidiaries of
the Company, which properties or assets, if held by the Company instead of such Subsidiaries, would
constitute all or substantially all of the properties or assets of the Company on a consolidated
basis, shall be deemed to be the transfer of all or substantially all of the properties or assets
of the Company.

     Notwithstanding the restrictions described in Section 901(4), any Restricted Subsidiary may
consolidate with, merge into or dispose of all or part of its properties or assets to the Company,
the Company may merge into a Restricted Subsidiary for the purpose of reincorporating the Company
in another jurisdiction, and any Restricted Subsidiary may consolidate with, merge into or dispose
of all or part of its properties or assets to another Restricted Subsidiary.

Section 902. Successor Substituted.

     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of the Company in a
transaction that is subject to, and that complies with the provisions of, Section 901 of this
Supplemental Indenture, the successor Person formed by such consolidation or into or with which the
Company is merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for the Company (so that from and after
the date of such consolidation, merger, sale, assignment, transfer, lease, conveyance or other
disposition, the provisions of the Indenture referring to the “Company” shall refer instead to the
successor Person and not to the Company), and may exercise every right and power of the Company
under the Indenture with the same effect as if such successor Person had been named as the Company
herein; provided, however, that the predecessor Company shall not be relieved from the obligation
to pay the principal of and interest on the Notes in the case of a lease of all or substantially
all of the Company’s properties or assets in a transaction that is subject to, and that complies
with the provisions of, Section 901.

ARTICLE TEN

SUPPLEMENTAL INDENTURES

Section 1001. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, the Subsidiary Guarantors and the Trustee, at
any time and from time to time, may amend or supplement the Indenture, the Subsidiary Guarantees or
the Notes to:

     (1) cure any ambiguity or defect or to correct or supplement any provision herein that
may be inconsistent with any other provision herein;

     (2) evidence the succession of another Person to the Company and the assumption by any
such successor of the covenants of the Company herein and, to the extent applicable, to the
Securities;

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     (3) provide for uncertificated Notes in addition to or in place of certificated Notes;

     (4) add a Subsidiary Guarantee and cause any Person to become a Subsidiary Guarantor,
and/or to evidence the succession of another Person to a Subsidiary Guarantor and the
assumption by any such successor of the Subsidiary Guarantee of such Subsidiary Guarantor
herein;

     (5) secure the Securities of any series;

     (6) add to the covenants of the Company such further covenants, restrictions,
conditions or provisions as the Company shall consider to be appropriate for the benefit of
the Holders of all or any series of Securities (and if such covenants, restrictions,
conditions or provisions are to be for the benefit of less than all series of Securities,
stating that such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the Company and to make the
occurrence, or the occurrence and continuance, of a Default in any such additional
covenants, restrictions, conditions or provisions an Event of Default permitting the
enforcement of all or any of the several remedies provided in the Indenture as set forth
therein; provided, that in respect of any such additional covenant, restriction, condition
or provision, such supplemental indenture may provide for a particular period of grace after
Default (which period may be shorter or longer than that allowed in the case of other
Defaults) or may provide for an immediate enforcement upon such an Event of Default or may
limit the remedies available to the Trustee upon such an Event of Default or may limit the
right of the Holders of a majority in aggregate principal amount of the Securities of such
series to waive such an Event of Default;

     (7) make any change to any provision of the Indenture that would provide any additional
rights or benefits to the Holders of Securities or that does not adversely affect the rights
or interests of any such Holder;

     (8) provide for the issuance of Additional Notes in accordance with the provisions set
forth in this Supplemental Indenture on the date of this Supplemental Indenture;

     (9) add any additional Defaults or Events of Default in respect of all or any series of
Securities;

     (10) change or eliminate any of the provisions of the Indenture; provided that any such
change or elimination shall become effective only when there is no Security Outstanding of
any series created prior to the execution of such supplemental indenture that is entitled to
the benefit of such provision;

     (11) establish the form or terms of Securities of any series as permitted by Section
201 and Section 301, including to reopen any series of any Securities as permitted under
Section 301;

     (12) evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of the Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 711;

     (13) conform the text of the Indenture (and/or any supplemental indenture) or any
Securities issued thereunder to any provision of a description of such Securities appearing
in a prospectus or prospectus supplement or an offering memorandum or offering circular
pursuant to which such Securities were offered to the extent that such provision was
intended to be a

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verbatim recitation of a provision of the Indenture (and/or any supplemental indenture)
or any Securities or Securities Guarantee issued thereunder;

     (14) add a corporate co-issuer in accordance with Section 901; or

     (15) modify, eliminate or add to the provisions of the Indenture to such extent as
shall be necessary to effect the qualification of the Indenture under the Trust Indenture
Act, or under any similar federal statute subsequently enacted, and to add to the Indenture
such other provisions as may be expressly required under the Trust Indenture Act.

     Upon the request of the Company, and upon receipt by the Trustee of the documents described in
Section 1003, the Trustee is hereby authorized to join with the Company and any Subsidiary
Guarantor in the execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations that may be therein contained and to accept the conveyance, transfer,
assignment, mortgage, charge or pledge of any property thereunder, but the Trustee shall not be
obligated to enter into any such supplemental indenture that affects the Trustee’s own rights,
duties or immunities under the Indenture or otherwise.

Section 1002. Supplemental Indentures With Consent of Holders.

     The Company, the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture,
the Securities Guarantees and the Securities with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of each series of Securities affected by
such amendment or supplemental indenture, with each such series voting as a separate class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities) and, subject to Section 608 and Section 613, any existing
Default or Event of Default or compliance with any provision of the Indenture, the Securities
Guarantees or the Securities may be waived with respect to each series of Securities with the
consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities of
such series voting as a separate class (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Securities).

     Upon the request of the Company accompanied by a Board Resolution authorizing the execution of
any such amended or supplemental indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and upon
receipt by the Trustee of the documents described in Section 1003, the Trustee will join with the
Company and the Subsidiary Guarantors in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture affects the Trustee’s own rights, duties or
immunities under the Indenture or otherwise, in which case the Trustee may in its discretion, but
will not be obligated to, enter into such amended or supplemental Indenture.

     It is not necessary for the consent of the Holders of Securities under this Section 1002 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance of the proposed amendment, supplement or waiver.

     After an amendment, supplement or waiver under this Section 1002 becomes effective, the
Company will mail to the Holders of Securities affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver.

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     Subject to Section 608 and Section 613, the application of or compliance with, either
generally or in any particular instance, any provision of the Indenture, the Securities or the
Securities Guarantees may be waived as to each series of Securities by the Holders of a majority in
aggregate principal amount of the Outstanding Securities of such series. However, without the
consent of each Holder affected, an amendment, supplement or waiver under this Section 1002 may not
(with respect to any Securities held by a non-consenting Holder):

     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 602, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or the
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date therefor);

     (2) reduce the percentage in aggregate principal amount of the Outstanding Securities
of any series, the consent of whose Holders is required for any such amendment, supplement
or waiver;

     (3) modify any of the provisions of Section 608 or Section 613, except to increase any
such percentage or to provide that certain other provisions of the Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause (3) shall not be deemed to require the consent
of any Holder with respect to changes in the references to “the Trustee” and concomitant
changes in this Section, or the deletion of this proviso, in accordance with the
requirements of Section 711 and Section 1001(12);

     (4) waive a redemption payment with respect to any Security; provided, however, that
any purchase or repurchase of Securities shall not be deemed a redemption of the Securities;

     (5) release any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or the Indenture, except in accordance with the terms of the Indenture (as
supplemented by any supplemental indenture); or

     (6) make any change in the foregoing amendment and waiver provisions.

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

Section 1003. Execution of Supplemental Indentures.

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

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Section 1004. Effect of Supplemental Indentures.

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

Section 1005. Conformity with Trust Indenture Act.

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

Section 1006. Reference in Notes to Supplemental Indentures.

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

Section 1007. Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Security is a continuing consent by the Holder of a Security and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the consenting Holder’s Security,
even if notation of the consent is not made on any Security. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every Holder.

ARTICLE ELEVEN

COVENANTS

Section 1101. Payment of Principal, Premium and Interest.

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

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

Section 1102. Maintenance of Office or Agency.

     The Company will maintain, in the City and State of New York and in any other Place of
Payment, an office or agency where Notes may be presented or surrendered for payment, and it will
maintain an office or agency in the United States where Notes may be surrendered for registration
of

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transfer or exchange and where notices and demands to or upon the Company in respect of the
Notes and the Indenture may be served. The Company will give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency. If at any time the
Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee
as its agent to receive all such presentations, surrenders, notices and demands. The Company
hereby irrevocably designates as a Place of Payment for the Notes the City and State of New York,
and initially appoints U.S. Bank National Association at its corporate trust office in the City of
New York, which, at the date hereof, is located at 100 Wall Street, Suite 1600, New York, New York
10005, as the Company’s office or agency in such city where the Notes may be presented or
surrendered for payment.

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

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

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

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

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

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on the Notes and remaining
unclaimed for two years after such principal, premium or interest has become due and payable shall
be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust;

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

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

     The Company and the Subsidiary Guarantors shall deliver to the Trustee within 150 days after
the end of each fiscal year of the Company ending after the Issue Date an Officers’ Certificate
signed by the principal executive officer, the principal accounting officer or the principal
financial officer of each of the Company and the Subsidiary Guarantors, stating that a review of
the activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has
been made under the supervision of the signing Officers with a view to determining whether each of
the Company and the Subsidiary Guarantors has performed its obligations under the Indenture, and
further stating whether or not the signers know of any Default or Event of Default that occurred
during such period. If they do, the certificate shall describe such Default or Event of Default,
its status and what action the Company is taking or proposes to take with respect thereto.

     The Company shall, so long as any Note is Outstanding, deliver to the Trustee within five days
after becoming aware of the occurrence of any Default or Event of Default, written notice (which
need not be an Officers’ Certificate) setting forth the details of such Default or Event of
Default, and what action the Company is taking or proposing to take with respect thereto.

Section 1105. Existence.

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

Section 1106. Reports.

     Regardless of whether required by the rules and regulations of the SEC, so long as any Notes
are Outstanding, the Company will file with the SEC for public availability, within the time
periods specified in the SEC’s rules and regulations (unless the SEC will not accept such a filing,
in which case the Company will comply with the requirements described in the next following
paragraph of this Section 1106):

     (1) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K under the Exchange Act if the Company were required to file such
reports; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K
under the Exchange Act if the Company were required to file such reports.

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All such reports will be prepared in all material respects in accordance with all of the rules and
regulations applicable to such reports. Each annual report on Form 10-K will include a report on
the Company’s consolidated financial statements by the Company’s certified independent accountants.

     If, at any time, the Company is no longer subject to the periodic reporting requirements of
the Exchange Act for any reason, the Company will nevertheless continue filing the reports
specified in the first paragraph of this Section 1106 with the SEC within the time periods
specified in the first paragraph of this Section 1106 unless the SEC will not accept such a filing.
The Company will not take any action for the purpose of causing the SEC not to accept any such
filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s filings for any
reason, the Company will post the reports referred to in the first paragraph of this Section 1106
on its website within the time periods that would apply if the Company were required to file those
reports with the SEC.

     If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the
quarterly and annual financial information required by the preceding paragraphs of this Section
1106 will include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” of the financial condition and results of operations of the
Company and its Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries.

Section 1107. Payment of Taxes.

     The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
any taxes, assessments, and governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not adverse in any material
respect to the Holders of the Notes.

Section 1108.  [Reserved].

Section 1109.   [Reserved].

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

     If a Change of Control occurs, each Holder of Notes will have the right to require the Company
to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess of
$2,000) of that Holder’s Notes pursuant to an offer (a “Change of Control Offer”) on the terms set
forth in this Section 1110. In the Change of Control Offer, the Company will offer a payment in
cash (the “Change of Control Payment”) equal to not less than 101% of the aggregate principal
amount of Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased to
the date of purchase (the “Change of Control Payment Date”), subject to the rights of Holders of
Notes on the relevant Record Date to receive interest due on the relevant Interest Payment Date.
Within 30 days following any Change of Control, the Company will mail a notice to each Holder
describing the transaction or transactions that constitute the Change of Control and stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 1110 and
that all Notes tendered will be accepted for payment;

     (2) the purchase price and the Change of Control Payment Date, which shall be no
earlier than 30 days and no later than 60 days from the date such notice is mailed;

     (3) that any Note not tendered will continue to accrue interest;

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

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

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

     (7) that Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer), which unpurchased portion must be equal to $2,000 in
principal amount or an integral multiple of $1,000 in excess of $2,000.

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

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

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

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

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

     The Paying Agent will promptly mail or wire transfer to each Holder of Notes properly tendered
the Change of Control Payment for such Notes (or, if all the Notes are then in global form, make
such payment through the facilities of the Depositary), and the Trustee will promptly authenticate
and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new
Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess of $2,000.
Any Note so accepted for payment will cease to accrue interest on and after the Change of Control
Payment Date unless the Company defaults in making the Change of Control Payment.

     The Company will publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

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     Notwithstanding anything to the contrary in this Section 1110, the Company will not be
required to make a Change of Control Offer upon a Change of Control if a third party makes the
Change of Control Offer in the manner, at the price, at the times and otherwise in compliance with
the requirements set forth in this Section 1110 applicable to a Change of Control Offer made by the
Company and purchases all Notes properly tendered and not withdrawn under the Change of Control
Offer.

     A Change of Control Offer may be made in advance of a Change of Control, and conditioned upon
the occurrence of such Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making the Change of Control Offer. Notes repurchased by the Company
pursuant to a Change of Control Offer will have the status of Notes issued but not Outstanding or
will be retired and cancelled, at the Company’s option. Notes purchased by a third party pursuant
to the sixth paragraph of this Section 1110 will have the status of Notes issued and Outstanding.

     In the event that Holders of at least 90% of the aggregate principal amount of the Outstanding
Notes accept a Change of Control Offer and the Company (or any third party making such Change of
Control Offer, in lieu of the Company, as described in the sixth paragraph of this Section 1110)
purchases all of the Notes held by such Holders, the Company will have the right, upon not less
than 30 nor more than 60 days’ prior notice, given not more than 30 days following a Change of
Control Payment Date, to redeem all, but not less than all, of the Notes that remain Outstanding at
a Redemption Price equal to the Change of Control Payment plus, to the extent not included in the
Change of Control Payment, accrued and unpaid interest, if any, on the Notes that remain
Outstanding, to the Redemption Date (subject to the right of Holders on the relevant record date to
receive interest due on the relevant Interest Payment Date).

Section 1111. Incurrence of Indebtedness and Issuance of Preferred Stock.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly create, incur, issue, assume, Guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur;” with “incurrence” having
a correlative meaning) any Indebtedness (including Acquired Debt), and the Company will not issue
any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any
preferred stock; provided, however, that the Company may incur Indebtedness (including Acquired
Debt) and issue Disqualified Stock, and Subsidiary Guarantors may incur Indebtedness (including
Acquired Debt) and issue preferred stock, if (i) the Fixed Charge Coverage Ratio for the Company’s
most recently ended four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock or preferred stock is issued, as the case may be, would have been at least 2.25
to 1.0, determined on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or
preferred stock had been issued, as the case may be, at the beginning of such four-quarter period
and (ii) no Default would occur as a consequence of, and no Event of Default would be continuing
following, the incurrence of the Indebtedness or the transactions relating to such incurrence,
including any related application of the proceeds thereof.

     Notwithstanding the foregoing, the preceding paragraph of this Section 1111 will not prohibit
the incurrence of any of the following items of Indebtedness or the issuance of any Disqualified
Stock or preferred stock described in clauses (5) and (7) of this paragraph (collectively,
“Permitted Debt”):

     (1) the incurrence by the Company and any Subsidiary Guarantor of Indebtedness under
Credit Facilities in an aggregate principal amount at any one time outstanding under this
clause (1) (with letters of credit being deemed to have a principal amount equal to the
maximum potential liability of the Company and its Restricted Subsidiaries thereunder) not
to exceed the greater of (a) $200.0 million and (b) the sum of $100.0 million plus an amount
equal to 25.0% of Adjusted Consolidated Net Tangible Assets of the Company, determined as of
the date of the

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incurrence of such Indebtedness after giving pro forma effect to such incurrence and
the application of the proceeds therefrom;

     (2) the incurrence by the Company and its Restricted Subsidiaries of Existing
Indebtedness;

     (3) the incurrence by the Company of Indebtedness represented by the Notes to be issued
on the Issue Date;

     (4) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of design, construction, installation, improvement, deployment, refurbishment or
modification of property, plant or equipment or furniture, fixtures and equipment, in each
case, used in the business of the Company or any of its Restricted Subsidiaries, in an
aggregate principal amount at any time outstanding, including all Permitted Refinancing
Indebtedness incurred to extend, renew, refund, refinance, replace, defease, discharge or
otherwise retire for value any Indebtedness incurred pursuant to this clause (4), not to
exceed the greater of (a) $15.0 million and (b) 2.0% of Adjusted Consolidated Net Tangible
Assets of the Company, determined as of the date of the incurrence of such Indebtedness;

     (5) the incurrence or issuance by the Company or any of its Restricted Subsidiaries of
Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
extend, renew, refund, refinance, replace, defease, discharge or otherwise retire for value
any Indebtedness (other than intercompany Indebtedness) or Disqualified Stock of the
Company, or Indebtedness (other than intercompany Indebtedness) or preferred stock of any
Restricted Subsidiary, in each case that was permitted by the Indenture to be incurred or
issued under the first paragraph of this Section 1111 or clause (2), (3), (4), (10), (14) or
(15) of this paragraph or this clause (5);

     (6) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided,
however, that (a) if the Company or any Subsidiary Guarantor is the obligor on such
Indebtedness and the payee is not the Company or a Subsidiary Guarantor, such Indebtedness
must be expressly subordinated to the prior payment in full in cash of all obligations then
due with respect to the Notes, in the case of the Company, or the Subsidiary Guarantee, in
the case of a Subsidiary Guarantor; and (b)(i) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other than the
Company or a Restricted Subsidiary and (ii) any sale or other transfer of any such
Indebtedness to a Person that is not either the Company or a Restricted Subsidiary will be
deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or
such Restricted Subsidiary, as the case may be, that was not permitted by this clause (6);

     (7) the issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of any preferred stock; provided, however, that:

     (a) any subsequent issuance or transfer of Equity Interests that results in any
such preferred stock being held by a Person other than the Company or a Restricted
Subsidiary; and

     (b) any sale or other transfer of any such preferred stock to a Person that is
not either the Company or a Restricted Subsidiary, will be deemed, in each case, to

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constitute an issuance of such preferred stock by such Restricted Subsidiary
that was not permitted by this clause (7);

     (8) the incurrence of obligations of the Company or a Restricted Subsidiary pursuant to
Interest Rate and Currency Hedges, in each case entered into in the ordinary course of
business for the non-speculative purpose of limiting risks that arise in the ordinary course
of business of the Company and its Restricted Subsidiaries;

     (9) the Guarantee by the Company or any of the Subsidiary Guarantors of Indebtedness of
the Company or a Restricted Subsidiary that was permitted to be incurred by another
provision of this Section 1111; provided that if the Indebtedness being Guaranteed is
subordinated to or pari passu with the Notes, then the Guarantee shall be subordinated or
pari passu, as applicable, to the same extent as the Indebtedness Guaranteed;

     (10) the incurrence by the Company or any Restricted Subsidiary of Permitted
Acquisition Indebtedness;

     (11) the incurrence by the Company or any Restricted Subsidiary of Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is
covered within five Business Days;

     (12) the incurrence by the Company or any Restricted Subsidiary of Indebtedness
consisting of the financing of insurance premiums in customary amounts consistent with the
operations and business of the Company and its Restricted Subsidiaries;

     (13) the incurrence by the Company or any Restricted Subsidiary of Indebtedness
constituting reimbursement obligations with respect to letters of credit; provided that,
upon the drawing of such letters of credit, such obligations are reimbursed within 30 days
following such drawing;

     (14) the incurrence by any Foreign Subsidiary of Indebtedness that, in the aggregate
together with all other Indebtedness of all Foreign Subsidiaries (including all Permitted
Refinancing Indebtedness incurred to extend, renew, refund, refinance, replace, defease,
discharge or otherwise retire for value any Indebtedness incurred pursuant to this clause
(14)), does not exceed the greater of (a) 20.0% of the Adjusted Consolidated Net Tangible
Assets of all Foreign Subsidiaries, considered as a consolidated enterprise, determined as
of the date of the incurrence of such Indebtedness after giving pro forma effect to such
incurrence and the application of the proceeds therefrom and (b) $25.0 million; and

     (15) the incurrence by the Company or any of the Subsidiary Guarantors of Indebtedness
in an aggregate principal amount that, when taken together with all other Indebtedness of
the Company and its Restricted Subsidiaries outstanding on the date of such incurrence
(other than Indebtedness permitted by clauses (1) through (14) above or the first paragraph
of this Section 1111) and any Permitted Refinancing Indebtedness incurred to extend, renew,
refund, refinance, replace, defease, discharge or otherwise retire for value any
Indebtedness incurred pursuant to this clause (15) does not exceed the greater of (a) 5.0%
of Adjusted Consolidated Net Tangible Assets of the Company, determined as of the date of
the incurrence of such Indebtedness after giving pro forma effect to such incurrence and the
application of the proceeds therefrom and (b) $35.0 million.

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     The Company will not incur, and will not permit any Subsidiary Guarantor to incur, any
Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment to
any other Indebtedness of the Company or such Subsidiary Guarantor unless such Indebtedness is also
contractually subordinated in right of payment to the Notes and the applicable Subsidiary
Guarantee, on substantially identical terms; provided, however, that no Indebtedness will be deemed
to be contractually subordinated in right of payment to any other Indebtedness of the Company
solely by virtue of being unsecured or by virtue of being secured on a first or junior Lien basis.

     For purposes of determining compliance with this Section 1111, (a) in the event that an item
of proposed Indebtedness, Disqualified Stock or preferred stock meets the criteria of more than one
of the categories of Permitted Debt described in clauses (1) through (15) of the second paragraph
of this Section 1111, or is entitled to be incurred or issued pursuant to the first paragraph of
Section 1111, the Company will be permitted to divide and classify such item on the date of its
incurrence or issuance, or later divide and reclassify all or a portion of such item, in any manner
that complies with this Section 1111 and (b) all Indebtedness outstanding on the Issue Date under
the Senior Credit Agreement shall be deemed incurred on the Issue Date under clause (1) of the
second paragraph of this Section 1111. The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a
change in accounting principles, and the payment of dividends on Disqualified Stock or preferred
stock in the form of additional Disqualified Stock or preferred stock of the same class will be
deemed not to be an incurrence of Indebtedness or an issuance of Disqualified Stock or preferred
stock for purposes of this Section 1111; provided, in each such case, that the amount of any such
accrual, accretion or payment is included in Fixed Charges of the Company as accrued.

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

Section 1112. Restricted Payments.

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

     (1) declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other

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than dividends or distributions payable in Equity Interests (other than Disqualified
Stock) of the Company and other than dividends or distributions payable to the Company or
any Restricted Subsidiary);

     (2) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, any such purchase, redemption, acquisition or retirement made in connection with
any merger or consolidation involving the Company) any Equity Interests of the Company or
any direct or indirect parent company of the Company;

     (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Subordinated Debt, except a payment of interest or principal
at the Stated Maturity thereof (excluding (a) any intercompany Indebtedness between or among
the Company and any of its Restricted Subsidiaries or (b) the purchase or other acquisition
of Subordinated Debt acquired in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of
such purchase or other acquisition); or

     (4) make any Restricted Investment;

(all such payments and other actions set forth in clauses (1) through (4) above being collectively
referred to as “Restricted Payments”), unless, at the time of and after giving effect to such
Restricted Payment:

     (1) no Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment;

     (2) the Company would, at the time of such Restricted Payment and after giving pro
forma effect thereto as if such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the first
paragraph of Section 1111; and

     (3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since the Prior Issue Date
(excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6), (7), (8), (9)
and (12) of the next succeeding paragraph of this Section 1112), is equal to or less than
the sum, without duplication, of:

     (a) 50% of the Consolidated Net Income of the Company for the period (taken as
one accounting period) from the beginning of the most recent fiscal quarter
commencing before the Prior Issue Date to the end of the Company’s most recently
ended fiscal quarter for which internal financial statements are available at the
time of such Restricted Payment (or, if such Consolidated Net Income for such period
is a deficit, less 100% of such deficit); plus

     (b) 100% of (i)(A) the aggregate net cash proceeds and (B) the Fair Market
Value of (x) marketable securities (other than marketable securities of the Company
or an Affiliate of the Company), (y) Capital Stock of a Person (other than the
Company or an Affiliate of the Company) engaged primarily in any Related Business
and (z) other assets used or useful in any Related Business, in each case received
by the Company since the Prior Issue Date as a contribution to its common equity
capital or from the issue or sale of Equity Interests of the Company (other than
Disqualified Stock) or from the issue or sale of convertible or exchangeable
Disqualified Stock or convertible or exchangeable debt

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securities of the Company that have been converted into or exchanged for such
Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company), (ii) with respect to Indebtedness
that is incurred on or after the Prior Issue Date, the amount by which such
Indebtedness of the Company or any of its Restricted Subsidiaries is reduced on the
Company’s consolidated balance sheet upon the conversion or exchange after the Prior
Issue Date of any such Indebtedness into or for Equity Interests of the Company
(other than Disqualified Stock), and (iii) the aggregate net cash proceeds, if any,
received by the Company or any of its Restricted Subsidiaries upon any conversion or
exchange described in clause (i) or (ii) above; plus

     (c) with respect to Restricted Investments made by the Company and its
Restricted Subsidiaries after the Prior Issue Date, an amount equal to the sum,
without duplication, of (i) the net reduction in such Restricted Investments in any
Person resulting from (A) repayments of loans or advances, or other transfers of
assets, in each case to the Company or any Restricted Subsidiary, (B) other
repurchases, repayments or redemptions of such Restricted Investments, (C) the sale
of any such Restricted Investment to a purchaser other than the Company or a
Subsidiary of the Company or (D) the release of any Guarantee (except to the extent
any amounts are paid under such Guarantee) that constituted a Restricted Investment
plus (ii) with respect to any Unrestricted Subsidiary designated as such after the
Prior Issue Date that is redesignated as a Restricted Subsidiary after the Prior
Issue Date, the lesser of (A) the Fair Market Value of the Company’s Investment in
such Subsidiary held by the Company or any of its Restricted Subsidiaries at the
time of such redesignation and (B) the aggregate amount of Investments made by the
Company or any of its Restricted Subsidiaries in such Subsidiary upon or after the
designation of such Subsidiary as an Unrestricted Subsidiary and prior to the
redesignation of such Subsidiary as a Restricted Subsidiary; plus

     (d) 100% of any dividends received by the Company or a Restricted Subsidiary
after the Prior Issue Date from an Unrestricted Subsidiary, to the extent such
dividends were not otherwise included in the Consolidated Net Income of the Company
for such period.

     The preceding paragraph of this Section 1112 will not prohibit:

     (1) the payment of any dividend or the consummation of any irrevocable redemption
within 60 days after the date of declaration of the dividend or giving of the redemption
notice, as the case may be, if at the date of declaration or notice, the dividend or
redemption payment would have complied with the provisions of the Indenture;

     (2) the making of any Restricted Payment in exchange for, or out of the net cash
proceeds from the substantially concurrent sale (other than to a Subsidiary of the Company)
of, Equity Interests of the Company (other than Disqualified Stock and other than Equity
Interests issued or sold to an employee stock ownership plan, option plan or similar trust
to the extent such sale to an employee stock ownership plan, option plan or similar trust is
financed by loans from or Guaranteed by the Company or any of its Restricted Subsidiaries
unless such loans have been repaid with cash on or prior to the date of determination) or
from the substantially concurrent contribution of common equity capital to the Company;
provided that the amount of any such net cash proceeds that are utilized for any such
Restricted Payment will be excluded from clause (3)(b) of the immediately preceding
paragraph of this Section 1112 and clause (7) of this paragraph of Section 1112;

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     (3) the purchase, redemption, defeasance or other acquisition or retirement for value
of Subordinated Debt (including the payment of any required premium and any fees and
expenses incurred in connection with such purchase, redemption, defeasance or other
acquisition or retirement) with the net cash proceeds from a substantially concurrent
incurrence of Permitted Refinancing Indebtedness;

     (4) the purchase, redemption or other acquisition or retirement for value of any Equity
Interests of the Company or any Restricted Subsidiary held by any of the Company’s or any of
its Restricted Subsidiaries’ current or former directors or employees in connection with the
exercise or vesting of any equity compensation (including, without limitation, stock
options, restricted stock and phantom stock) in order to satisfy the Company’s or such
Restricted Subsidiary’s tax withholding obligation with respect to such exercise or vesting;

     (5) purchases of Capital Stock deemed to occur upon the exercise of stock options if
such Capital Stock represents a portion of the exercise price thereof;

     (6) payments to fund the purchase, redemption or other acquisition or retirement for
value by the Company of fractional Equity Interests arising out of stock dividends, splits
or combinations, business combinations or other transactions permitted by the Indenture;

     (7) as long as no Default has occurred and is continuing or would be caused thereby,
the purchase, redemption or other acquisition or retirement for value of any Equity
Interests of the Company or any Restricted Subsidiary held by any of the Company’s or any of
its Restricted Subsidiaries’ current or former directors or employees; provided that the
aggregate price paid for all such purchased, redeemed, acquired or retired Equity Interests
may not exceed the sum of (a) $20.0 million, plus (b) the aggregate amount of cash proceeds
received by the Company from the sale of the Company’s Equity Interests (other than
Disqualified Stock) to any such directors or employees that occurs after the Prior Issue
Date; provided that the amount of such cash proceeds utilized for any such purchase,
redemption or other acquisition or retirement will be excluded from clause (3)(b) the
immediately preceding paragraph of this Section 1112 and clause (2) of this paragraph plus
(c) the cash proceeds of key man life insurance policies received by the Company and its
Restricted Subsidiaries after the Prior Issue Date;

     (8) as long as no Default has occurred and is continuing or would be caused thereby,
the declaration and payment of regularly scheduled or accrued dividends to holders of any
class or series of Disqualified Stock of the Company or any class or series of preferred
stock of any Restricted Subsidiary issued on or after the Prior Issue Date in accordance
with the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section 1111;

     (9) the payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary to the holders of
Equity Interests (other than Disqualified Stock) of such Restricted Subsidiary; provided
that such dividend or similar distribution is paid to all holders of such Equity Interests
on a pro rata basis based on their respective holdings of such Equity Interests;

     (10) purchases of Subordinated Debt at a purchase price not greater than (a) 101% of
the principal amount of such Subordinated Debt and accrued and unpaid interest thereon in
the event of a Change of Control or (b) 100% of the principal amount of such Subordinated
Debt and accrued and unpaid interest thereon in the event of an Asset Sale in connection
with any change of control offer or asset sale offer required by the terms of such
Subordinated Debt, but only if:

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     (a) in the case of a Change of Control, the Company has first complied with and
fully satisfied its obligations under Section 1110; or

     (b) in the case of an Asset Sale, the Company has complied with and fully
satisfied its obligations under Section 1115;

     (11) payments or distributions to dissenting stockholders pursuant to applicable law in
connection with a merger, consolidation or transfer of all or substantially all of the
assets of the Company that complies with Article Nine; and

     (12) other Restricted Payments since the Prior Issue Date in an aggregate amount at any
time outstanding not to exceed $25.0 million.

     The amount of all Restricted Payments (other than cash) shall be the Fair Market Value, on the
date of such Restricted Payment, of the Restricted Investment proposed to be made or the asset(s)
or securities proposed to be paid, transferred or issued by the Company or such Restricted
Subsidiary, as the case may be, pursuant to such Restricted Payment, except the Fair Market Value
of any non-cash dividend made within 60 days after the date of declaration shall be determined as
of such date. The Fair Market Value of any cash Restricted Payment shall be its face amount, and
the Fair Market Value of any non-cash Restricted Payment shall be determined in accordance with the
definition of that term. For purposes of determining compliance with this Section 1112, in the
event that a Restricted Payment meets the criteria of more than one of the exceptions described in
clauses (1) through (12) of the immediately preceding paragraph of this Section 1112 or is entitled
to be made pursuant to the first paragraph of this Section 1112, the Company shall, in its sole
discretion, classify such Restricted Payment, or later classify, reclassify or re-divide all or a
portion of such Restricted Payment, in any manner that complies with this Section 1112.

Section 1113. Limitation on Liens.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur or permit to exist any Lien (the “Initial Lien”), other than Permitted
Liens, upon any of its property or assets (including Capital Stock and Indebtedness of any
Subsidiaries of the Company and including any income or profits from such property or assets),
whether owned on the Issue Date or thereafter acquired, which Lien secures any Subordinated Debt or
other Indebtedness, unless:

     (1) in the case of Liens securing Subordinated Debt of the Company or a Subsidiary
Guarantor, the Notes or Subsidiary Guarantee, as applicable, are secured by a Lien on such
property or assets on a senior basis to the Subordinated Debt so secured with the same
priority as the Notes or such Subsidiary Guarantee, as applicable, has to such Subordinated
Debt until such time as such Subordinated Debt is no longer so secured by a Lien; and

     (2) in the case of Liens securing other Indebtedness of the Company or a Subsidiary
Guarantor, the Notes or Subsidiary Guarantees, as applicable, are secured by a Lien on such
property or assets on an equal and ratable basis with the other Indebtedness so secured
until such time as such other Indebtedness is no longer so secured by a Lien.

     Any Lien securing the Notes or Subsidiary Guarantees created pursuant to the preceding
paragraph of this Section 1113 shall provide by its terms that such Lien shall be automatically and
unconditionally released and discharged upon the unconditional release and discharge of the Initial
Lien.

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Section 1114. Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

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

     (1) pay dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries, or pay any Indebtedness owed to the Company or any of
its Restricted Subsidiaries;

     (2) make loans or advances to the Company or any of its Restricted Subsidiaries; or

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

     However, the preceding restrictions in the first paragraph of this Section 1114 will not apply
to encumbrances or restrictions existing under, by reason of or with respect to:

     (1) the Senior Credit Agreement, any Existing Indebtedness, Capital Stock or any other
agreements or instruments, in each case, in effect on the Issue Date and any amendments,
restatements, modifications, renewals, extensions, supplements, increases, refundings,
replacements or refinancings thereof; provided that the encumbrances and restrictions in any
such amendments, restatements, modifications, renewals, extensions, supplements, increases,
refundings, replacements or refinancings are, in the reasonable good faith judgment of the
Chief Executive Officer and the Chief Financial Officer of the Company, no more restrictive,
taken as a whole, than those contained in the applicable agreements or instruments as in
effect on the Issue Date;

     (2) the Indenture, the Notes and the Subsidiary Guarantees;

     (3) applicable law, rule, regulation, order, approval, permit or similar restriction;

     (4) any instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition
(except to the extent such Indebtedness or Capital Stock was incurred in connection with or
in contemplation of such acquisition), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired and any amendments, restatements,
modifications, renewals, extensions, supplements, increases, refundings, replacements or
refinancings thereof; provided, that the encumbrances and restrictions in any such
amendments, restatements, modifications, renewals, extensions, supplements, increases,
refundings, replacements or refinancings are, in the reasonable good faith judgment of the
Chief Executive Officer and the Chief Financial Officer of the Company, no more restrictive,
taken as a whole, than those in effect on the date of the acquisition; provided, further,
that, in the case of Indebtedness, such Indebtedness was permitted by the terms of the
Indenture to be incurred;

     (5) customary non-assignment provisions in contracts, leases and licenses (including,
without limitation, licenses of intellectual property) entered into in the ordinary course
of business;

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     (6) any agreement for the sale or other disposition of the Equity Interests in, or all
or substantially all of the properties or assets of, a Restricted Subsidiary, that restricts
distributions by the applicable Restricted Subsidiary pending the sale or other disposition;

     (7) Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing the
Indebtedness being refinanced;

     (8) Liens permitted to be incurred under the provisions of Section 1113 that limit the
right of the debtor to dispose of the assets subject to such Liens;

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

     (10) other Indebtedness of the Company or any of its Restricted Subsidiaries permitted
to be incurred pursuant to an agreement entered into subsequent to the Issue Date in
accordance with Section 1111; provided that the provisions relating to such encumbrance or
restriction contained in such Indebtedness are not materially less favorable to the Company
and its Restricted Subsidiaries, taken as a whole, in the reasonable good faith judgment of
the Chief Executive Officer and Chief Financial Officer of the Company, than the provisions
contained in the Senior Credit Agreement as in effect on the Issue Date;

     (11) Indebtedness incurred or Capital Stock issued by any Restricted Subsidiary,
provided that the restrictions contained in the agreements or instruments governing such
Indebtedness or Capital Stock (a) apply only in the event of a payment default or a default
with respect to a financial covenant in such agreement or instrument or (b) will not
materially affect the Company’s ability to pay all principal, interest and premium, if any,
on the Notes, in the reasonable good faith judgment of the Chief Executive Officer and Chief
Financial Officer of the Company;

     (12) customary provisions restricting subletting or assignment of any lease governing a
leasehold interest;

     (13) Hedging Obligations permitted from time to time under the Indenture;

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

     (15) with respect only to encumbrances or restrictions of the type referred to in
clause (3) of the first paragraph of this Section 1114:

     (a) customary nonassignment provisions (including provisions forbidding
subletting) in leases governing leasehold interests or Farm-In Agreements or
Farm-Out Agreements relating to leasehold interests in oil and gas properties to the
extent such provisions restrict the transfer of the lease, the property leased
thereunder or the other interests therein;

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     (b) provisions limiting the disposition or distribution of assets or property
in, or transfer of Capital Stock of, joint venture agreements, asset sale
agreements, sale-leaseback agreements, stock sale agreements and other similar
agreements entered into (i) in the ordinary course of business, or (ii) with the
approval of the Company’s Board of Directors, which limitations are applicable only
to the assets, property or Capital Stock that are the subject of such agreements;
and

     (c) Capital Lease Obligations, security agreements, mortgages, purchase money
agreements or similar instruments to the extent such encumbrance or restriction
restricts the transfer of the property (including Capital Stock) subject to such
Capital Lease Obligations, security agreements, mortgages, purchase money agreements
or similar instruments.

Section 1115. Asset Sales.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an
Asset Sale unless:

     (1) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value of the
assets or Equity Interests issued or sold or otherwise disposed of; and

     (2) at least 75% of the aggregate consideration received in respect of such Asset Sale
by the Company or such Restricted Subsidiary (considered together on a cumulative basis,
with all consideration received by the Company or any of its Restricted Subsidiaries in
respect of other Asset Sales consummated since the Issue Date), is in the form of cash or
Cash Equivalents. For purposes of this provision, each of the following will be deemed to
be cash:

     (a) any liabilities, as shown on the Company’s most recent consolidated balance
sheet, of the Company or any Restricted Subsidiary (other than contingent
liabilities, Subordinated Debt and any obligations in respect of preferred stock)
that are assumed by the transferee of any such assets or Equity Interests pursuant
to a customary novation agreement (or other legal documentation with the same
effect) that includes a full release of the Company or such Restricted Subsidiary
from any and all liability therefor;

     (b) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are converted by the Company or
such Restricted Subsidiary into cash within 90 days after the date of the Asset
Sale, to the extent of the cash received in that conversion; and

     (c) any Capital Stock or assets of the kind referred to in clause (2) of the
third paragraph of this Section 1115.

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

     Within 365 days after the receipt of any Net Proceeds from an Asset Sale or, if the Company
has entered into a binding commitment or commitments with respect to any of the actions described
in clauses

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(2) or (3) below, within the later of (a) 365 days after the receipt of any Net Proceeds from
an Asset Sale or (b) 120 days after the entering into of such commitment or commitments, the
Company (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds:

     (1) to permanently repay Senior Debt;

     (2) to invest in Additional Assets; or

     (3) to make capital expenditures in respect of a Related Business of the Company or any
of its Restricted Subsidiaries.

     However, pending application or investment of such Net Proceeds as provided in clauses (1)
through (3) of the immediately preceding paragraph, such Net Proceeds may be applied to temporarily
reduce revolving credit Indebtedness. An amount equal to any Net Proceeds from Asset Sales that
are not applied or invested as provided in clauses (1) through (3) above will constitute “Excess
Proceeds.”

     Within ten Business Days after the aggregate amount of Excess Proceeds exceeds $20.0 million,
the Company will make an offer (an “Asset Sale Offer”) to all Holders of Notes and all holders of
other Indebtedness that is pari passu with the Notes containing provisions similar to those set
forth in this Section 1115 with respect to offers to purchase or redeem with the proceeds of sales
of assets, to purchase the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer will be
equal to 100% of the principal amount plus accrued and unpaid interest, if any, to the date of
purchase, and will be payable in cash. If any Excess Proceeds remain after consummation of an
Asset Sale Offer, the Company or any Restricted Subsidiary may use those Excess Proceeds for any
purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and
other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Company will use the Excess Proceeds to purchase the Notes and such other pari passu
Indebtedness on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of Excess
Proceeds will be reset at zero.

     Notwithstanding the foregoing, the sale, conveyance or other disposition of all or
substantially all of the properties or assets of the Company and its Restricted Subsidiaries, taken
as a whole, will be governed by Sections 901 and/or 1110 of this Supplemental Indenture, as
applicable, and not by this Section 1115.

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

     In the event that, pursuant to this Section 1115, the Company is required to commence an Asset
Sale Offer, it will follow the procedures specified below:

     (1) The Asset Sale Offer shall be made to all Holders and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set
forth in this Section 1115. The Asset Sale Offer will remain open for a period of at least
20 Business Days following its commencement and not more than 30 Business Days, except to
the extent that a longer period is required by applicable law (the “Offer Period”). No
later than three Business Days after the termination of the Offer Period (the “Purchase
Date”), the Company will apply all

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Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari passu
Indebtedness (on a pro rata basis, if applicable) or, if less than the Offer Amount has been
tendered, all Notes and other Indebtedness tendered in response to the Asset Sale Offer.
Payment for any Notes so purchased will be made in the same manner as interest payments are
made.

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

     (3) Upon the commencement of an Asset Sale Offer, the Company will send, by first class
mail, a notice to the Trustee and each of the Holders. The notice will contain all
instructions and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will
state:

     (a) that the Asset Sale Offer is being made pursuant to this Section 1115 and
the length of time the Asset Sale Offer will remain open;

     (b) the Offer Amount, the purchase price and the Purchase Date;

     (c) that any Note not tendered or accepted for payment will continue to accrue
interest;

     (d) that, unless the Company defaults in making such payment, any Note accepted
for payment pursuant to the Asset Sale Offer will cease to accrue interest after the
Purchase Date;

     (e) that Holders electing to have a Note purchased pursuant to an Asset Sale
Offer may elect to have Notes purchased in denominations of $2,000 and integral
multiples of $1,000 in excess of $2,000 only;

     (f) that Holders electing to have Notes purchased pursuant to any Asset Sale
Offer will be required to surrender the Notes, with the form entitled “Option of
Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Company, a depositary, if appointed by the Company, or a Paying
Agent at the address specified in the notice prior to the close of business on the
third Business Day preceding the Purchase Date;

     (g) that Holders will be entitled to withdraw their election if the Company,
the depositary or the Paying Agent, as the case may be, receives, not later than the
expiration of the Offer Period, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of the Note the Holder
delivered for purchase and a statement that such Holder is withdrawing his election
to have such Note purchased;

     (h) that, if the aggregate principal amount of Notes and other pari passu
Indebtedness surrendered by Holders thereof exceeds the Offer Amount, the Company
will select the Notes and other pari passu Indebtedness to be purchased on a pro
rata basis based on the principal amount of Notes and such other pari passu
Indebtedness surrendered (with such adjustments as may be deemed appropriate by the
Company so that only Notes in denominations of $2,000, or an integral multiple of
$1,000 in excess of $2,000, will be purchased); and

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     (i) that Holders whose Notes were purchased only in part will be issued new
Notes equal in principal amount to the unpurchased portion of the Notes surrendered
(or transferred by book-entry transfer), which unpurchased portion must be equal to
$2,000 in principal amount or an integral multiple of $1,000 in excess of $2,000.

     (4) On or before the Purchase Date, the Company will, to the extent lawful, accept for
payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions
thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been
tendered, all Notes tendered, and will deliver or cause to be delivered to the Trustee the
Notes properly accepted together with an Officers’ Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of
this Section 1115. The Company, the depositary or the Paying Agent, as the case may be,
will promptly (but in any case not later than five days after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered
by such Holder and accepted by the Company for purchase, and the Company will promptly issue
a new Note, and the Trustee, upon written request from the Company, will authenticate and
mail or deliver (or cause to be transferred by book entry) such new Note to such Holder, in
a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not
so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The
Company will publicly announce the results of the Asset Sale Offer on the Purchase Date.

Section 1116. Transactions with Affiliates.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or Guarantee with, or for the benefit of, any Affiliate of
the Company (each, an “Affiliate Transaction”), unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the Company or
the relevant Restricted Subsidiary than those that would have been obtained in a comparable
transaction by the Company or such Restricted Subsidiary with a Person that is not an
Affiliate of the Company; and

     (2) the Company delivers to the Trustee:

     (a) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, a Board
Resolution of the Company set forth in an Officers’ Certificate certifying that such
Affiliate Transaction or series of related Affiliate Transactions complies with this
Section 1116 and that such Affiliate Transaction or series of related Affiliate
Transactions has been approved by a majority of the disinterested members of the
Board of Directors of the Company; and

     (b) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $30.0 million, an
opinion as to the fairness to the Company or such Restricted Subsidiary of such
Affiliate Transaction or series of related Affiliate Transactions from a financial
point of view issued by an accounting, appraisal or investment banking firm of
national standing.

     The following items will not be deemed to be Affiliate Transactions and, therefore, will not
be subject to the provisions of the prior paragraph of this Section 1116:

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     (1) any employment, consulting or similar agreement or arrangement, stock option or
stock ownership plan, employee benefit plan, officer or director indemnification agreement,
restricted stock agreement, severance agreement or other compensation plan or arrangement
entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of
business and payments, awards, grants or issuances of securities pursuant thereto;

     (2) transactions between or among the Company and/or its Restricted Subsidiaries;

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

     (4) reasonable fees and expenses and compensation paid to, and indemnity or insurance
provided on behalf of, officers, directors or employees of the Company or any of its
Restricted Subsidiaries;

     (5) any issuance of Equity Interests (other than Disqualified Stock) of the Company to,
or receipt of a capital contribution from, Affiliates of the Company;

     (6) Restricted Payments that do not violate Section 1112 or any Permitted Investments;

     (7) loans or advances to employees in the ordinary course of business or consistent
with past practice;

     (8) advances to or reimbursements of employees for moving, entertainment and travel
expenses, drawing accounts and similar expenditures in the ordinary course of business;

     (9) the performance of obligations of the Company or any of its Restricted Subsidiaries
under the terms of any written agreement to which the Company or any of its Restricted
Subsidiaries was a party on the Issue Date, as these agreements may be amended, modified or
supplemented from time to time; provided, however, that any future amendment, modification
or supplement entered into after the Issue Date will be permitted to the extent that its
terms do not materially and adversely affect the rights of any Holders of the Notes (as
determined in good faith by the Board of Directors of the Company) as compared to the terms
of the agreements in effect on the Issue Date;

     (10) (a) guarantees of performance by the Company and its Restricted Subsidiaries of
Unrestricted Subsidiaries in the ordinary course of business, except for Guarantees of
Indebtedness in respect of borrowed money, and (b) pledges of Equity Interests of
Unrestricted Subsidiaries for the benefit of lenders of Unrestricted Subsidiaries;

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

     (12) transactions with customers, clients, suppliers, or purchasers or sellers of goods
or services, in each case in the ordinary course of business and otherwise in compliance
with the terms of the Indenture, provided that in the reasonable determination of the Board
of Directors of

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the Company or the senior management of the Company, such transactions are on terms not
materially less favorable to the Company or the relevant Restricted Subsidiary than those
that could reasonably be expected to be obtained in a comparable transaction at such time on
an arm’s-length basis from a Person that is not an Affiliate of the Company.

Section 1117. Subsidiary Guarantees.

     If, after the Issue Date, (1) any Material Domestic Subsidiary that is not already a
Subsidiary Guarantor incurs any Indebtedness in excess of a De Minimis Amount, or issues any
preferred stock or (2) any Domestic Restricted Subsidiary incurs any Indebtedness whatsoever in
respect of obligations under the Senior Credit Agreement, then such Subsidiary (referred to in
clause (1) or (2) of this sentence) will become a Subsidiary Guarantor by executing and delivering
a supplemental indenture, substantially in the form provided for in Annex C of this Supplemental
Indenture, to the Trustee within 30 days of the date on which it incurred such Indebtedness or
issued such preferred stock (in each case, referred to in clause (1) or (2) of this sentence).
Such supplemental indenture shall be accompanied by an Opinion of Counsel to the Trustee to the
effect that such supplemental indenture has been duly authorized, executed and delivered by that
Restricted Subsidiary and constitutes a valid and binding agreement of such Subsidiary, enforceable
in accordance with its terms (subject to customary exceptions).

     The Subsidiary Guarantee of a Subsidiary Guarantor will be released upon request of the
Subsidiary Guarantor at such time as such Subsidiary Guarantor is not liable for any Indebtedness
and has no preferred stock outstanding, as long as at the time of such release (1) no Default or
Event of Default has occurred and is continuing, (2) the Subsidiary Guarantor is not an obligor
party to any undrawn Credit Facility or any Credit Facility under which letters of credit are
outstanding or any instrument governing the terms of undrawn Indebtedness or any Guarantee thereof
and (3) the Subsidiary Guarantor has not been liable under any Indebtedness whatsoever during the
immediately preceding 181 consecutive days.

Section 1118. Designation of Restricted and Unrestricted Subsidiaries.

     The Board of Directors of the Company may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary
is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as an
Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the designation.
That designation will only be permitted if the applicable Restricted Subsidiary meets the
definition of an Unrestricted Subsidiary and if such Investment would be permitted at that time,
either pursuant to (1) Section 1112 or (2) the definition of Permitted Investment.

     Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of a Board Resolution of the Company
giving effect to such designation and an Officers’ Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 1112. If, at any time, any
Unrestricted Subsidiary would fail to meet the requirements of the definition of “Unrestricted
Subsidiary” set forth in Section 201 of this Supplemental Indenture, it will thereafter cease to be
an Unrestricted Subsidiary for purposes of the Indenture and any Indebtedness of such Subsidiary
will be deemed to be incurred by a Restricted Subsidiary as of such date and, if such Indebtedness
is not permitted to be incurred as of such date under Section 1111, the Company will be in Default
of the covenant in Section 1111.

     The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to
be a Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of any outstanding Indebtedness of such Unrestricted
Subsidiary, and such designation will only be permitted if (1) such Indebtedness is permitted under
Section 1111,

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calculated on a pro forma basis as if such designation had occurred at the beginning of the
four-quarter reference period; and (2) no Default or Event of Default would be in existence
following such designation.

Section 1119. Termination of Certain Covenants.

     From and after the occurrence of an Investment Grade Rating Event, the Company and its
Restricted Subsidiaries shall no longer be subject to clause (4) of Section 901 and Sections 1111,
1112, 1114, 1115 and 1116 of this Supplemental Indenture. Furthermore, after an Investment Grade
Rating Event, the Company may not designate any of its Subsidiaries as Unrestricted Subsidiaries.

ARTICLE TWELVE

REDEMPTION OF NOTES

Section 1201. Applicability of Article.

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

Section 1202. Election to Redeem; Notice to Trustee.

     In case of any redemption of less than all Notes, the Company shall, at least five Business
Days prior to the giving of notice of such redemption (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of the Redemption Date and of the principal amount
of Notes to be redeemed. In the case of any redemption of Notes (1) prior to the expiration of any
restriction on such redemption provided in the terms of the Notes or elsewhere in the Indenture or
(2) pursuant to an election of the Company that is subject to a condition specified in the terms of
the Notes or elsewhere in the Indenture, the Company shall furnish the Trustee, prior to giving
notice of such redemption, with an Officers’ Certificate evidencing compliance with such
restriction or condition.

Section 1203. Optional Redemption.

     At its option, the Company may redeem the Notes, in whole or in part, in principal amounts of
$2,000 or any integral multiple of $1,000 in excess thereof, at any time or from time to time, at
the applicable Redemption Prices determined as set forth in the form of Note attached as Annex A
hereto, in accordance with the terms set forth in the Notes, and in accordance with this Article
Twelve.

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

     If less than all of the Notes are to be redeemed at any time, the Trustee will select the
Notes to be redeemed among the Holders of the Notes on a pro rata basis (or, in the case of Global
Notes, the Trustee will select the Notes for redemption based on DTC’s method that most nearly
approximates a pro rata selection), unless otherwise required by law or applicable securities
exchange requirements.

     The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Note selected for partial redemption, the principal amount at maturity
thereof to be redeemed. No Notes in amounts of $2,000 or less shall be redeemed in part. Notes
and portions of Notes selected shall be in amounts of $2,000 and integral multiples of $1,000 in
excess thereof; except that if all of the Notes of a Holder are to be redeemed, the entire
Outstanding amount of Notes held by such Holder, even if less than $2,000 and/or a non-multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence, provisions of the
Indenture that apply to Notes called for redemption also apply to portions of Notes called for
redemption.

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Section 1205. Notice of Redemption.

     Subject to the final paragraph of this Section 1205, at least 30 days but not more than 60
days before a Redemption Date, the Company shall mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its registered address;
provided, however, that (notwithstanding the foregoing) notices of redemption may be mailed more
than 60 days prior to a Redemption Date if such notice is issued in connection with a Defeasance or
Covenant Defeasance of the Notes or the satisfaction and discharge of this Indenture.

     The notice shall identify the Notes to be redeemed and shall state:

     (1) the Redemption Date;

     (2) the Redemption Price, or if not then ascertainable, the manner of calculation
thereof;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion of the original Note shall
be issued in the name of the Holder thereof upon cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price and become due on the date fixed for redemption, unless the redemption
is subject to a condition precedent that is not satisfied or waived;

     (6) that, unless the Company defaults in making such redemption payment, interest, if
any, on Notes called for redemption ceases to accrue on and after the Redemption Date;

     (7) the paragraph of the Notes and/or Section of this Supplemental Indenture pursuant
to which the Notes called for redemption are being redeemed;

     (8) that no representation is made as to the correctness or accuracy of the CUSIP or
CINS number, if any, listed in such notice or printed on the Notes; and

     (9) any conditions that must be satisfied prior to the Company becoming obligated to
consummate such redemption.

     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense; provided, however, that the Company shall have delivered to the
Trustee, at least five Business Days prior to mailing of notice of the redemption (or such shorter
period of time as may be acceptable to the Trustee), a Company Request that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

     Notwithstanding the preceding provisions of this Section 1205, notice of any redemption upon
an Equity Offering may be given prior to the completion of the related Equity Offering, and any
such redemption or notice may at the Company’s discretion, be subject to one or more conditions
precedent, including, but not limited to completion of the related Equity Offering.

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Section 1206. Deposit of Redemption Price.

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

Section 1207. Notes Payable on Redemption Date.

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

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

Section 1208. Notes Redeemed in Part.

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

ARTICLE THIRTEEN

[INTENTIONALLY DELETED]

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE

Section 1401. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1402 or Section 1403 applied
to the Notes, upon compliance with the conditions set forth below in this Article. Any such
election shall be evidenced in a Board Resolution set forth in an Officers’ Certificate delivered
to the Trustee.

Section 1402. Defeasance and Discharge.

     Upon the Company’s exercise of its option to have this Section applied to the Notes, the
Company shall be deemed to have been discharged from its obligations with respect to such Notes as
provided in this Section on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the
Company shall be

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deemed to have paid and discharged the entire indebtedness represented by such Notes and to
have satisfied all its other obligations under such Notes and the Indenture insofar as the Notes
are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), subject to the following, which shall survive until otherwise terminated
or discharged hereunder: (1) the rights of Holders of such Notes to receive, solely from the trust
fund described in Section 1404 and as more fully set forth in such Section, payments in respect of
the principal of and any premium and interest on such Notes when payments are due; (2) the
Company’s obligations with respect to such Notes under Sections 404, 405, 406, 1102 and 1103 and
its obligations under Section 314(a) of the Trust Indenture Act; (3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and the Company’s and the Subsidiary Guarantors’
obligations in connection therewith; and (4) this Article. If the Company exercises its defeasance
option pursuant to this Section 1402, the Subsidiary Guarantees will terminate with respect to the
Notes, and payment of the Notes may not be accelerated pursuant to Section 602 because of an Event
of Default. Subject to compliance with this Article, the Company may exercise its option to have
this Section applied to any Notes notwithstanding the prior exercise of its option to have Section
1403 applied to such Notes.

Section 1403. Covenant Defeasance.

     Upon the Company’s exercise of its option to have this Section applied to the Notes, (1) the
Company shall be released from its obligations under Section 901(4), Section 1106, Sections 1110
through 1118, inclusive; (2) the occurrence of any event specified in Sections 601(3) (with respect
only to the obligation under Section 901(4)), 601(4), 601(5), 601(6), 601(7), 601(9) (with respect
only to Significant Subsidiaries) or 601(10) (with respect only to Significant Subsidiaries), shall
be deemed not to be or to result in an Event of Default and (3) the Subsidiary Guarantees shall be
automatically released, in each case with respect to such Notes as provided in this Section on and
after the date the conditions set forth in Section 1404 are satisfied (hereinafter called “Covenant
Defeasance”). For this purpose, such Covenant Defeasance means that, with respect to such Notes,
the Company may omit to comply with and shall have no liability in respect of any term, condition
or limitation set forth in any such specified Section, whether directly or indirectly by reason of
any reference elsewhere herein to any such Section or Article or by reason of any reference in any
such Section or Article to any other provision herein or in any other document, but the remainder
of the Indenture and such Notes shall be unaffected thereby.

Section 1404. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1402 or Section 1403 to
any Notes:

     (1) the Company must irrevocably deposit with the Trustee (or another trustee that
satisfies the requirements of Section 709 and agrees to comply with the provisions of this
Article Fourteen applicable to it), in trust, for the benefit of the Holders, cash in U.S.
dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and
non-callable Government Securities, in such amounts as will be sufficient, in the opinion of
a nationally recognized investment bank, nationally recognized appraisal firm, or nationally
recognized firm of independent public accountants to pay the principal of, or interest and
premium, if any, on the Outstanding Notes on the stated date for payment thereof or on the
applicable Redemption Date, as the case may be, and the Company must specify whether the
Notes are being defeased to such stated date for payment or to a particular Redemption Date;

     (2) in the case of an election under Section 1402 hereof, the Company must deliver to
the Trustee an Opinion of Counsel confirming that:

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     (a) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling; or

     (b) since the Issue Date, there has been a change in the applicable U.S.
federal income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel will
confirm that, the Holders will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such Defeasance and will be subject to U.S.
federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Defeasance had not occurred;

     (3) in the case of an election under Section 1403 hereof, the Company must deliver to
the Trustee an Opinion of Counsel confirming that the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance
and will be subject to U.S. federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such Covenant Defeasance had not occurred;

     (4) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit or the grant of Liens securing such borrowing);

     (5) such Defeasance or Covenant Defeasance and the related deposit will not result in a
breach or violation of, or constitute a default under, any material agreement or instrument
(other than this Indenture) to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders over the other
creditors of the Company with the intent of defeating, hindering, delaying or defrauding any
creditors of the Company or others;

     (7) the Company must deliver to the Trustee an Officers’ Certificate, stating that all
conditions precedent set forth in clauses (1) through (6) of this Section 1404 have been
complied with; and

     (8) the Company must deliver to the Trustee an Opinion of Counsel, stating that all
conditions precedent set forth in clauses (2), (3) and (5) of this Section 1404 have been
complied with.

Section 1405. Deposited Money and Government Securities to Be Held in Trust;
Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1103, all money and Government
Securities (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1406, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1404 in respect of any Notes shall
be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and
the Indenture, to the payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Notes,
of all sums due and to become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the extent required by
law.

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     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Securities deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Notes.

     Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or Government Securities held by it as
provided in Section 1404 with respect to any Notes which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 1404(1)), are in excess of the amount
thereof which would then be required to be deposited to effect the Defeasance or Covenant
Defeasance, as the case may be, with respect to such Notes.

Section 1406. Reinstatement.

     If the Trustee or any Paying Agent is unable to apply any money in accordance with this
Article with respect to any Notes by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the obligations
under the Indenture and such Notes from which the Company has been discharged or released pursuant
to Section 1402 or 1403 shall be revived and reinstated as though no deposit had occurred pursuant
to this Article with respect to such Notes, until such time as the Trustee or Paying Agent is
permitted to apply all money held in trust pursuant to Section 1405 with respect to such Notes in
accordance with this Article; provided, however, that if the Company makes any payment of principal
of or any premium or interest on any such Note following such reinstatement of its obligations, the
Company shall be subrogated to the rights (if any) of the Holders of such Notes to receive such
payment from the money so held in trust.

ARTICLE FIFTEEN

[INTENTIONALLY DELETED]

ARTICLE SIXTEEN

SUBSIDIARY GUARANTEES

Section 1601. Unconditional Guarantee.

     For value received, each of the Subsidiary Guarantors hereby fully and unconditionally
guarantees (the “Subsidiary Guarantee”) to the Holders and to the Trustee the due and punctual
payment of the principal of, and premium, if any, and interest on the Notes and all other amounts
due and payable under the Indenture and the Notes by the Company (collectively, the “Obligations”),
when and as such principal, premium, if any, and interest shall become due and payable, whether at
the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, according
to the terms of the Notes and the Indenture, subject to the limitations set forth in Section 1603.

     Failing payment when due of any amount guaranteed pursuant to its Subsidiary Guarantee, for
whatever reason, each of the Subsidiary Guarantors will be jointly and severally obligated to pay
the same immediately. Each Subsidiary Guarantee hereunder is intended to be a general, unsecured,
senior obligation of each of the Subsidiary Guarantors and will rank pari passu in right of payment
with all debt of such Subsidiary Guarantor that is not, by its terms, expressly subordinated in
right of payment to the Subsidiary Guarantee. Each of the Subsidiary Guarantors hereby agrees that
its obligations hereunder shall be full, unconditional and absolute, irrespective of the validity,
regularity or enforceability of the Notes, the Subsidiary Guarantee of any other Subsidiary
Guarantor or the Indenture, the absence of any action to enforce the same, any waiver or consent by
any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company or any other Subsidiary

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Guarantor, or any action to enforce the same or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of the Subsidiary Guarantors. Each of the
Subsidiary Guarantors hereby agrees that in the event of a default in payment of the principal of,
or premium, if any, or interest on the Notes, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise, legal proceedings may be instituted by the Trustee
on behalf of the Holders or, subject to Section 607, by the Holders, on the terms and conditions
set forth in the Indenture, directly against such Subsidiary Guarantor to enforce its Subsidiary
Guarantee without first proceeding against the Company or any other Subsidiary Guarantor.

     The obligations of each of the Subsidiary Guarantors under this Article shall be as aforesaid
full and unconditional and shall not be impaired, modified, released or limited by any occurrence
or condition whatsoever, including, without limitation, (1) any compromise, settlement, release,
waiver, renewal, extension, indulgence or modification of, or any change in, any of the obligations
and liabilities of the Company or any of the other Subsidiary Guarantors contained in the Notes or
the Indenture, (2) any impairment, modification, release or limitation of the liability of the
Company, any of the other Subsidiary Guarantors or any of their estates in bankruptcy, or any
remedy for the enforcement thereof, resulting from the operation of any present or future provision
of any applicable bankruptcy law, or other statute or from the decision of any court, (3) the
assertion or exercise by the Company, any of the other Subsidiary Guarantors or the Trustee of any
rights or remedies under the Notes or the Indenture or their delay in or failure to assert or
exercise any such rights or remedies, (4) the assignment or the purported assignment of any
property as security for the Notes, including all or any part of the rights of the Company or any
of the other Subsidiary Guarantors under the Indenture, (5) the extension of the time for payment
by the Company or any of the other Subsidiary Guarantors of any payments or other sums or any part
thereof owing or payable under any of the terms and provisions of the Notes or the Indenture or of
the time for performance by the Company or any of the other Subsidiary Guarantors of any other
obligations under or arising out of any such terms and provisions or the extension or the renewal
of any thereof, (6) the modification or amendment (whether material or otherwise) of any duty,
agreement or obligation of the Company or any of the other Subsidiary Guarantors set forth in the
Indenture, (7) the voluntary or involuntary liquidation, dissolution, sale or other disposition of
all or substantially all of the assets, marshaling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement,
composition or readjustment of, or other similar proceeding affecting, the Company or any of the
other Subsidiary Guarantors or any of their respective assets, or the disaffirmance of the Notes,
the Subsidiary Guarantee or the Indenture in any such proceeding, (8) the release or discharge of
the Company or any of the other Subsidiary Guarantors from the performance or observance of any
agreement, covenant, term or condition contained in any of such instruments by operation of law,
(9) the unenforceability of the Notes or the Indenture or (10) any other circumstances (other than
payment in full or discharge of all amounts guaranteed pursuant to the Subsidiary Guarantees) which
might otherwise constitute a legal or equitable discharge of a surety or guarantor.

     Each of the Subsidiary Guarantors hereby (1) waives diligence, presentment, demand of payment,
filing of claims with a court in the event of the merger, insolvency or bankruptcy of the Company
or any of the Subsidiary Guarantors, and all demands whatsoever, (2) acknowledges that any
agreement, instrument or document evidencing its Subsidiary Guarantee may be transferred and that
the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument
or document evidencing the Subsidiary Guarantee without notice to it and (3) covenants that its
Subsidiary Guarantee will not be discharged except by complete performance of the Subsidiary
Guarantee. Each of the Subsidiary Guarantors further agrees that if at any time all or any part of
any payment theretofore applied by any Person to its Subsidiary Guarantee is, or must be, rescinded
or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of the Company or any of the Subsidiary Guarantors, the Subsidiary Guarantee shall,
to the extent that such payment is or must be

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rescinded or returned, be deemed to have continued in existence notwithstanding such
application, and the Subsidiary Guarantee shall continue to be effective or be reinstated, as the
case may be, as though such application had not been made.

     Each of the Subsidiary Guarantors shall be subrogated to all rights of the Holders and the
Trustee against the Company in respect of any amounts paid by such Subsidiary Guarantor pursuant to
the provisions of the Indenture, provided, however, that such Subsidiary Guarantor, shall not be
entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Notes and the Subsidiary Guarantees shall have been paid in full or
discharged.

Section 1602. Execution and Delivery of Notation of Subsidiary Guarantee.

     To further evidence its Subsidiary Guarantee set forth in Section 1601, each of the Subsidiary
Guarantors hereby agrees that a notation relating to such Subsidiary Guarantee, substantially in
the form attached hereto as Annex B, shall be endorsed on each Note entitled to the benefits of the
Subsidiary Guarantee authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an Officer of such Subsidiary Guarantor, or in the case of a Subsidiary
Guarantor that is a limited partnership, an Officer of the general partner of each Subsidiary
Guarantor. Each of the Subsidiary Guarantors hereby agrees that the Subsidiary Guarantee set forth
in Section 1601 shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation relating to its Subsidiary Guarantee. If any Officer of the Subsidiary
Guarantor, or in the case of a Subsidiary Guarantor that is a limited partnership, any Officer of
the general partner of the Subsidiary Guarantor, whose signature is on the Indenture or a Note no
longer holds that office at the time the Trustee authenticates such Note or at any time thereafter,
the Subsidiary Guarantee of such Note shall be valid nevertheless. The delivery of any Note by the
Trustee, after the authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantees set forth in the Indenture on behalf of the Subsidiary Guarantors.

Section 1603. Limitation on Subsidiary Guarantors’ Liability.

     Each Subsidiary Guarantor and by its acceptance hereof each Holder of a Note entitled to the
benefits of the Subsidiary Guarantee hereby confirm that it is the intention of all such parties
that the guarantee by such Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute
a fraudulent transfer or conveyance for purposes of any Federal or State law. To effectuate the
foregoing intention, the Holders of a Note entitled to the benefits of the Subsidiary Guarantees
and the Subsidiary Guarantors hereby irrevocably agree that the obligations of each Subsidiary
Guarantor under its Subsidiary Guarantee shall be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any
collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee, result in the
obligations of such Subsidiary Guarantor under the Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under Federal or State law.

Section 1604. Release of Subsidiary Guarantors from Guarantee.

     Each Subsidiary Guarantor will be released and relieved of any obligations under its
Subsidiary Guarantee as set forth in the second paragraph of Section 1117, and the Subsidiary
Guarantee of a Subsidiary Guarantor will also be released immediately:

     (1) upon any sale or other disposition of all or substantially all of the properties or
assets of such Subsidiary Guarantor (including by way of merger or consolidation) to a
Person that is not (either before or after giving effect to such transaction) the Company or
a Restricted Subsidiary, if the sale or other disposition does not violate Section 1115;

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     (2) upon any sale or other disposition of the Capital Stock of such Subsidiary
Guarantor to a Person that is not (either before or after giving effect to such transaction)
the Company or a Restricted Subsidiary, if the sale or other disposition does not violate
Section 1115 and such Subsidiary Guarantor no longer qualifies as a Subsidiary of the
Company as a result of such disposition;

     (3) upon designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with Section 1118;

     (4) upon Defeasance or Covenant Defeasance in accordance with Article Fourteen or
satisfaction and discharge of the Indenture in accordance with Article Five; or

     (5) upon the liquidation or dissolution of such Subsidiary Guarantor, provided that no
Default or Event of Default occurs as a result thereof or shall have occurred and is
continuing.

     The Trustee shall deliver an appropriate instrument evidencing any release of a Subsidiary
Guarantor from the Subsidiary Guarantee upon receipt of a Company Request accompanied by an
Officers’ Certificate and an Opinion of Counsel the Subsidiary Guarantor is entitled to such
release in accordance with the provisions of the Indenture.

     Any Subsidiary Guarantor not released in accordance with the provisions of the Indenture will
remain liable for the full amount of principal of (and premium, if any, on) and interest on the
Notes as provided in this Article Sixteen, subject to the limitations of Section 1603.

Section 1605. Subsidiary Guarantor Contribution.

     In order to provide for just and equitable contribution among the Subsidiary Guarantors, the
Subsidiary Guarantors hereby agree, inter se, that in the event any payment or distribution is made
by any Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee, such Funding
Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor (if any) in a
pro rata amount based on the net assets of each Subsidiary Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging
the Company’s Obligations with respect to the Notes or any other Subsidiary Guarantor’s obligations
with respect to its Subsidiary Guarantee.

Section 1606. Subsidiary Guarantors May Consolidate, etc., on Certain Terms.

     A Subsidiary Guarantor may not sell or otherwise dispose of all or substantially all of its
properties or assets to, or consolidate with or merge with or into (regardless of whether such
Subsidiary Guarantor is the surviving Person) another Person, other than the Company or another
Subsidiary Guarantor, unless:

     (1) immediately after giving effect to such transaction, no Default or Event of Default
exists; and

     (2) either:

     (a) (i) such Subsidiary Guarantor is the surviving Person or (ii) the Person
acquiring the properties or assets in any such sale or other disposition or the
Person formed by or surviving any such consolidation or merger (if other than such
Subsidiary Guarantor) assumes all the obligations of such Subsidiary Guarantor under
the Indenture

97

 

     (including its Subsidiary Guarantee), on the terms set forth herein, pursuant
to a supplemental indenture satisfactory to the Trustee; or

          (b) such transaction does not violate the provisions of Section 1115.

     In case of any such consolidation, merger, sale or other disposition and upon the assumption
by the successor Person, by supplemental indenture, executed and delivered to the Trustee and
satisfactory in form to the Trustee, of the Subsidiary Guarantee of such Subsidiary Guarantor and
the due and punctual performance of all of the covenants and conditions of the Indenture to be
performed by the Subsidiary Guarantor, such successor Person will succeed to and be substituted for
the Subsidiary Guarantor with the same effect as if it had been named herein as a Subsidiary
Guarantor. Such successor Person thereupon may cause to be signed any or all of the Subsidiary
Guarantee notations to be endorsed upon all of the Notes issuable hereunder which theretofore shall
not have been signed by such Subsidiary Guarantor and delivered to the Trustee. All the Subsidiary
Guarantees so issued will in all respects have the same legal rank and benefit under the Indenture
as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the
Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution
hereof.

_____________________

     The Trustee hereby accepts the trusts in the Indenture upon the terms and conditions herein
set forth.

[Signature Page Follows]

98

 

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

	 	 	 	 	 
	 	OASIS PETROLEUM INC.

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Thomas B. Nusz 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	OASIS PETROLEUM LLC

OASIS PETROLEUM NORTH AMERICA LLC

OASIS PETROLEUM MARKETING LLC

OASIS PETROLEUM WELL SERVICES LLC

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Thomas B. Nusz 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Steven Finklea
 	 
	 	 	Steven Finklea 	 
	 	 	Vice President 	 
	 

99

 

ANNEX A

CUSIP 674215AD0

ISIN US674215AD08

[Form of Face of Note]

[If a Global Note, insert the Global Note Legend.]

OASIS PETROLEUM INC.

6.5% Senior Note due 2021

			
	No.
	 	$

     Oasis Petroleum Inc., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to _________, or registered
assigns, the principal sum of ________ Dollars on November 1, 2021 [if this Note is a Global Note,
insert — or such greater or lesser amount as may be indicated on the Schedule of Exchanges of
Interests in the Global Note attached hereto].

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

A-1

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by its
undersigned officer.

	 	 	 	 	 
	 	OASIS PETROLEUM INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

Trustee’s Certificate of Authentication

     This is one of the 6.5% Senior Notes due 2021 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 

Dated:

A-2

 

[Form of Reverse of Note]

6.5% Senior Note due 2021

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated. To the extent that any of the terms and provisions of this Note
conflict with the express provisions of the Indenture, the terms and provisions of the Indenture
shall govern and be controlling.

     (1) INTEREST. Interest on the Notes will accrue at the rate of 6.5% per annum and will be
payable semi-annually in arrears on May 1 and November 1, beginning on May 1, 2012. Interest on
the Notes will accrue from the date of original issuance or, if interest has already been paid,
from the date it was most recently paid. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months. If a payment date is a Legal Holiday at a Place of Payment,
payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue on such payment for the intervening period. The Company will pay interest
(including post-petition interest in any proceeding under any applicable Bankruptcy Law) on overdue
principal and premium, if any, at the interest rate specified in the Notes to the extent lawful;
and it will pay interest (including post-petition interest in any proceeding under any applicable
Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period)
at the same rate to the extent lawful.

     (2) METHOD OF PAYMENT. The Company will pay interest on the Notes (except Defaulted Interest)
to the Persons who are registered Holders of Notes at the close of business on the April 15 or
November 15 next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 407 of the
Indenture with respect to Defaulted Interest. Holders must surrender Notes to the Paying Agent to
collect payments of principal and premium, if any, due at Maturity. The Notes will be payable as to
principal, premium, if any, and interest at the office or agency of the Company maintained for such
purpose in the City and State of New York, which, at the Issue Date, is the office of the Trustee
located at 100 Wall Street, Suite 1600, New York, New York 10005, or, at the option of the Company,
payment of interest may be made by check mailed to the Holders at their addresses set forth in the
Security Register; provided that payment by wire transfer of immediately available funds will be
required with respect to principal of and interest and premium, if any, on, all Global Notes and
all other Notes the Holders of which will have provided wire transfer instructions to the Company
or the Paying Agent. Such payment will be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

     (3) PAYING AGENT AND SECURITY REGISTRAR. Initially, U.S. Bank National Association, the
Trustee under the Indenture, will act as Paying Agent and Security Registrar. The Company may
change any Paying Agent or Security Registrar without notice to any Holder. The Company may act in
any such capacity.

     (4) INDENTURE. The Notes are a series of Securities issued by the Company under an Indenture,
dated as of November 10, 2011, by and among the Company, the Subsidiary Guarantors parties thereto
and the Trustee (the “Original Indenture”), as amended and supplemented by the First Supplemental
Indenture thereto, dated as of November 10, 2011, by and among the Company, the Subsidiary
Guarantors parties thereto and the Trustee (the “Supplemental Indenture”), and designated as the
“6.5% Senior Notes due 2021.” The Original Indenture, as amended and supplemented by the
Supplemental Indenture, is referred to herein as the “Indenture.” The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement

A-3

 

of such terms. To the extent any provision of this Note conflicts with the express provisions
of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are
unsecured obligations of the Company. The Indenture does not limit the aggregate principal amount
of Notes or any other series of Securities that may be issued thereunder.

     (5) OPTIONAL REDEMPTION. Except as described below, the Notes are not redeemable until
November 1, 2016. On and after November 1, 2016, the Company may redeem all or a part of the
Notes, from time to time, at the following Redemption Prices (expressed as a percentage of
principal amount) plus accrued and unpaid interest, if any, on the Notes redeemed to the applicable
Redemption Date (subject to the rights of Holders of Notes on the relevant record date to receive
interest due on the relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on November 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Redemption 
Price	 
	2016
	 	 	103.250	%
	2017
	 	 	102.167	%
	2018
	 	 	101.083	%
	2019 and thereafter
	 	 	100.000	%

     At any time or from time to time prior to November 1, 2016, the Company may also redeem all or
a part of the Notes, at a Redemption Price equal to the Make-Whole Price, subject to the rights of
Holders of Notes on the relevant record date to receive interest due on the relevant Interest
Payment Date.

     “Make-Whole Price” with respect to any Notes to be redeemed, means an amount equal to the
greater of:

     (1) 100% of the principal amount of such Notes; and

     (2) the sum of the present values of (a) the Redemption Price of such Notes at November 1,
2016 (as set forth above) and (b) the remaining scheduled payments of interest from the Redemption
Date to November 1, 2016 (not including any portion of such payments of interest accrued as of the
Redemption Date) discounted back to the Redemption Date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis
points;

plus, in the case of both (1) and (2), accrued and unpaid interest on such Notes, if any, to the
Redemption Date.

     “Comparable Treasury Issue” means, with respect to Notes to be redeemed, the U.S. Treasury
security selected by an Independent Investment Banker as having a maturity most nearly equal to the
period from the Redemption Date to November 1, 2016, that would be utilized at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity; provided that if such period is less than one year, then
the U.S. Treasury security having a maturity of one year shall be used.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the
Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than five
such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

     “Independent Investment Banker” means J.P. Morgan Securities LLC, Wells Fargo Securities, LLC,
BNP Paribas Corp. or one of their respective successors, or, if such firms or their respective

A-4

 

successors, if any, as the case may be, are unwilling or unable to select the Comparable
Treasury Issue, an independent investment banking institution of national standing appointed by the
Company.

     “Reference Treasury Dealer” means each of J.P. Morgan Securities LLC, BNP Paribas Corp. and a
Primary Treasury Dealer designated by Wells Fargo Securities, LLC and two additional primary
Government Securities dealers in New York City (each a “Primary Treasury Dealer”) selected by the
Company, and their respective successors; provided, however, that if any such firm or any such
successor, as the case may be, shall cease to be a primary Government Securities dealer in New York
City, the Company shall substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third Business Day preceding such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date, (1) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(159)” or any successor publication that is published
weekly by the Board of Governors of the Federal Reserve System and that establishes yields on
actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the stated maturity, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue shall be determined, and the
Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis,
rounding to the nearest month) or (2) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be
calculated on the third Business Day preceding the Redemption Date.

     The notice of redemption with respect to the foregoing redemption need not set forth the
Make-Whole Price but only the manner of calculation thereof. The Company will notify the Trustee
of the Make-Whole Price with respect to any redemption promptly after the calculation, and the
Trustee shall not be responsible for such calculation.

     Prior to November 1, 2014, the Company may on any one or more occasions redeem up to 35% of
the principal amount of the Notes, with all or a portion of the net cash proceeds of one or more
Equity Offerings at a Redemption Price equal to 106.500% of the principal amount thereof, plus
accrued and unpaid interest, if any, on the Notes redeemed to the Redemption Date (subject to the
right of Holders of record on the relevant record date to receive interest due on the relevant
Interest Payment Date); provided that:

     (1) at least 65% of the aggregate principal amount of the Notes issued on the Issue
Date (excluding Notes held by the Company and its Subsidiaries) remains Outstanding after
each such redemption; and

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

     Notice of any redemption upon an Equity Offering may be given prior to the completion of the
related Equity Offering, and any such redemption or notice may at the Company’s discretion, be
subject

A-5

 

to one or more conditions precedent, including, but not limited to completion of the related
Equity Offering.

     In the event that Holders of at least 90% of the aggregate principal amount of the Outstanding
Notes accept a Change of Control Offer and the Company (or any third party making such Change of
Control Offer, in lieu of the Company, as described in the sixth paragraph of Section 1110 of the
Supplemental Indenture) purchases all of the Notes held by such Holders, the Company will have the
right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days
following a Change of Control Payment Date, to redeem all, but not less than all, of the Notes that
remain Outstanding at a Redemption Price equal to the Change of Control Payment plus, to the extent
not included in the Change of Control Payment, accrued and unpaid interest, if any, on the Notes
that remain Outstanding, to the date of redemption (subject to the right of Holders on the relevant
record date to receive interest due on the relevant Interest Payment Date).

     If a Change of Control occurs at any time on or prior to January 1, 2013, the Company may, at
its option, redeem all, but not less than all, of the Notes, at a Redemption Price equal to 110.0%
of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the rights of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date). If the Company elects to exercise this redemption
right, it must do so by mailing a redemption notice to each Holder with a copy to the Trustee
within 60 days following the Change of Control (or, at the Company’s option, prior to such Change
of Control but after the transaction giving rise to such Change of Control is publicly announced).
Any such redemption may be conditioned upon the Change of Control occurring if the notice is mailed
prior to the Change of Control. If the Company exercises this Change of Control redemption right,
it may elect not to make the Change of Control Offer required by Section 1110 of the Supplemental
Indenture, unless it defaults in payments due upon redemption.

     Unless the Company defaults in the payment of the Redemption Price, interest, if any, will
cease to accrue on the Notes or portions thereof called for redemption on the applicable Redemption
Date.

     (6) MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking
fund payments with respect to the Notes. However, under certain circumstances, the Company may be
required to offer to purchase Notes pursuant to Section 1110 or 1115 of the Supplemental Indenture.

     (7) REPURCHASE AT THE OPTION OF HOLDER.

     (a) If there is a Change of Control, the Company will be required to make an offer (a
“Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or
an integral multiple of $1,000 in excess $2,000) of each Holder’s Notes at a purchase price
in cash equal to not less than 101% of the aggregate principal amount thereof plus accrued
and unpaid interest, if any, thereon to the date of purchase, subject to the rights of
Holders on the relevant record date to receive interest due on the relevant Interest Payment
Date (the “Change of Control Payment”). Within 30 days following any Change of Control, the
Company will mail a notice to each Holder setting forth the procedures governing the Change
of Control Offer as required by the Indenture.

     (b) If the Company or a Restricted Subsidiary of the Company consummates any Asset
Sales, within 10 Business Days of each date on which the aggregate amount of Excess Proceeds
exceeds $20.0 million, the Company will make an offer (an “Asset Sale Offer”) to all Holders
of Notes and all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers to purchase

A-6

 

     or redeem with the proceeds of sales of assets pursuant to Section 1115 of the
Supplemental Indenture to purchase the maximum principal amount of Notes and such other pari
passu Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any
Asset Sale will be equal to 100% of the principal amount plus accrued and unpaid interest,
if any, to the date of purchase, in accordance with the procedures set forth in the
Indenture. If any Excess Proceeds remain unapplied after the consummation of an Asset Sale
Offer, the Company (or any Restricted Subsidiary) may use the Excess Proceeds for any
purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of
Notes and other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the Company will use the Excess Proceeds to purchase the Notes
and such other pari passu Indebtedness on a pro rata basis. Holders of Notes that are the
subject of an offer to purchase will receive notice of an Asset Sale Offer from the Company
prior to any related purchase date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder to Elect Purchase” attached to the Notes.

     (8) NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of the Indenture. Notes in denominations larger than $2,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

     (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. The transfer of
Notes may be registered and Notes may be exchanged as provided in the Indenture. The Security
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents in connection with a transfer of its Notes, and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The
Company need not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the
Company need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the corresponding
Interest Payment Date.

     (10) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate
principal amount of the Notes then Outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes), and any existing
default or compliance with any provision of the Indenture or the Notes may be waived with the
consent of the Holders of a majority in aggregate principal amount of the Notes then Outstanding
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes). Without the consent of any Holder of a Note, the Indenture or the
Notes may be amended or supplemented to, among other things, cure any ambiguity, defect or
inconsistency, or make any change that does not adversely affect the rights or interests of any
such Holder.

     (12) DEFAULTS AND REMEDIES. In the case of an Event of Default arising from events of
bankruptcy or insolvency specified in clause (9) or (10) of Section 601 of the Supplemental
Indenture, all Outstanding Notes will become due and payable immediately without further action or
notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate

A-7

 

principal amount of the then Outstanding Notes may declare all the Notes to be due and payable
immediately by notice in writing to the Company specifying the Event of Default. Holders of the
Notes may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to
certain limitations, Holders of a majority in aggregate principal amount of the then Outstanding
Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any Default or Event of Default (except a Default or Event of
Default relating to the payment of principal, premium or interest) if and so long as the Trustee in
good faith determines that withholding the notice is in the interests of the Holders of the Notes.
The Company is required to deliver to the Trustee annually an Officers’ Certificate regarding the
compliance with the Indenture, and the Company is required, within five Business Days after
becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying
such Default or Event of Default. The Holders of a majority in aggregate principal amount of the
Notes then Outstanding may on behalf of the Holders of all of the Notes waive any past default and
its consequences under the Indenture, except a default in the payment of interest or any premium
on, or the principal of, the Notes and except as provided in Section 613(2) of the Supplemental
Indenture. The Holders of a majority in aggregate principal amount of the then Outstanding Notes
will have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee with respect to the Notes. However, the Trustee may refuse to
follow any direction that conflicts with law or the Indenture, or that may involve the Trustee in
personal liability, and may take any other action it deems proper that is not inconsistent with any
such direction received from Holders of Notes.

     (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

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

     (15) AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (16) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP and CINS numbers to be printed on
the Notes, and the Trustee may use CUSIP and CINS numbers in notices of redemption as a convenience
to Holders. No representation is made as to the accuracy of such numbers either as printed on the
Notes or as contained in any notice of redemption, and reliance may be placed only on the other
identification numbers placed thereon.

A-8

 

     (18) GOVERNING LAW. THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE AND
ENFORCE THE INDENTURE AND THIS NOTE.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Original Indenture and the Supplemental Indenture. Requests may be made to:

Oasis Petroleum Inc.

First City Tower

1001 Fannin, Suite 1500

Houston, Texas 77002

Attention: General Counsel

A-9

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 

	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint ___________________________________________________________________________

to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date: _______________

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on the face of this Note) 	 
	 	 	 	 
	 

Signature Guarantee:* _______________

 

			
	*	 	Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

A-10

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to Section 1110 or
Section 1115 of the Indenture, check the appropriate box below:

o    Section 1110    o      Section 1115

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 1110 or Section 1115 of the Indenture, state the amount you elect to have purchased:

$_______________

Date: _______________

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on the face of this Note) 	 
	 

	 	 	 	 	 
	 	 Tax Identification No.: __________________
 	 
	 	 	 

Signature Guarantee:*

 

			
	*	 	Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

A-11

 

Schedule of Exchanges of Interests in the Global Note*

     The following exchanges of a part of this Global Note for other Notes have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	Signature of
	 	 	 	 	 	 	this Global Note	 	authorized
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	signatory of
	 	 	in Principal Amount	 	in Principal Amount	 	decrease (or	 	Trustee or
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	increase)	 	Custodian
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 

 

			
	*	 	This schedule should be included only if the
Note is issued in global form.

A-12

 

ANNEX B

NOTATION OF SUBSIDIARY GUARANTEE

     Each of the Subsidiary Guarantors (which term includes any successor Person under the
Indenture (as defined below)), has fully and unconditionally guaranteed, to the extent set forth in
Article Sixteen of the First Supplemental Indenture dated as of November 10, 2011, by and among
Oasis Petroleum Inc., as issuer, the Subsidiary Guarantors and U.S. Bank National Association, as
Trustee (the “Supplemental Indenture”) to the Indenture, dated as of November 10, 2011 among the
Company, the Subsidiary Guarantors and the Trustee (the “Base Indenture” and as supplemented by the
Supplemental Indenture, the “Indenture”), and subject to the provisions in the Indenture, the due
and punctual payment of the principal of, and premium, if any, and interest on the Notes and all
other amounts due and payable under the Indenture and the Notes by the Company.

     The obligations of the Subsidiary Guarantors to the Holders of Notes and to the Trustee
pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article Sixteen
of the Supplemental Indenture and reference is hereby made to the Indenture for the precise terms
of the Subsidiary Guarantee and the conditions upon which it may be released.

     IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this notation to be duly
executed.

	 	 	 	 	 
	 	[Name of Subsidiary Guarantor(s)]

 	 
	 	By:  	 	 
	 	 	Name:  	 
	 	 	Title:  	 

B-1

 

	 	 	 	 	 

ANNEX C

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY FUTURE SUBSIDIARY GUARANTORS

     Supplemental Indenture (this “Supplemental Indenture”), dated as of ________________,
20__, among [Name of Future Subsidiary Guarantor] (the “New Subsidiary Guarantor”), a subsidiary of
Oasis Petroleum Inc., a Delaware corporation [or its permitted successor] (the “Company”), the
existing Subsidiary Guarantors (as defined in the Indenture referred to herein), the Company, and
U.S. Bank National Association, as trustee under the Indenture referred to herein (the “Trustee”).
The New Subsidiary Guarantor and the existing Subsidiary Guarantors are sometimes referred to
collectively herein as the “Subsidiary Guarantors”, or individually as a “Subsidiary Guarantor.”

W I T N E S S E T H

     WHEREAS, the Company and the existing Subsidiary Guarantors have heretofore executed and
delivered to the Trustee an indenture, dated as of November 10, 2011, and a First Supplemental
Indenture (herein so called) dated as of November 10, 2011 relating to the 6.5% Senior Notes due
2021 (the “Securities”) of the Company;

     WHEREAS, Section 1117 of the First Supplemental Indenture obligates the Company to cause
certain Restricted Subsidiaries to become Subsidiary Guarantors by executing a supplemental
indenture as provided in such Section; and

     WHEREAS, pursuant to Section 1001 of the First Supplemental Indenture, the Company, the
Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental
Indenture to amend or supplement the Indenture without the consent of any Holder;

     NOW THEREFORE, to comply with the provisions of the First Supplemental Indenture and in
consideration of the foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the New Subsidiary Guarantor, the other Subsidiary Guarantors, the Company
and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the First Supplemental Indenture.

     2. Agreement to Guarantee. The New Subsidiary Guarantor hereby agrees, jointly and
severally, with all other Subsidiary Guarantors, to fully and unconditionally Guarantee to each
Holder and to the Trustee the Obligations, to the extent set forth in Article Sixteen of the First
Supplemental Indenture and subject to the provisions thereof. The obligations of the Subsidiary
Guarantors to the Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees
and the Indenture are expressly set forth in Article Sixteen of the First Supplemental Indenture
and reference is hereby made to such Article for the precise terms of the Subsidiary Guarantees.

     3. NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE AND ENFORCE THIS SUPPLEMENTAL INDENTURE.

     4. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

C-1

 

This Supplemental Indenture may be executed in multiple counterparts which, when taken
together, shall constitute one instrument.

     5. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     6. The Trustee. Except as otherwise expressly provided herein, no duties,
responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by
reason of this Supplemental Indenture. This Supplemental Indenture is executed and accepted by the
Trustee subject to all the terms and conditions set forth in the Indenture with the same force and
effect as if those terms and conditions were repeated at length herein and made applicable to the
Trustee with respect hereto.

[Remainder of Page Intentionally Left Blank. Signature Page Follows.]

C-2

 

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

     Dated: _______________, 20__

	 	 	 	 	 
	 	[NEW SUBSIDIARY GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[OTHER SUBSIDIARY GUARANTORS]
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Oasis Petroleum Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. Bank National Association,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

C-3exv10w46

EXHIBIT
NO.
10.46

REVISED

EQUITY PURCHASE AGREEMENT

BY AND BETWEEN

UFOOD RESTAURANT GROUP, INC

AND

SOUTHRIDGE PARTNERS II, LP

Dated

November 7, 2011

 

 

     THIS EQUITY PURCHASE AGREEMENT entered into as of the 1st day of November, 2011 (this
“AGREEMENT”), by and between SOUTHRIDGE PARTNERS II, LP, Delaware limited partnership (“INVESTOR”),
and UFood Restaurant Group, Inc, a Nevada corporation (the “COMPANY”).

     WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to Investor, from time to time as provided herein, and
Investor shall purchase, up to the lesser of (a) three Million Dollars ($3,000,000) of its Common
Stock (as defined below), or (b) 13,500,000 shares of its Common Stock; and

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

     Section 1.1 DEFINED TERMS as used in this Agreement, the following terms shall have the
following meanings specified or indicated (such meanings to be equally applicable to both the
singular and plural forms of the terms defined)

          “AGREEMENT” shall have the meaning specified in the preamble hereof.

          “BY-LAWS” shall have the meaning specified in Section 4.8.

          “CERTIFICATE” shall have the meaning specified in Section 4.8.

          “CLAIM NOTICE” shall have the meaning specified in Section 9.3(a).

          “CLEARING DATE” shall be the date in which the Estimated Put Shares (as defined in Section
2.2(a)) have been deposited into the Investor’s brokerage account and Investor’s broker has
confirmed with Investor that Investor may execute trades of such Estimated Put Shares.

          “CLOSING” shall mean one of the closings of a purchase and sale of shares of Common Stock
pursuant to Section 2.3.

          “CLOSING CERTIFICATE” shall mean the closing certificate of the Company in the form of Exhibit
B hereto.

          “CLOSING PRICE” shall mean the volume weighted average price (“VWAP”) for the Company’s common
stock on the Principal Market on a Trading Day as reported by Bloomberg Finance L.P.

          “COMMITMENT PERIOD” shall mean the period commencing on the Effective Date, and ending on the
earlier of (i) the date on which Investor shall have purchased Put Shares

1

 

pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or
(ii) the date occurring twenty four (24) months from the date of commencement of the Commitment
Period.

          “COMMON STOCK” shall mean the Company’s common stock, $0.001 par value per share, and any
shares of any other class of common stock whether now or hereafter authorized, having the right to
participate in the distribution of dividends (as and when declared) and assets (upon liquidation of
the Company).

          “COMMON STOCK EQUIVALENTS” shall mean any securities that are convertible into or exchangeable
for Common Stock or any options or other rights to subscribe for or purchase Common Stock or any
such convertible or exchangeable securities.

          “COMPANY” shall have the meaning specified in the preamble to this Agreement.

          “CONDITION SATISFACTION DATE” shall have the meaning specified in Section 7.2.

          “DAMAGES” shall mean any loss, claim, damage, liability, cost and expense (including, without
limitation, reasonable attorneys’ fees and disbursements and costs and expenses of expert witnesses
and investigation).

          “DISPUTE PERIOD” shall have the meaning specified in Section 9.3(a).

          “DOLLAR VOLUME” shall mean the product of (a) the Closing Price multiplied by (b) the trading
volume on the Principal Market on a Trading Day.

          “DTC” shall have the meaning specified in Section 2.3.

          “DWAC” shall have the meaning specified in Section 2.3.

          “EFFECTIVE DATE” shall mean the Subscription Date.

          “ESTIMATED PUT SHARES” shall have the meaning specified in Section 2.2(a)

          “EXCHANGE ACT” shall mean the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder.

          “FAST” shall have the meaning specified in Section 2.3.

          “FINRA” shall mean the Financial Industry Regulatory Authority, Inc.

          “INDEMNIFIED PARTY” shall have the meaning specified in Section 9.3(a).

2

 

          “INDEMNIFYING PARTY” shall have the meaning specified in Section 9.3(a).

          “INDEMNITY NOTICE” shall have the meaning specified in Section 9.3(b).

          “INVESTMENT AMOUNT” shall mean the dollar amount to be invested by Investor to purchase Put
Shares with respect to any Put as notified by the Company to Investor in accordance with Section
2.2.

          “INVESTOR” shall have the meaning specified in the preamble to this Agreement.

          “LEGEND” shall have the meaning specified in Section 8.1.

          “MARKET PRICE” shall mean the average of the Closing Prices during the Valuation Period.

          “MATERIAL ADVERSE EFFECT” shall mean any effect on the business, operations, properties, or
financial condition of the Company that is material and adverse to the Company and/or any
condition, circumstance, or situation that would prohibit or otherwise materially interfere with
the ability of the Company to enter into and perform its obligations under any of this Agreement.

          “MAXIMUM COMMITMENT AMOUNT” shall mean the lesser of (a) three Million Dollars ($3,000,000),
or (b) 13,500,000 shares of Common Stock.

          “MAXIMUM PUT AMOUNT” shall mean the lesser of (i) Five Hundred Thousand Dollars ($500,000),
or (ii) Five Hundred (500%) percent of the average of the Dollar Volume for the twenty (20) Trading
Days immediately preceding the Put Date.

          “NEW PRICE” shall have the meaning specified in Section 2.6.

          “OLD PRICE” shall have the meaning specified in Section 2.6.

          “PAR VALUE PAYMENT” shall have the meaning specified in Section 2.2(a)

          “PERSON” shall mean an individual, a corporation, a partnership, an association, a trust or
other entity or organization, including a government or political subdivision or an agency or
instrumentality thereof.

          “PRINCIPAL MARKET” shall mean any of the national exchanges (i.e. NYSE, AMEX, Nasdaq), the OTC
Bulletin Board, or other principal exchange which is at the time the principal trading exchange or
market for the Common Stock.

3

 

          “PURCHASE PRICE” shall mean 92% of the Market Price on such date on which the Purchase Price
is calculated in accordance with the terms and conditions of this Agreement.

          “PUT” shall mean the right of the Company to require the Investor to purchase shares of Common
Stock, subject to the terms and conditions of this Agreement.

          “PUT DATE” shall mean any Trading Day during the Commitment Period that a Put Notice is deemed
delivered pursuant to Section 2.2(b).

          “PUT NOTICE” shall mean a written notice, substantially in the form of Exhibit A hereto, to
Investor setting forth the Investment Amount with respect to which the Company intends to require
Investor to purchase shares of Common Stock pursuant to the terms of this Agreement.

          “PUT SHARES” shall mean all shares of Common Stock issued or issuable pursuant to a Put that
has been exercised or may be exercised in accordance with the terms and conditions of this
Agreement.

          “REGISTERED SECURITIES” shall mean the (a) Put Shares, and (b) any securities issued or
issuable with respect to any of the foregoing by way of exchange, stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise. As to any particular Registered Securities, once issued such
securities shall cease to be Registrable Securities when (i) a Registration Statement has been
declared effective by the SEC and such Registrable Securities have been disposed of pursuant to a
Registration Statement, (ii) such Registrable Securities have been sold under circumstances under
which all of the applicable conditions of Rule 144 are met, (iii) such time as such Registrable
Securities have been otherwise transferred to holders who may trade such shares without restriction
under the Securities Act or (iv) in the opinion of counsel to the Company, which counsel shall be
reasonably acceptable to Investor, such Registrable Securities may be sold without registration
under the Securities Act or the need for an exemption from any such registration requirements and
without any time, volume or manner limitations pursuant to Rule 144(b)(i) (or any similar provision
then in effect) under the Securities Act.

          “REGISTRATION STATEMENT” shall mean the Company’s effective registration statement on file
with the SEC, and any follow up registration statement or amendment thereto.

          “REGULATION D” shall mean Regulation D promulgated under the Securities Act.

          “RULE 144” shall mean Rule 144 under the Securities Act or any similar provision then in force
under the Securities Act.

4

 

          “SEC” shall mean the Securities and Exchange Commission.

          “SECURITIES ACT” shall have the meaning specified in the recitals of this Agreement.

          “SEC DOCUMENTS” shall mean, as of a particular date, all reports and other documents filed by
the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the Company’s
then most recently completed and reported fiscal year as of the time in question (provided that if
the date in question is within ninety days of the beginning of the Company’s fiscal year, the term
shall include all documents filed since the beginning of the preceding fiscal year).

          “SHORT SALES” shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the
Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable
shares of Common Stock).

          “SUBSCRIPTION DATE” shall mean the date on which this Agreement is executed and delivered by
the Company and Investor.

          “THIRD PARTY CLAIM” shall have the meaning specified in Section 9.3(a).

          “TRADING DAY” shall mean a day on which the Principal Market shall be open for business.

          “TRANSACTION DOCUMENTS” shall mean this Agreement.

          “TRANSFER AGENT” shall mean the transfer agent for the Common Stock (and to any substitute or
replacement transfer agent for the Common Stock upon the Company’s appointment of any such
substitute or replacement transfer agent).

          “UNDERWRITER” shall mean any underwriter participating in any disposition of the Registered
Securities on behalf of Investor pursuant to the Registration Statement.

          “VALUATION EVENT” shall mean an event in which the Company at any time during a Valuation
Period takes any of the following actions:

               (a) subdivides or combines the Common Stock;

               (b) pays a dividend in shares of Common Stock or makes any other distribution of shares of
Common Stock, except for dividends paid with respect to any series of preferred stock authorized by
the Company, whether existing now or in the future;

               (c) issues any options or other rights to subscribe for or purchase shares of Common Stock
other than pursuant to this Agreement and the price per share for which

5

 

shares of Common Stock may at any time thereafter be issuable pursuant to such options or other
rights shall be less than the Closing Price in effect immediately prior to such issuance;

               (d) issues any securities convertible into or exchangeable for shares of Common Stock and the
consideration per share for which shares of Common Stock may at any time thereafter be issuable
pursuant to the terms of such convertible or exchangeable securities shall be less than the Closing
Price in effect immediately prior to such issuance;

               (e) issues shares of Common Stock otherwise than as provided in the foregoing subsections (a)
through (d), at a price per share less, or for other consideration lower, than the Closing Price in
effect immediately prior to such issuance, or without consideration; or

               (f) makes a distribution of its assets or evidences of indebtedness to the holders of Common
Stock as a dividend in liquidation or by way of return of capital or other than as a dividend
payable out of earnings or surplus legally available for dividends under applicable law or any
distribution to such holders made in respect of the sale of all or substantially all of the
Company’s assets (other than under the circumstances provided for in the foregoing subsections (a)
through (e).

          “VALUATION PERIOD” shall mean the period of five (5) Trading Days immediately following the
Clearing Date associated with the applicable Put Notice, and during which the Purchase Price of the
Common Stock is valued; provided, however, that if a Valuation Event occurs during any Valuation
Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of
such Valuation Event and end on the fifth (5th) Trading Day thereafter.

ARTICLE II

PURCHASE AND SALE OF COMMON STOCK

     Section 2.1 INVESTMENTS.

          (a) PUTS. Upon the terms and conditions set forth herein (including, without limitation, the
provisions of Article VII), on any Put Date the Company may exercise a Put by the delivery of a Put
Notice. The number of Put Shares that Investor shall purchase pursuant to such Put shall be
determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with
respect to such Put Notice.

          (b) RESTRICTED COMMON STOCK. As a condition for the execution of this Agreement by the
Investor, the Company shall issue to the Investor one hundred thirty three thousand three hundred
thirty three (133,333) shares of restricted Common Stock (the “Restricted Shares”). The Restricted
Shares shall be delivered to the Investor upon the execution of this Agreement.

6

 

     Section 2.2 MECHANICS.

          (a) PUT NOTICE. At any time and from time to time during the Commitment Period, the Company
may deliver a Put Notice to Investor, subject to the conditions set forth in Section 7.2; provided,
however, that the Investment Amount identified in the applicable Put Notice shall not be greater
than the Maximum Put Amount and, when taken together with any prior Put Notices, shall not exceed
the Maximum Commitment. On the Put Date the Company shall deliver to Investor’s brokerage account
estimated put shares equal to the Investment Amount indicated in the Put Notice divided by the
Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred
twenty five percent (125%) (the “Estimated Put Shares”).Simultaneous with the delivery of the
Estimated Put Shares, Investor shall deliver payment by check or wire transfer to the Company an
amount equal to the par value of the Estimated Put Shares (“Par Value Payment”).

          (b) DATE OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading
Day it is received by facsimile or otherwise by Investor if such notice is received on or prior to
12:00 noon New York time, or (ii) the immediately succeeding Trading Day if it is received by
facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day
which is not a Trading Day.

     Section 2.3 CLOSINGS. Investor shall notify the Company in writing of the occurrence of the
Clearing Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day
following such written notice from Investor. At the end of the Valuation Period the Purchase Price
shall be established and the number of Put Shares shall be determined for a particular Put. If the
number of Estimated Put Shares initially delivered to Investor is greater than the Put Shares
purchased by Investor pursuant to such Put, then immediately after the Valuation Period that
Investor shall deliver to Company any excess Estimated Put Shares associated with such Put. If
the number of Estimated Put Shares delivered to Investor is less than the Put Shares purchased by
Investor pursuant to a Put, then immediately after the Valuation Period the Company shall deliver
to Investor the difference between the Estimated Put Shares and the Put Shares issuable pursuant to
such Put. The Closing of a Put shall occur upon the date in which the settlement of trades of the
Put Shares associated with such Put Notice in the Investor’s brokerage account has been completed,
whereby Investor shall deliver the Investment Amount specified in the Put Notice, less the Par
Value Payment, by wire transfer of immediately available funds to an account designated by the
Company. In lieu of delivering physical certificates representing the Common Stock issuable in
accordance with clause (a) of this Section 2.3, and provided that the Transfer Agent then is
participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”)
program, upon request of Investor, but subject to the applicable provisions of Article VIII hereof,
the Company shall use its commercially reasonable efforts to cause the Transfer Agent to
electronically transmit, prior to the applicable Closing Date, the applicable Put Shares by
crediting the account of the Investor’s prime broker with DTC through its Deposit Withdrawal Agent
Commission (“DWAC”) system, and provide proof satisfactory to the Investor of such delivery. In
addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each
other all documents,

7

 

instruments and writings required to be delivered or reasonably requested by either of them
pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

     Investor represents and warrants to the Company that:

     Section 3.1 INTENT. Investor is entering into this Agreement for its own account and Investor
has no present arrangement (whether or not legally binding) at any time to sell the Registered
Securities to or through any person or entity; provided, however, that Investor reserves the right
to dispose of the Registered Securities at any time in accordance with federal and state securities
laws applicable to such disposition.

     Section 3.2 NO LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the
opportunity to review this Agreement and the transactions contemplated by this Agreement with its
own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel
and advisors and not on any statements or representations of the Company or any of its
representatives or agents for legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any jurisdiction.

     Section 3.3 SOPHISTICATED INVESTOR. Investor is a sophisticated investor (as described in Rule
506(b)(2)(ii) of Regulation D) and an accredited investor (as defined in Rule 501 of Regulation D),
and Investor has such experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in the Registered Securities. Investor acknowledges that an
investment in the Registered Securities is speculative and involves a high degree of risk.

     Section 3.4 AUTHORITY. (a) Investor has the requisite power and authority to enter into and
perform its obligations under this Agreement and the transactions contemplated hereby in accordance
with its terms; (b) the execution and delivery of this Agreement and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action and
no further consent or authorization of Investor or its partners is required; and (c) this Agreement
has been duly authorized and validly executed and delivered by Investor and constitutes a valid and
binding obligation of Investor enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.

     Section 3.5 NOT AN AFFILIATE. Investor is not an officer, director or “affiliate” (as that
term is defined in Rule 405 of the Securities Act) of the Company.

8

 

     Section 3.6 ORGANIZATION AND STANDING. Investor is a limited partnership duly organized,
validly existing and in good standing under the laws of the Delaware and has all requisite power
and authority to own, lease and operate its properties and to carry on its business as now being
conducted. Investor is duly qualified and in good standing in every jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, other
than those in which the failure so to qualify would not have a material adverse effect on Investor.

     Section 3.7 ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and any other
document or instrument contemplated hereby, and the consummation of the transactions contemplated
hereby and thereby, and compliance with the requirements hereof and thereof, will not (a) violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Investor,
(b) violate any provision of any indenture, instrument or agreement to which Investor is a party or
is subject, or by which Investor or any of its assets is bound, or conflict with or constitute a
material default thereunder, (c) result in the creation or imposition of any lien pursuant to the
terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty
owed by Investor to any third party, or (d) require the approval of any third-party (that has not
been obtained) pursuant to any material contract, instrument, agreement, relationship or legal
obligation to which Investor is subject or to which any of its assets, operations or management may
be subject.

     Section 3.8 DISCLOSURE; ACCESS TO INFORMATION. Investor had an opportunity to review copies of
the SEC Documents filed on behalf of the Company and has had access to all publicly available
information with respect to the Company.

     Section 3.9 MANNER OF SALE. At no time was Investor presented with or solicited by or through
any leaflet, public promotional meeting, television advertisement or any other form of general
solicitation or advertising.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to Investor that, except as disclosed in the SEC
Documents:

     Section 4.1 ORGANIZATION OF THE COMPANY. The Company is a corporation duly organized and
validly existing and in good standing under the laws of the State of Nevada and has all requisite
power and authority to own, lease and operate its properties and to carry on its business as now
being conducted. The Company is duly qualified as a foreign corporation to do business and is in
good standing in every jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, other than those in which the failure so to qualify would
not have a Material Adverse Effect.

9

 

     Section 4.2 AUTHORITY. (a) The Company has the requisite corporate power and authority to
enter into and perform its obligations under this Agreement and to issue the Put Shares and
Restricted Shares; (b) the execution and delivery of this Agreement by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by
all necessary corporate action and no further consent or authorization of the Company or its Board
of Directors or stockholders is required; and (c) each of this Agreement and has been duly executed
and delivered by the Company and constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.

     Section 4.3 CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company
consists of 300,000,000 shares of Common Stock, $0.001 par value per share, of which 47,410,037
shares were issued and outstanding as of September 22, 2011, and 10,000,000 shares of preferred
stock, $0.001 par value per share, of which 86,210 shares were issued and outstanding as of
September 22, 2011.

     Except as otherwise disclosed in the SEC Documents, there are no outstanding securities which
are convertible into shares of Common Stock, whether such conversion is currently exercisable or
exercisable only upon some future date or the occurrence of some event in the future.

     All of the outstanding shares of Common Stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable.

     Section 4.4 COMMON STOCK. The Company is in full compliance with all reporting requirements of
the Exchange Act, and the Company has maintained all requirements for the continued listing or
quotation of the Common Stock, and such Common Stock is currently listed or quoted on the Principal
Market.

     Section 4.5 SEC DOCUMENTS. The Company may make available to Investor true and complete copies
of the SEC Documents (including, without limitation, proxy information and solicitation materials).
To the Company’s knowledge, the Company has not provided to Investor any information that,
according to applicable law, rule or regulation, should have been disclosed publicly prior to the
date hereof by the Company, but which has not been so disclosed. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the Exchange Act, and
other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC
Documents contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Documents comply as to form and substance in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC or other
applicable rules and regulations with respect

10

 

thereto. Such financial statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved (except (a) as may
be otherwise indicated in such financial statements or the notes thereto or (b) in the case of
unaudited interim statements, to the extent they may not include footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

     Section 4.6 VALID ISSUANCES. When issued and paid for as herein provided, the Put Shares and
the Restricted Shares shall be duly and validly issued, fully paid, and non-assessable. Neither the
sales of the Put Shares or the Restricted Shares pursuant to this Agreement nor the Company’s
performance of its obligations hereunder shall (a) result in the creation or imposition of any
liens, charges, claims or other encumbrances upon the Put Shares or Restricted Shares, or any of
the assets of the Company, or (b) entitle the holders of outstanding shares of Common Stock to
preemptive or other rights to subscribe to or acquire the Common Stock or other securities of the
Company. The Put Shares and Restricted Shares shall not subject Investor to personal liability, in
excess of the subscription price by reason of the ownership thereof.

     Section 4.7 [INTENTIONALLY OMITTED]

     Section 4.8 [INTENTIONALLY OMITTED]

     Section 4.9 NO CONFLICTS. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby, including
without limitation the issuance of the Put Shares and the Restricted Shares, do not and will not
(a) result in a violation of the Certificate or By-Laws or (b) conflict with, or constitute a
material default (or an event that with notice or lapse of time or both would become a material
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any “lock-up” or similar
provision of any underwriting or similar agreement to which the Company is a party, or (c) result
in a violation of any federal, state or local law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the Company or by which
any property or asset of the Company is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not, individually or
in the aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of,
conflict with or in default under any of the foregoing. The business of the Company is not being
conducted in violation of any law, ordinance or regulation of any governmental entity, except for
possible violations that either singly or in the aggregate do not and will not have a Material
Adverse Effect. The Company is not required under federal, state or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any of its obligations
under this Agreement or issue and sell the Common Stock in accordance with the terms hereof (other
than any SEC, FINRA or state securities filings that may

11

 

be required to be made by the Company subsequent to any Closing, any registration statement that
may be filed pursuant hereto); provided that, for purposes of the representation made in this
sentence, the Company is assuming and relying upon the accuracy of the relevant representations and
agreements of Investor herein.

     Section 4.10 NO MATERIAL ADVERSE CHANGE. Since May 18, 2011 no event has occurred that would
have a Material Adverse Effect on the Company.

     Section 4.11 LITIGATION AND OTHER PROCEEDINGS. There are no lawsuits or proceedings pending or
to the knowledge of the Company threatened, against the Company, nor has the Company received any
written or oral notice of any such action, suit, proceeding or investigation, which would have a
Material Adverse Effect. No judgment, order, writ, injunction or decree or award has been issued by
or, so far as is known by the Company, requested of any court, arbitrator or governmental agency
which would have a Material Adverse Effect.

     Section 4.12 DILUTION. The number of shares of Common Stock issuable as Put Shares may
increase substantially in certain circumstances, including, but not necessarily limited to, the
circumstance wherein the trading price of the Common Stock declines during the period between the
Effective Date and the end of the Commitment Period. The Company’s executive officers and
directors have studied and fully understand the nature of the transactions contemplated by this
Agreement and recognize that they have a potential dilutive effect. The board of directors of the
Company has concluded in its good faith business judgment that such issuance is in the best
interests of the Company. The Company specifically acknowledges that, subject to Section 2.2(c),
its obligation to issue the Put Shares is binding upon the Company and enforceable regardless of
the dilution such issuance may have on the ownership interests of other shareholders of the
Company.

ARTICLE V

COVENANTS OF INVESTOR

     Section 5.1 COMPLIANCE WITH LAW; TRADING IN SECURITIES. Investor’s trading activities with
respect to shares of the Common Stock will be in compliance with all applicable state and federal
securities laws, rules and regulations and the rules and regulations of FINRA and the Principal
Market on which the Common Stock is listed or quoted.

     Section 5.2 SHORT SALES AND CONFIDENTIALITY. Neither Investor nor any affiliate of the
Investor acting on its behalf or pursuant to any understanding with it will execute any Short Sales
during the period from the date hereof to the end of the Commitment Period. For the purposes
hereof, and in accordance with Regulation SHO, the sale after delivery of a Put Notice of such
number of shares of Common Stock reasonably expected to be purchased under a Put Notice shall not
be deemed a Short Sale.

12

 

     Other than to other Persons party to this Agreement, Investor has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

ARTICLE VI

COVENANTS OF THE COMPANY

     Section 6.1 [INTENTIONALLY OMITTED]

     Section 6.2 RESERVATION OF COMMON STOCK. The Company will, from time to time as needed in
advance of a Closing Date, reserve and keep available until the consummation of such Closing, free
of preemptive rights sufficient shares of Common Stock for the purpose of enabling the Company to
satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number of
shares so reserved from time to time, as theretofore increased or reduced as hereinafter provided,
may be reduced by the number of shares actually delivered hereunder.

     Section 6.3 LISTING OF COMMON STOCK. If the Company applies to have the Common Stock traded
on any other Principal Market, it shall include in such application the Put Shares and the
Restricted Shares, and shall take such other action as is necessary or desirable in the reasonable
opinion of Investor to cause the Common Stock to be listed on such other Principal Market as
promptly as possible. The Company shall use its commercially reasonable efforts to continue the
listing and trading of the Common Stock on the Principal Market (including, without limitation,
maintaining sufficient net tangible assets) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the FINRA and the Principal
Market.

     Section 6.4 [INTENTIONALLY OMITTED]

     Section 6.5 CERTAIN AGREEMENTS. So long as this Agreement remains in effect, the Company
covenants and agrees that it will not, without the prior written consent of the Investor, enter
into any other equity line of credit agreement with a third party during the Commitment Period
having terms and conditions substantially comparable to this Agreement. For the avoidance of
doubt, nothing contained in the Transaction Documents shall restrict, or require the Investor’s
consent for, any agreement providing for the issuance or distribution of (or the issuance or
distribution of) any equity securities pursuant to any agreement or arrangement that is not
commonly understood to be an “equity line of credit.”

ARTICLE VII

CONDITIONS TO DELIVERY OF

PUT NOTICES AND CONDITIONS TO CLOSING

     Section 7.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON
STOCK. The obligation hereunder of the

13

 

Company to issue and sell the Put Shares to Investor incident to each Closing is subject to the
satisfaction, at or before each such Closing, of each of the conditions set forth below.

          (a) ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties
of Investor shall be true and correct in all material respects as of the date of this Agreement and
as of the date of each such Closing as though made at each such time.

          (b) PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by Investor at or prior to such Closing.

          (c) PRINCIPAL MARKET REGULATION. The Company shall not issue any Put Shares, or Restricted
Shares, and the Investor shall not have the right to receive any Put Shares or Restricted Shares,
if the issuance of such shares would exceed the aggregate number of shares of Common Stock which
the Company may issue without breaching the Company’s obligations under the rules or regulations of
the Principal Market (the “EXCHANGE CAP”).

     Section 7.2 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE
OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right of the Company to deliver a Put Notice and
the obligation of Investor hereunder to acquire and pay for the Put Shares incident to a Closing is
subject to the satisfaction, on (i) the date of delivery of such Put Notice and (ii) the applicable
Closing Date (each a “CONDITION SATISFACTION DATE”), of each of the following conditions:

          (a) EFFECTIVE REGISTRATION STATEMENT. The Registration Statement, and any amendment or
supplement thereto, shall remain effective for the sale by Investor of the Registered Securities
subject to such Put Notice, and such Registration Statement shall remain effective on each
Condition Satisfaction Date and (i) neither the Company nor Investor shall have received notice
that the SEC has issued or intends to issue a stop order with respect to such Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such
Registration Statement, either temporarily or permanently, or intends or has threatened to do so
(unless the SEC’s concerns have been addressed and Investor is reasonably satisfied that the SEC no
longer is considering or intends to take such action), and (ii) no other suspension of the use or
withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist.

          (b) ACCURACY OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company shall be true and correct in all material respects as of each Condition
Satisfaction Date as though made at each such time (except for representations and warranties
specifically made as of a particular date) with respect to all periods, and as to all events and
circumstances occurring or existing to and including each Condition Satisfaction Date, except for
any conditions which have temporarily caused any

14

 

representations or warranties herein to be incorrect and which have been corrected with no
continuing impairment to the Company or Investor.

          (c) PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Company at or prior to each Condition Satisfaction
Date.

          (d) NO INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or adopted by any court or governmental authority of
competent jurisdiction that prohibits or directly and materially adversely affects any of the
transactions contemplated by this Agreement, and no proceeding shall have been commenced that may
have the effect of prohibiting or materially adversely affecting any of the transactions
contemplated by this Agreement.

          (e) ADVERSE CHANGES. Since the date of filing of the Company’s most recent SEC Document, no
event that had or is reasonably likely to have a Material Adverse Effect has occurred.

          (f) NO SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock
shall not have been suspended by the SEC, the Principal Market or the FINRA and the Common Stock
shall have been approved for listing or quotation on and shall not have been delisted from the
Principal Market.

          (g) [INTENTIONALLY OMITTED]

          (h) TEN PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be
purchased by Investor shall not exceed the number of such shares that, when aggregated with all
other shares of Common Stock then owned by Investor beneficially or deemed beneficially owned by
Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be
outstanding on such Closing Date, as determined in accordance with Section 16 of the Exchange Act
and the regulations promulgated thereunder. For purposes of this Section, in the event that the
amount of Common Stock outstanding as determined in accordance with Section 16 of the Exchange Act
and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which
the Put Notice associated with such Closing Date is given, the amount of Common Stock outstanding
on such Closing Date shall govern for purposes of determining whether Investor, when aggregating
all purchases of Common Stock made pursuant to this Agreement, would own more than 9.99% of the
Common Stock following such Closing Date.

          (i) Principal Market Regulation. The Company shall not issue any Put Shares or
Restricted Shares, and the Investor shall not have the right to receive any Put Shares or
Restricted Shares, if the issuance of such shares would exceed the Exchange Cap.

15

 

          (j) NO KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to
have the effect of causing such Registration Statement to be suspended or otherwise ineffective
(which event is more likely than not to occur within the fifteen (15) Trading Days following the
Trading Day on which such Put Notice is deemed delivered).

          (k) NO VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock
with respect to the applicable Closing, if any, shall not violate the shareholder approval
requirements of the Principal Market.

          (l) NO VALUATION EVENT. No Valuation Event shall have occurred since the Put Date.

          (m) OTHER. On each Condition Satisfaction Date, Investor shall have received a certificate in
substantially the form and substance of Exhibit B hereto, executed by an executive officer of the
Company and to the effect that all the conditions to such Closing shall have been satisfied as at
the date of each such certificate.

ARTICLE VIII

LEGENDS

     Section 8.1 RESERVED

     Section 8.2 NO STOCK LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend shall be placed on the
share certificates representing the Put Shares.

     Section 8.3 INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way
Investor’s obligations under any agreement to comply with all applicable securities laws upon the
sale of the Common Stock.

ARTICLE IX

NOTICES; INDEMNIFICATION

     Section 9.1 NOTICES. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges
prepaid, or (d) transmitted by hand delivery, telegram, facsimile, or email as a PDF, addressed as
set forth below or to such other address as such party shall have specified most recently by
written notice given in accordance herewith. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile machine, or email as
a PDF, at the address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal

16

 

business hours where such notice is to be received) or (ii) on the second business day following
the date of mailing by express courier service or on the fifth business day after deposited in the
mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur.

The addresses for such communications shall be:

If to the Company: UFood Restaurant Group, Inc

Attn: George Naddaff

Chief Executive Officer

Tel: (617) 787-6000

Fax: (617) 7876010

Email: Naddaff@ufoodgrill.com

If to Investor:

Southridge Partners II, LP

90 Grove Street

Ridgefield, Connecticut 06877

Tel: 203-431-8300

Fax: 203-431-8301

Email: info@southridgellc.com

Either party hereto may from time to time change its address or facsimile number for notices under
this Section 9.1 by giving at least ten (10) days’ prior written notice of such changed address or
facsimile number to the other party hereto.

     Section 9.2 INDEMNIFICATION. Each party (an “Indemnifying Party”) agrees to indemnify and
hold harmless the other party along with its officers, directors, employees, and authorized agents,
and each Person or entity, if any, who controls such party within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any
Damages, joint or several, and any action in respect thereof to which the Indemnified Party becomes
subject to, resulting from, arising out of or relating to (i) any misrepresentation, breach of
warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of
Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or any post-effective
amendment thereof or supplement thereto, or the omission or alleged omission therefrom of a
material fact required to be stated therein or necessary to make the

17

 

statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary prospectus or contained in the final prospectus (as
amended or supplemented, if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact necessary to make the
statements made therein, in the light of the circumstances under which the statements therein were
made, not misleading, or (iv) any violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any state securities law or any rule or regulation under the Securities Act,
the Exchange Act or any state securities law, as such Damages are incurred, except to the extent
such Damages result primarily from Indemnified Party’s failure to perform any covenant or agreement
contained in this Agreement or Indemnified Party’s negligence, recklessness or bad faith in
performing its obligations under this Agreement; provided, however, that the foregoing indemnity
agreement shall not apply to any Damages of an Indemnified Party to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue statement or omission
or alleged omission made by an Indemnifying Party in reliance upon and in conformity with written
information furnished to the Indemnifying Party by the Indemnified Party expressly for use in the
Registration Statement, any post-effective amendment thereof or supplement thereto, or any
preliminary prospectus or final prospectus (as amended or supplemented).

     Section 9.3 METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any
Indemnified Party (as defined below) under Section 9.2 shall be asserted and resolved as follows:

          (a) In the event any claim or demand in respect of which an Indemnified Party might seek
indemnity under Section 9.2 is asserted against or sought to be collected from such Indemnified
Party by a person other than a party hereto or an affiliate thereof (a “THIRD PARTY CLAIM”), the
Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if
any, and specifying the nature of and basis for such Third Party Claim and for the Indemnified
Party’s claim for indemnification that is being asserted under any provision of Section 9.2 against
an Indemnifying Party, together with the amount or, if not then reasonably ascertainable, the
estimated amount, determined in good faith, of such Third Party Claim (a “CLAIM NOTICE”) with
reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the
Claim Notice with reasonable promptness after the Indemnified Party receives notice of such Third
Party Claim, the Indemnifying Party shall not be obligated to indemnify the Indemnified Party with
respect to such Third Party Claim to the extent that the Indemnifying Party’s ability to defend has
been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the
Indemnified Party as soon as practicable within the period ending thirty (30) calendar days
following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity Notice (as
defined below) (the “DISPUTE PERIOD”) whether the Indemnifying Party disputes its liability or the
amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying
Party desires, at its sole cost and expense, to defend the Indemnified Party against such Third
Party Claim.

18

 

          (i) If the Indemnifying Party notifies the Indemnified Party within the Dispute Period
that the Indemnifying Party desires to defend the Indemnified Party with respect to the
Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have
the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the
sole cost and expense of the Indemnifying Party, such Third Party Claim by all appropriate
proceedings, which proceedings shall be vigorously and diligently prosecuted by the
Indemnifying Party to a final conclusion or will be settled at the discretion of the
Indemnifying Party (but only with the consent of the Indemnified Party in the case of any
settlement that provides for any relief other than the payment of monetary damages or that
provides for the payment of monetary damages as to which the Indemnified Party shall not be
indemnified in full pursuant to Section 9.2). The Indemnifying Party shall have full control
of such defense and proceedings, including any compromise or settlement thereof; provided,
however, that the Indemnified Party may, at the sole cost and expense of the Indemnified
Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in
the first sentence of this clause (i), file any motion, answer or other pleadings or take
any other action that the Indemnified Party reasonably believes to be necessary or
appropriate to protect its interests; and provided further, that if requested by the
Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the
Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party
may participate in, but not control, any defense or settlement of any Third Party Claim
controlled by the Indemnifying Party pursuant to this clause (i), and except as provided in
the preceding sentence, the Indemnified Party shall bear its own costs and expenses with
respect to such participation. Notwithstanding the foregoing, the Indemnified Party may
takeover the control of the defense or settlement of a Third Party Claim at any time if it
irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party
Claim.

          (ii) If the Indemnifying Party fails to notify the Indemnified Party within the Dispute
Period that the Indemnifying Party desires to defend the Third Party Claim pursuant to
Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute
vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party
fails to give any notice whatsoever within the Dispute Period, then the Indemnified Party
shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by
the Indemnified Party in a reasonable manner and in good faith or will be settled at the
discretion of the Indemnified Party(with the consent of the Indemnifying Party, which
consent will not be unreasonably withheld). The Indemnified Party will have full control of
such defense and proceedings, including any compromise or settlement thereof; provided,
however, that if requested by the Indemnified Party, the Indemnifying Party will, at the
sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the
Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified
Party is contesting. Notwithstanding the foregoing provisions of this clause (ii), if the
Indemnifying Party has

19

 

notified the Indemnified Party within the Dispute Period that the Indemnifying Party
disputes its liability or the amount of its liability hereunder to the Indemnified Party
with respect to such Third Party Claim and if such dispute is resolved in favor of the
Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will
not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant
to this clause (ii) or of the Indemnifying Party’s participation therein at the Indemnified
Party’s request, and the Indemnified Party shall reimburse the Indemnifying Party in full
for all reasonable costs and expenses incurred by the Indemnifying Party in connection with
such litigation. The Indemnifying Party may participate in, but not control, any defense or
settlement controlled by the Indemnified Party pursuant to this clause (ii), and the
Indemnifying Party shall bear its own costs and expenses with respect to such participation.

          (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute
its liability or the amount of its liability to the Indemnified Party with respect to the
Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the
Dispute Period whether the Indemnifying Party disputes its liability or the amount of its
liability to the Indemnified Party with respect to such Third Party Claim, the amount of
Damages specified in the Claim Notice shall be conclusively deemed a liability of the
Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such
Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed
its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of
such dispute; provided, however, that if the dispute is not resolved within thirty (30) days
after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal
action as it deems appropriate.

          (b) In the event any Indemnified Party should have a claim under Section 9.2 against the
Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver a
written notification of a claim for indemnity under Section 9.2 specifying the nature of and basis
for such claim, together with the amount or, if not then reasonably ascertainable, the estimated
amount, determined in good faith, of such claim (an “INDEMNITY NOTICE”) with reasonable promptness
to the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall
not impair such party’s rights hereunder except to the extent that the Indemnifying Party
demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies
the Indemnified Party that it does not dispute the claim or the amount of the claim described in
such Indemnity Notice or fails to notify the Indemnified Party within the Dispute Period whether
the Indemnifying Party disputes the claim or the amount of the claim described in such Indemnity
Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a
liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the
amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely
disputed its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such
dispute; provided, however,

20

 

that if the dispute is not resolved within thirty (30) days after the Claim Notice, the
Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.

          (c) The indemnity provisions contained herein shall be in addition to (i) any cause of action
or similar rights of the Indemnified Party against the Indemnifying Party or others, and (ii) any
liabilities the Indemnifying Party may be subject to.

ARTICLE X

MISCELLANEOUS

     Section 10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New York without regard to the principles of conflicts
of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the United
States Federal and state courts located in New York with respect to any dispute arising under this
Agreement, the agreements entered into in connection herewith or the transactions contemplated
hereby or thereby.

     Section 10.2 JURY TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in
any action, proceeding or counterclaim brought by either of the parties hereto against the other in
respect of any matter arising out of or in connection with the Transaction Documents.

     Section 10.3 ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the
Company and Investor and their respective successors. Neither this Agreement nor any rights of
Investor or the Company hereunder may be assigned by either party to any other person.

     Section 10.4 THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
Company and Investor and their respective successors, and is not for the benefit of, nor may any
provision hereof be enforced by, any other person.

     Section 10.5 TERMINATION. The Company may terminate this Agreement at any time by written
notice to the Investor. Additionally, this Agreement shall terminate at the end of Commitment
Period or as otherwise provided herein (unless extended by the agreement of the Company and
Investor); provided, however, that the provisions of Articles V and VIII, and Sections 9.1, 9.2,
9.3 10.1, 10.2 and 10.4 shall survive the termination of this Agreement for a period of eighteen
(18) months.

     Section 10.6 ENTIRE AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments
referenced herein contain the entire understanding of the Company and Investor with respect to the
matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor Investor makes any representation, warranty, covenant or undertaking with respect
to such matters. No provision of

21

 

this Agreement may be waived or amended other than by an instrument in writing signed by the party
to be charged with enforcement.

     Section 10.7 FEES AND EXPENSES. Each of the Company and Investor agrees to pay its own
expenses in connection with the preparation of this Agreement and performance of its obligations
hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection
with issuance of the Put Shares pursuant hereto.

     Section 10.8 COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of
which may be executed by less than all of the parties and shall be deemed to be an original
instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. This Agreement may be delivered
to the other parties hereto by facsimile transmission or email of a copy of this Agreement bearing
the signature of the parties so delivering this Agreement.

     Section 10.9 SEVERABILITY. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision; provided that such severability
shall be ineffective if it materially changes the economic benefit of this Agreement to any party.

     Section 10.10 FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

     Section 10.11 NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

     Section 10.12 EQUITABLE RELIEF. The Company recognizes that in the event that it fails to
perform, observe, or discharge any or all of its obligations under this Agreement, any remedy at
law may prove to be inadequate relief to Investor. The Company therefore agrees that Investor shall
be entitled to temporary and permanent injunctive relief in any such case without the necessity of
proving actual damages.

     Section 10.13 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used
for the convenience of reference and are not to be considered in construing or interpreting this
Agreement.

     Section 10.14 REPORTING ENTITY FOR THE COMMON STOCK. The reporting entity relied upon for the
determination of the Closing Price and the VWAP for the Common Stock on any given Trading Day for
the purposes of this Agreement shall be Bloomberg Finance

22

 

L.P. or any successor thereto. The written mutual consent of Investor and the Company shall be
required to employ any other reporting entity.

     Section 10.15 PUBLICITY. The Company and Investor shall consult with each other in issuing
any press releases or otherwise making public statements with respect to the transactions
contemplated hereby and no party shall issue any such press release or otherwise make any such
public statement without the prior written consent of the other parties, which consent shall not be
unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure
is required by law, in which such case the disclosing party shall provide the other parties with
prior notice of such public statement. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of Investor without the prior written consent of such Investor, except
to the extent required by law. Investor acknowledges that this Agreement and all or part of the
Transaction Documents may be deemed to be “material contracts” as that term is defined by Item
601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents
as exhibits to reports or registration statements filed under the Securities Act or the Exchange
Act. Investor further agrees that the status of such documents and materials as material contracts
shall be determined solely by the Company, in consultation with its counsel.

     Section 10.16 CANCELLATION OF PRIOR AGREEMENT. Notwithstandijng anything to the contrary
contained herein, the Company and Investor agree that any prior agreements relating to the subject
matter contained in this Agreement, including the Equity Purchase Agreement dated August 19, 2010,
are deemed null and void and unenforceable.

[SIGNATURES ON FOLLOWING PAGE]

23

 

[SIGNATURE PAGE]

     IN WITNESS WHEREOF, the parties hereto have caused this Equity Purchase Agreement to be
executed by the undersigned, thereunto duly authorized, as of the date first set forth above.

	 	 	 	 	 
	 	SOUTHRIDGE PARTNERS II, LP

 	 
	 	By:  	Southridge Advisors LLC
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	/s/ Stephen Hicks 	 
	 	 	Title:  	Manager 	 
	 
	 	UFood Restaurant Group, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	/s/ George Naddaff 	 
	 	 	Title:  	Chief Executive Officer 	 

 

 

	 	 	 	 	 

EXHIBITS

	 	 	 

	EXHIBIT A

	 	Put Notice
	 
	 	 
	EXHIBIT B

	 	Closing Certificate

 

 

EXHIBIT A

FORM OF PUT NOTICE

TO: SOUTHRIDGE PARTNERS II, LP

We refer to the Equity Purchase Agreement dated __, 2011 (the “Agreement”) entered into by
_______________________ (the “Company”) and you. Capitalized terms defined in the Agreement
shall, unless otherwise defined, have the same meaning when used herein.

     We hereby:

	 	1.	 	Give you notice that we require you to purchase $_________ (the “Investment Amount”) in
Put Shares; and
	 
	 	2.	 	Certify that, as of the date hereof, to the best of our knowledge, the conditions set
forth in Section 7.2 of the Agreement are satisfied.

Date: _____________, 20__

	 	 	 	 	 
	 	[__________________________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Chief Executive Officer 	 

 

 

	 	 	 	 	 

EXHIBIT B

FORM OF

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER

OF

[_________________________]

     Pursuant to Section 7.2(m) of that certain Equity Purchase Agreement dated _______, 2011 (the
“Agreement”) by and between the Company and Southridge Partners II, LP (the “Investor”), the
undersigned, in his capacity as the Chief Executive Officer of __________________________ (the
“Company”), and not in his individual capacity, hereby certifies, as of the date hereof (such date,
the “Condition Satisfaction Date”), the following:

     1. The representations and warranties of the Company are true and correct in all material
respects as of the Condition Satisfaction Date as though made on the Condition Satisfaction Date
(except for representations and warranties specifically made as of a particular date) with respect
to all periods, and as to all events and circumstances occurring or existing to and including the
Condition Satisfaction Date, except for any conditions which have temporarily caused any
representations or warranties of the Company set forth in the Agreement to be incorrect and which
have been corrected with no continuing impairment to the Company or Investor; and

     2. All of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have
been satisfied as of the Condition Satisfaction Date.

     Capitalized terms used herein shall have the meanings set forth in the Agreement unless
otherwise defined herein.

     IN WITNESS WHEREOF, the undersigned has hereunto affixed his hand as of the ___ day of
____________, 20_.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	_______________Chief Executive Officer

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