Document:

exv4w2

Exhibit 4.2

 

 

STONE ENERGY CORPORATION,

AS ISSUER

AND

THE SUBSIDIARY GUARANTORS NAMED HEREIN,

AS SUBSIDIARY GUARANTORS

TO

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

AS TRUSTEE

 

SENIOR INDENTURE

DATED AS OF JANUARY 26, 2010

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	 
	 	 	 	 
	Section 101.	 	Definitions
	 	 	1	 
	Section 102.	 	Compliance Certificates and Opinions
	 	 	7	 
	Section 103.	 	Form of Documents Delivered to Trustee
	 	 	8	 
	Section 104.	 	Acts of Holders; Record Dates
	 	 	8	 
	Section 105.	 	Notices, Etc., to Trustee and Company
	 	 	10	 
	Section 106.	 	Notice to Holders; Waiver
	 	 	11	 
	Section 107.	 	Conflict with Trust Indenture Act
	 	 	11	 
	Section 108.	 	Effect of Headings and Table of Contents
	 	 	11	 
	Section 109.	 	Successors and Assigns
	 	 	11	 
	Section 110.	 	Separability Clause
	 	 	11	 
	Section 111.	 	Benefits of Indenture
	 	 	12	 
	Section 112.	 	Governing Law
	 	 	12	 
	Section 113.	 	Legal Holidays
	 	 	12	 
	Section 114.	 	No Recourse Against Others
	 	 	12	 
	 	 	 
	 	 	 	 
	ARTICLE TWO

SECURITY FORMS
	 	 	 
	 	 	 	 
	Section 201.	 	Forms Generally
	 	 	12	 
	Section 202.	 	Form of Face of Security
	 	 	13	 
	Section 203.	 	Form of Reverse of Security
	 	 	14	 
	Section 204.	 	Form of Subsidiary Guarantee
	 	 	18	 
	Section 205.	 	Form of Legend for Global Securities
	 	 	21	 
	Section 206.	 	Form of Trustee’s Certificate of Authentication
	 	 	21	 
	Section 207.	 	Form of Conversion Notice
	 	 	21	 
	 	 	 
	 	 	 	 
	ARTICLE THREE

THE SECURITIES
	 	 	 
	 	 	 	 
	Section 301.	 	Amount Unlimited; Issuable in Series
	 	 	22	 
	Section 302.	 	Denominations
	 	 	25	 
	Section 303.	 	Execution, Authentication, Delivery and Dating
	 	 	25	 
	Section 304.	 	Temporary Securities
	 	 	26	 
	Section 305.	 	Registration, Registration of Transfer and Exchange
	 	 	27	 
	Section 306.	 	Mutilated, Destroyed, Lost and Stolen Securities
	 	 	29	 
	Section 307.	 	Payment of Interest; Interest Rights Preserved
	 	 	29	 
	Section 308.	 	Persons Deemed Owners
	 	 	30	 
	Section 309.	 	Cancellation
	 	 	31	 
	Section 310.	 	Computation of Interest
	 	 	31	 
	 	 	 
	 	 	 	 
	ARTICLE FOUR

SATISFACTION AND DISCHARGE
	 	 	 
	 	 	 	 
	Section 401.	 	Satisfaction and Discharge of Indenture
	 	 	31	 
	Section 402.	 	Application of Trust Money
	 	 	32	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE FIVE

REMEDIES
	 	 	 
	 	 	 	 
	Section 501.	 	Events of Default
	 	 	32	 
	Section 502.	 	Acceleration of Maturity; Rescission and Annulment
	 	 	34	 
	Section 503.	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	35	 
	Section 504.	 	Trustee May File Proofs of Claim
	 	 	36	 
	Section 505.	 	Trustee May Enforce Claims Without Possession of Securities
	 	 	36	 
	Section 506.	 	Application of Money Collected
	 	 	37	 
	Section 507.	 	Limitation on Suits
	 	 	37	 
	Section 508.	 	Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	38	 
	Section 509.	 	Restoration of Rights and Remedies
	 	 	38	 
	Section 510.	 	Rights and Remedies Cumulative
	 	 	38	 
	Section 511.	 	Delay or Omission Not Waiver
	 	 	38	 
	Section 512.	 	Control by Holders
	 	 	38	 
	Section 513.	 	Waiver of Past Defaults
	 	 	39	 
	Section 514.	 	Undertaking for Costs
	 	 	39	 
	Section 515.	 	Waiver of Usury, Stay or Extension Laws
	 	 	39	 
	 	 	 
	 	 	 	 
	ARTICLE SIX

THE TRUSTEE
	 	 	 
	 	 	 	 
	Section 601.	 	Certain Duties and Responsibilities
	 	 	40	 
	Section 602.	 	Notice of Defaults
	 	 	40	 
	Section 603.	 	Certain Rights of Trustee
	 	 	40	 
	Section 604.	 	Not Responsible for Recitals or Issuance of Securities
	 	 	41	 
	Section 605.	 	May Hold Securities
	 	 	41	 
	Section 606.	 	Money Held in Trust
	 	 	41	 
	Section 607.	 	Compensation and Reimbursement
	 	 	42	 
	Section 608.	 	Conflicting Interests
	 	 	42	 
	Section 609.	 	Corporate Trustee Required; Eligibility
	 	 	42	 
	Section 610.	 	Resignation and Removal; Appointment of Successor
	 	 	42	 
	Section 611.	 	Acceptance of Appointment by Successor
	 	 	44	 
	Section 612.	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	45	 
	Section 613.	 	Preferential Collection of Claims Against Company and Subsidiary Guarantors
	 	 	45	 
	Section 614.	 	Appointment of Authenticating Agent
	 	 	45	 
	 	 	 
	 	 	 	 
	ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	 
	 	 	 	 
	Section 701.	 	Company to Furnish Trustee Names and Addresses of Holders
	 	 	47	 
	Section 702.	 	Preservation of Information; Communications to Holders
	 	 	47	 
	Section 703.	 	Reports by Trustee
	 	 	47	 
	Section 704.	 	Reports by Company and Subsidiary Guarantors
	 	 	48	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	 
	 	 	 	 
	Section 801.	 	Company May Consolidate, Etc., Only on Certain Terms 
	 	 	48	 
	Section 802.	 	Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms 
	 	 	49	 
	Section 803.	 	Successor Substituted 
	 	 	49	 
	 	 	 
	 	 	 	 
	ARTICLE NINE

SUPPLEMENTAL INDENTURES
	 	 	 
	 	 	 	 
	Section 901.	 	Supplemental Indentures Without Consent of Holders 
	 	 	50	 
	Section 902.	 	Supplemental Indentures With Consent of Holders 
	 	 	51	 
	Section 903.	 	Execution of Supplemental Indentures 
	 	 	52	 
	Section 904.	 	Effect of Supplemental Indentures 
	 	 	52	 
	Section 905.	 	Conformity with Trust Indenture Act 
	 	 	53	 
	Section 906.	 	Reference in Securities to Supplemental Indentures 
	 	 	53	 
	 	 	 
	 	 	 	 
	ARTICLE TEN

COVENANTS
	 	 	 
	 	 	 	 
	Section 1001.	 	Payment of Principal, Premium and Interest 
	 	 	53	 
	Section 1002.	 	Maintenance of Office or Agency 
	 	 	53	 
	Section 1003.	 	Money for Securities Payments to Be Held in Trust 
	 	 	54	 
	Section 1004.	 	Statement by Officers as to Default 
	 	 	55	 
	Section 1005.	 	Existence 
	 	 	55	 
	Section 1006.	 	Maintenance of Properties 
	 	 	55	 
	Section 1007.	 	Payment of Taxes and Other Claims 
	 	 	55	 
	Section 1008.	 	Maintenance of Insurance 
	 	 	56	 
	Section 1009.	 	Waiver of Certain Covenants 
	 	 	56	 
	 	 	 
	 	 	 	 
	ARTICLE ELEVEN

REDEMPTION OF SECURITIES
	 	 	 
	 	 	 	 
	Section 1101.	 	Applicability of Article 
	 	 	56	 
	Section 1102.	 	Election to Redeem; Notice to Trustee 
	 	 	56	 
	Section 1103.	 	Selection by Trustee of Securities to Be Redeemed 
	 	 	57	 
	Section 1104.	 	Notice of Redemption 
	 	 	57	 
	Section 1105.	 	Deposit of Redemption Price 
	 	 	58	 
	Section 1106.	 	Securities Payable on Redemption Date 
	 	 	58	 
	Section 1107.	 	Securities Redeemed in Part 
	 	 	59	 
	 	 	 
	 	 	 	 
	ARTICLE TWELVE

[INTENTIONALLY OMITTED]
	 	 	 
	 	 	 	 
	ARTICLE THIRTEEN

SUBSIDIARY GUARANTEES
	 	 	 
	 	 	 	 
	Section 1301.	 	Applicability of Article 
	 	 	59	 
	Section 1302.	 	Subsidiary Guarantees 
	 	 	59	 
	Section 1303.	 	Execution and Delivery of Subsidiary Guarantees 
	 	 	61	 
	Section 1304.	 	Release of Subsidiary Guarantors 
	 	 	62	 
	Section 1305.	 	Additional Subsidiary Guarantors 
	 	 	62	 
	Section 1306.	 	Limitation on Liability 
	 	 	62	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE FOURTEEN

[INTENTIONALLY OMITTED]
	 	 	 
	 	 	 	 
	ARTICLE FIFTEEN

DEFEASANCE AND COVENANT DEFEASANCE
	 	 	 
	 	 	 	 
	Section 1501.	 	Company’s Option to Effect Defeasance or Covenant Defeasance 
	 	 	63	 
	Section 1502.	 	Defeasance and Discharge 
	 	 	63	 
	Section 1503.	 	Covenant Defeasance 
	 	 	64	 
	Section 1504.	 	Conditions to Defeasance or Covenant Defeasance 
	 	 	64	 
	Section 1505.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions 
	 	 	66	 
	Section 1506.	 	Reinstatement 
	 	 	66	 
	 	 	 
	 	 	 	 
	ARTICLE SIXTEEN

SINKING FUNDS
	 	 	 
	 	 	 	 
	Section 1601.	 	Applicability of Article 
	 	 	67	 
	Section 1602.	 	Satisfaction of Sinking Fund Payments with Securities 
	 	 	67	 
	Section 1603.	 	Redemption of Securities for Sinking Fund 
	 	 	67	 
	 
	Schedule I	 	Subsidiary Guarantors
	 	 		 

iv

 

STONE ENERGY CORPORATION

RECONCILIATION AND TIE OF CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

	 	 	 
	TRUST INDENTURE	 	INDENTURE
	ACT SECTION	 	SECTION
	Section 310(a)(1)
	 	609
	(a)(2)
	 	609
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	608, 610
	Section 311(a)
	 	613
	(b)
	 	613
	Section 312(a)
	 	701, 702
	(b)
	 	702
	(c)
	 	702
	Section 313(a)
	 	703
	(b)
	 	703
	(c)
	 	703
	(d)
	 	703
	Section 314(a)
	 	704
	(a)(4)
	 	101, 1004
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	Section 315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	Section 316(a)
	 	101
	(a)(1)(A)
	 	502, 512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104

v

 

	 	 	 
	TRUST INDENTURE	 	INDENTURE
	ACT SECTION	 	SECTION
	Section 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	Section 318(a)
	 	107

 

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

vi

 

          INDENTURE, dated as of January 26, 2010, among Stone Energy Corporation, a corporation
duly organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 625 East Kaliste Saloom Rd., Lafayette, LA 70508, each of the
Subsidiary Guarantors (as hereinafter defined) and The Bank of New York Trust Company, N.A., a
national banking association, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

          The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in this
Indenture provided.

          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 Indenture to provide for its full, unconditional and joint and
several guarantee of the Securities to the extent provided in or pursuant this Indenture.

          All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

          For all purposes of this 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, 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 generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted at
the date of this instrument;

1

 

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

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

          “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing; provided that direct or indirect
beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control.

          “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

          “Board of Directors” means, with respect to the Company, either the board of directors of the
Company or any committee of that board duly authorized to act for it in respect hereof, and with
respect to any Subsidiary Guarantor, either the board of directors of such Subsidiary Guarantor or
any committee of that board duly authorized to act for it in respect hereof.

          “Board Resolution” means, with respect to the Company or a Subsidiary Guarantor, a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company or such Subsidiary
Guarantor, as the case may be, to have been duly adopted by its Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the Trustee.

          “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close.

          “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents (however designated) of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person.

          “Commission” means the Securities and Exchange Commission, from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

          “Common Stock” means the common stock, no par value, of the Company as the same exists at the
date of execution and delivery of this Indenture or other Capital Stock of the Company into which
such common stock is converted, reclassified or changed from time to time.

2

 

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

          “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or
an Assistant Secretary, and delivered to the Trustee.

          “Conversion Agent” means any Person authorized by the Company to convert any Securities on
behalf of the Company.

          “Corporate Trust Office” means the principal office of the Trustee in Houston, Texas at which
at any particular time its corporate trust business shall be administered, such office being
located on the date hereof at 601 Travis Street, 16th Floor, Houston, Texas 77002.

          “corporation” means a corporation, association, limited liability company, joint-stock company
or business trust.

          “Covenant Defeasance” has the meaning specified in Section 1503.

          “Debt” of any Person at any date means any obligation created, assumed or guaranteed by such
Person for the repayment of borrowed money.

          “Defaulted Interest” has the meaning specified in Section 307.

          “Defeasance” has the meaning specified in Section 1502.

          “Depositary” means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under the Exchange Act that
is designated to act as Depositary for such Securities as contemplated by Section 301.

          “Event of Default” has the meaning specified in Section 501.

          “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time.

          “Expiration Date” has the meaning specified in Section 104.

          “Global Security” means a Security that evidences all or part of the Securities of any series
and bears the legend set forth in Section 205 (or such legend as may be specified as contemplated
by Section 301 for such Securities).

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

          “Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and

3

 

any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to
be a part of and govern this instrument and any such supplemental indenture, respectively. The
term “Indenture” shall also include the terms of particular series of Securities established as
contemplated by Section 301.

          “interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

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

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

          “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.

          “Notice of Default” means a written notice of the kind specified in Section 501(5).

          “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors,
a Vice Chairman of the Board of Directors, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company or a Subsidiary
Guarantor, as the case may be, and delivered to the Trustee. One of the officers signing an
Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.

          “Opinion of Counsel” means, as to the Company or a Subsidiary Guarantor, a written opinion of
counsel, who may be counsel for the Company or such Subsidiary Guarantor, as the case may be, and
who shall be acceptable to the Trustee.

          “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 pursuant to Section 502.

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

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

          (2) Securities 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) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;

4

 

          (3) Securities as to which Defeasance has been effected pursuant to Section 1502; and

          (4) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, made or taken any request, demand, authorization, direction,
notice, consent, waiver or other action hereunder as of any date, (A) the principal amount of an
Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon acceleration of the Maturity
thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable
at the Stated Maturity of a Security is not determinable, the principal amount of such Security
which shall be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding shall be the U.S.
dollar equivalent, determined as of such date in the manner provided as contemplated by Section
301, of the principal amount of such Security (or, in the case of a Security described in clause
(A) or (B) above, of the amount determined as provided in such clause), and (D) Securities owned by
the Company, any Subsidiary Guarantor or any other obligor upon the Securities or any Affiliate of
the Company, any Subsidiary Guarantor or of 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 Securities which the Trustee knows to be so owned shall be so disregarded. Securities 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
Securities and that the pledgee is not the Company, a Subsidiary Guarantor or any other obligor
upon the Securities or any Affiliate of the Company, a Subsidiary Guarantor 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 Securities on behalf of the Company.

          “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

          “Place of Payment”, when used with respect to the Securities of any series, means the place or
places where the principal of and any premium and interest on the Securities of that series are
payable as specified as contemplated by Section 301.

          “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

5

 

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

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

          “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

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

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

          “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

          “Significant Subsidiary” means, at any date of determination, any Subsidiary that represents
10% or more of the Company’s consolidated total assets at the end of the most recent fiscal quarter
for which financial information is available or 10% or more of the Company’s consolidated net
revenues or consolidated operating income for the most recent four quarters for which financial
information is available.

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

          “Stated Maturity”, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

          “Subsidiary” of any Person means (1) a corporation more than 50% of the combined voting power
of the outstanding Voting Stock of which is owned, directly or indirectly, by such Person or by one
or more other Subsidiaries of such Person or by such Person and one or more Subsidiaries thereof or
(2) any other Person (other than a corporation) in which such Person, or one or more other
Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or
indirectly, has at least a majority ownership and power to direct the policies, management and
affairs thereof.

          “Subsidiary Guarantees” means the guarantees of each Subsidiary Guarantor as provided in
Article Thirteen.

          “Subsidiary Guarantors” means (i) the subsidiaries listed in Schedule I hereto; (ii)
any successor of the foregoing; and (iii) each other Subsidiary of the Company that becomes a
Subsidiary Guarantor in accordance with Section 1305 hereof, in each case (i), (ii) and (iii) until
such Subsidiary Guarantor ceases to be such in accordance with Section 1304 hereof.

6

 

          “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 this
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 Securities of any series shall mean the Trustee with respect to Securities of that series.

          “U.S. Government Obligation” has the meaning specified in Section 1504.

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

          “Voting Stock” of any Person means Capital Stock of such Person which ordinarily has voting
power for the election of directors (or persons performing similar functions) of such Person,
whether at all times or only so long as no senior class of securities has such voting power by
reason of any contingency.

          “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person all of the
outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying
shares) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of
such Person or by such Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102. Compliance Certificates and Opinions.

          Upon any application or request by the Company or any Subsidiary Guarantor to the Trustee to
take any action under any provision of this Indenture, the Company and/or such Subsidiary
Guarantor, as appropriate, 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 a Subsidiary
Guarantor, 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 this Indenture.

          Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this 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;

7

 

          (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 103. 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 or a Subsidiary Guarantor 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 or such Subsidiary Guarantor stating that the information with
respect to such factual matters is in the possession of the Company or such Subsidiary Guarantor,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

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

SECTION 104. Acts of Holders; Record Dates.

          Whenever in this Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Securities of any or all series may take action (including the
making of any demand or request, the giving of any direction, notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action the Holders of such
specified percentage have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by Holders in person or by agent or proxy appointed in
writing, (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly
called and held in accordance with procedures approved by the Trustee, (c) by a combination of such
instrument or instruments and any such record of such a meeting of Holders or (d) in the case of
Securities evidenced by a Global Security, by any electronic transmission or other message, whether
or not in written format, that complies with the Depositary’s applicable procedures. Such evidence
(and the action embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the relevant Holders. Proof of execution of any such instrument or of a writing
appointing any such agent or proxy shall be sufficient for any purpose

8

 

of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the
Company, 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 that the Trustee deems sufficient. The ownership of Securities
shall be proved by the Security Register.

          Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security 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
in reliance thereon, whether or not notation of such action is made upon such Security.

          The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or permitted by this
Indenture to be given, made or taken by Holders of Securities of such series, 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 Securities of the relevant series 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 Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series 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 Securities of the relevant series in the manner set
forth in Section 106.

          The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section
512, in each case with respect to Securities of such series. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities of such series on such record date, and no
other

9

 

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 Securities of such series 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 Securities of the relevant series 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 Securities of the relevant series in the manner set forth in Section 106.

          With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates 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 the other party hereto in writing, and to
each Holder of Securities of the relevant series in the manner set forth in Section 106, 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 any particular Security may do so with regard to all or any part of the principal amount
of such Security 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 105. Notices, Etc., to Trustee and Company.

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

          (1) the Trustee by any Holder or by the Company or 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
Department; or

          (2) the Company or any Subsidiary Guarantor 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, in the case of the Company
addressed to it at the address of its principal office specified in the first paragraph of

10

 

this instrument or at any other address previously furnished in writing to the Trustee by the
Company and, in the case of any Subsidiary Guarantor, to it at the address of the Company’s
principal office specified in the first paragraph of this instrument, Attention: Chief Financial
Officer, or at any other address previously furnished in writing to the Trustee by such Subsidiary
Guarantor.

SECTION 106. Notice to Holders; Waiver.

          Where this 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. Where this 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 107. 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 such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this 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 this Indenture as so modified or to be excluded, as the case may be.

SECTION 108. 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 109. Successors and Assigns.

          All covenants and agreements in this Indenture by the Company and any Subsidiary Guarantor
shall bind its successors and assigns, whether so expressed or not.

SECTION 110. Separability Clause.

11

 

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

SECTION 111. Benefits of Indenture.

          Nothing in this Indenture, the Securities or the Subsidiary Guarantees, 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 this Indenture.

SECTION 112. Governing Law.

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

SECTION 113. Legal Holidays.

          In any case where any Interest Payment Date, Redemption Date, purchase date or Stated Maturity
of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Indenture or of the Securities (other than a provision of any Security
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 114. No Recourse Against Others.

          The directors, officers, employees and stockholders of the Company and, if applicable, the
Subsidiary Guarantors, as such, shall have no liability for any obligations of the Company or any
Subsidiary Guarantor under the Securities, any Subsidiary Guarantees or this Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their creation. By accepting a
Security, each Holder shall be deemed to have waived and released all such liability. The waiver
and release shall be a part of the consideration for the issue of the Securities.

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

          The Securities of each series and, if applicable, the Subsidiary Guarantees to be endorsed
thereon shall be in substantially the form set forth in this Article, or in such other form as
shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions and other

12

 

variations as are required or permitted by this 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 Securities or Subsidiary Guarantees, as the
case may be, as evidenced by their execution thereof. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered
to the Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.

          The definitive Securities 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
Securities, as evidenced by their execution of such Securities.

SECTION 202. Form of Face of Security.

          [Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

Stone Energy Corporation

			
	No.            
         
	 	$             
        

          Stone Energy Corporation, a corporation duly organized and existing under the laws 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             
                  
                   [if the Security is to bear
interest prior to Maturity, insert — , and to pay interest thereon from        
              or from the
most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on                      and                      in each year, commencing                     , at the rate of
___% per annum, until the principal hereof is paid or made available for payment, provided that
any principal and premium, and any such installment of interest, which is overdue shall bear
interest at the rate of ___% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the                      or                      (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any

13

 

securities exchange on which the Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in said Indenture].

          [If the Security is not to bear interest prior to Maturity, insert — The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal and any
overdue premium shall bear interest at the rate of ___% per annum (to the extent that the payment
of such interest shall be legally enforceable), from the dates such amounts are due until they are
paid or made available for payment. Interest on any overdue principal or premium shall be payable
on demand. Any such interest on overdue principal or premium which is not paid on demand shall
bear interest at the rate of ___% per annum (to the extent that the payment of such interest on
interest shall be legally enforceable), from the date of such demand until the amount so demanded
is paid or made available for payment. Interest on any overdue interest shall be payable on
demand.]

          Payment of the principal of (and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in                     , in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

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

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

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

	 	 	 	 	 	 	 
	Dated:                    

	 	 
	STONE ENERGY CORPORATION
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	By: 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	[Attest:
	 	 	 	 	 	 
	 
	                                        ]
	 	 	 	 	 	 

SECTION 203. Form of Reverse of Security.

14

 

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
January 26, 2010 (herein called the “Indenture”, which term shall have the meaning assigned to it
in such instrument), among the Company, the Subsidiary Guarantors named therein and The Bank of New
York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Subsidiary Guarantors, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This Security is one of
the series designated on the face hereof [if applicable, insert — , limited in aggregate principal
amount to $                    ].

          [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, [if applicable, insert — (1) on                      in
any year commencing with the year                      and ending with the year                      through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)]
at any time [if applicable, insert — on or after                     , 20___], as a whole or in part, at the
election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [if applicable, insert — on or before                     ,                     %, and
if redeemed] during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 	 	 
	Redemption	 	Redemption
	Year	 	Price	 	Year	 	Price
	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the
case of any such redemption [if applicable, insert — (whether through operation of the sinking
fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the Indenture.]

          [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, (1) on                      in any year commencing with
the year ___and ending with the year ___through operation of the sinking fund for this series
at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — on or after                     ], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed
during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 
	 	 	Redemption Price For Redemption	 	Redemption Price For Redemption
	 	 	Through Operation of the Sinking	 	Otherwise Than Through Operation
	Year	 	Fund	 	of the Sinking Fund
	 	 	 	 	 

15

 

and thereafter at a Redemption Price equal to                     % of the principal amount, together in the
case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant Record Dates referred to
on the face hereof, all as provided in the Indenture.]

          [If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
                    , redeem any Securities of this series as contemplated by [if applicable, insert —
clause (2) of] the preceding paragraph as a part of, or in anticipation of, any refunding operation
by the application, directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of less than ___%
per annum.]

          [If applicable, insert — The sinking fund for this series provides for the redemption on
                     in each year beginning with the year                      and ending with the year                      of [if
applicable, insert — not less than $                     (“mandatory sinking fund”) and not more than] $
                     aggregate principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable, insert — mandatory]
sinking fund payments may be credited against subsequent [if applicable, insert — mandatory]
sinking fund payments otherwise required to be made [if applicable, insert — , in the inverse
order in which they become due].]

          [If the Security is subject to redemption of any kind, insert — In the event of redemption of
this Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

          [If the Security is subject to conversion, insert — Subject to the provisions of the
Indenture, each Holder has the right to convert the principal amount of this Security into fully
paid and nonassessable shares of Common Stock of the Company at the initial conversion price per
share of Common Stock of $___ (or $___ in principal amount of Securities for each such share of
Common Stock), or at the adjusted conversion price then in effect, if adjustment has been made as
provided in the Indenture, upon surrender of the Security to the Conversion Agent, together with a
fully executed notice in substantially the form attached hereto and, if required by the Indenture,
an amount equal to accrued interest payable on this Security.]

          [If applicable, insert — As provided in the Indenture and subject to certain limitations
therein set forth, the obligations of the Company under this Security are guaranteed pursuant to
the Subsidiary Guarantees endorsed hereon. The Indenture provides that a Subsidiary Guarantor
shall be released from its Subsidiary Guarantee upon compliance with certain conditions.]

16

 

          [If applicable, insert — The Indenture contains provisions for Defeasance at any time
of [the entire indebtedness of this Security] [or] [certain restrictive covenants and Events of
Default with respect to this Security] [, in each case] upon compliance with certain conditions set
forth in the Indenture.]

          [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

          [If the Security is an Original Issue Discount Security, insert — If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s obligations in respect
of the payment of the principal of and premium and interest, if any, on the Securities of this
series shall terminate.]

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable security or indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal

17

 

hereof or any premium or interest hereon on or after the respective due dates expressed herein
[if applicable, insert — or the right to convert this Security in accordance with its terms].

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed [insert if applicable — and to convert such Security in
accordance with its terms].

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          The Securities of this series are issuable only in registered form without coupons in
denominations of $ ______ and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

SECTION 204. Form of Subsidiary Guarantee.

SUBSIDIARY GUARANTEE

          For value received, each of the Subsidiary Guarantors named (or deemed herein to be named)
below hereby jointly and severally fully and unconditionally guarantees to the Holder of the
Security upon which this Subsidiary Guarantee is endorsed, and to the Trustee on behalf of such
Holder, the due and punctual payment of the principal of (and premium, if any) and interest on such
Security when and as the same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, offer to purchase or otherwise, according to the terms thereof
and of the Indenture referred to therein and to cover all the rights of the Trustee

18

 

under Section 607. In case of the failure of the Company punctually to make any such payment,
each of the Subsidiary Guarantors hereby jointly and severally agrees to cause such payment to be
made punctually when and as the same shall become due and payable, whether at the Stated Maturity
or by acceleration, call for redemption, offer to purchase or otherwise, and as if such payment
were made by the Company.

          Each of the Subsidiary Guarantors hereby jointly and severally agrees that its obligations
hereunder shall be absolute and unconditional, irrespective of, and shall be unaffected by, the
validity, regularity or enforceability of such Security or the Indenture, the absence of any action
to enforce the same or any release, amendment, waiver or indulgence granted to the Company or any
other guarantor, or any consent to departure from any requirement of any other guarantee of all or
of any of the Securities of this series, or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor; provided, however,
that, notwithstanding the foregoing, no such release, amendment, waiver or indulgence shall,
without the consent of such Subsidiary Guarantor, increase the principal amount of such Security,
or increase the interest rate thereon, or alter the Stated Maturity thereof. Each of the
Subsidiary Guarantors hereby waives the benefits of diligence, presentment, demand of payment, any
requirement that the Trustee or any of the Holders protect, secure, perfect or insure any security
interest in or other lien on any property subject thereto or exhaust any right or take any action
against the Company or any other Person or any collateral, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a proceeding first against
the Company, protest or notice with respect to such Security or the indebtedness evidenced thereby
and all demands whatsoever, and covenants that this Subsidiary Guarantee will not be discharged
except by complete performance of the obligations contained in such Security and in this Subsidiary
Guarantee. Each Subsidiary Guarantor agrees that if, after the occurrence and during the
continuance of an Event of Default with respect to Securities of this series, the Trustee or any of
the Holders are prevented by applicable law from exercising their respective rights to accelerate
the maturity of the Securities of this series, to collect interest on the Securities of this
series, or to enforce or exercise any other right or remedy with respect to the Securities of this
series, such Subsidiary Guarantor agrees to pay to the Trustee for the account of the Holders, upon
demand therefor, the amount that would otherwise have been due and payable had such rights and
remedies been permitted to be exercised by the Trustee or any of the Holders.

          No reference herein to the Indenture and no provision of this Subsidiary Guarantee or of the
Indenture shall alter or impair the Subsidiary Guarantee of any Subsidiary Guarantor, which is
absolute and unconditional, of the due and punctual payment of the principal (and premium, if any)
and interest on the Security upon which this Subsidiary Guarantee is endorsed.

          Each Subsidiary Guarantor shall be subrogated to all rights of the Holder of this Security
against the Company in respect of any amounts paid by such Subsidiary Guarantor on account of this
Security pursuant to the provisions of its Subsidiary Guarantee or 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 the principal of (and premium, if
any) and interest on this Security and all other Securities of this series issued under the
Indenture shall have been paid in full.

19

 

          This Subsidiary Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Company for liquidation or reorganization, should
the Company become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment and performance of the Securities of this series is, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or returned by any Holder of the
Securities of this series, whether as a “voidable preference,” “fraudulent transfer,” or otherwise,
all as though such payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Securities of this series shall, to
the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

          The Subsidiary Guarantors or any particular Subsidiary Guarantor shall be released from this
Subsidiary Guarantee upon the terms and subject to certain conditions provided in the Indenture.

          By delivery to the Trustee of a supplement to the Indenture referred to in the Security upon
which this Subsidiary Guarantee is endorsed in accordance with the terms of the Indenture, each
Person that becomes a Subsidiary Guarantor after the date of first issuance of the Securities of
this series will be deemed to have executed and delivered this Subsidiary Guarantee for the benefit
of the Holder of the Security upon which this Subsidiary Guarantee is endorsed with the same effect
as if such Subsidiary Guarantor were named below and had executed and delivered this Subsidiary
Guarantee.

          All terms used in this Subsidiary Guarantee which are defined in the Indenture shall have the
meanings assigned to them in such Indenture.

          This Subsidiary Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Security upon which this Subsidiary Guarantee is endorsed
shall have been executed by the Trustee under the Indenture by manual signature.

          Reference is made to the Indenture for further provisions with respect to this Subsidiary
Guarantee.

          This Subsidiary Guarantee shall be governed by and construed in accordance with the laws of
the State of New York.

          IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this Subsidiary Guarantee to
be duly executed.

	 	 	 	 	 
	 	[Insert Names of Subsidiary Guarantors]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

20

 

SECTION 205. Form of Legend for Global Securities.

          Unless otherwise specified as contemplated by Section 301 for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

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

SECTION 206. Form of Trustee’s Certificate of Authentication.

          The Trustee’s certificates of authentication shall be in substantially the following form:

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST
 COMPANY, N.A.,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

SECTION 207. Form of Conversion Notice.

          Each convertible Security shall have attached thereto, or set forth on the reverse of the
Security, a notice of conversion in substantially the following form:

Conversion Notice

To:   Stone Energy Corporation

          The undersigned owner of this Security hereby: (i) irrevocably exercises the option to
convert this Security, or the portion hereof below designated, for shares of Common Stock of Stone
Energy Corporation in accordance with the terms of the Indenture referred to in this Security and
(ii) directs that such shares of Common Stock deliverable upon the conversion, together with any
check in payment for fractional shares and any Security(ies) representing any unconverted principal
amount hereof, be issued and delivered to the registered holder hereof unless a different name has
been indicated below. If shares are to be delivered registered in the

21

 

name of a Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Security.

	 	 	 
	 
	 	 
	Dated:                                        
	 	 
	 

	 	 
	 

	 	Signature

Fill in for registration of shares if to be delivered, and of Securities if to be issued, otherwise
than to and in the name of the registered holder.

	 	 	 	 
	 
	 	 
	 

	 	 	 
	 

	 	Social Security or other Taxpayer

Identification Number

	 
	___________________________________________

	(Name)

	 
	___________________________________________

	(Please print name and address)

	 
	 

	Principal amount to be converted: (if less than all)

	 

	$___________________________________________

	

Signature Guarantee*

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature acceptable
to the Trustee).

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

          The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

          The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,

          (1) the title of the Securities of the series (which shall distinguish the Securities of the
series from Securities of any other series);

22

 

          (2) if the Securities of the series will not have the benefit of the Subsidiary Guarantees of
the Subsidiary Guarantors;

          (3) any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to
Section 303, are deemed never to have been authenticated and delivered hereunder);

          (4) the Person to whom any interest on a Security of the series shall be payable, if other
than the Person in whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest;

          (5) the date or dates on which the principal of any Securities of the series is payable;

          (6) the rate or rates at which any Securities of the series shall bear interest, if any, the
date or dates from which any such interest shall accrue, the Interest Payment Dates on which any
such interest shall be payable and the Regular Record Date for any such interest payable on any
Interest Payment Date;

          (7) the place or places where the principal of and any premium and interest on any Securities
of the series shall be payable;

          (8) the period or periods within which, the price or prices at which and the terms and
conditions upon which any Securities of the series may be redeemed, in whole or in part, at the
option of the Company and, if other than by a Board Resolution, the manner in which any election by
the Company to redeem the Securities shall be evidenced;

          (9) the obligation, if any, of the Company to redeem or purchase any Securities of the series
pursuant to any sinking fund or analogous provisions or at the option of the Holder thereof and the
period or periods within which, the price or prices at which and the terms and conditions upon
which any Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to
such obligation;

          (10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which any Securities of the series shall be issuable;

          (11) if the amount of principal of or any premium or interest on any Securities of the series
may be determined with reference to an index or pursuant to a formula, the manner in which such
amounts shall be determined;

          (12) if other than the currency of the United States of America, the currency, currencies or
currency units in which the principal of or any premium or interest on any Securities of the series
shall be payable and the manner of determining the equivalent thereof in the currency of the United
States of America for any purpose, including for purposes of the definition of “Outstanding” in
Section 101;

23

 

          (13) if the principal of or any premium or interest on any Securities of the series is to be
payable, at the election of the Company or the Holder thereof, in one or more currencies or
currency units other than that or those in which such Securities are stated to be payable, the
currency, currencies or currency units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the periods within which and the
terms and conditions upon which such election is to be made and the amount so payable (or the
manner in which such amount shall be determined);

          (14) if other than the entire principal amount thereof, the portion of the principal amount of
any Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

          (15) if the principal amount payable at the Stated Maturity of any Securities of the series
will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which
shall be deemed to be the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be due and payable upon
any Maturity other than the Stated Maturity or which shall be deemed to be Outstanding as of any
date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to
be the principal amount shall be determined);

          (16) if applicable, that the Securities of the series, in whole or any specified part, shall
be defeasible pursuant to Section 1502 or Section 1503 or both such Sections and, if other than by
a Board Resolution, the manner in which any election by the Company to defease such Securities
shall be evidenced;

          (17) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective Depositories for such
Global Securities, the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in Section 205 and any circumstances in
addition to or in lieu of those set forth in clause (2) of the last paragraph of Section 305 in
which any such Global Security may be exchanged in whole or in part for Securities registered, and
any transfer of such Global Security in whole or in part may be registered, in the name or names of
Persons other than the Depositary for such Global Security or a nominee thereof;

          (18) any addition to or change in the Events of Default which applies to any Securities of the
series and any change in the right of the Trustee or the requisite Holders of such Securities to
declare the principal amount thereof due and payable pursuant to Section 502;

          (19) any addition to or change in the covenants set forth in Article Ten which applies to
Securities of the series;

          (20) whether the Securities of the series will be convertible into Common Stock (or cash in
lieu thereof) and, if so, the terms and conditions upon which such conversion will be effected; and

          (21) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by Section 901(5)).

24

 

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto.

          If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

          The Securities of each series shall have the benefit of the Subsidiary Guarantees unless the
Company elects otherwise upon the establishment of a series pursuant to this Section 301.

SECTION 302. Denominations.

          The Securities of each series shall be issuable only in registered form without coupons and
only in such denominations as shall be specified as contemplated by Section 301. In the absence of
any such specified denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

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

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

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company and, if applicable, having
endorsed thereon the Subsidiary Guarantees executed as provided in Section 1303 by the Subsidiary
Guarantors to the Trustee for authentication, together with a Company Order for the authentication
and delivery of such Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities. If the form or terms of the Securities of the series
have been established by or pursuant to one or more Board Resolutions as permitted by Sections 201
and 301, in authenticating such Securities, and accepting the additional responsibilities under
this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating,

25

 

          (1) if the form of such Securities has been established by or pursuant to Board Resolution as
permitted by Section 201, that such form has been established in conformity with the provisions of
this Indenture;

          (2) if the terms of such Securities have been established by or pursuant to Board Resolution
as permitted by Section 301, that such terms have been established in conformity with the
provisions of this Indenture; and

          (3) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company, and, if applicable, the Subsidiary
Guarantees endorsed thereon will constitute valid and legally binding obligations of the Subsidiary
Guarantors, enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles.

          If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.

          Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be issued.

          Each Security shall be dated the date of its authentication.

          No Security or Subsidiary Guarantee shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for herein executed by the Trustee by manual
signature, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

SECTION 304. Temporary Securities.

          Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities and, if applicable, having
endorsed thereon the Subsidiary Guarantees in lieu of which they are issued and with such

26

 

appropriate insertions, omissions, substitutions and other variations as the officers
executing such Securities and, if applicable, Subsidiary Guarantees may determine, as evidenced by
their execution of such Securities and Subsidiary Guarantees.

          If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series 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 Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of the same series, of any authorized denominations and of like tenor
and aggregate principal amount and, if applicable, having endorsed thereon Subsidiary Guarantees
executed by the Subsidiary Guarantors. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series and tenor.

SECTION 305. Registration, Registration of Transfer and Exchange.

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

          Upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute, if
applicable the Subsidiary Guarantors shall execute the Subsidiary Guarantees endorsed thereon and
the Trustee shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount.

          At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, if applicable the Subsidiary Guarantors
shall execute the Subsidiary Guarantees endorsed thereon and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to receive.

          All Securities and, if applicable, the Subsidiary Guarantees endorsed thereon issued upon any
registration of transfer or exchange of Securities shall be the valid obligations of the Company
and, if applicable, the respective Subsidiary Guarantors, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Securities and Subsidiaries Guarantees surrendered
upon such registration of transfer or exchange.

27

 

          Every Security 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 his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or otherwise not involving any
transfer.

          If the Securities of any series (or of any series and specified tenor) are to be redeemed in
part, the Company shall not be required (A) to issue, register the transfer of or exchange any
Securities of that series (or of that series and specified tenor, as the case may be) during a
period beginning at the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103 and ending at the
close of business on the day of such mailing, or (B) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

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

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

          (2) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a
clearing agency registered under the Exchange Act, and in either case the Company fails to appoint
a successor Depositary within 90 days, (B) there shall have occurred and be continuing an Event of
Default with respect to such Global Security and the Depositary shall have notified the Trustee of
its decision to exchange such Global Security for Securities in certificated form or (C) there
shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been
specified for this purpose as contemplated by Section 301.

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

          (4) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this
Section, Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and delivered in the

28

 

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

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall execute, if
applicable the Subsidiary Guarantors shall execute the Subsidiary Guarantees endorsed thereon and
the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless from any loss that
any of them may suffer if a Security is replaced, then, in the absence of notice to the Company or
the Trustee that such Security has been acquired by a protected purchaser, the Company shall
execute, if applicable the Subsidiary Guarantors shall execute the Subsidiary Guarantees endorsed
thereon and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding. In case any such mutilated, destroyed, lost or
stolen Security has become or is about to become due and payable or is to be converted, the Company
in its discretion may, instead of issuing a new Security, pay or authorize the conversion of such
Security (without surrender thereof save in the case of a mutilated Security).

          Upon the issuance of any new Security 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 Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security, and, if applicable, the Subsidiary Guarantees endorsed thereon, shall
constitute an original additional contractual obligation of the Company and, if applicable, the
respective Subsidiary Guarantors, whether or not the destroyed, lost or stolen Security shall be at
any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Securities of that series 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, payment or conversion of mutilated,
destroyed, lost or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved.

          Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

29

 

          Any interest on any Security of any series 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 Securities of such series (or their respective Predecessor Securities) 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 Security of such series 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 Securities of such series in the manner set forth in Section
106, 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 Securities of such series (or their
respective Predecessor Securities) 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 Securities of any series in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
such Securities 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 Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

SECTION 308. Persons Deemed Owners.

          Prior to due presentment of a Security 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 Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium and (subject to
Section 307) any interest on such Security and for all other purposes whatsoever, whether or not

30

 

such Security be overdue, and neither the Company, any Subsidiary Guarantor, the Trustee nor
any agent of the Company, any Subsidiary Guarantor, or the Trustee shall be affected by notice to
the contrary.

SECTION 309. Cancellation.

          All Securities surrendered for payment, redemption, purchase, registration of transfer or
exchange or for credit against any sinking fund payment 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 Securities 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 Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of as
directed by a Company Order.

SECTION 310. Computation of Interest.

          Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Request cease to be of further effect with respect to the
Securities of any series, and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

          (1) either

               (A) all Securities of such series theretofore authenticated and delivered (other than (i)
Securities of such series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) Securities of such series 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 1003) have been
delivered to the Trustee for cancellation; or

               (B) all such Securities of such series not theretofore delivered to the Trustee for
cancellation

                    (i) have become due and payable, or

31

 

                     (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, if applicable, a Subsidiary Guarantor, in the case of (i), (ii) or (iii) above,
has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for
the purpose money in an amount sufficient, without consideration of any reinvestment of interest,
to pay and discharge the entire indebtedness on such Securities 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 Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

          (2) the Company or a Subsidiary Guarantor has paid or caused to be paid all other sums payable
hereunder by the Company and the Subsidiary Guarantors with respect to the Securities of such
series; and

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

          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company with respect to the
Securities of such series under Sections 304, 305, 306, 1002 and 1003, any surviving rights of
conversion, the obligations of the Trustee to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this
Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 1003
shall survive.

SECTION 402. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this 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 money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

          “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it

32

 

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 Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days; or

          (2) default in the payment of the principal of or any premium on any Security of that series
at its Maturity; or

          (3) default in the deposit of any sinking fund payment, when and as due by the terms of a
Security of that series; or

          (4) default in the performance, or breach, of any covenant of the Company or, if the
Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of such
series, any Subsidiary Guarantor in Article Eight of this Indenture; or

          (5) default in the performance, or breach, of any covenant or warranty of the Company or, if
the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of such
series, any Subsidiary Guarantor in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 60 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of
that series a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or

          (6) any Debt of the Company, any Significant Subsidiary or, if the Subsidiary Guarantors have
issued Subsidiary Guarantees with respect to the Securities of such series, any Subsidiary
Guarantor is not paid within any applicable grace period after final maturity or is accelerated by
the holders thereof because of a default and the total amount of such Debt unpaid or accelerated
exceeds $20.0 million, or its foreign currency equivalent at the time; or

          (7) any judgment or decree for the payment of money in excess of $20.0 million or its foreign
currency equivalent at the time it is entered against the Company, any Significant Subsidiary or,
if the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of
such series, any Subsidiary Guarantor, remains outstanding for a period of 60 consecutive days
following the entry of such judgment or decree and is not discharged, waived or the execution
thereof stayed; or

          (8) the entry by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company, any Significant Subsidiary or, if the Subsidiary Guarantors have
issued Subsidiary Guarantees with respect to the Securities of such series, any Subsidiary
Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company, any
Significant Subsidiary or any such Subsidiary Guarantor a bankrupt or

33

 

insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company, any Significant Subsidiary or any such
Subsidiary Guarantor under any applicable Federal or State law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company, any
Significant Subsidiary or any such Subsidiary Guarantor or of any substantial part of its or their
property, or ordering the winding up or liquidation of its or their affairs, and the continuance of
any such decree or order for relief or any such other decree or order unstayed and in effect for a
period of 60 consecutive days; or

          (9) the commencement by the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of such series, any
Subsidiary Guarantor of a voluntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it or them to the entry of a decree or
order for relief in respect of the Company, any Significant Subsidiary or any such Subsidiary
Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it or them, or the filing by it or them of a petition or
answer or consent seeking reorganization or relief under any applicable Federal or State law, or
the consent by it or them to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company, any Significant Subsidiary or any such Subsidiary Guarantor or of any
substantial part of its or their property, or the making by it or them of an assignment for the
benefit of creditors, or the admission by it or them in writing of its or their inability to pay
its or their debts generally as they become due, or the taking of corporate action by the Company,
any Significant Subsidiary or any such Subsidiary Guarantor in furtherance of any such action; or

          (10) in the event the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to
the Securities of such series, the Subsidiary Guarantee of any Subsidiary Guarantor is held by a
final non-appealable order or judgment of a court of competent jurisdiction to be unenforceable or
invalid or ceases for any reason to be in full force and effect (other than in accordance with the
terms of this Indenture) or any Subsidiary Guarantor or any Person acting on behalf of any
Subsidiary Guarantor denies or disaffirms such Subsidiary Guarantor’s obligations under its
Subsidiary Guarantee (other than by reason of a release of such Subsidiary Guarantor from its
Subsidiary Guarantee in accordance with the terms of this Indenture); or

          (11) any other Event of Default provided with respect to Securities of that series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than an Event of Default with respect to the Company specified
in Section 501(8) or 501(9)) with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities of that series may declare the principal amount
of all the Securities of that series (or, if any Securities of that series are Original Issue
Discount Securities, such portion of the principal amount of such Securities as may be

34

 

specified by the terms thereof) to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount), together with any accrued and unpaid interest thereon, shall become
immediately due and payable. If an Event of Default with respect to the Company specified in
Section 501(8) or 501 (9) with respect to Securities of any series at the time Outstanding occurs,
the principal amount of all the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such Securities as may
be specified by the terms thereof), together with any accrued and unpaid interest thereon, shall
automatically, and without any declaration or other action on the part of the Trustee or any
Holder, become immediately due and payable.

          At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

          (1) the Company or, if applicable, any Subsidiary Guarantor has paid or deposited with the
Trustee a sum sufficient to pay

               (A) all overdue interest on all Securities of that series,

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

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

          (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which has become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 513.

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

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if

          (1) default is made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days, or

          (2) default is made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof,

35

 

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

          If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

SECTION 504. Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company, any Subsidiary Guarantor or any
other obligor upon the Securities, or the property or creditors of the Company, any Subsidiary
Guarantor or any other obligor upon the Securities, 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 reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

          No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or any Subsidiary Guarantee 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 505. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities or any Subsidiary
Guarantee may be prosecuted and enforced by the Trustee without the possession of any of the
Securities 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 reasonable compensation,

36

 

expenses, disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such judgment has been
recovered.

SECTION 506. 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 Securities 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 607;

          SECOND: To the payment of the amounts then due and unpaid for principal of and any premium
and interest on the Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium and interest, respectively; and

          THIRD: The balance, if any, to the Company or to such other Person as a court of competent
jurisdiction shall direct.

SECTION 507. Limitation on Suits.

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

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

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

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

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

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities
of that series;

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 this Indenture to affect, disturb

37

 

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 this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 307) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption or offer by the Company to purchase the
Securities pursuant to the terms of this Indenture, on the Redemption Date or purchase date, as
applicable) and, if applicable, to convert such Security in accordance with its terms, and to
institute suit for the enforcement of any such right, and such rights shall not be impaired without
the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this 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 510. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, 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 511. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Securities 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 512. Control by Holders.

38

 

         The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

          (1) such direction shall not be in conflict with any rule of law or with this Indenture, and

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

SECTION 513. Waiver of Past Defaults.

          The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default

          (1) in the payment of the principal of or any premium or interest on any Security of such
series (including any Security 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 this Indenture), or

          (2) in respect of a covenant or provision hereof which under Article Nine cannot be modified
or amended without the consent of the Holder of each Outstanding Security of such series.

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

SECTION 514. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, 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, however, 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 or any Subsidiary Guarantor.

SECTION 515. 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 this
Indenture; and each of the Company and the Subsidiary Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants

39

 

that it will not hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though no such law had
been enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

          The duties and responsibilities of the Trustee shall be as expressly set forth in this
Indenture and as provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this 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 this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee shall be subject to
the provisions of this Section.

SECTION 602. Notice of Defaults.

          If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 501(5) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

SECTION 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601:

          (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 this 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;

40

 

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

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

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

          (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.

SECTION 604. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities and the Subsidiary Guarantees, except the
Trustee’s certificates of authentication, shall be taken as the statements of the Company or the
Subsidiary Guarantors, as the case may be, 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 this Indenture or of the Securities or the Subsidiary Guarantees
endorsed thereon. Neither the Trustee nor any Authenticating Agent shall be accountable for the
use or application by the Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or any Subsidiary Guarantor, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with the Company and any Subsidiary Guarantor with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

SECTION 606. Money Held in Trust.

          Money 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 or any Subsidiary Guarantor,
as the case may be.

41

 

SECTION 607. Compensation and Reimbursement.

          The Company and each Subsidiary Guarantor jointly and severally agree

          (1) to pay to the Trustee from time to time reasonable 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 this 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 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.

SECTION 608. Conflicting Interests.

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

SECTION 609. Corporate Trustee Required; Eligibility.

          There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one or more other
series. 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 Securities of any series 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 610. 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 611.

42

 

          The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 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 Securities of such
series.

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

          If at any time:

          (1) the Trustee shall fail to comply with Section 608 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

          (2) the Trustee shall cease to be eligible under Section 609 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 with respect
to all Securities, or (B) subject to Section 514, any Holder who has been a bona fide Holder of a
Security 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
Securities 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 Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series 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 611, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders and accepted appointment
in the manner required by Section 611, any Holder who has been a bona

43

 

fide Holder of a Security of such series 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 Securities of such series.

          The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

SECTION 611. Acceptance of Appointment by Successor.

          In case of the appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company,
the Subsidiary Guarantors 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.

          In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the Subsidiary Guarantors, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each 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 with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and

44

 

money held by such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

          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 612. Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such Person
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. As soon as practicable, the
successor Trustee shall mail a notice of its succession to the Company and the Holders of the
Securities then Outstanding. In case any Securities 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 Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Securities.

SECTION 613. Preferential Collection of Claims Against Company and Subsidiary Guarantors.

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

SECTION 614. Appointment of Authenticating Agent.

          The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer, conversion
or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities 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 Person organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,

45

 

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 Person into which an Authenticating Agent may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent,
provided such Person 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 106 to all Holders of Securities of
the series 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 607.

          If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series 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 Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A.,

As Trustee

 	 
	 	 	 
	 	 	 
	 	 	 
	 

46

 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee with respect to the
Securities of each series:

          (1) not more than 10 days after each record date with respect to the payment of interest, if
any, a list, in such form as the Trustee may reasonably require, of the names and addresses of the
Holders of Securities of such series as of such 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 702. 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 701 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 701
upon receipt of a new list so furnished. The rights of Holders to communicate with other Holders
with respect to their rights under this Indenture or under the Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act.

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

SECTION 703. Reports by Trustee.

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

47

 

          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 any Securities are listed, with the Commission and with
the Company and with the Subsidiary Guarantors. The Company will notify the Trustee when any
Securities are listed on any stock exchange.

SECTION 704. Reports by Company and Subsidiary Guarantors.

          The Company and each of the Subsidiary Guarantors shall file with the Trustee and the
Commission, and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall
be filed with the Trustee within 15 days after the same is filed with the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

          The Company shall not, in a single transaction or a series of related transactions,
consolidate with or merge into any other Person or permit any other Person to consolidate with or
merge into the Company or, directly or indirectly, transfer, convey, sell, lease or otherwise
dispose of all or substantially all of its assets, unless:

          (1) in a transaction in which the Company does not survive or in which the Company transfers,
conveys, sells, leases or otherwise disposes of all or substantially all of its assets, the
successor entity (for purposes of this Article Eight, a “Successor Company”) shall be a
corporation, partnership, trust or other entity organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia, and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and any premium and
interest on all the Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;

          (2) immediately before and after giving pro forma effect to such transaction and treating any
indebtedness which becomes an obligation of the Company or any Subsidiary as a result of such
transaction as having been incurred by the Company or such Subsidiary at the time of such
transaction, no Event of Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing;

          (3) if, as a result of any such consolidation or merger or such transfer, conveyance, sale,
lease or other disposition, properties or assets of the Company would become subject to a mortgage,
pledge, lien, security interest or other encumbrance which would not be permitted by this
Indenture, the Company or the Successor Company, as the case may be, shall take such steps as shall
be necessary effectively to secure the Securities equally and ratably with (or prior to) all
indebtedness secured thereby;

48

 

          (4) any other conditions provided pursuant to Section 301 with respect to the Securities of a
series are satisfied; and

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

SECTION 802. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

          Except in a transaction resulting in the release of a Subsidiary Guarantor in accordance with
the terms of this Indenture, each Subsidiary Guarantor shall not, and the Company shall not permit
any Subsidiary Guarantor to, in a single or a series of related transactions, consolidate or merge
with or into any Person (other than the Company or another Subsidiary Guarantor) or permit any
Person (other than another Subsidiary Guarantor) to consolidate or merge with or into such
Subsidiary Guarantor or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose
of all or substantially all of its assets unless, in each case:

          (1) in a transaction in which such Subsidiary Guarantor does not survive or in which all or
substantially all of the assets of such Subsidiary Guarantor are transferred, conveyed, sold,
leased or otherwise disposed of, the successor entity (the “Successor Subsidiary Guarantor”) shall
be a corporation, partnership, trust or other entity organized and validly existing under the laws
of the United States of America, any State thereof or the District of Columbia, and shall expressly
assume by an indenture supplemental hereto executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of all obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee and this Indenture and the performance of every covenant
of this Indenture on the part of such Subsidiary Guarantor to be performed or observed; and

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

SECTION 803. Successor Substituted.

          (a) Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any transfer, conveyance, sale, lease or other disposition of all or substantially all of
the assets of the Company in accordance with Section 801, the Successor Company shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company herein, and
thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

49

 

          (b) Upon any consolidation of a Subsidiary Guarantor with, or merger of such Subsidiary
Guarantor into, any other Person or any transfer, conveyance, sale, lease or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor in accordance with Section 802,
the Successor Subsidiary Guarantor shall succeed to, and be substituted for, and may exercise every
right and power of, such Subsidiary Guarantor under this Indenture with the same effect as if such
successor Person had been named as a Subsidiary Guarantor herein, and thereafter, except in the
case of a lease, the predecessor Person shall be relieved of all obligations and covenants under
this Indenture and its Subsidiary Guarantee.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

          Without the consent of any Holders, the Company, when authorized by a Board Resolution, the
Subsidiary Guarantors, when authorized by their respective Board Resolutions, and the Trustee, at
any time and from time to time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

          (1) to evidence the succession of another Person to the Company or any Subsidiary Guarantor
and the assumption by any such successor of the covenants of the Company or any Subsidiary
Guarantor herein and in the Securities or Subsidiary Guarantees, as the case may be; or

          (2) to add to the covenants of the Company for the benefit of the Holders of all or any series
of Securities (and if such covenants 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; or

          (3) to add any additional Events of Default for the benefit of the Holders of all or any
series of Securities (and if such additional Events of Default are to be for the benefit of less
than all series of Securities, stating that such additional Events of Default are expressly being
included solely for the benefit of such series); or

          (4) to add to or change any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form; or

          (5) to add to, change or eliminate any of the provisions of this Indenture in respect of one
or more series of Securities, provided that any such addition, change or elimination (A) shall
neither (i) apply to any Security of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of
any such Security with respect to such provision or (B) shall become effective only when there is
no such Security Outstanding; or

          (6) to secure the Securities; or

50

 

          (7) to establish the form or terms of Securities of any series as permitted by Sections 201
and 301; or

          (8) to 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 this 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 611; or

          (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein; or

          (10) to make any other provisions with respect to matters or questions arising under this
Indenture, provided that such action pursuant to this clause (10) shall not adversely affect the
interests of the Holders of Securities of any series in any material respect; or

          (11) to add new Subsidiary Guarantors.

SECTION 902. Supplemental Indentures With Consent of Holders.

          With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company, the Subsidiary Guarantors and the Trustee, the Company, when
authorized by a Board Resolution, the Subsidiary Guarantors, when authorized by their respective
Board Resolutions and the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities
of such series under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected thereby:

          (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 or any other Security which would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any Place of
Payment where, or the coin or currency in which, any Security or any premium or interest thereon is
payable, or impair the right to institute suit for the enforcement of (a) any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date
or in the case of an offer to purchase Securities which has been made pursuant to a covenant
contained in this Indenture, on or after the applicable purchase date) or (b) any conversion right
with respect to any Security, or modify the provisions of this Indenture with respect to the
conversion of the Securities, in a manner adverse to the Holders, or release any Subsidiary
Guarantee other than as provided in this Indenture; or

          (2) reduce the percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver (of compliance with certain provisions of

51

 

this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture; or

          (3) modify any of the provisions of this Section, Section 513 or Section 1009, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause 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 and Section 1009, or the deletion of this proviso, in accordance with the requirements of
Sections 611 and 901(8); or

          (4) following the making of an offer to purchase Securities from any Holder which has been
made pursuant to a covenant contained in this Indenture, modify the provisions of this Indenture
with respect to such offer to purchase in a manner adverse to such Holder.

          A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which 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 this
Indenture of the Holders of Securities of any other series.

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

          After a supplemental indenture under this Section 902 requiring the consent of the Holders of
any series of Debt Securities is approved, the Company shall mail to Holders of that series of Debt
Securities a notice briefly describing any amendment or supplement hereto effected by such
supplemental indenture. The failure to give such notice to any such Holders, or any defect
therein, shall not impair or affect the validity of any amendment or supplement hereto effected by
such supplemental indenture with respect to other Holders.

SECTION 903. 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 this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this 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 this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

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

52

 

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indentures.

          Securities of any series 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 Securities of any series 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, if applicable the Subsidiary Guarantees may be endorsed thereon and such new
Securities may be authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

          The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture. Principal, premium, if
any, and interest shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 11:00 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.

SECTION 1002. Maintenance of Office or Agency.

          The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment or, if
applicable, for conversion, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company or any Subsidiary
Guarantor in respect of the Securities of that series or any Subsidiary Guarantee and this
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 and each Subsidiary Guarantor hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series 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

53

 

an office or agency in each Place of Payment for Securities of any series for such purposes.
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 1003. Money for Securities Payments to Be Held in Trust.

          If the Company or any Subsidiary Guarantor shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the principal of or any
premium or interest on any of the Securities of that series, 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 any series of Securities, it
will, prior to 11:00 A.M., New York City time, on each due date of the principal of or any premium
or interest on any Securities of that series, 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 for any series of Securities 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, the Subsidiary Guarantors, if applicable, or any other
obligor upon the Securities of that series in the making of any payment in respect of the
Securities of that series, 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 Securities of that
series.

          The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this 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 any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security 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 the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of

54

 

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 of New York, 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 1004. Statement by Officers as to Default.

          (a) The Company and the Subsidiary Guarantors will deliver to the Trustee, within 90 days
after the end of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers thereof the Company or any
Subsidiary Guarantor, as the case may be, is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company or any Subsidiary Guarantor shall be
in default, specifying all such defaults and the nature and status thereof of which they may have
knowledge.

          (b) The Company and each Subsidiary Guarantor shall deliver to the Trustee, as soon as
possible and in any event within five days after the Company or such Subsidiary Guarantor becomes
aware or should reasonably become aware of the occurrence of an Event of Default or an event which,
with notice or the lapse of time or both, would constitute an Event of Default, an Officers’
Certificate setting forth the details of such Event of Default or default, and the action which the
Company or such Subsidiary Guarantor proposes to take with respect thereto.

SECTION 1005. Existence.

          Subject to Article Eight, 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 and that the loss thereof is not
disadvantageous in any material respect to the Holders.

SECTION 1006. Maintenance of Properties.

          The Company will cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair and working order
(reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the operation or maintenance
of any of such properties if such discontinuance is, in the judgment of the Company, desirable in
the conduct of its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

SECTION 1007. Payment of Taxes and Other Claims.

55

 

          The Company will pay or discharge or cause to be paid or discharged, before the same
shall become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon
the Company or any Subsidiary or upon the income, profits or property of the Company or any
Subsidiary, and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by
law become a lien upon the property of the Company or any Subsidiary; provided, however, that the
Company shall not be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being contested in good
faith by appropriate proceedings.

	 	 	 
	SECTION 1008.	 	Maintenance of Insurance.

          The Company shall, and shall cause its Subsidiaries to, keep at all times all of their
properties which are of an insurable nature insured against loss or damage with insurers believed
by the Company to be responsible to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties in accordance with good
business practice.

	 	 	 
	SECTION 1009.	 	Waiver of Certain Covenants.

          Except as otherwise specified as contemplated by Section 301 for Securities of such series,
the Company may, with respect to the Securities of any series, omit in any particular instance to
comply with any term, provision or condition set forth in any of Sections 1005 through 1008 or in
any covenant provided pursuant to Section 301(21), 901(2) or 901(7) for the benefit of the Holders
of such series if before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver shall become effective, the obligations of
the Company and the duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

	 	 	 
	SECTION 1101.	 	Applicability of Article.

          Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for such Securities) in accordance with this Article.

	 	 	 
	SECTION 1102.	 	Election to Redeem; Notice to Trustee.

          The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities. In case of any
redemption at the election of the Company of less than all the Securities of any series (including
any such redemption affecting only a single Security), the Company shall, at least five Business
Days prior to giving notice of such redemption (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal

56

 

amount of Securities of such series to be redeemed and, if applicable, of the tenor of the
Securities to be redeemed. In the case of any redemption of Securities prior to the expiration of
any restriction on such redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing
compliance with such restriction.

			 
	SECTION 1103.	 	Selection by Trustee of Securities to Be Redeemed.

          If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, (i) in compliance
with the requirements of the principal national securities exchange on which such Securities are
listed, if such Securities are listed on any national securities exchange, and (ii) if such
Securities are not so listed, on a pro rata basis, by lot or by such other method as the Trustee
shall deem fair and appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security of such series, provided that the unredeemed portion of the
principal amount of any Security shall be in an authorized denomination (which shall not be less
than the minimum authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series and specified tenor not previously called for redemption
in accordance with the preceding sentence.

          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption as aforesaid and, in case of any Securities selected for partial redemption as
aforesaid, the principal amount thereof to be redeemed.

          The provisions of the two preceding paragraphs shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in whole or in part. In
the case of any such redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security.

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If any Security selected for partial redemption is surrendered for
conversion after such selection, the converted portion of such Security shall be deemed (so far as
may be) to be the portion selected for redemption. Upon any redemption of less than all the
Securities of a series, for purposes of selection for redemption the Company and the Trustee may
treat as Outstanding Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a notice of redemption, and need not treat as Outstanding any Security
authenticated and delivered during such period in exchange for the unconverted portion of any
Security converted in part during such period.

			 
	SECTION 1104.	 	Notice of Redemption.

57

 

          Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register; provided, however, notice of redemption may be
given more than 60 days prior to the Redemption Date if the notice is issued in connection with a
satisfaction and discharge pursuant to Article Four.

          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price, if then determinable and otherwise the method of its determination,

          (3) if less than all the Outstanding Securities of any series consisting of more than a single
Security are to be redeemed, the identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be redeemed and, if less than
all the Outstanding Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,

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

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

          (6) that the redemption is for a sinking fund, if such is the case; and

          (7) if applicable, the conversion price then in effect and the date on which the right to
convert such Securities will expire.

          Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and shall be irrevocable. If any Security called for redemption is converted pursuant
hereto, any money deposited with the Trustee or any Paying Agent or so segregated and held in trust
for the redemption of such Security shall be paid to the Company upon delivery of a Company Request
to the Trustee or such Paying Agent, or, if then held by the Company, shall be discharged from such
trust.

			 
	SECTION 1105.	 	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 1003) 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 Securities which are to be redeemed on that date.

			 
	SECTION 1106.	 	Securities Payable on Redemption Date.

58

 

          Notice of redemption having been given as aforesaid, the Securities 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 Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301, installments of interest whose
Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section 307.

          If any Security 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 Security.

			 
	SECTION 1107.	 	Securities Redeemed in Part.

          Any Security 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 his attorney duly authorized in writing), and the Company shall execute, if
applicable to Subsidiary Guarantors shall execute the Subsidiary Guarantee endorsed thereon, and
the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a
new Security or Securities of the same series and 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 Security so surrendered.

ARTICLE TWELVE

[INTENTIONALLY OMITTED]

ARTICLE THIRTEEN

SUBSIDIARY GUARANTEES

			 
	SECTION 1301.	 	Applicability of Article.

          Unless the Company elects to issue any series of Securities without the benefit of the
Subsidiary Guarantees, which election shall be evidenced in or pursuant to the Board Resolution or
supplemental indenture establishing such series of Securities pursuant to Section 301, the
provisions of this Article shall be applicable to each series of Securities except as otherwise
specified in or pursuant to the Board Resolution or supplemental indenture establishing such series
pursuant to Section 301.

			 
	SECTION 1302.	 	Subsidiary Guarantees.

59

 

          Subject to Section 1301, each Subsidiary Guarantor hereby, jointly and severally, fully and
unconditionally guarantees to each Holder of a Security authenticated and delivered by the Trustee,
the due and punctual payment of the principal of (and premium, if any) and interest on such
Security when and as the same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, offer to purchase or otherwise, in accordance with the terms of
such Security and of this Indenture, and each Subsidiary Guarantor similarly guarantees to the
Trustee the payment of all amounts owing to the Trustee in accordance with the terms of this
Indenture. In case of the failure of the Company punctually to make any such payment, each
Subsidiary Guarantor hereby, jointly and severally, agrees to cause such payment to be made
punctually when and as the same shall become due and payable, whether at the Stated Maturity or by
acceleration, call for redemption, offer to purchase or otherwise, and as if such payment were made
by the Company.

          Each of the Subsidiary Guarantors hereby jointly and severally agrees that its obligations
hereunder shall be absolute, unconditional, irrespective of, and shall be unaffected by, the
validity, regularity or enforceability of such Security or this Indenture, the absence of any
action to enforce the same or any release, amendment, waiver or indulgence granted to the Company
or any other guarantor or any consent to departure from any requirement of any other guarantee of
all or any of the Securities of such series or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor; provided, however,
that, notwithstanding the foregoing, no such release, amendment, waiver or indulgence shall,
without the consent of such Subsidiary Guarantor, increase the principal amount of such Security,
or increase the interest rate thereon, or alter the Stated Maturity thereof. Each of the
Subsidiary Guarantors hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or any of the Holders protect, secure, perfect or insure any security
interest in or other lien on any property subject thereto or exhaust any right or take any action
against the Company or any other Person or any collateral, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a proceeding first against
the Company, protest or notice with respect to such Security or the indebtedness evidenced thereby
and all demands whatsoever, and covenants that this Subsidiary Guarantee will not be discharged in
respect of such Security except by complete performance of the obligations contained in such
Security and in such Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default, the Trustee or any of the Holders are
prevented by applicable law from exercising their respective rights to accelerate the maturity of
the Securities of a series, to collect interest on the Securities of a series, or to enforce or
exercise any other right or remedy with respect to the Securities of a series, such Subsidiary
Guarantor agrees to pay to the Trustee for the account of the Holders, upon demand therefor, the
amount that would otherwise have been due and payable had such rights and remedies been permitted
to be exercised by the Trustee or any of the Holders.

          Each Subsidiary Guarantor shall be subrogated to all rights of the Holders of the Securities
upon which its Subsidiary Guarantee is endorsed against the Company in respect of any amounts paid
by such Subsidiary Guarantor on account of such Security pursuant to the provisions of its
Subsidiary Guarantee or this Indenture; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or to receive any payments arising out of, or based upon,

60

 

such right of subrogation until the principal of (and premium, if any) and interest on all
Securities of the relevant series issued hereunder shall have been paid in full.

          Each Subsidiary Guarantor that makes or is required to make any payment in respect of its
Subsidiary Guarantee shall be entitled to seek contribution from the other Subsidiary Guarantors to
the extent permitted by applicable law; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or receive any payments arising out of, or based upon, such right of
contribution until the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

          Each Subsidiary Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Company for liquidation or reorganization, should
the Company become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment and performance of the Securities of a series, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any Holder of the
Securities, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though
such payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, the Securities shall, to the fullest extent permitted
by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

			 
	SECTION 1303.	 	Execution and Delivery of Subsidiary Guarantees.

          The Subsidiary Guarantees to be endorsed on the Securities shall include the terms of the
Subsidiary Guarantee set forth in Section 1302 and any other terms that may be set forth in the
form established pursuant to Section 204. Subject to Section 1301, each of the Subsidiary
Guarantors hereby agrees to execute its Subsidiary Guarantee, in a form established pursuant to
Section 204, to be endorsed on each Security authenticated and delivered by the Trustee.

          The Subsidiary Guarantee shall be executed on behalf of each respective Subsidiary Guarantor
by any one of such Subsidiary Guarantor’s Chairman of the Board of Directors, Vice Chairman of the
Board of Directors, Chief Executive Officer, President, one of its Vice Presidents, or its
Secretary. The signature of any or all of these persons on the Subsidiary Guarantee may be manual
or facsimile.

          A Subsidiary Guarantee bearing the manual or facsimile signature of individuals who were at
any time the proper officers of a Subsidiary Guarantor shall bind such Subsidiary Guarantor,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of the Security on which such Subsidiary Guarantee is endorsed or did
not hold such offices at the date of such Subsidiary Guarantee.

          The delivery of any Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Subsidiary Guarantee endorsed thereon on behalf of the Subsidiary
Guarantors and shall bind each Subsidiary Guarantor notwithstanding the fact that Subsidiary
Guarantee does not bear the signature of such Subsidiary Guarantor. Each of the

61

 

Subsidiary Guarantors hereby jointly and severally agrees that its Subsidiary Guarantee set
forth in Section 1302 and in the form of Subsidiary Guarantee established pursuant to Section 204
shall remain in full force and effect notwithstanding any failure to endorse a Subsidiary Guarantee
on any Security.

			 
	SECTION 1304.	 	Release of Subsidiary Guarantors.

          Unless otherwise specified pursuant to Section 301 with respect to a series of Securities,
each Subsidiary Guarantee will remain in effect with respect to the respective Subsidiary Guarantor
until the entire principal of, premium, if any, and interest on the Securities to which such
Subsidiary Guarantee relates shall have been paid in full or otherwise satisfied and discharged in
accordance with the provisions of such Securities and this Indenture and all amounts owing to the
Trustee hereunder have been paid; provided, however, that if (i) such Subsidiary Guarantor ceases
to be a Subsidiary in compliance with the applicable provisions of this Indenture, (ii) either
Defeasance or Covenant Defeasance occurs with respect to such Securities pursuant to Article
Fifteen or (iii) all or substantially all of the assets of such Subsidiary Guarantor or all of the
Capital Stock of such Subsidiary Guarantor is sold (including by sale, merger, consolidation or
otherwise) by the Company or any Subsidiary in a transaction complying with the requirements of
this Indenture, then, in each case of (i), (ii) or (iii), upon delivery by the Company of an
Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent herein
provided for relating to the release of such Subsidiary Guarantor from its obligations under its
Subsidiary Guarantee and this Article Thirteen have been complied with, such Subsidiary Guarantor
shall be released and discharged of its obligations under its Subsidiary Guarantee and under this
Article Thirteen without any action on the part of the Trustee or any Holder, and the Trustee shall
execute any documents reasonably required in order to acknowledge the release of such Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee endorsed on the Securities of such
series and under this Article Thirteen.

			 
	SECTION 1305.	 	Additional Subsidiary Guarantors.

          Unless otherwise specified pursuant to Section 301 with respect to a series of Securities, the
Company will cause any domestic Wholly Owned Subsidiary of the Company that becomes a Subsidiary
after the date the Securities of a series are first issued hereunder to become a Subsidiary
Guarantor as soon as practicable after such Subsidiary becomes a Subsidiary. The Company shall
cause any such Wholly Owned Subsidiary to become a Subsidiary Guarantor with respect to the
Securities by executing and delivering to the Trustee (a) a supplemental indenture, in form and
substance satisfactory to the Trustee, which subjects such Person to the provisions (including the
representations and warranties) of this Indenture as a Subsidiary Guarantor and (b) an Opinion of
Counsel to the effect that such supplemental indenture has been duly authorized and executed by
such Person and such supplemental indenture and such Person’s obligations under its Subsidiary
Guarantee and this Indenture constitute the legal, valid, binding and enforceable obligations of
such Person (subject to such customary exceptions concerning creditors’ rights and equitable
principles as may be acceptable to the Trustee in its discretion).

			 
	SECTION 1306.	 	Limitation on Liability.

62

 

          Any term or provision of this Indenture to the contrary notwithstanding, the maximum amount of
the Subsidiary Guarantee of any Subsidiary Guarantor shall not exceed the maximum amount that can
be hereby guaranteed by such Subsidiary Guarantor without rendering such Subsidiary Guarantee
voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar
laws affecting the rights of creditors generally.

ARTICLE FOURTEEN

[INTENTIONALLY OMITTED]

ARTICLE FIFTEEN

DEFEASANCE AND COVENANT DEFEASANCE

			 
	SECTION 1501.	 	Company’s Option to Effect Defeasance or Covenant Defeasance.

          The Company may elect, at its option at any time, to have Section 1502 or Section 1503 applied
to any Securities or any series of Securities, as the case may be, designated pursuant to Section
301 as being defeasible pursuant to such Section 1502 or 1503, in accordance with any applicable
requirements provided pursuant to Section 301 and upon compliance with the conditions set forth
below in this Article. Any such election shall be evidenced in or pursuant to a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities.

			 
	SECTION 1502.	 	Defeasance and Discharge.

          Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations, and each Subsidiary Guarantor shall be deemed to have been
discharged from its obligations with respect to its Subsidiary Guarantees of such Securities, as
provided in this Section on and after the date the conditions set forth in Section 1504 are
satisfied (herein called “Defeasance”). For this purpose, such Defeasance means that the Company
shall be deemed to have paid and discharged the entire indebtedness represented by such Securities
and to have satisfied all its other obligations under such Securities and this Indenture insofar as
such Securities 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 Securities to receive,
solely from the trust fund described in Section 1504 and as more fully set forth in such Section,
payments in respect of the principal of and any premium and interest on such Securities when
payments are due, or, if applicable, to convert such Securities in accordance with their terms, (2)
the Company’s and each Subsidiary Guarantor’s obligations with respect to such Securities under
Sections 304, 305, 306, 1002 and 1003, and, if applicable, their obligations with respect to the
conversion of such Securities, (3) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (4) this Article. Subject to compliance with this Article, the Company may exercise
its option (if any) to have this Section applied to any Securities notwithstanding the prior
exercise of its option (if any) to have Section 1503 applied to such Securities.

63

 

			 
	SECTION 1503.	 	Covenant Defeasance.

          Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, (1) the Company shall be released from
its obligations under Section 801(3), Sections 1005 through 1008, inclusive, and any covenants
provided pursuant to Section 301(21), 901(2) or 901(7) for the benefit of the Holders of such
Securities, and (2) the occurrence of any event specified in Sections 501(5) (with respect to any
of Section 801(3), Sections 1006 through 1008, inclusive, and any such covenants provided pursuant
to Section 301(21), 901(2) or 901(7)), 501(6), 501(7)), 501(10) and 501(11) shall be deemed not to
be or result in an Event of Default and (3) the provisions of Article Thirteen shall cease to be
effective, in each case with respect to such Securities and Subsidiary Guarantees as provided in
this Section on and after the date the conditions set forth in Section 1504 are satisfied (herein
called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect
to such Securities, the Company and the Subsidiary Guarantors, as applicable, 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 (to the extent so specified in the case of Section 501(5)) or Article
Thirteen, 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 this Indenture and such Securities
shall be unaffected thereby.

			 
	SECTION 1504.	 	Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions to the application of Section 1502 or Section 1503 to
any Securities or any series of Securities, as the case may be:

          (1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee which satisfies the requirements contemplated by Section 609 and agrees to
comply with the provisions of this Article applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefits of the Holders of such Securities, (A) money in an amount, or (B) U.S.
Government Obligations which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than one day before the due date of
any payment, money in an amount, or (C) a combination thereof, in each case sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or any such other qualifying trustee) to pay and discharge, the principal of and any
premium and interest on such Securities on the respective Stated Maturities, in accordance with the
terms of this Indenture and such Securities. As used herein, “U.S. Government Obligation” means
(x) any security which is (i) a direct obligation of the United States of America for the payment
of which the full faith and credit of the United States of America is pledged or (ii) an obligation
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or (ii), is not callable or
redeemable at the option of the issuer thereof, and (y) any depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any U.S. Government
Obligation which is specified in clause

64

 

(x) above and held by such bank for the account of the holder of such depositary receipt, or
with respect to any specific payment of principal of or interest on any U.S. Government Obligation
which is so specified and held, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depositary receipt
from any amount received by the custodian in respect of the U.S. Government Obligation or the
specific payment of principal or interest evidenced by such depositary receipt.

          (2) In the event of an election to have Section 1502 apply to any Securities or any series of
Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of
Counsel stating that (A) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling or (B) since the date of this instrument, there has been a change
in the applicable Federal income tax law, in either case (A) or (B) to the effect that, and based
thereon such opinion shall confirm that, the Holders of such Securities will not recognize gain or
loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to be
effected with respect to such Securities and will be subject to Federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit and
Defeasance were not to occur.

          (3) In the event of an election to have Section 1503 apply to any Securities or any series of
Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of such Securities will not recognize gain or loss for
Federal income tax purposes as a result of the deposit and Covenant Defeasance to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit and Covenant Defeasance were
not to occur.

          (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the effect
that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit.

          (5) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities shall have occurred and be continuing at the time of such
deposit or, with regard to any such event specified in Sections 501(7) and (8), at any time on or
prior to the 121st day after the date of such deposit (it being understood that this condition
shall not be deemed satisfied until after such 121st day).

          (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).

          (7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company or any
Subsidiary is a party or by which it is bound.

          (8) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that
such deposit shall not cause either the Trustee or the trust so created to be subject to the
Investment Company Act of 1940.

65

 

          (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.

			 
	SECTION 1505.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

          Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1506, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1504 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this 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 Securities, of all sums due and to become due thereon in respect of principal and any
premium and interest, but money so held in trust need not be segregated from other funds except to
the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 1504 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 Securities.

          Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or U.S. Government Obligations held by
it as provided in Section 1504 with respect to any Securities which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

			 
	SECTION 1506.	 	Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article with respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1502 or 1503 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article with respect to such Securities, until such time as the Trustee
or Paying Agent is permitted to apply all money held in trust pursuant to Section 1505 with respect
to such Securities 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 Security following such
reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in trust.

66

 

ARTICLE SIXTEEN

SINKING FUNDS

			 
	SECTION 1601.	 	Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of any series except as otherwise specified as contemplated by Section 301 for such
Securities.

          The minimum amount of any sinking fund payment provided for by the terms of any Securities is
herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of such Securities is herein referred to as an “optional sinking
fund payment.” If provided for by the terms of any Securities, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 1602. Each sinking fund payment shall
be applied to the redemption of Securities as provided for by the terms of such Securities.

			 
	SECTION 1602.	 	Satisfaction of Sinking Fund Payments with Securities.

          The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been (x)
converted or (y) redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made pursuant to the terms of
such Securities as and to the extent provided for by the terms of such Securities; provided,
however, that the Securities to be so credited have not been previously so credited. The
Securities to be so credited shall be received and credited for such purpose by the Trustee at the
Redemption Price, as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

			 
	SECTION 1603.	 	Redemption of Securities for Sinking Fund.

          Not less than 35 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for such Securities pursuant to the terms of such Securities, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities pursuant to Section 1602 and will also
deliver to the Trustee any Securities to be so delivered. Not less than 32 days prior to each such
sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107. This instrument may be executed
in any number of counterparts, each of which so executed shall

67

 

be deemed to be an original, but all such counterparts shall together constitute but one and
the same instrument.

68

 

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

	 	 	 	 	 
	 	ISSUER:

STONE ENERGY CORPORATION

 	 
	 
	 	By:  	/s/ Kenneth H. Beer
 	 
	 	 	Name:  	Kenneth H. Beer 	 
	 	 	Title:  	Senior Vice President and Chief Financial
Officer 	 
	 
	 
	 	SUBSIDIARY GUARANTORS:

STONE ENERGY OFFSHORE, L.L.C.

By and through its sole member,

STONE ENERGY CORPORATION

 	 
	 
	 	By:  	/s/ Kenneth H. Beer
 	 
	 	 	Name:  	Kenneth H. Beer 	 
	 	 	Title:  	Senior Vice President and Chief Financial
Officer 	 
	 
	 
	 	TRUSTEE:

THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A.,

as Trustee

 	 
	 
	 	By:  	/s/ Rafael Martinez
 	 
	 	 	Name:  	Rafael Martinez 	 
	 	 	Title:  	Senior Associate 	 

[Signature Page to Senior Indenture]

 

	 	 	 	 	 

SCHEDULE I

SUBSIDIARY GUARANTORS

	 	 	 
	SUBSIDIARY	 	STATE OF ORGANIZATION
	 
	 	 
	Stone Energy Offshore, L.L.C.

	 	Delaware

Schedule I-1exv4w3

Exhibit 4.3

STONE ENERGY CORPORATION,

as Issuer,

STONE ENERGY OFFSHORE, L.L.C.,

as Subsidiary Guarantor,

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

FIRST SUPPLEMENTAL INDENTURE

dated as of January 26, 2010

to Senior Indenture

dated as of January 26, 2010

$275,000,000 8.625% Senior Notes due 2017

 

 

CROSS-REFERENCE TABLE

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

 

 

	 	 	 	 	 
	TIA	 	 	 	Indenture
	Section	 	 	 	Section
	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.

ii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE ONE APPLICATION OF SUPPLEMENTAL INDENTURE AND CREATION OF THE INITIAL NOTES	 	 	3	 
	   Section 101.	 	Application of This Supplemental Indenture
	 	 	3	 
	   Section 102.	 	Effect of Supplemental Indenture
	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE TWO DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	4	 
	   Section 201.	 	Definitions
	 	 	4	 
	   Section 202.	 	Compliance Certificates and Opinions
	 	 	38	 
	   Section 203.	 	Form of Documents Delivered to Trustee
	 	 	39	 
	   Section 204.	 	Acts of Holders; Record Dates
	 	 	39	 
	   Section 205.	 	Notices, Etc., to Trustee and Company
	 	 	41	 
	   Section 206.	 	Notice to Holders; Waiver
	 	 	42	 
	   Section 207.	 	Conflict with Trust Indenture Act
	 	 	42	 
	   Section 208.	 	Effect of Headings and Table of Contents
	 	 	42	 
	   Section 209.	 	Successors and Assigns
	 	 	42	 
	   Section 210.	 	Separability Clause
	 	 	42	 
	   Section 211.	 	Benefits of Indenture
	 	 	43	 
	   Section 212.	 	Governing Law
	 	 	43	 
	   Section 213.	 	Legal Holidays
	 	 	43	 
	   Section 214.	 	No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	43	 
	   Section 215.	 	No Adverse Interpretation of Other Agreements
	 	 	43	 
	   Section 216.	 	U.S.A. Patriot Act
	 	 	43	 
	   Section 217.	 	Counterpart Originals
	 	 	44	 
	   Section 218.	 	Waiver of Jury Trial
	 	 	44	 
	   Section 219.	 	Force Majeure
	 	 	44	 
	 	 	 
	 	 	 	 
	ARTICLE THREE NOTE FORMS	 	 	44	 
	   Section 301.	 	Forms Generally
	 	 	44	 
	   Section 302.	 	Form of Legend for Global Notes
	 	 	45	 
	 	 	 
	 	 	 	 
	ARTICLE FOUR THE NOTES	 	 	45	 
	   Section 401.	 	Title and Terms
	 	 	45	 
	   Section 402.	 	Denominations
	 	 	46	 
	   Section 403.	 	Execution, Authentication, Delivery and Dating
	 	 	46	 
	   Section 404.	 	Temporary Securities
	 	 	47	 
	   Section 405.	 	Registration, Registration of Transfer and Exchange
	 	 	47	 
	   Section 406.	 	Mutilated, Destroyed, Lost and Stolen Notes
	 	 	48	 
	   Section 407.	 	Payment of Interest; Interest Rights Preserved
	 	 	49	 
	   Section 408.	 	Persons Deemed Owners
	 	 	50	 
	   Section 409.	 	Cancellation
	 	 	51	 
	   Section 410.	 	Computation of Interest
	 	 	51	 
	 	 	 
	 	 	 	 
	ARTICLE FIVE SATISFACTION AND DISCHARGE	 	 	51	 
	   Section 501.	 	Satisfaction and Discharge of Indenture
	 	 	51	 
	   Section 502.	 	Application of Trust Money
	 	 	52	 
	 	 	 
	 	 	 	 
	ARTICLE SIX REMEDIES	 	 	52	 
	   Section 601.	 	Events of Default
	 	 	52	 
	   Section 602.	 	Acceleration of Maturity; Rescission and Annulment
	 	 	55	 

iii

 

	 	 	 	 	 	 	 
	   Section 603.	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	56	 
	   Section 604.	 	Trustee May File Proofs of Claim
	 	 	56	 
	   Section 605.	 	Trustee May Enforce Claims Without Possession of Notes
	 	 	56	 
	   Section 606.	 	Application of Money Collected
	 	 	57	 
	   Section 607.	 	Limitation on Suits
	 	 	57	 
	   Section 608.	 	Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	58	 
	   Section 609.	 	Restoration of Rights and Remedies
	 	 	58	 
	   Section 610.	 	Rights and Remedies Cumulative
	 	 	58	 
	   Section 611.	 	Delay or Omission Not Waiver
	 	 	58	 
	   Section 612.	 	Control by Holders
	 	 	58	 
	   Section 613.	 	Waiver of Past Defaults
	 	 	59	 
	   Section 614.	 	Undertaking for Costs
	 	 	59	 
	   Section 615.	 	Waiver of Usury, Stay or Extension Laws
	 	 	59	 
	 	 	 
	 	 	 	 
	ARTICLE SEVEN THE TRUSTEE	 	 	59	 
	   Section 701.	 	Certain Duties and Responsibilities
	 	 	60	 
	   Section 702.	 	Notice of Defaults
	 	 	60	 
	   Section 703.	 	Certain Rights of Trustee
	 	 	60	 
	   Section 704.	 	Not Responsible for Recitals or Issuance of Notes
	 	 	61	 
	   Section 705.	 	May Hold Notes
	 	 	61	 
	   Section 706.	 	Money Held in Trust
	 	 	61	 
	   Section 707.	 	Compensation and Reimbursement
	 	 	62	 
	   Section 708.	 	Conflicting Interests
	 	 	62	 
	   Section 709.	 	Corporate Trustee Required; Eligibility
	 	 	62	 
	   Section 710.	 	Resignation and Removal; Appointment of Successor
	 	 	63	 
	   Section 711.	 	Acceptance of Appointment by Successor
	 	 	64	 
	   Section 712.	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	64	 
	   Section 713.	 	Preferential Collection of Claims Against Company
	 	 	65	 
	   Section 714.	 	Appointment of Authenticating Agent
	 	 	65	 
	 	 	 
	 	 	 	 
	ARTICLE EIGHT HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	66	 
	   Section 801.	 	Company to Furnish Trustee Names and Addresses of Holders
	 	 	66	 
	   Section 802.	 	Preservation of Information; Communications to Holders
	 	 	66	 
	   Section 803.	 	Reports by Trustee
	 	 	67	 
	   Section 804.	 	Reports by Company
	 	 	67	 
	 	 	 
	 	 	 	 
	ARTICLE NINE CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	68	 
	   Section 901.	 	Company May Consolidate, Etc., Only on Certain Terms
	 	 	68	 
	   Section 902.	 	Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms
	 	 	69	 
	   Section 903.	 	Certain
Permitted Consolidations, Etc.
	 	 	69	 
	   Section 904.	 	Successor Substituted
	 	 	69	 
	 	 	 
	 	 	 	 
	ARTICLE TEN SUPPLEMENTAL INDENTURES	 	 	70	 
	   Section 1001.	 	Supplemental Indentures Without Consent of Holders
	 	 	70	 
	   Section 1002.	 	Supplemental Indentures With Consent of Holders
	 	 	71	 
	   Section 1003.	 	Execution of Supplemental Indentures
	 	 	72	 
	   Section 1004.	 	Effect of Supplemental Indentures
	 	 	72	 
	   Section 1005.	 	Conformity with Trust Indenture Act
	 	 	72	 
	   Section 1006.	 	Reference in Notes to Supplemental Indentures
	 	 	72	 

iv

 

	 	 	 	 	 	 	 
	ARTICLE ELEVEN COVENANTS	 	 	72	 
	   Section 1101.	 	Payment of Principal, Premium and Interest
	 	 	72	 
	   Section 1102.	 	Maintenance of Office or Agency
	 	 	73	 
	   Section 1103.	 	Money for Notes Payments to Be Held in Trust
	 	 	73	 
	   Section 1104.	 	Annual Compliance Certificate; Statement by Officers as to Default
	 	 	74	 
	   Section 1105.	 	Existence
	 	 	75	 
	   Section 1106.	 	[Reserved]
	 	 	75	 
	   Section 1107.	 	Payment of Taxes
	 	 	75	 
	   Section 1108.	 	[Reserved]
	 	 	75	 
	   Section 1109.	 	[Reserved]
	 	 	75	 
	   Section 1110.	 	Purchase of Notes Upon a Change of Control
	 	 	75	 
	   Section 1111.	 	Limitation on Indebtedness and Preferred Stock
	 	 	77	 
	   Section 1112.	 	Limitation on Restricted Payments
	 	 	80	 
	   Section 1113.	 	Limitation on Liens
	 	 	86	 
	   Section 1114.	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	86	 
	   Section 1115.	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	89	 
	   Section 1116.	 	Limitation on Affiliate Transactions
	 	 	92	 
	   Section 1117.	 	Future Subsidiary Guarantors
	 	 	94	 
	   Section 1118.	 	Payments for Consent
	 	 	95	 
	   Section 1119.	 	Covenant Termination
	 	 	95	 
	 	 	 
	 	 	 	 
	ARTICLE TWELVE REDEMPTION OF NOTES	 	 	95	 
	   Section 1201.	 	Applicability of Article
	 	 	95	 
	   Section 1202.	 	Election to Redeem; Notice to Trustee
	 	 	95	 
	   Section 1203.	 	Optional Redemption
	 	 	95	 
	   Section 1204.	 	Selection by Trustee of Notes to Be Redeemed
	 	 	96	 
	   Section 1205.	 	Notice of Redemption
	 	 	96	 
	   Section 1206.	 	Deposit of Redemption Price
	 	 	97	 
	   Section 1207.	 	Notes Payable on Redemption Date
	 	 	97	 
	   Section 1208.	 	Notes Redeemed in Part
	 	 	97	 
	 	 	 
	 	 	 	 
	ARTICLE THIRTEEN [INTENTIONALLY DELETED]	 	 	98	 
	 	 	 
	 	 	 	 
	ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE	 	 	98	 
	   Section 1401.	 	Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	98	 
	   Section 1402.	 	Defeasance and Discharge
	 	 	98	 
	   Section 1403.	 	Covenant Defeasance
	 	 	98	 
	   Section 1404.	 	Conditions to Defeasance or Covenant Defeasance
	 	 	99	 
	   Section 1405.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions
	 	 	100	 
	   Section 1406.	 	Reinstatement
	 	 	101	 
	 	 	 
	 	 	 	 
	ARTICLE FIFTEEN [INTENTIONALLY DELETED]	 	 	101	 
	 	 	 
	 	 	 	 
	ARTICLE SIXTEEN SUBSIDIARY GUARANTEES	 	 	101	 
	   Section 1601.	 	Unconditional Guarantee
	 	 	101	 
	   Section 1602.	 	Execution and Delivery of Notation of Subsidiary Guarantee
	 	 	103	 
	   Section 1603.	 	Limitation on Subsidiary Guarantors’ Liability
	 	 	103	 
	   Section 1604.	 	Release of Subsidiary Guarantors from Guarantee
	 	 	104	 
	   Section 1605.	 	Subsidiary Guarantor Contribution
	 	 	104	 
	 	 	 
	 	 	 	 
	ANNEX A	 	 	1	 

v

 

	 	 	 	 	 	 	 
	ANNEX B	 	 	1	 
	ANNEX C	 	 	1	 

vi

 

          THIS FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of January
26, 2010, is among Stone Energy Corporation, a Delaware corporation (herein called the “Company”),
having its principal office at 625 East Kaliste Saloom Road, Lafayette, Louisiana 70508, Stone
Energy Offshore, L.L.C., a Delaware limited liability company and subsidiary of the Company (herein
called “Stone Offshore”), and The Bank of New York Mellon Trust Company, N.A., as trustee (herein
called the “Trustee”) under the Indenture dated as of January 26, 2010 among the Company, Stone
Offshore 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 Stone Offshore have duly authorized, executed and delivered the Base Indenture
to provide for the issuance from time to time of the Company’s unsecured debentures, notes or other
evidences of indebtedness (herein called the “Securities”), to be issued in one or more series, and
the Guarantee by each of the Subsidiary Guarantors of the Securities, as the Base Indenture
provides.

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

          Pursuant to Sections 201 and 301 of the Base Indenture, the Company desires to execute this
Supplemental Indenture to establish the form and terms, and to provide for the issuance, of a
series of senior notes designated as 8.625% Senior Notes due 2017 in an aggregate principal amount
of $275,000,000 (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.

1

 

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:

2

 

ARTICLE ONE

APPLICATION OF SUPPLEMENTAL INDENTURE

AND CREATION OF THE INITIAL NOTES

Section 101. Application of This Supplemental Indenture.

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

Section 102. Effect of Supplemental Indenture.

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

          (a) Definitions. The definitions and other provisions of general application set forth in
Section 101 of the Base Indenture are deleted and replaced in their entirety by the provisions of
Section 201 of this Supplemental Indenture;

          (b) Provisions of General Application and Security Forms. Sections 102 through 114 and Article
Two of the Base Indenture are deleted and replaced in their entirety by the provisions of Articles
Two and Three, respectively (other than Section 201 of this Supplemental Indenture), of this
Supplemental Indenture;

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

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

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

          (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;

3

 

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

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

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

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

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

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

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

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

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

ARTICLE TWO

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 201. Definitions.

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

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

4

 

	 	(3)	 	all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP;
	 
	 	(4)	 	unless the context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or a Section, as the case may be, of this Supplemental Indenture; and
	 
	 	(5)	 	the words “herein”, “hereof” and “hereunder” and other words of similar import refer to
this Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision.

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

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

          “Additional Assets” means:

	 	(1)	 	any properties or assets to be used by the Company or a Restricted Subsidiary
in the Oil and Gas Business;
	 
	 	(2)	 	capital expenditures by the Company or a Restricted Subsidiary in the Oil and
Gas Business;
	 
	 	(3)	 	the Capital Stock of a Person that becomes a Restricted Subsidiary as a result
of the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or
	 
	 	(4)	 	Capital Stock constituting a minority interest in any Person that at such time
is a Restricted Subsidiary;

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

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

          (a) the sum of: (i) discounted future net revenues from proved oil and gas reserves of the
Company and its Restricted Subsidiaries calculated in accordance with SEC guidelines before any
state or federal income taxes, as estimated by the Company in a reserve report prepared as of the
end of the Company’s most recently completed fiscal year for which audited financial statements are
available, which reserve report is prepared or audited by independent petroleum engineers, as
increased by, as of the date of determination, the estimated discounted future net revenues from
(A) estimated proved oil and gas reserves acquired since such year end, which reserves were not
reflected in such year end reserve report, and (B) estimated oil and gas reserves attributable to
extensions, discoveries and other additions and upward revisions of estimates of proved oil and gas
reserves since such year end due to exploration, development or exploitation, production or other
activities, which would, in accordance with standard industry practice, cause such revisions
(including the impact to proved reserves and future net revenues

5

 

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

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

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

6

 

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

	 	(1)	 	1.0% of the principal amount of such Note; or
	 
	 	(2)	 	the excess, if any, of:

	 	(a)	 	the present value at such Redemption Date of (i) the Redemption
Price of such Note at February 1, 2014 (such Redemption Price being set forth
in the table appearing in the first paragraph of Section 1203) plus (ii) all
required interest payments (excluding accrued and unpaid interest to such
Redemption Date) due on such Note through February 1, 2014 computed using a
discount rate equal to the Treasury Rate as of such Redemption Date plus 50
basis points; over
	 
	 	(b)	 	the principal amount of such Note.

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

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

	 	(1)	 	a disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary;
	 
	 	(2)	 	a disposition of cash, Cash Equivalents or other financial assets in the
ordinary course of business;
	 
	 	(3)	 	a disposition of Hydrocarbons or mineral products inventory in the ordinary
course of business;
	 
	 	(4)	 	a disposition of damaged, unserviceable, obsolete or worn out equipment or
equipment that is no longer necessary for the proper conduct of the business of the
Company and its Restricted Subsidiaries and that is disposed of in each case in the
ordinary course of business;
	 
	 	(5)	 	transactions in accordance with Section 901 or 902;
	 
	 	(6)	 	an issuance of Capital Stock by a Restricted Subsidiary to the Company or to a
Restricted Subsidiary;
	 
	 	(7)	 	the making of a Permitted Investment or a Restricted Payment (or a disposition
that would constitute a Restricted Payment but for the exclusions from the definition

7

 

	 	 	 	thereof) permitted by Section 1112;

	 	(8)	 	an Asset Swap;
	 
	 	(9)	 	dispositions of assets with a Fair Market Value of less than $10.0 million;
	 
	 	(10)	 	Permitted Liens;
	 
	 	(11)	 	dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;
	 
	 	(12)	 	the licensing or sublicensing of intellectual property (including, without
limitation, the licensing of seismic data) or other general intangibles and licenses,
leases or subleases of other property in the ordinary course of business which do not
materially interfere with the business of the Company and its Restricted Subsidiaries;
	 
	 	(13)	 	foreclosure on assets;
	 
	 	(14)	 	any Production Payments and Reserve Sales; provided that any such Production
Payments and Reserve Sales, other than incentive compensation programs on terms that
are reasonably customary in the Oil and Gas Business for geologists, geophysicists and
other providers of technical services to the Company or a Restricted Subsidiary, shall
have been created, Incurred, issued, assumed or Guaranteed in connection with the
financing of, and within 60 days after the acquisition of, the property that is subject
thereto;
	 
	 	(15)	 	a disposition of oil and natural gas properties in connection with tax credit
transactions complying with Section 29 or any successor or analogous provisions of the
Code;
	 
	 	(16)	 	surrender or waiver of contract rights or the settlement, release or surrender
of contract, tort or other claims of any kind;
	 
	 	(17)	 	the abandonment, farmout, lease or sublease of developed or undeveloped Oil and
Gas Properties in the ordinary course of business; and
	 
	 	(18)	 	a disposition (whether or not in the ordinary course of business) of any Oil
and Gas Property or interest therein to which no proved reserves are attributable at
the time of such disposition.

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

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

          “Average Life” means, as of the date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled principal

8

 

payment of
such Indebtedness or redemption or similar payment with respect to such Preferred
Stock multiplied by the amount of such payment by (2) the sum of all such payments.

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

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

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

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

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

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

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

          “Cash Equivalents” means:

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

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

          (3) certificates of deposit, time deposits, eurodollar time deposits, overnight bank

9

 

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

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

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

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

          “Change of Control” means:

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

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

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

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

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

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

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

10

 

limitation, all series and classes of such common stock.

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

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

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

	 	(1)	 	if the Company or any Restricted Subsidiary:

	 	(a)	 	has Incurred any Indebtedness since the beginning of such
period that remains outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated
Interest Expense for such period will be calculated after giving effect on a
pro forma basis to such Indebtedness and the use of proceeds thereof as if such
Indebtedness had been Incurred on the first day of such period and such
proceeds had been applied as of such date (except that in making such
computation, the amount of Indebtedness under any revolving Credit Facility
outstanding on the date of such calculation will be deemed to be (i) the
average daily balance of such Indebtedness during such four fiscal quarters or
such shorter period for which such facility was outstanding or (ii) if such
revolving Credit Facility was created after the end of such four fiscal
quarters, the average daily balance of such Indebtedness during the period from
the date of creation of such revolving Credit Facility to the date of such
calculation, in each case, provided that such average daily balance shall take
into account any repayment of Indebtedness under such revolving Credit Facility
as provided in clause (b)); or
	 
	 	(b)	 	has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of the period, including with the proceeds of
such new Indebtedness, that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case
other than Indebtedness Incurred under any revolving Credit Facility unless
such Indebtedness has been permanently repaid and the related commitment
terminated), Consolidated EBITDA and Consolidated Interest Expense for such
period will be calculated after giving effect on a pro forma basis to such
discharge of such Indebtedness as if such discharge had occurred on the first
day of such period;

	 	(2)	 	if, since the beginning of such period, the Company or any Restricted Subsidiary has
made any Asset Disposition or if the transaction giving rise to the need to calculate the

11

 

	 	 	 	Consolidated Coverage Ratio is such an Asset Disposition, the Consolidated EBITDA for such
period will be reduced by an amount equal to the Consolidated EBITDA (if positive)
directly attributable to the assets which are the subject of such Asset Disposition for such
period or increased by an amount equal to the Consolidated EBITDA (if negative) directly
attributable thereto for such period and Consolidated Interest Expense for such period shall
be reduced by an amount equal to the Consolidated Interest Expense directly attributable to
any Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased, defeased or
otherwise discharged with respect to the Company and its continuing Restricted Subsidiaries
in connection with or with the proceeds from such Asset Disposition for such period (or, if
the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period directly attributable to the Indebtedness of such Restricted Subsidiary to the
extent the Company and its continuing Restricted Subsidiaries are no longer liable for such
Indebtedness after such sale);
	 
	 	(3)	 	if, since the beginning of such period, the Company or any Restricted Subsidiary (by
merger or otherwise) has made an Investment in any Restricted Subsidiary (or any Person
which becomes a Restricted Subsidiary or is merged with or into the Company or a Restricted
Subsidiary) or an acquisition (or will have received a contribution) of assets, including
any acquisition or contribution of assets occurring in connection with a transaction
causing a calculation to be made under the Indenture, which constitutes all or
substantially all of a company, division, operating unit, segment, business, group of
related assets or line of business, Consolidated EBITDA and Consolidated Interest Expense
for such period will be calculated after giving pro forma effect thereto (including the
Incurrence of any Indebtedness) as if such Investment or acquisition or contribution had
occurred on the first day of such period; and
	 
	 	(4)	 	if, since the beginning of such period, any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) made any Asset Disposition or any Investment or
acquisition of assets that would have required an adjustment pursuant to clause (2) or (3)
above if made by the Company or a Restricted Subsidiary during such period, Consolidated
EBITDA and Consolidated Interest Expense for such period will be calculated after giving
pro forma effect thereto as if such Asset Disposition or Investment or acquisition of
assets had occurred on the first day of such period.

          For purposes of this definition, whenever pro forma effect is to be given to any calculation
under this definition, the pro forma calculations will be determined in good faith by a responsible
financial or accounting officer of the Company; provided that such officer may in his or her
discretion include any reasonably identifiable and factually supportable pro forma changes to
Consolidated EBITDA, including any pro forma expenses and costs reductions, that have occurred or
in the judgment of such officer are reasonably expected to occur within 12 months of the date of
the applicable transaction (regardless of whether such expense or cost reduction or any other
operating improvements could then be reflected properly in pro forma financial statements prepared
in accordance with Regulation S-X under the Securities Act or any other regulation or policy of the
SEC). If any Indebtedness bears a floating rate of interest and is being given pro forma effect,
the interest expense on such Indebtedness will be calculated as if the average rate in effect from
the beginning of such period to the date of determination had been the applicable rate for the
entire period (taking into account any Interest Rate Agreement

12

 

applicable to such Indebtedness, but
if the remaining term of such Interest Rate Agreement is less than 12 months, then such Interest
Rate Agreement shall only be taken into account for that
portion of the period equal to the remaining term thereof). If any Indebtedness that is being given
pro forma effect bears an interest rate at the option of the Company, the interest rate shall be
calculated by applying such optional rate chosen by the Company. Interest on Indebtedness that may
optionally be determined at an interest rate based upon a factor of a prime or similar rate, a
eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the
rate actually chosen, or, if none, then based upon such optional rate chosen as the Company may
designate.

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

	 	(1)	 	Consolidated Interest Expense;
	 
	 	(2)	 	Consolidated Income Tax Expense;
	 
	 	(3)	 	consolidated accretion and consolidated depletion and depreciation expense of
the Company and its Restricted Subsidiaries;
	 
	 	(4)	 	consolidated amortization expense or impairment charges of the Company and its
Restricted Subsidiaries recorded in connection with the application of Statement of
Financial Accounting Standard No. 142, “Goodwill and Other Intangibles” and Statement
of Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of
Long Lived Assets”;
	 
	 	(5)	 	other non-cash charges of the Company and its Restricted Subsidiaries
(excluding any such non-cash charge to the extent it represents an accrual of or
reserve for cash charges in any future period or amortization of a prepaid cash expense
that was paid in a prior period not included in the calculation); and
	 
	 	(6)	 	if the Company changes its method of accounting for oil and gas properties from
full cost to successful efforts or a similar method of accounting, consolidated
exploration and abandonment expense of the Company and its Restricted Subsidiaries,

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

          Notwithstanding the preceding sentence, clauses (2) through (6) relating to amounts of a
Restricted Subsidiary of the Company will be added to Consolidated Net Income to compute
Consolidated EBITDA of the Company only to the extent (and in the same proportion) that the net
income (loss) of such Restricted Subsidiary was included in calculating the Consolidated Net Income
of the Company and, to the extent the amounts set forth in clauses (2) through (6) are in

13

 

excess of
those necessary to offset a net loss of such Restricted Subsidiary or if such Restricted Subsidiary
has net income for such period included in Consolidated Net Income, only if a
corresponding amount would be permitted at the date of determination to be dividended to the
Company by such Restricted Subsidiary without prior approval (that has not been obtained), pursuant
to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes,
rules and governmental regulations applicable to that Restricted Subsidiary or the holders of its
Capital Stock.

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

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

	 	(1)	 	interest expense attributable to Capitalized Lease Obligations and the interest
component of any deferred payment obligations;
	 
	 	(2)	 	amortization of debt discount and debt issuance cost (provided that any
amortization of bond premium will be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such amortization of bond premium has otherwise reduced
Consolidated Interest Expense);
	 
	 	(3)	 	non-cash interest expense;
	 
	 	(4)	 	commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing;
	 
	 	(5)	 	the interest expense on Indebtedness of another Person that is Guaranteed by
the Company or one of its Restricted Subsidiaries or secured by a Lien on assets of the
Company or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is
called upon;
	 
	 	(6)	 	cash costs associated with Interest Rate Agreements (including amortization of
fees); provided, however, that if Interest Rate Agreements result in net cash benefits
rather than costs, such benefits shall be credited to reduce Consolidated Interest
Expense unless, pursuant to GAAP, such net benefits are otherwise reflected in
Consolidated Net Income;
	 
	 	(7)	 	the consolidated interest expense of the Company and its Restricted
Subsidiaries that was capitalized during such period; and
	 
	 	(8)	 	all dividends paid or payable in cash, Cash Equivalents or Indebtedness or
accrued during such period on any series of Disqualified Stock of the Company or on
Preferred Stock of its Restricted Subsidiaries payable to a party other than the
Company or another Restricted Subsidiary,

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

          For the purpose of calculating the Consolidated Coverage Ratio in connection with the

14

 

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

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

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

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

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

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

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

15

 

	 	 	 	provision for taxes on such gains or losses and all related fees and expenses;

	 	(5)	 	the cumulative effect of a change in accounting principles;
	 
	 	(6)	 	any “ceiling limitation” on Oil and Gas Properties or other asset impairment
writedowns under GAAP or SEC guidelines;
	 
	 	(7)	 	any unrealized non-cash gains or losses or charges in respect of Hedging
Obligations (including those resulting from the application of Statement of Financial
Accounting Standard No. 133);
	 
	 	(8)	 	income or loss attributable to discontinued operations (including, without
limitation, operations disposed of during such period whether or not such operations
were classified as discontinued);
	 
	 	(9)	 	all deferred financing costs written off, and premiums paid, in connection with
any early extinguishment of Indebtedness; and
	 
	 	(10)	 	any non-cash compensation charge arising from any grant of stock, stock options
or other equity based awards; provided that the proceeds resulting from any such grant
will be excluded from Section 1112(c)(ii).

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

          “Corporate Trust Office” means the principal office of the Trustee in Houston, Texas at which
at any particular time its corporate trust business shall be administered, which office on the date
hereof is located at 601 Travis Street, 16th Floor, Houston, Texas 77002, or such other address as
the Trustee may designate from time to time by notice to the Holders and the Company, or the
principal corporate trust office of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders and the Company).

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

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

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

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

16

 

an Event of Default.

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

          “Defeasance” has the meaning specified in Section 1402.

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

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

	 	(1)	 	matures or is mandatorily redeemable (other than redeemable only for Capital
Stock of such Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise;
	 
	 	(2)	 	is convertible or exchangeable for Disqualified Stock or other Indebtedness
(excluding Capital Stock which is convertible or exchangeable solely at the option of
the Company or a Restricted Subsidiary); or
	 
	 	(3)	 	is redeemable at the option of the holder of the Capital Stock in whole or in
part,

in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Notes or (b) on which there are no Notes outstanding; provided that only
the portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or
exchangeable or is so redeemable at the option of the holder thereof prior to such date will be
deemed to be Disqualified Stock; provided further, that any Capital Stock that would constitute
Disqualified Stock solely because the holders thereof have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or asset sale (each
defined in a substantially identical manner to the corresponding definitions in the Indenture)
shall not constitute Disqualified Stock if the terms of such Capital Stock (and all such securities
into which it is convertible or for which it is ratable or exchangeable) provide that (i) the
Company may not repurchase or redeem any such Capital Stock (and all such securities into which it
is convertible or for which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with the provisions of Sections 1110 and 1115 and (ii) such repurchase or
redemption will be permitted solely to the extent also permitted in accordance with Section 1112.

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

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

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

          “Equity Offering” means a public or private offering for cash by the Company of Capital

17

 

Stock
(other than Disqualified Stock), other than public offerings registered on Form S-8.

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

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

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

          “Fair Market Value” means, with respect to any asset or property, the sale value that would be
obtained in an arm’s-length free market transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair Market Value
of an asset or property equal to or in excess of $25.0 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 delivered to the Trustee, and any lesser Fair
Market Value may be determined by an officer of the Company acting in good faith.

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

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

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

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

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

	 	(1)	 	to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or
by agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise); or
	 
	 	(2)	 	entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part);

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

          “Guarantor Subordinated Obligation” means, with respect to a Subsidiary Guarantor, its
Guarantee of the 6 3/4% Senior Subordinated Notes due 2014 and the 8 1/4% Senior Subordinated Notes
due 2011 of the Company and any other Indebtedness of such Subsidiary Guarantor (whether
outstanding on the Issue Date or thereafter Incurred) which is expressly subordinate in right of
payment to the obligations of such Subsidiary Guarantor under its

18

 

Subsidiary Guarantee pursuant to
a written agreement.

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

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

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

          “Immaterial Subsidiary” means, as of any date, any Restricted Subsidiary whose total assets,
as of the end of the most recent month for which financial statements are available, are less than
$5.0 million and whose total revenues for the most recent 12-month period for which financial
statements are available do not exceed $5.0 million; provided that a Restricted Subsidiary will
not be considered to be an Immaterial Subsidiary if it, directly or indirectly, Guarantees or
otherwise provides direct credit support for any Indebtedness of the Company.

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

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

	 	(1)	 	the principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;
	 
	 	(2)	 	the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;
	 
	 	(3)	 	the principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates
to a trade payable, to the extent such letters of credit are not drawn upon or, if and to
the extent drawn upon, such obligation is satisfied within 30 days of payment on the letter
of credit);
	 
	 	(4)	 	the principal component of all obligations of such Person (other than obligations
payable solely in Capital Stock that is not Disqualified Stock) to pay the deferred and
unpaid purchase price of property (except as described in clause (8) of the penultimate
paragraph of this definition of “Indebtedness”), which purchase price is due more than six
months after the date of placing such property in service or taking delivery and title
thereto to the extent such obligations would appear as a liabilities upon the consolidated
balance sheet of such Person in accordance with GAAP;
	 
	 	(5)	 	Capitalized Lease Obligations of such Person to the extent such Capitalized Lease
Obligations would appear as liabilities on the consolidated balance sheet of such Person in
accordance with GAAP;

19

 

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

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

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

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

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

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

          Notwithstanding the preceding, “Indebtedness” shall not include:

	 	(1)	 	Production Payments and Reserve Sales;
	 
	 	(2)	 	any obligation of a Person in respect of a farm-in agreement or similar
arrangement whereby such Person agrees to pay all or a share of the drilling,
completion or other expenses of an exploratory or development well (which agreement may
be subject to a maximum payment obligation, after which expenses are shared in
accordance with the working or participation interest therein or in accordance with the
agreement of the parties) or perform the drilling, completion or other operation on
such well in exchange for an ownership interest in an oil or gas property;
	 
	 	(3)	 	any obligations under Currency Agreements, Commodity Agreements and Interest
Rate Agreements; provided that such agreements are entered into for bona fide hedging
purposes of the Company or its Restricted Subsidiaries (as determined in good faith by
the Board of Directors or senior management of the Company, whether or not accounted
for as a hedge in accordance with GAAP) and, in the case of Currency Agreements or
Commodity Agreements, such Currency Agreements or Commodity Agreements are related to
business transactions of the Company or its Restricted Subsidiaries entered into in the
ordinary course of business and, in the case

20

 

	 	 	 	

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

	 
	 	(4)	 	any obligation arising from agreements of the Company or a Restricted
Subsidiary providing for indemnification, Guarantees, adjustment of purchase price,
holdbacks, contingency payment obligations or similar obligations, in each case,
Incurred or assumed in connection with the acquisition or disposition of any business,
assets or Capital Stock of a Restricted Subsidiary, provided that such Indebtedness
is not reflected on the face of the balance sheet of the Company or any Restricted
Subsidiary;
	 
	 	(5)	 	any obligation arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business,
provided that such Indebtedness is extinguished within five business days of
Incurrence;
	 
	 	(6)	 	in-kind obligations relating to net oil or natural gas balancing positions
arising in the ordinary course of business;
	 
	 	(7)	 	all contracts and other obligations, agreements, instruments or arrangements
described in clauses (19), (20), (21) or (28)(a) of the definition of “Permitted
Liens”; and
	 
	 	(8)	 	accrued expenses and trade payables and other accrued liabilities arising in
the ordinary course of business that are not overdue by 90 days past the invoice or
billing date or more or are being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted.

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

	 	(1)	 	such Indebtedness is the obligation of a partnership or joint venture that is
not a Restricted Subsidiary (a “Joint Venture”);
	 
	 	(2)	 	such Person or a Restricted Subsidiary of such Person is a general partner of
the Joint Venture or otherwise liable for all or a portion of the Joint Venture’s
liabilities (a “General Partner”); and
	 
	 	(3)	 	there is recourse, by contract or operation of law, with respect to the payment
of such Indebtedness to property or assets of such Person or a Restricted Subsidiary of
such Person; and then such Indebtedness shall be included in an amount not to exceed:

	 	(a)	 	the lesser of (i) the net assets of the General Partner and
(ii) the amount of such obligations to the extent that there is recourse, by
contract or operation of law, to the property or assets of such Person or a
Restricted Subsidiary of such Person; or
	 
	 	(b)	 	if less than the amount determined pursuant to clause (a)
immediately above, the actual amount of such Indebtedness that is with recourse
to such Person or

21

 

	 	 	 	a Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a
writing and is for a determinable amount and the related interest expense shall
be included in Consolidated Interest Expense to the extent actually paid by such
Person and its Restricted Subsidiaries.

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

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

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

          “Investment” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect advance, loan or other
extensions of credit (including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit and advances or
extensions of credit to customers in the ordinary course of business) or capital contribution to
(by means of any transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments (excluding any interest in a crude oil or natural gas
leasehold to the extent constituting a security under applicable law) issued by, such other Person
and all other items that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP.

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

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

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

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

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

22

 

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

	 	(1)	 	Baa3 (or the equivalent) with a stable or better outlook by Moody’s; and
	 
	 	(2)	 	BBB— (or the equivalent) with a stable or better outlook by S&P,

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

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

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

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

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

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

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

	 	(1)	 	all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing
agreements), as a consequence of such Asset Disposition;
	 
	 	(2)	 	all payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon such assets, or
which must by its terms, or in order to obtain a necessary consent to such Asset
Disposition, or by applicable law be repaid out of the proceeds from such Asset
Disposition;
	 
	 	(3)	 	all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures or to holders of royalty or similar interests
as a result

23

 

	 	 	 	of such Asset Disposition;
	 
	 	(4)	 	the deduction of appropriate amounts to be provided by the seller as a reserve,
in accordance with GAAP, against any liabilities associated with the assets disposed of
in such Asset Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition; and
	 
	 	(5)	 	all relocation expenses incurred as a result thereof and all related severance
and associated costs, expenses and charges of personnel related to assets and related
operations disposed of;

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

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

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

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

	 	(1)	 	as to which neither the Company nor any Restricted Subsidiary (a) provides any
Guarantee or credit support of any kind (including any undertaking, guarantee,
indemnity, agreement or instrument that would constitute Indebtedness) or (b) is
directly or indirectly liable (as a guarantor or otherwise);
	 
	 	(2)	 	no default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would permit
(upon notice, lapse of time or both) any holder of any other Indebtedness of the
Company or any Restricted Subsidiary to declare a default under such other Indebtedness
or cause the payment thereof to be accelerated or payable prior to its stated maturity;
and
	 
	 	(3)	 	the explicit terms of which provide there is no recourse against any of the
assets of the Company or its Restricted Subsidiaries.

24

 

          “Non-Recourse Purchase Money Indebtedness” means Indebtedness (other than Capitalized Lease
Obligations) of the Company or any Restricted Subsidiary Incurred in connection with the
acquisition by the Company or such Restricted Subsidiary in the ordinary course of business of
fixed assets used in the Oil and Gas Business (including office buildings and other real property
used by the Company or such Restricted Subsidiary in conducting its operations) with respect to
which (a) the holders of such Indebtedness agree that they will look solely to the fixed assets so
acquired which secure such Indebtedness, and neither the Company nor any Restricted Subsidiary (i)
is directly or indirectly liable for such Indebtedness or (ii) provides credit support, including
any undertaking, Guarantee, agreement or instrument that would constitute Indebtedness (other than
the grant of a Lien on such acquired fixed assets), and (b) no default or event of default with
respect to such Indebtedness would cause, or permit (after notice or passage of time or otherwise),
any holder of any other Indebtedness of the Company or a Restricted Subsidiary to declare a default
or event of default on such other Indebtedness or cause the payment, repurchase, redemption,
defeasance or other acquisition or retirement for value thereof to be accelerated or payable prior
to any scheduled principal payment, scheduled sinking fund payment or maturity.

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

          “Obligations” has the meaning specified in Section 1601.

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

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

          “Oil and Gas Business” means:

	 	(1)	 	the business of acquiring, exploring, exploiting, developing, producing,
operating and disposing of interests in oil, natural gas, liquefied natural gas and
other Hydrocarbon and mineral properties or products produced in association with any
of the foregoing;
	 
	 	(2)	 	the business of gathering, marketing, distributing, treating, processing,
storing, refining, selling and transporting of any production from such interests or
properties and products produced in association therewith and the marketing of oil,
natural gas, other Hydrocarbons and minerals obtained from unrelated Persons;
	 
	 	(3)	 	any other related energy business, including power generation and electrical
transmission business, directly or indirectly, from oil, natural gas and other
Hydrocarbons and minerals produced substantially from properties in which the Company
or its Restricted Subsidiaries, directly or indirectly, participate;
	 
	 	(4)	 	any business relating to oil field sales and service; and
	 
	 	(5)	 	any business or activity relating to, arising from, or necessary, appropriate
or incidental to the activities described in the foregoing clauses (1) through (4) of
this definition.

25

 

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

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

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

	 	(1)	 	Notes theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;
	 
	 	(2)	 	Notes for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company or
an Affiliate of the Company) in trust or set aside and segregated in trust by the
Company (if the Company or an Affiliate of the Company shall act as its own Paying
Agent) for the Holders of such Notes; provided that, if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to the Indenture or
provision therefor satisfactory to the Trustee has been made;
	 
	 	(3)	 	Notes as to which Defeasance has been effected pursuant to Section 1402; and
	 
	 	(4)	 	Notes which have been paid pursuant to Section 406 or in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to the
Indenture, other than any such Notes in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Notes are held by a
protected purchaser in whose hands such Notes are valid obligations of the Company;

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

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

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

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

26

 

	 	(1)	 	of an acquired Person prior to the date on which such Person became a
Restricted Subsidiary as a result of having been acquired and not incurred in
contemplation of such acquisition; or
	 
	 	(2)	 	of a Person that was merged, consolidated or amalgamated with or into the
Company or a Restricted Subsidiary that was not incurred in contemplation of such
merger, consolidation or amalgamation,

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

	 	(a)	 	the Restricted Subsidiary or the Company, as applicable, would be permitted to
incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of
Section 1111, or
	 
	 	(b)	 	the Consolidated Coverage Ratio for the Company would be greater than the
Consolidated Coverage Ratio for the Company immediately prior to such transaction.

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

	 	(a)	 	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;
	 
	 	(b)	 	Investments in the form of or pursuant to operating agreements, working
interests, royalty interests, mineral leases, processing agreements, farm-in
agreements, farm-out agreements, contracts for the sale, transportation or exchange of
oil, natural gas, other Hydrocarbons and minerals, production sharing agreements,
participation agreements, development agreements, area of mutual interest agreements,
unitization agreements, pooling agreements, joint bidding agreements, service
contracts, joint venture agreements, partnership agreements (whether general or
limited) and other similar agreements (including for limited liability companies) with
third parties, excluding, however, Investments in corporations and publicly-traded
limited liability companies or limited partnerships; and
	 
	 	(c)	 	direct or indirect ownership interests in drilling rigs and related equipment,
including, without limitation, transportation equipment.

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

	 	(1)	 	the Company (whether by way of an Investment in the Notes or otherwise) or a
Restricted Subsidiary; provided, however, that the primary business of such Restricted
Subsidiary is the Oil and Gas Business;

27

 

	 	(2)	 	another Person whose primary business is the Oil and Gas Business if as a
result of such Investment such other Person becomes a Restricted Subsidiary or is
merged or consolidated with or into, or transfers or conveys all or substantially all
its assets to, the Company or a Restricted Subsidiary and, in each case, any Investment
held by such Person; provided that such Investment was not acquired by such Person in
contemplation of such acquisition, merger, consolidation or transfer;
	 
	 	(3)	 	cash and Cash Equivalents;
	 
	 	(4)	 	receivables owing to the Company or any Restricted Subsidiary created or
acquired in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
	 
	 	(5)	 	payroll, commission, travel, relocation and similar advances to cover matters
that are expected at the time of such advances ultimately to be treated as expenses for
accounting purposes and that are made in the ordinary course of business;
	 
	 	(6)	 	loans or advances to employees (other than executive officers) made in the
ordinary course of business consistent with past practices of the Company or such
Restricted Subsidiary not to exceed $5.0 million in the aggregate at any one time
outstanding;
	 
	 	(7)	 	Hedging Obligations entered into in the ordinary course of business and in
compliance with the Indenture;
	 
	 	(8)	 	endorsements of negotiable instruments and documents in the ordinary course of
business;
	 
	 	(9)	 	an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock
of the Company;
	 
	 	(10)	 	Capital Stock, obligations or securities received in settlement of debts (x)
created in the ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments or (y) pursuant to any plan of
reorganization or similar arrangement in a bankruptcy or insolvency proceeding;
	 
	 	(11)	 	any Person as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 1115;
	 
	 	(12)	 	Commodity Agreements, Currency Agreements, Interest Rate Agreements and related
Hedging Obligations, which transactions or obligations are Incurred in compliance with
Section 1111;
	 
	 	(13)	 	Guarantees issued in accordance with Section 1111;
	 
	 	(14)	 	Permitted Business Investments;
	 
	 	(15)	 	any Person where such Investment was acquired by the Company or any of its
Restricted Subsidiaries (a) in exchange for any other Investment or accounts receivable
held by the Company or any such Restricted Subsidiary in connection with or as a result
of a bankruptcy, workout, reorganization or recapitalization of the issuer

28

 

	 	 	 	of such other Investment or accounts receivable or (b) as a result of a foreclosure by
the Company or any of its Restricted Subsidiaries with respect to any secured Investment
or other transfer of title with respect to any secured Investment in default;

	 	(16)	 	any Person to the extent such Investments consist of prepaid expenses,
negotiable instruments held for collection and lease, utility and workers’
compensation, performance and other similar deposits made in the ordinary course of
business by the Company or any Restricted Subsidiary;
	 
	 	(17)	 	Guarantees of performance or other obligations (other than Indebtedness)
arising in the ordinary course in the Oil and Gas Business, including obligations under
oil and natural gas exploration, development, joint operating, and related agreements
and licenses, concessions or operating leases related to the Oil and Gas Business; and
	 
	 	(18)	 	Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (18), in an aggregate amount outstanding
at the time of such Investment not to exceed the greater of $20.0 million and 1.0% of
the Company’s Adjusted Consolidated Net Tangible Assets (with the Fair Market Value of
such Investment being measured at the time such Investment is made and without giving
effect to subsequent changes in value).

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

	 	(1)	 	Liens securing Indebtedness under a Credit Facility permitted to be Incurred
under the Indenture;
	 
	 	(2)	 	pledges or deposits by such Person under workers’ compensation laws,
unemployment insurance laws, social security or old age pension laws or similar
legislation, or good faith deposits in connection with bids, tenders, contracts (other
than for the payment of Indebtedness) or leases to which such Person is a party, or
deposits (which may be secured by a Lien) to secure public or statutory obligations of
such Person including letters of credit and bank guarantees required or requested by
the United States, any State thereof or any foreign government or any subdivision,
department, agency, organization or instrumentality of any of the foregoing in
connection with any contract or statute (including lessee or operator obligations under
statutes, governmental regulations, contracts or instruments related to the ownership,
exploration and production of oil, natural gas, other Hydrocarbons and minerals on
State, Federal or foreign lands or waters), or deposits of cash or United States
government bonds to secure indemnity performance, surety or appeal bonds or other
similar bonds to which such Person is a party, or deposits as security for contested
taxes or import or customs duties or for the payment of rent, in each case Incurred in
the ordinary course of business;
	 
	 	(3)	 	statutory and contractual Liens of landlords and Liens imposed by law,
including carriers’, warehousemen’s, mechanics’, materialmen’s and repairmen’s Liens,
in each case for sums not yet due or being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be required
by GAAP shall have been made in respect thereof;
	 
	 	(4)	 	Liens for taxes, assessments or other governmental charges or claims not yet
subject to penalties for non-payment or which are being contested in good faith by

29

 

	 	 	 	appropriate proceedings; provided that appropriate reserves, if any, required pursuant
to GAAP have been made in respect thereof;

	 	(5)	 	Liens in favor of issuers of surety or performance bonds or bankers’
acceptances issued pursuant to the request of and for the account of such Person in the
ordinary course of its business;
	 
	 	(6)	 	survey exceptions, encumbrances, ground leases, easements or reservations of,
or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other
restrictions (including, without limitation, minor defects or irregularities in title
and similar encumbrances) as to the use of real properties or Liens incidental to the
conduct of the business of such Person or to the ownership of its properties which do
not in the aggregate materially adversely affect the value of the assets of such Person
and its Restricted Subsidiaries, taken as a whole, or materially impair their use in
the operation of the business of such Person;
	 
	 	(7)	 	Liens securing Hedging Obligations;
	 
	 	(8)	 	leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) which do not materially
interfere with the ordinary conduct of the business of the Company or any of its
Restricted Subsidiaries;
	 
	 	(9)	 	prejudgment Liens and judgment Liens not giving rise to an Event of Default so
long as such Lien is adequately bonded and any appropriate legal proceedings which may
have been duly initiated for the review of such judgment have not been finally
terminated or the period within which such proceedings may be initiated has not
expired;
	 
	 	(10)	 	Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capitalized Lease Obligations, purchase money obligations or other
payments Incurred to finance the acquisition, lease, improvement or construction of or
repairs or additions to, assets or property acquired or constructed in the ordinary
course of business; provided that:

	 	(a)	 	the aggregate principal amount of Indebtedness secured by such
Liens is otherwise permitted to be Incurred under the Indenture and does not
exceed the cost of the assets or property so acquired or constructed; and
	 
	 	(b)	 	such Liens are created within 180 days of the later of the
acquisition, lease, completion of improvements, construction, repairs or
additions or commencement of full operation of the assets or property subject
to such Lien and do not encumber any other assets or property of the Company or
any Restricted Subsidiary other than such assets or property and assets affixed
or appurtenant thereto;

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

	 	(a)	 	such deposit account is not a dedicated cash collateral account
and is not

30

 

	 	 	 	subject to restrictions against access by the Company in excess of those set
forth by regulations promulgated by the Federal Reserve Board; and

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

	 	(12)	 	Liens arising from Uniform Commercial Code financing statement filings
regarding operating leases entered into by the Company and its Restricted Subsidiaries
in the ordinary course of business;
	 
	 	(13)	 	Liens existing on the Issue Date;
	 
	 	(14)	 	Liens on property or shares of Capital Stock of a Person at the time such
Person becomes a Subsidiary; provided, however, that such Liens are not created or
Incurred in connection with, or in contemplation of, such other Person becoming a
Subsidiary; provided further, however, that any such Lien may not extend to any other
property owned by the Company or any Restricted Subsidiary (other than assets or
property affixed or appurtenant thereto);
	 
	 	(15)	 	Liens on property at the time the Company or any of its Subsidiaries acquired
the property, including any acquisition by means of a merger or consolidation with or
into the Company or any of its Subsidiaries; provided, however, that such Liens are
not created or Incurred in connection with, or in contemplation of, such acquisition;
provided further, however, that such Liens may not extend to any other property owned
by the Company or any Restricted Subsidiary (other than assets or property affixed or
appurtenant thereto);
	 
	 	(16)	 	Liens securing the Notes, Subsidiary Guarantees and other obligations under the
Indenture;
	 
	 	(17)	 	Liens securing Refinancing Indebtedness Incurred to refinance Indebtedness that
was previously so secured, provided that any such Lien is limited to all or part of the
same property or assets (plus improvements, accessions, proceeds or dividends or
distributions in respect thereof) that secured (or, under the written arrangements
under which the original Lien arose, could secure) the Indebtedness being refinanced or
is in respect of property or assets that is the security for a Permitted Lien
hereunder;
	 
	 	(18)	 	Liens in respect of Production Payments and Reserve Sales, which Liens shall be
limited to the property that is the subject of such Production Payments and Reserve
Sales;
	 
	 	(19)	 	Liens arising under farm-out agreements, farm-in agreements, division orders,
contracts for the sale, purchase, exchange, transportation, gathering or processing of
Hydrocarbons, unitizations and pooling designations, declarations, orders and
agreements, development agreements, joint venture agreements, partnership agreements,
operating agreements, royalties, working interests, net profits interests, joint
interest billing arrangements, participation agreements, production sales contracts,
area of mutual interest agreements, gas balancing or deferred production agreements,
injection, repressuring and recycling agreements, salt water or other disposal
agreements, seismic or geophysical permits or agreements, and other agreements which
are customary in the Oil and Gas Business; provided, however, in

31

 

	 	 	 	all instances that such Liens are limited to the assets that are the subject of the
relevant agreement, program, order or contract;

	 	(20)	 	Liens on pipelines or pipeline facilities that arise by operation of law;
	 
	 	(21)	 	Liens in favor of the Company or any Subsidiary Guarantor;
	 
	 	(22)	 	deposits made in the ordinary course of business to secure liability to
insurance carriers;
	 
	 	(23)	 	Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods in the
ordinary course of business;
	 
	 	(24)	 	Liens deemed to exist in connection with Investments in repurchase agreements
permitted by Section 1111; provided that such Liens do not extend to any assets other
than those that are the subject of such repurchase agreement;
	 
	 	(25)	 	Liens encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage accounts
incurred in the ordinary course of business and not for speculative purposes;
	 
	 	(26)	 	any (a) interest or title of a lessor or sublessor under any lease, liens
reserved in oil, gas or other Hydrocarbons, minerals, leases for bonus, royalty or
rental payments and for compliance with the terms of such leases; (b) restriction or
encumbrance that the interest or title of such lessor or sublessor may be subject to
(including, without limitation, ground leases or other prior leases of the demised
premises, mortgages, mechanics’ liens, tax liens, and easements); or (c) subordination
of the interest of the lessee or sublessee under such lease to any restrictions or
encumbrance referred to in the preceding clause (b);
	 
	 	(27)	 	Liens upon specific items of inventory or other goods and proceeds of any
Person securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods;
	 
	 	(28)	 	Liens arising under the Indenture in favor of the Trustee for its own benefit
and similar Liens in favor of other trustees, agents and representatives arising under
instruments governing Indebtedness permitted to be incurred under the Indenture,
provided, however, that such Liens are solely for the benefit of the trustees, agents
or representatives in their capacities as such and not for the benefit of the holders
of such Indebtedness;
	 
	 	(29)	 	Liens arising from the deposit of funds or securities in trust for the purpose
of decreasing or defeasing Indebtedness so long as such deposit of funds or securities
and such decreasing or defeasing of Indebtedness are permitted by Section 1112;
	 
	 	(30)	 	Liens in favor of collecting or payer banks having a right of setoff,
revocation, or charge back with respect to money or instruments of the Company or any
Subsidiary of the Company on deposit with or in possession of such bank; and
	 
	 	(31)	 	Liens securing Indebtedness in an aggregate principal amount outstanding at any
one time, added together with all other Indebtedness secured by Liens Incurred

32

 

	 	 	 	pursuant to this clause (31), not to exceed the greater of $20.0 million and 1.0% of the
Company’s Adjusted Consolidated Net Tangible Assets, as determined on the date of
Incurrence of such Indebtedness after giving pro forma effect to such Incurrence and the
application of the proceeds therefrom.

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

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

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

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

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

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

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

33

 

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

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

	 	(1)	 	(a) if the Stated Maturity of the Indebtedness being Refinanced is earlier than
the Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the
Stated Maturity of the Indebtedness being refinanced is later than the Stated Maturity
of the Notes, the Refinancing Indebtedness has a Stated Maturity at least 91 days later
than the Stated Maturity of the Notes;
	 
	 	(2)	 	the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;
	 
	 	(3)	 	such Refinancing Indebtedness is Incurred in an aggregate principal amount (or
if issued with original issue discount, an aggregate issue price) that is equal to or
less than the sum of the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness being
refinanced (plus, without duplication, any additional Indebtedness Incurred to pay
interest, premiums or defeasance costs required by the instruments governing such
existing Indebtedness and fees and expenses Incurred in connection therewith);
	 
	 	(4)	 	if the Indebtedness being Refinanced is subordinated in right of payment to the
Notes or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in
right of payment to the Notes or the Subsidiary Guarantee on terms at least as
favorable to the Holders as those contained in the documentation governing the
Indebtedness being Refinanced; and
	 
	 	(5)	 	if the Indebtedness being Refinanced is Non-Recourse Purchase Money
Indebtedness or Indebtedness that Refinanced Non-Recourse Purchase Money Indebtedness,
such Refinancing Indebtedness satisfies clauses (a) and (b) of the definition of
“Non-Recourse Purchase Money Indebtedness.”

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

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

34

 

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

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

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

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

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

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

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

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

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

          “Senior Secured Credit Agreement” means the Second Amended and Restated Credit Agreement dated
as of August 28, 2008 among the Company, as Borrower, Bank of America, N.A., as Administrative
Agent and Issuing Bank, and the lenders parties thereto from time to time, including any
guarantees, collateral documents, instruments and agreements executed in connection therewith, and
any amendments, supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures or credit facilities or commercial paper facilities with
banks or other institutional lenders or investors that replace, refund or refinance any part of the
loans, notes, other credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount borrowable thereunder or
alters the maturity thereof (provided that such increase in borrowings is permitted under Section
1111).

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

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

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

35

 

scheduled for the payment thereof.

          “Subordinated Obligation” means the 6 3/4% Senior Subordinated Notes due 2014 and the 8 1/4%
Senior Subordinated Notes due 2011 of the Company and any other Indebtedness of the Company
(whether outstanding on the Issue Date or thereafter Incurred) which is expressly subordinate in
right of payment to the Notes pursuant to a written agreement.

          “Subsidiary” of any Person means (a) any corporation, association or other business entity
(other than a partnership, joint venture, limited liability company or similar entity) of which
more than 50% of the total ordinary voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof (or Persons performing similar functions) or (b) any partnership, joint venture,
limited liability company or similar entity of which more than 50% of the capital accounts,
distribution rights, total equity and voting interests or general or limited partnership interests,
as applicable, is, in the case of clauses (a) and (b), at the time owned or controlled, directly or
indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3)
one or more Subsidiaries of such Person. Unless otherwise specified herein, each reference to a
Subsidiary (other than in this definition) will refer to a Subsidiary of the Company.

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

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

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

          “Treasury Rate” means, as of any Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source or similar market data)) most nearly
equal to the period from the Redemption Date to February 1, 2014; provided, however, that if the
period from the Redemption Date to February 1, 2014 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Rate shall
be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the Redemption Date to February 1, 2014 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used. The Company will (a) calculate the Treasury Rate as of the second
Business Day preceding the applicable Redemption Date and (b) prior to such Redemption Date file
with the Trustee an Officers’ Certificate setting forth the Applicable Premium and the Treasury
Rate and showing the calculation of each in reasonable detail.

          “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of

36

 

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

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

          “Unrestricted Subsidiary” means:

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

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

	 	(1)	 	such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of,
any other Subsidiary of the Company which is not a Subsidiary of the Subsidiary to be
so designated or otherwise an Unrestricted Subsidiary;
	 
	 	(2)	 	all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date
of designation, and will at all times thereafter, consist of Non-Recourse Debt;
	 
	 	(3)	 	on the date of such designation, such designation and the Investment of the
Company or a Restricted Subsidiary in such Subsidiary complies with Section 1112;
	 
	 	(4)	 	such Subsidiary is a Person with respect to which neither the Company nor any
of its Restricted Subsidiaries has any direct or indirect obligation:

	 	(a)	 	to subscribe for additional Capital Stock of such Person; or
	 
	 	(b)	 	to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results; and

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

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

37

 

shall be deemed to be Incurred as of such date.

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

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

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

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

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

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

Section 202. Compliance Certificates and Opinions.

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

38

 

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

	 	(1)	 	a statement that each individual signing such certificate or opinion has read
such covenant or condition and the definitions herein relating thereto;
	 
	 	(2)	 	a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or
opinion are based;
	 
	 	(3)	 	a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed
opinion as to whether or not such covenant or condition has been complied with; and
	 
	 	(4)	 	a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.

Section 203. Form of Documents Delivered to Trustee.

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

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

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

Section 204. Acts of Holders; Record Dates.

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

39

 

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 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

40

 

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

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

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

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

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

	 	(1)	 	the Trustee by any Holder or by the Company or by any Subsidiary Guarantor
shall be sufficient for every purpose hereunder if made, given, furnished or filed in
writing in the English language to or with the Trustee at its Corporate Trust Office,
Attention: Corporate Trust Administration, re: Stone Energy Corporation or
	 
	 	(2)	 	the Company or the Subsidiary Guarantors by the Trustee or by any Holder shall
be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing in the English language and mailed, first-class postage prepaid,
addressed

41

 

	 	 	 	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 this Supplemental Indenture or the Notes shall be invalid, illegal

42

 

or unenforceable, the validity, legality and enforce ability of the remaining provisions shall
not in any way be affected or impaired thereby.

Section 211. Benefits of Indenture.

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

Section 212. Governing Law.

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

Section 213. Legal Holidays.

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

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

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

Section 215. No Adverse Interpretation of Other Agreements.

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

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

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

43

 

Trustee to satisfy the requirements of the U.S.A. Patriot Act.

Section 217. Counterpart Originals.

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

Section 218. WAIVER OF JURY TRIAL.

          EACH OF THE COMPANY, THE SUBSIDIARY GUARANTORS AND THE TRUSTEE IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE BASE INDENTURE, THE NOTES
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 219. 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, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

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

44

 

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 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 “8.625% Senior Notes due 2017.” The Trustee shall authenticate
the Notes to be authenticated and delivered under this Supplemental Indenture on the Issue Date in
an aggregate amount equal to $275,000,000, upon delivery of a Company

45

 

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

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

Section 402. Denominations.

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

Section 403. Execution, Authentication, Delivery and Dating.

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

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

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

          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

46

 

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, upon Company Order,
the Trustee shall authenticate and deliver in exchange therefor one or more definitive Notes of any
authorized denominations and of like tenor and aggregate principal amount. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under the Indenture as
definitive Notes.

Section 405. Registration, Registration of Transfer and Exchange.

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

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

          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.

47

 

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

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

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

	 	(1)	 	Each Global Note authenticated under the Indenture shall be registered in the
name of the Depositary designated for such Global Note or a nominee thereof and
delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Note shall constitute a single Note for all purposes of the Indenture.
	 
	 	(2)	 	Notwithstanding any other provision in the Indenture, no Global Note may be
exchanged in whole or in part for Notes registered, and no transfer of a Global Note in
whole or in part may be registered, in the name of any Person other than the Depositary
for such Global Note or a nominee thereof, unless (A) such Depositary (i) has notified
the Company that it is no longer willing or able to discharge its responsibilities
properly as Depositary for such Global Note or (ii) has ceased to be a clearing agency
registered under the Exchange Act, and in either case the Company has not appointed a
qualified successor within 90 days, (B) an Event of Default has occurred and is
continuing and the Depositary has notified the Company and the Trustee of its desire to
exchange such Global Note for Notes in certificated form or (C) subject to the
Depositary’s rules, the Company, at its option, has elected to terminate the book-entry
system through the Depositary.
	 
	 	(3)	 	Subject to clause (2) above, any exchange of a Global Note for other Notes may
be made in whole or in part, and all Notes issued in exchange for a Global Note or any
portion thereof shall be registered in such names as the Depositary for such Global
Note shall direct.
	 
	 	(4)	 	Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to
this Section, Section 404, 406, 1006, 1110, 1115 or 1207 or otherwise, shall be
authenticated and delivered in the form of, and shall be, a Global Note, unless such
Note is registered in the name of a Person other than the Depositary for such Global
Note or a nominee thereof.

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

          If any mutilated Note is surrendered to the Trustee, the Company shall execute and, if
applicable, the Subsidiary Guarantors shall execute the notation of Subsidiary Guarantee endorsed
thereon, and, upon Company Order, the Trustee shall authenticate and deliver in exchange therefor a
new Note of like tenor and principal amount and bearing a number not

48

 

contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Note and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Note has been acquired by a protected
purchaser, the Company shall execute and, if applicable, the Subsidiary Guarantors shall execute
the notation of Subsidiary Guarantee endorsed thereon, and, upon Company Order, 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,
and, if applicable, the notation of Subsidiary Guarantee endorsed thereon, shall constitute an
original additional contractual obligation of the Company and, if applicable, the respective
Subsidiary Guarantors, 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

49

 

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

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

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

Section 408. Persons Deemed Owners.

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

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

50

 

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.

ARTICLE FIVE

SATISFACTION AND DISCHARGE

Section 501. Satisfaction and Discharge of Indenture.

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

	 	(1)	 	either

	 	(A)	 	all Notes theretofore authenticated and delivered (other than
(i) Notes which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 406 and (ii) Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 1103), have been delivered to the Trustee for
cancellation; or
	 
	 	(B)	 	all such Notes not theretofore delivered to the Trustee for
cancellation

	 	(i)	 	have become due and payable, or
	 
	 	(ii)	 	will become due and payable at their Stated
Maturity within one year, or
	 
	 	(iii)	 	are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense,
of the Company,

	 	(C)	 	and the Company or any Subsidiary Guarantor in the case of (i), (ii) or (iii)
of

51

 

	 	 	 	subclause (B) of clause (i) of this Section, has irrevocably deposited or caused to
be irrevocably deposited with the Trustee as trust funds in trust solely for such
purpose cash in U.S. dollars, U.S. Government Obligations, or a combination thereof in
such amounts as will be sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire indebtedness on such Notes not theretofore
delivered to the Trustee for cancellation, for principal and any premium and interest
to the date of such deposit (in the case of Notes which have become due and payable) or
to the Stated Maturity or Redemption Date, as the case may be;
	 
	 	(D)	 	the Company has paid or caused to be paid all other sums payable hereunder by
the Company in respect of the Notes; and
	 
	 	(E)	 	the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of the Indenture in respect of the Notes
have been complied with.

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

Section 502. Application of Trust Money.

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

ARTICLE SIX

REMEDIES

Section 601. Events of Default.

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

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

52

 

	 	(2)	 	default in the payment of the principal of or any premium on any Note when due at its
Stated Maturity, upon optional redemption, upon required repurchase, upon declaration of
acceleration or otherwise; or
	 
	 	(3)	 	failure by the Company or any Subsidiary Guarantor to comply with its obligations under
Article Nine; or
	 
	 	(4)	 	failure by the Company to comply for 30 days (or 180 days in the case of a Reporting
Failure) after there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the Outstanding Notes a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder, with any of its obligations under Sections 1110 through 1118 of Article Eleven
or Section 804 (in each case, other than a failure to purchase Notes which will constitute
an Event of Default under clause (2) above and other than a failure to comply with Article
Nine which will constitute an Event of Default under clause (3) above); or
	 
	 	(5)	 	failure by the Company to comply with any agreement in the Indenture (other than an
agreement, a default in or failure to comply with is elsewhere in this Section specifically
dealt with) and continuance of such default or breach for a period of 60 days after there
has been given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Notes a written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; or
	 
	 	(6)	 	default under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is Guaranteed by the
Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company
or a Restricted Subsidiary, whether such Indebtedness or Guarantee now exists, or is
created after the date of the Indenture, which default:

	 	(a)	 	is caused by a failure to pay principal of, or interest or premium, if
any, on such Indebtedness prior to the expiration of the grace period provided in
such Indebtedness (and any extensions of any grace period) (“payment default”); or
	 
	 	(b)	 	results in the acceleration of such Indebtedness prior to its Stated
Maturity; and, in each case, the principal amount of any such Indebtedness, together
with the principal amount of any other such Indebtedness under which there has been
a payment default or the maturity of which has been so accelerated, aggregates $20.0
million or more; or

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

53

 

	 	 	 	or a Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of
the last audited consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary, under any applicable Federal or
State law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the last audited consolidated financial statements
for the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary,
or of any substantial part of its or their property, or ordering the winding up or
liquidation of its or their affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60
consecutive days; or
	 
	 	(8)	 	the commencement by the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the last audited consolidated financial statements
for the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary
of a voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it or them to the entry of a decree
or order for relief in respect of the Company or in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law
or to the commencement of any bankruptcy or insolvency case or proceeding against it or
them, or the filing by it or them of a petition or answer or consent seeking reorganization
or relief under any applicable Federal or State law, or the consent by it or them to the
filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the
Company or a Significant Subsidiary or group of Restricted Subsidiaries that, taken
together (as of the last audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary or of any substantial
part of its or their property, or the making by it or them of an assignment for the benefit
of creditors, or the admission by it or them in writing of its or their inability to pay
its or their debts generally as they become due, or the taking of corporate action by the
Company or a Significant Subsidiary or group of Restricted Subsidiaries that, taken
together (as of the last audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary in furtherance of any
such action; or
	 
	 	(9)	 	failure by the Company or any Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $20.0 million (to the extent not
covered by insurance by a reputable and creditworthy insurer as to which the insurer has
not disclaimed coverage), which judgments are not paid or discharged, and there shall be
any period of 60 consecutive days following entry of such final judgment or decree during
which a stay of enforcement of such final judgment or decree, by reason of pending appeal
or otherwise, shall not be in effect; or
	 
	 	(10)	 	any Subsidiary Guarantee of a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the

54

 

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

Section 602. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than an Event of Default specified in Section 601(7) or 601(8))
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Notes may, and the Trustee at the request of such Holders
shall, declare the Notes to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration the principal of, premium,
if any, and accrued and unpaid interest, if any, on all of the Outstanding Notes shall become
immediately due and payable. If an Event of Default specified in Section 601(7) or 601(8) occurs,
the principal of, premium, if any, and accrued and unpaid interest, if any, on all of the
Outstanding Notes shall automatically, and without any declaration or other action on the part of
the Trustee or any Holder, become immediately due and payable.

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

	 	(a)	 	such rescission would not conflict with any judgment or decree of a court of competent
jurisdiction;
	 
	 	(b)	 	the Company has paid or deposited with the Trustee a sum sufficient to pay

	 	(A)	 	all overdue interest on all the Notes,
	 
	 	(B)	 	the principal of (and premium, if any, on) any Notes which have become
due otherwise than by such declaration of acceleration and any interest thereon at
the rate or rates prescribed therefor in such Notes,
	 
	 	(C)	 	to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate prescribed therefor in such Notes, and
	 
	 	(D)	 	all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

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

          Notwithstanding the foregoing, if an Event of Default specified in Section 601(6) above shall
have occurred and be continuing, such Event of Default and any consequential acceleration (to the
extent not in violation of any applicable law or in conflict with any judgment or decree of a court
of competent jurisdiction) shall be automatically rescinded if (i) the Indebtedness that is

55

 

the subject of such Event of Default has been repaid or (ii) if the default relating to such
Indebtedness is waived by the holders of such Indebtedness or cured and if such Indebtedness has
been accelerated, then the holders thereof have rescinded their declaration of acceleration in
respect of such Indebtedness, in each case within 20 days after the declaration of acceleration
with respect thereto, and (iii) any other existing Events of Default, except nonpayment of
principal, premium or interest on the Notes that became due solely because of the acceleration of
the Notes, have been cured or waived.

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

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

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

Section 604. Trustee May File Proofs of Claim.

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

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

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

          All rights of action and claims under the Indenture or the Notes may be prosecuted and
enforced by the Trustee without the possession of any of the Notes or the production thereof in

56

 

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
hereunder, unless:

	 	(1)	 	such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Notes;
	 
	 	(2)	 	the Holders of not less than 25% in principal amount of the Outstanding Notes
shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;
	 
	 	(3)	 	such Holder or Holders have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities to be incurred in compliance with
such request;
	 
	 	(4)	 	the Trustee for 60 days after its receipt of such notice, request and offer of
security or indemnity has failed to institute any such proceeding; and
	 
	 	(5)	 	the Holders of a majority in principal amount of the Outstanding Notes have not
waived such Event of Default or otherwise given the Trustee a direction that, in the
opinion of the Trustee, is inconsistent with such request within such 60-day period;

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

57

 

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 principal amount of the Outstanding
Notes shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Notes, provided that

58

 

	 	(1)	 	the Trustee may refuse to follow any direction that conflicts with any rule of
law or with the Indenture or that the Trustee determines is unduly prejudicial to the
rights of any other Holder or would involve the Trustee in personal liability, and
	 
	 	(2)	 	the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

Section 613. Waiver of Past Defaults.

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

	 	(1)	 	in the payment of the principal of or any premium or interest on the Notes
(including any Note which is required to have been purchased by the Company pursuant to
an offer to purchase by the Company made pursuant to the terms of the Indenture), or
	 
	 	(2)	 	in respect of a covenant or provision hereof which under Article Ten cannot be
modified or amended without the consent of the Holder of each Outstanding Note affected.

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

Section 614. Undertaking for Costs.

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

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

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

ARTICLE SEVEN

THE TRUSTEE

59

 

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. Whether or not therein expressly so provided, every provision of the Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall
be subject to the provisions of this Section.

Section 702. Notice of Defaults.

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

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

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 or Opinion of Counsel;
	 
	 	(4)	 	the Trustee may consult with counsel and the written advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;
	 
	 	(5)	 	the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by the Indenture at the request or direction of any of the Holders
pursuant to the

60

 

	 	 	 	Indenture, unless such Holders shall have offered to the Trustee security or indemnity
satisfactory to it in its sole discretion against the costs, expenses and liabilities
which 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 shall not be liable for any action it takes or omits to take in
good faith which it believes authorized or within its rights; and
	 
	 	(9)	 	In no event shall the Trustee be responsible or liable for special, indirect,
or consequential loss or damage of any kind whatsoever (including, but not limited to,
loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

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

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

Section 705. May Hold Notes.

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

Section 706. Money Held in Trust.

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

61

 

Section 707. Compensation and Reimbursement.

          The Company agrees

	 	(1)	 	to pay to the Trustee from time to time compensation for all services rendered
by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);
	 
	 	(2)	 	except as otherwise expressly provided herein, to reimburse the Trustee upon
its request for all expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of the Indenture (including the compensation
and the expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its gross negligence or bad faith;
and
	 
	 	(3)	 	to indemnify the Trustee for, and to hold it harmless against, any loss,
liability or expense incurred without gross negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its powers
or duties hereunder. When the Trustee incurs expenses or renders services after the
occurrence of an Event of Default specified in paragraph (7) or (8) of Section 601 of
the Indenture, such expenses and the compensation for such services are intended to
constitute expenses of administration under any Insolvency or Liquidation Proceeding.
For the purposes of this paragraph, “Insolvency” or “Liquidation Proceeding” means,
with respect to any Person, (a) an insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or similar case or proceeding in connection
therewith, relative to such Person or its creditors, as such, or its assets, or (b) any
liquidation, dissolution or other winding-up proceeding of such Person, whether
voluntary or involuntary and whether or not involving insolvency or bankruptcy or (c)
any assignment for the benefit of creditors or any other marshaling of assets and
liabilities of such Person.

Section 708. Conflicting Interests.

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

Section 709. Corporate Trustee Required; Eligibility.

          There shall at all times be one (and only one) Trustee hereunder with respect to the Notes.
Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such,
and has a combined capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements of its

62

 

supervising or examining authority, then for the purposes of this Section and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee with respect to the Notes shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

Section 710. Resignation and Removal; Appointment of Successor.

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

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

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

          If at any time:

	 	(1)	 	the Trustee shall fail to comply with Section 708 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Note for
at least six months, or
	 
	 	(2)	 	the Trustee shall cease to be eligible under Section 709 and shall fail to
resign after written request therefor by the Company or by any such Holder, or
	 
	 	(3)	 	the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any
public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,

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

          If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Notes, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Notes and
shall comply with the applicable requirements of Section 711. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Notes shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 711, become the successor Trustee with

63

 

respect to the Notes and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Notes shall have been so appointed by the
Company or the Holders and accepted appointment in the manner required by Section 711, any Holder
who has been a bona fide Holder of a Note for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Notes.

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

Section 711. Acceptance of Appointment by Successor.

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

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

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

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.

64

 

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

65

 

appointed unless eligible under the provisions of this Section.

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

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

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 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.

66

 

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

Section 803. Reports by Trustee.

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

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

Section 804. Reports by Company.

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

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

          (c) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then
the financial information required will include a reasonably detailed presentation, either on the
face of the financial statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial condition and results
of operations of the Company and its Restricted Subsidiaries separate from the financial condition
and results of operations of the Unrestricted Subsidiaries of the Company.

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

67

 

ARTICLE NINE

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

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

	 	(1)	 	the resulting, surviving or transferee Person (for purposes of this Article
Nine, a “Successor Company”) will be a corporation, partnership, trust or limited
liability company organized and existing under the laws of the United States of
America, any State of the United States or the District of Columbia and the Successor
Company (if not the Company) will expressly assume, by supplemental indenture, executed
and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all the
obligations of the Company under the Notes and the Indenture;
	 
	 	(2)	 	immediately after giving effect to such transaction (and treating any
Indebtedness that becomes an obligation of the Successor Company or any Subsidiary of
the Successor Company as a result of such transaction as having been Incurred by the
Successor Company or such Subsidiary at the time of such transaction), no Default or
Event of Default shall have occurred and be continuing;
	 
	 	(3)	 	either (A) immediately after giving effect to such transaction, the Successor
Company would be able to Incur at least an additional $1.00 of Indebtedness pursuant to
the first paragraph of Section 1111 or (B) immediately after giving effect to such
transaction on a pro forma basis and any related financing transactions as if the same
had occurred at the beginning of the applicable four quarter period, the Consolidated
Coverage Ratio of the Company is equal to or greater than the Consolidated Coverage
Ratio of the Company immediately before such transaction;
	 
	 	(4)	 	if the Company is not the Successor Company, each Subsidiary Guarantor (unless
it is the other party to the transactions above, in which case clause (1) shall apply)
shall have by supplemental indenture confirmed that its Subsidiary Guarantee shall
apply to such Person’s obligations in respect of the Indenture and the Notes shall
continue to be in effect; and
	 
	 	(5)	 	the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer
or lease and such supplemental indenture (if any) comply with the Indenture and that
all conditions precedent herein provided for relating to such transaction have been
complied with.

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

68

 

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

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

	 	(1)	 	(a) the resulting, surviving or transferee Person will be a corporation,
partnership, trust or limited liability company organized and existing under the laws
of the United States of America, any State of the United States or the District of
Columbia and such Person (if not such Subsidiary Guarantor) will expressly assume, by
supplemental indenture, executed and delivered to the Trustee, all the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee and (b) immediately after
giving effect to such transaction (and treating any Indebtedness that becomes an
obligation of the resulting, surviving or transferee Person or any Restricted
Subsidiary as a result of such transaction as having been Incurred by such Person or
such Restricted Subsidiary at the time of such transaction), no Default shall have
occurred and be continuing;
	 
	 	(2)	 	the transaction is made in compliance with this Section 902, Section 1115 and
Article Sixteen; and
	 
	 	(3)	 	the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer
or lease and such supplemental indenture (if any) comply with the Indenture and that
all conditions precedent herein provided for relating to such transaction have been
complied with.

Section 903. Certain Permitted Consolidations, Etc.

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

Section 904. Successor Substituted.

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

69

 

ARTICLE TEN

SUPPLEMENTAL INDENTURES

Section 1001. Supplemental Indentures Without Consent of Holders.

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

	 	(1)	 	cure any ambiguity, omission, defect, mistake or inconsistency;
	 
	 	(2)	 	provide for the assumption by a successor corporation, partnership, trust or
limited liability company of the obligations of the Company or any Subsidiary Guarantor
under the Indenture and the Notes;
	 
	 	(3)	 	provide for uncertificated Notes in addition to or in place of certificated
Notes (provided that the uncertificated Notes are issued in registered form for
purposes of Section 163(f) of the Code, or in a manner such that the uncertificated
Notes are described in Section 163(f)(2)(B) of the Code);
	 
	 	(4)	 	add Guarantors with respect to the Notes, including Subsidiary Guarantors, or
release a Subsidiary Guarantor from its Subsidiary Guarantee and terminate such
Subsidiary Guarantee; provided that the release and termination is in accordance with
Section 1604;
	 
	 	(5)	 	secure the Notes or the Subsidiary Guarantees;
	 
	 	(6)	 	add to the covenants of the Company or a Subsidiary Guarantor for the benefit
of the Holders or surrender any right or power conferred upon the Company or a
Subsidiary Guarantor;
	 
	 	(7)	 	make any change that does not adversely affect the rights of any Holder;
provided, however, that any change to conform the Indenture to the “Description of
Notes” in the final prospectus of the Company relating to the Initial Notes will not be
deemed to adversely affect such legal rights;
	 
	 	(8)	 	comply with any requirement of the SEC in connection with the qualification of
the Indenture under the Trust Indenture Act; or
	 
	 	(9)	 	provide for the succession of a successor Trustee, provided that the successor
Trustee is otherwise qualified and eligible to act as such under the Indenture.

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

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

70

 

Section 1002. Supplemental Indentures With Consent of Holders.

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

	 	(1)	 	reduce the principal amount of Notes whose Holders must consent to an amendment
or waiver;
	 
	 	(2)	 	reduce the stated rate of or extend the stated time for payment of interest on
any Note;
	 
	 	(3)	 	reduce the principal of or extend the Stated Maturity of any Note;
	 
	 	(4)	 	reduce the premium payable upon the redemption of any Note pursuant to Section
1203 or change the time at which any Note may be redeemed pursuant to Section 1203;
	 
	 	(5)	 	waive a Default or Event of Default in the payment of principal of, or interest
or premium on, the Notes (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the then Outstanding
Notes and a waiver of the payment default that resulted from such acceleration);
	 
	 	(6)	 	make any Note payable in money other than that stated in the Note;
	 
	 	(7)	 	make any change in the provisions of the Indenture relating to waivers of past
Defaults or Events of Default or impair the right of any Holder to receive payment of
the principal of, premium, if any, and interest on such Holder’s Notes on or after the
due dates therefor or to institute suit for the enforcement of any payment on or with
respect to such Holder’s Notes;
	 
	 	(8)	 	make any change in this Section 1002 or in Section 613;
	 
	 	(9)	 	modify the Subsidiary Guarantees in any manner adverse to the Holders of the
Notes; or
	 
	 	(10)	 	make any change to or modify the ranking of the Notes that would adversely
affect the Holders.

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

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

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

71

 

amendment.

Section 1003. Execution of Supplemental Indentures.

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

Section 1004. Effect of Supplemental Indentures.

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

Section 1005. Conformity with Trust Indenture Act.

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

Section 1006. Reference in Notes to Supplemental Indentures.

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

ARTICLE ELEVEN

COVENANTS

Section 1101. Payment of Principal, Premium and Interest.

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

          The Company will pay interest (including post-petition interest in any proceeding under

72

 

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

Section 1102. Maintenance of Office or Agency.

          The Company will maintain, in the City and State of New York and in any other Place of
Payment, an office or agency where Notes may be presented or surrendered for payment, and it will
maintain an office or agency in the continental United States where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and the Indenture may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and each of the Company and the
Subsidiary Guarantors 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 The Bank of New York Mellon,
on behalf (for the benefit) of The Bank of New York Mellon Trust Company, N.A., at its corporate
trust office in the City of New York, which, at the date hereof, is located at 101 Barclay Street,
Floor 21 West, New York, New York 10286, 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

73

 

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

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

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

          (b) The Company shall, so long as any Note is Outstanding, deliver to the Trustee

74

 

within thirty days after the occurrence of a Default, written notice (which need not be an
Officers’ Certificate) setting forth the details of such Default, and what action the Company is
taking or proposing to take with respect thereto.

Section 1105. Existence.

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

Section 1106. [Reserved].

Section 1107. Payment of Taxes.

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

Section 1108. [Reserved].

Section 1109. [Reserved].

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

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

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

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

75

 

	 	 	 	Payment”);
	 
	 	(2)	 	the purchase date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed) (the “Change of Control Payment Date”);
	 
	 	(3)	 	that any Note not properly tendered will remain outstanding and continue to
accrue interest;
	 
	 	(4)	 	that unless the Company defaults in the payment of the Change of Control
Payment, all Notes accepted for payment pursuant to the Change of Control Offer will
cease to accrue interest on the Change of Control Payment Date;
	 
	 	(5)	 	that Holders electing to have any Notes in certificated form purchased pursuant
to a Change of Control Offer will be required to surrender such Notes, with the form
entitled “Option of Holder to Elect Purchase” on the reverse of such Notes completed,
to the paying agent specified in the notice at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change of
Control Payment Date;
	 
	 	(6)	 	that Holders will be entitled to withdraw their tendered Notes and their
election to require the Company to purchase such Notes, provided that the paying
agent receives, not later than the close of business on the third Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission
or letter setting forth the name of the Holder of the Notes, the principal amount of
Notes tendered for purchase, and a statement that such Holder is withdrawing its
tendered Notes and its election to have such Notes purchased;
	 
	 	(7)	 	that if the Company is repurchasing a portion of the Note of any Holder, the
Holder will be issued a new Note equal in principal amount to the unpurchased portion
of the Note surrendered, provided that the unpurchased portion of the Note must be
equal to a minimum principal amount of $2,000 and an integral multiple of $1,000 in
excess of $2,000; and
	 
	 	(8)	 	the procedures determined by the Company, consistent with the Indenture, that a
Holder must follow in order to have its Notes repurchased.

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

	 	(1)	 	accept for payment all Notes or portions of Notes (in a minimum principal
amount of $2,000 and integral multiples of $1,000 in excess of $2,000) properly
tendered pursuant to the Change of Control Offer and not properly withdrawn;
	 
	 	(2)	 	deposit with the Paying Agent an amount equal to the Change of Control Payment
in respect of all Notes or portions of Notes accepted for payment; and
	 
	 	(3)	 	deliver or cause to be delivered to the Trustee the Notes so accepted together
with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

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

76

 

each such new Note will be in a minimum principal amount of $2,000 or an integral multiple of
$1,000 in excess of $2,000.

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

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

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

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

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

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

Section 1111. Limitation on Indebtedness and Preferred Stock.

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

77

 

	 	(1)	 	the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries
is at least 2.50 to 1.00, determined on a pro forma basis (including a pro forma
application of proceeds); and
	 
	 	(2)	 	no Default would occur as a consequence of, and no Event of Default would be
continuing following, Incurring the Indebtedness or its application.

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

	 	(1)	 	Indebtedness under one or more Credit Facilities of (a) the Company or any
Subsidiary Guarantor Incurred pursuant to this clause (1) in an aggregate amount not to
exceed the greater of (i) $600.0 million or (ii) the sum of $200.0 million and 25.0% of
the Company’s Adjusted Consolidated Net Tangible Assets determined as of the date of
the Incurrence of such Indebtedness after giving effect to the application of the
proceeds therefrom ;
	 
	 	(2)	 	Guarantees of Indebtedness Incurred in accordance with the provisions of the
Indenture; provided that in the event such Indebtedness that is being Guaranteed is a
Subordinated Obligation or a Guarantor Subordinated Obligation, then the related
Guarantee shall be subordinated in right of payment to the Notes or the Subsidiary
Guarantee to at least the same extent as the Indebtedness being Guaranteed, as the case
may be;
	 
	 	(3)	 	Indebtedness of the Company owing to and held by any Restricted Subsidiary or
Indebtedness of a Restricted Subsidiary owing to and held by the Company or any
Restricted Subsidiary; provided, however, that (a)(i) if the Company is the obligor
on such Indebtedness and the obligee is not a Subsidiary Guarantor, such Indebtedness
must be expressly subordinated to the prior payment in full in cash of all obligations
with respect to the Notes and (ii) if a Subsidiary Guarantor is the obligor of such
Indebtedness and the obligee is neither the Company nor a Subsidiary Guarantor, such
Indebtedness must be expressly subordinated to the prior payment in full in cash of all
obligations of such Subsidiary Guarantor with respect to its Subsidiary Guarantee and
(b)(i) any subsequent issuance or transfer of Capital Stock or any other event which
results in any such Indebtedness being held by a Person other than the Company or a
Restricted Subsidiary of the Company and (ii) any sale or other transfer of any such
Indebtedness to a Person other than the Company or a Restricted Subsidiary of the
Company shall be deemed, in each case, to constitute an Incurrence of such Indebtedness
by the Company or such Subsidiary, as the case may be, that was not permitted by this
clause (3);
	 
	 	(4)	 	Indebtedness represented by (a) the Notes issued on the Issue Date and all
Subsidiary Guarantees, (b) any Indebtedness (other than the Indebtedness described in
clauses (1), (2) and 4(a)) outstanding on the Issue Date and (c) any Refinancing
Indebtedness Incurred in respect of any Indebtedness described in this clause (4) or
clause (5) or Incurred pursuant to the first paragraph of this Section 1111;
	 
	 	(5)	 	Permitted Acquisition Indebtedness and Non-Recourse Purchase Money
Indebtedness;
	 
	 	(6)	 	Indebtedness Incurred in respect of (a) self-insurance obligations, bid,
appeal,

78

 

	 	 	 	reimbursement, performance, surety and similar bonds and completion guarantees provided
by the Company or a Restricted Subsidiary in the ordinary course of business and any
Guarantees or letters of credit functioning as or supporting any of the foregoing bonds
or obligations and (b) obligations represented by letters of credit for the account of
the Company or a Restricted Subsidiary in order to provide security for workers’
compensation claims (in the case of clauses (a) and (b) other than for an obligation for
money borrowed); and
	 
	 	(7)	 	in addition to the items referred to in clauses (1) through (6) above,
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate outstanding
principal amount which, when taken together with the principal amount of all other
Indebtedness Incurred pursuant to this clause (7) and then outstanding, will not exceed
$100.0 million.

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

	 	(1)	 	in the event an item of that Indebtedness meets the criteria of more than one
of the types of Indebtedness described in the first and second paragraphs of this
Section 1111, the Company, in its sole discretion, will classify such item of
Indebtedness on the date of Incurrence and, subject to clause (2) below may later
classify, reclassify or redivide all or a portion of such item of Indebtedness, in any
manner that complies with this Section 1111;
	 
	 	(2)	 	all Indebtedness outstanding on the date of the Indenture under the Senior
Secured Credit Agreement shall be deemed Incurred on the Issue Date under clause (1) of
the second paragraph of this Section 1111;
	 
	 	(3)	 	Guarantees of, or obligations in respect of letters of credit supporting,
Indebtedness which is otherwise included in the determination of a particular amount of
Indebtedness shall not be included;
	 
	 	(4)	 	if obligations in respect of letters of credit are Incurred pursuant to a
Credit Facility and are being treated as Incurred pursuant to clause (1) of the second
paragraph above and the letters of credit relate to other Indebtedness, then such other
Indebtedness shall not be included to the extent of the underlying letter of credit;
	 
	 	(5)	 	the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary
Guarantor, will be equal to the greater of the maximum mandatory redemption or
repurchase price (not including, in either case, any redemption or repurchase premium)
or the liquidation preference thereof;
	 
	 	(6)	 	Indebtedness permitted by this Section 1111 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by
one such provision and in part by one or more other provisions of this Section 1111
permitting such Indebtedness; and
	 
	 	(7)	 	the amount of Indebtedness issued at a price that is less than the principal
amount thereof will be equal to the amount of the liability in respect thereof
determined in accordance with GAAP.

79

 

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

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

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

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

Section 1112. Limitation on Restricted Payments.

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

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

	 	(a)	 	dividends or distributions by the Company payable solely in Capital Stock
of the Company (other than Disqualified Stock but including options, warrants or
other

80

 

	 	 	 	rights to purchase such Capital Stock of the Company); and

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

	 	(2)	 	purchase, repurchase, redeem, defease or otherwise acquire or retire for value any
Capital Stock of the Company or any direct or indirect parent of the Company held by
Persons other than the Company or a Restricted Subsidiary (other than in exchange for
Capital Stock of the Company (other than Disqualified Stock));
	 
	 	(3)	 	purchase, repurchase, redeem, defease or otherwise acquire or retire for value, prior
to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than (x) Indebtedness
permitted under clause (3) of the second paragraph of Section 1111, (y) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of Subordinated
Obligations or Guarantor Subordinated Obligations purchased in anticipation of satisfying a
sinking fund obligation, principal installment or final maturity, in each case due within
one year of the date of purchase, repurchase, redemption, defeasance or other acquisition
or retirement) or (z) the Company’s 8 3/4% Senior Subordinated Notes due 2011, to the
extent so acquired or retired out of the net proceeds of the sale of the Notes; or
	 
	 	(4)	 	make any Restricted Investment in any Person;

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

	 	(a)	 	a Default shall have occurred and be continuing (or would result
therefrom);
	 
	 	(b)	 	the Company is not able to Incur an additional $1.00 of Indebtedness
pursuant to the first paragraph of Section 1111 after giving effect, on a pro forma
basis, to such Restricted Payment; or
	 
	 	(c)	 	the aggregate amount of such Restricted Payment and all other Restricted
Payments declared or made subsequent to December 31, 2008 would exceed the sum of:

	 	(i)	 	50% of Consolidated Net Income for the period (treated as one
accounting period) from January 1, 2009 to the end of the most recent fiscal
quarter ending prior to the date of such Restricted Payment for which internal
financial statements are in existence (or, in case such Consolidated Net Income
is a deficit, minus 100% of such deficit);
	 
	 	(ii)	 	100% of the aggregate Net Cash Proceeds and the Fair Market
Value of property or securities other than cash (including Capital Stock of
Persons engaged primarily in the Oil and Gas Business or assets used in the Oil
and Gas Business), in each case received by the Company from the issue

81

 

	 	 	 	or sale of its Capital Stock (other than Disqualified Stock) or other
capital contributions subsequent to December 31, 2008 (other than Net Cash
Proceeds received from an issuance or sale of such Capital Stock to (x) any
Persons indicated in clause 5(a) of the next succeeding paragraph or any
direct or indirect parent of the Company, to the extent such Net Cash
Proceeds have been used to make a Restricted Payment pursuant to clause
(5)(a) of the next succeeding paragraph, (y) a Subsidiary of the Company or
(z) an employee stock ownership plan, option plan or similar trust (to the
extent such sale to an employee stock ownership plan, option plan or similar
trust is financed by loans from or Guaranteed by the Company or any
Restricted Subsidiary unless such loans have been repaid with cash on or
prior to the date of determination));
	 
	 	(iii)	 	the amount by which Indebtedness of the Company or its
Restricted Subsidiaries is reduced on the Company’s balance sheet upon the
conversion or exchange (other than by a Subsidiary of the Company) subsequent
to December 31, 2008 of any Indebtedness of the Company or its Restricted
Subsidiaries convertible or exchangeable for Capital Stock (other than
Disqualified Stock) of the Company (less the amount of any cash, or the Fair
Market Value of any other property (other than such Capital Stock), distributed
by the Company upon such conversion or exchange), together with the net
proceeds, if any, received by the Company or any of its Restricted Subsidiaries
upon such conversion or exchange; and
	 
	 	(iv)	 	the amount equal to the aggregate net reduction in Restricted
In-vestments made by the Company or any of its Restricted Subsidiaries in any
Person after December 31, 2008 resulting from:

	 	(A)	 	repurchases, repayments or redemptions of such
Restricted Investments by such Person, proceeds realized upon the sale
of such Restricted Investment (other than to a Subsidiary of the
Company), repayments of loans or advances or other transfers of assets
(including by way of dividend or distribution) by such Person to the
Company or any Restricted Subsidiary;
	 
	 	(B)	 	the redesignation of Unrestricted Subsidiaries
as Restricted Subsidiaries (valued in each case as provided in the
definition of “Investment”) not to exceed, in the case of any
Unrestricted Subsidiary, the amount of Investments previously made by
the Company or any Restricted Subsidiary in such Unrestricted
Subsidiary, which amount in each case under this clause (iv) was
included in the calculation of the amount of Restricted Payments;
provided, however, that no amount will be included under this clause
(iv) to the extent it is already included in Consolidated Net Income;
and
	 
	 	(C)	 	the sale by the Company or any Restricted
Subsidiary (other than to the Company or a Restricted Subsidiary) of
all or a portion of the

82

 

	 	 	 	Capital Stock of an Unrestricted Subsidiary or a distribution from an
Unrestricted Subsidiary or a dividend from an Unrestricted Subsidiary
(whether any such distribution or dividend is made with proceeds from the
issuance by such Unrestricted Subsidiary of its Capital Stock or
otherwise).

          The provisions of the preceding paragraph will not prohibit:

	 	(1)	 	any Restricted Payment made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Company (other than Disqualified
Stock and other than Capital Stock issued or sold to a Subsidiary of the Company or an
employee stock ownership plan or similar trust to the extent such sale to an employee
stock ownership plan or similar trust is financed by loans from or Guaranteed by the
Company or any Restricted Subsidiary unless such loans have been repaid with cash on or
prior to the date of determination) or a substantially concurrent cash capital
contribution received by the Company from its shareholders; provided, however, that
(a) such Restricted Payment will be excluded from subsequent calculations of the amount
of Restricted Payments and (b) the Net Cash Proceeds from such sale of Capital Stock or
capital contribution will be excluded from clause (c)(ii) of the preceding paragraph;
	 
	 	(2)	 	any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Subsidiary Guarantor made by exchange for, or out of the proceeds of
the substantially concurrent sale of, Refinancing Indebtedness or any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of Guarantor
Subordinated Obligations made by exchange for or out of the proceeds of the
substantially concurrent sale of Refinancing Indebtedness that, in each case, is
permitted to be Incurred pursuant to Section 1111; provided, however, that such
purchase, repurchase, redemption, defeasance, acquisition or retirement will be
excluded from subsequent calculations of the amount of Restricted Payments;
	 
	 	(3)	 	any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Disqualified Stock of the Company or a Restricted Subsidiary made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Disqualified Stock of the Company or such Restricted Subsidiary, as the case may be,
that, in each case, is permitted to be Incurred pursuant to Section 1111; provided,
however, that such purchase, repurchase, redemption, defeasance, acquisition or
retirement will be excluded from subsequent calculations of the amount of Restricted
Payments;
	 
	 	(4)	 	dividends paid or distributions made within 60 days after the date of
declaration if at such date of declaration such dividend or distribution would have
complied with this Section 1112; provided, however, that such dividends and
distributions will be included in subsequent calculations of the amount of Restricted
Payments; and provided further, however, that for purposes of clarification, this
clause (4) shall not include cash payments in lieu of the issuance of fractional shares
included in clause (9) below;
	 
	 	(5)	 	so long as no Default has occurred and is continuing, (a) the repurchase or
other acquisition of Capital Stock (including options, warrants, equity appreciation
rights or

83

 

	 	 	 	other rights to purchase or acquire Capital Stock) of the Company held by any existing
or former employees, officers or directors of the Company or any Restricted Subsidiary
of the Company or their assigns, estates or heirs, in each case pursuant to the
repurchase or other acquisition provisions under employee stock option or stock purchase
plans or agreements or other agreements to compensate employees, officers or directors,
in each case approved by the Company’s Board of Directors; provided that such
repurchases or other acquisitions pursuant to this subclause (a) during any calendar
year will not exceed $4.0 million in the aggregate (with unused amounts in any calendar
year being carried over to succeeding calendar years); provided further that such
amount in any calendar year may be increased by an amount not to exceed (A) the cash
proceeds received by the Company from the sale of Capital Stock of the Company to any
existing or former employees, officers or directors of the Company or any of its
Restricted Subsidiaries or their assigns, estates or heirs that occurred after December
31, 2008 (to the extent the cash proceeds from the sale of such Capital Stock have not
otherwise been applied to the payment of Restricted Payments by virtue of the clause (c)
of the preceding paragraph), plus (B) the cash proceeds of key man life insurance
policies received by the Company and its Restricted Subsidiaries after December 31,
2008, less (C) the amount of any Restricted Payments made pursuant to clauses (A) and
(B) of this clause (5)(a); provided further, however, that the amount of any such
repurchase or other acquisition under this subclause (a) will be excluded in subsequent
calculations of the amount of Restricted Payments and the proceeds received from any
such transaction will be excluded from clause (c)(ii) of the preceding paragraph; and
(b) loans or advances to employees, officers or directors of the Company or any
Subsidiary of the Company, in each case as permitted by Section 402 of the
Sarbanes-Oxley Act of 2002, the proceeds of which are used to purchase Capital Stock of
the Company, or to refinance loans or advances made pursuant to this clause 5(b), in an
aggregate principal amount not in excess of $4.0 million at any one time outstanding;
provided, however, that the amount of such loans and advances will be included in
subsequent calculations of the amount of Restricted Payments;
	 
	 	(6)	 	purchases, repurchases, redemptions or other acquisitions or retirements for
value of Capital Stock deemed to occur upon the exercise of stock options, warrants,
rights to acquire Capital Stock or other convertible securities if such Capital Stock
represents a portion of the exercise or exchange price thereof, and any purchases,
repurchases, redemptions or other acquisitions or retirements for value of Capital
Stock made in lieu of withholding taxes in connection with any exercise or exchange of
warrants, options or rights to acquire Capital Stock; provided, however, that such
acquisitions or retirements will be excluded from subsequent calculations of the amount
of Restricted Payments;
	 
	 	(7)	 	so long as no Default has occurred and is continuing or would be caused
thereby, the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Subordinated Obligation (i) at a purchase price not greater
than 101% of the principal amount of such Subordinated Obligation in the event of a
Change of Control in accordance with provisions similar to Section 1110 or (ii) at a
purchase price not greater than 100% of the principal amount thereof in accordance with
provisions similar to Section 1115; provided that, prior to or simultaneously with

84

 

	 	 	 	such purchase, repurchase, redemption, defeasance or other acquisition or retirement,
the Company has made the Change of Control Offer or Asset Disposition Offer, as
applicable, as provided in such Section with respect to the Notes and has completed the
repurchase or redemption of all Notes validly tendered for payment in connection with
such Change of Control Offer or Asset Disposition Offer; provided, however, that such
acquisitions or retirements will be included in subsequent calculations of the amount of
Restricted Payments;
	 
	 	(8)	 	payments or distributions to dissenting stockholders pursuant to applicable law
or in connection with the settlement or other satisfaction of legal claims made
pursuant to or in connection with a consolidation, merger or transfer of assets;
provided, however, that any payment pursuant to this clause (8) shall be included in
the calculation of the amount of Restricted Payments;
	 
	 	(9)	 	cash payments in lieu of the issuance of fractional shares; provided, however,
that any payment pursuant to this clause (9) shall be excluded in the calculation of
the amount of Restricted Payments;
	 
	 	(10)	 	the declaration and payment of scheduled or accrued dividends to holders of any
class of or series of Disqualified Stock of the Company issued on or after the Issue
Date in accordance with Section 1111, to the extent such dividends are included in
Consolidated Interest Expense; provided, however, that any payment pursuant to this
clause (10) shall be excluded in the calculation of the amount of Restricted Payments;
and
	 
	 	(11)	 	Restricted Payments in an amount not to exceed $25.0 million in the aggregate
since the Issue Date; provided, however, that the amount of such Restricted Payments
will be included in subsequent calculations of the amount of Restricted Payments.

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

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

          The Company will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to the last sentence of the definition of “Unrestricted Subsidiary.” For purpose of
designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by
the Company and its Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as set forth in the
last sentence of the definition of “Investment.” Such designation will be permitted

85

 

only if a Restricted Payment in such amount would be permitted at such time, whether pursuant
to the first paragraph of this Section 1112 or under clause (11) of the second paragraph of this
Section 1112, or pursuant to the definition of “Permitted Investments,” and if such Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary.

Section 1113. Limitation on Liens.

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

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

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

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

	 	(1)	 	pay dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligations owed to the Company or any Restricted Subsidiary (it
being understood that the priority of any Preferred Stock in receiving dividends or
liquidating distributions prior to dividends or liquidating distributions being paid on
Common Stock shall not be deemed a restriction on the ability to make distributions on
Capital Stock);
	 
	 	(2)	 	make any loans or advances to the Company or any Restricted Subsidiary (it
being understood that the subordination of loans or advances made to the Company or any
Restricted Subsidiary to other Indebtedness Incurred by the Company or any Restricted
Subsidiary shall not be deemed a restriction on the ability to make loans or advances);
or
	 
	 	(3)	 	sell, lease or transfer any of its property or assets to the Company or any
Restricted Subsidiary.

          The preceding provisions will not prohibit:

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

86

 

	 	(2)	 	any encumbrance or restriction with respect to a Person pursuant to or by
reason of an agreement relating to any Capital Stock or Indebtedness Incurred by a
Person on or before the date on which such Person was acquired by the Company or
another Restricted Subsidiary (other than Capital Stock or Indebtedness Incurred as
consideration in, or to provide all or any portion of the funds utilized to consummate,
the transaction or series of related transactions pursuant to which such Person was
acquired by the Company or a Restricted Subsidiary or in contemplation of the
transaction) and outstanding on such date; provided that any such encumbrance or
restriction shall not extend to any assets or property of the Company or any other
Restricted Subsidiary other than the assets and property so acquired;
	 
	 	(3)	 	any encumbrance or restriction with respect to an Unrestricted Subsidiary
pursuant to or by reason of an agreement that the Unrestricted Subsidiary is a party to
entered into before the date on which such Unrestricted Subsidiary became a Restricted
Subsidiary; provided that such agreement was not entered into in anticipation of the
Unrestricted Subsidiary becoming a Restricted Subsidiary and any such encumbrance or
restriction shall not extend to any assets or property of the Company or any other
Restricted Subsidiary other than the assets and property so acquired;
	 
	 	(4)	 	with respect to any Foreign Subsidiary, any encumbrance or restriction
contained in the terms of any Indebtedness or any agreement pursuant to which such
Indebtedness was Incurred if either (1) the encumbrance or restriction applies only in
the event of a payment default or a default with respect to a financial covenant in
such Indebtedness or agreement or (2) the Company determines that any such encumbrance
or restriction will not materially affect the Company’s ability to make principal or
interest payments on the Notes, as determined in good faith by the Board of Directors
of the Company, whose determination shall be conclusive;
	 
	 	(5)	 	any encumbrance or restriction with respect to a Restricted Subsidiary pursuant
to an agreement effecting a refunding, replacement or refinancing of Indebtedness
Incurred pursuant to an agreement referred to in clauses (1) through (4) or clause (11)
of this paragraph or this clause (5) or contained in any amendment, restatement,
modification, renewal, refunding, replacement or refinancing of an agreement referred
to in clauses (1) through (4) or clause (11) of this paragraph or this clause (5);
provided that the encumbrances and restrictions with respect to such Restricted
Subsidiary contained in any such agreement, taken as a whole, are no less favorable in
any material respect to the Holders of the Notes than the encumbrances and restrictions
contained in the agreements governing the Indebtedness being refunded, replaced or
refinanced;
	 
	 	(6)	 	in the case of clause (3) of the first paragraph of this Section 1114, any
encumbrance or restriction:

	 	(a)	 	that restricts in a customary manner the subletting, assignment
or transfer of any property or asset that is subject to a lease (including
leases governing leasehold interests or farm-in agreements or farm-out
agreements relating to leasehold interests in Oil and Gas Properties), license
or similar contract, or the assignment or transfer of any such lease (including
leases governing leasehold interests or farm-in agreements or farm-out
agreements relating to

87

 

	 	 	 	leasehold interests in Oil and Gas Properties), license (including, without
limitation, licenses of intellectual property) or other contract;

	 	(b)	 	contained in mortgages, pledges or other security agreements
permitted under the Indenture securing Indebtedness of the Company or a
Restricted Subsidiary to the extent such encumbrances or restrictions restrict
the transfer of the property subject to such mortgages, pledges or other
security agreements;
	 
	 	(c)	 	contained in any agreement creating Hedging Obligations
permitted from time to time under the Indenture;
	 
	 	(d)	 	pursuant to customary provisions restricting dispositions of
real property interests set forth in any reciprocal easement agreements of the
Company or any Restricted Subsidiary;
	 
	 	(e)	 	restrictions on cash or other deposits imposed by customers
under contracts entered into in the ordinary course of business; or
	 
	 	(f)	 	provisions with respect to the disposition or distribution of
assets or property in operating agreements, joint venture agreements,
development agreements, area of mutual interest agreements and other agreements
that are customary in the Oil and Gas Business and entered into in the ordinary
course of business.

	 	(7)	 	any encumbrance or restriction contained in (a) purchase money obligations for
property acquired in the ordinary course of business and (b) Capitalized Lease
Obligations permitted under the Indenture, in each case, that impose encumbrances or
restrictions of the nature described in clause (3) of the first paragraph of this
Section 1114 on the property so acquired;
	 
	 	(8)	 	any encumbrance or restriction with respect to a Restricted Subsidiary (or any
of its property or assets) imposed pursuant to an agreement entered into for the direct
or indirect sale or disposition of all or a portion of the Capital Stock or assets of
such Restricted Subsidiary (or the property or assets that are subject to such
restriction) pending the closing of such sale or disposition;
	 
	 	(9)	 	any customary encumbrances or restrictions imposed pursuant to any agreement of
the type described in the definition of “Permitted Business Investment”;
	 
	 	(10)	 	encumbrances or restrictions arising or existing by reason of applicable law or
any applicable rule, regulation or order;
	 
	 	(11)	 	encumbrances or restrictions contained in agreements governing Indebtedness of
the Company or any of its Restricted Subsidiaries permitted to be Incurred pursuant to
an agreement entered into subsequent to the Issue Date in accordance with Section 1111;
provided that the provisions relating to such encumbrance or restriction contained in
such Indebtedness are not materially less favorable to the Company taken as a whole, as
determined by the Board of Directors of the Company in good faith, than the provisions
contained in the Senior Secured Credit Agreement and in the Indenture as in effect on
the Issue Date;
	 
	 	(12)	 	the issuance of Preferred Stock by a Restricted Subsidiary or the payment of

88

 

	 	 	 	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);
	 
	 	(13)	 	supermajority voting requirements existing under corporate charters, by-laws,
stockholders agreements and similar documents and agreements;
	 
	 	(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)	 	any encumbrance or restriction contained in the Senior Secured Credit Agreement
as in effect as of the Issue Date, and in any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings thereof;
provided that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are no more restrictive with
respect to such dividend and other payment restrictions than those contained in the
Senior Secured Credit Agreement as in effect on the Issue Date.

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

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

	 	(1)	 	the Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Disposition at least equal to the Fair Market
Value (such Fair Market Value to be determined on the date of contractually agreeing to
such Asset Disposition) of the shares or other assets subject to such Asset
Disposition;
	 
	 	(2)	 	at least 75% of the aggregate consideration received by the Company or such
Restricted Subsidiary, as the case may be, from such Asset Disposition and all other
Asset Dispositions since the Issue Date, on a cumulative basis, is in the form of cash
or Cash Equivalents, or any combination thereof; and
	 
	 	(3)	 	except as provided in the next paragraph, an amount equal to 100% of the Net
Available Cash from such Asset Disposition is applied, within 365 days from the later
of the date of such Asset Disposition or the receipt of such Net Available Cash, by the
Company or such Restricted Subsidiary, as the case may be:

	 	(a)	 	to prepay, repay, redeem or purchase Pari Passu Indebtedness of
the Company (including the Notes) or a Subsidiary Guarantor or any Indebtedness
(other than Disqualified Stock) of a Restricted Subsidiary that is not a
Subsidiary Guarantor (in each case, excluding Indebtedness owed to the Company
or an Affiliate of the Company); provided, however, that, in connection with
any prepayment, repayment, redemption or purchase of Indebtedness pursuant to
this clause (a), the Company or such Restricted Subsidiary will retire such

89

 

	 	 	 	Indebtedness and will cause the related commitment (if any) to be permanently
reduced in an amount equal to the principal amount so prepaid, repaid, redeemed
or purchased; or
	 
	 	(b)	 	to invest in Additional Assets;

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

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

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

          If the Asset Disposition Purchase Date is on or after an interest record date and on or

90

 

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

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

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

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

	 	(1)	 	the assumption by the transferee of Indebtedness (other than Subordinated
Obligations or Disqualified Stock) of the Company or Indebtedness of a Restricted
Subsidiary (other than Guarantor Subordinated Obligations or Disqualified Stock of any
Restricted Subsidiary that is a Subsidiary Guarantor) and the release of the Company or
such Restricted Subsidiary from all liability on such Indebtedness in connection with
such Asset Disposition, in which case the Company will, without further action, be
deemed to have applied such deemed cash to Indebtedness in

91

 

	 	 	 	accordance with clause (3)(a) of the first paragraph of this Section 1115; and

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

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

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

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

	 	(1)	 	at the time of entering into such Asset Swap and immediately after giving effect
to such Asset Swap, no Default or Event of Default shall have occurred and be continuing
or would occur as a consequence thereof; and
	 
	 	(2)	 	in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate Fair Market Value equal to or in
excess of $25.0 million, the terms of such Asset Swap have been approved by a majority
of the members of the Board of Directors of the Company.

Section 1116. Limitation on Affiliate Transactions.

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

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

	 	a.	 	with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $20.0
million, a Board Resolution certifying that the terms of such transaction have
been approved by a majority of the members of the Board of Directors of the

92

 

	 	 	 	Company having no personal stake in such transaction, if any (and such majority
determines that such Affiliate Transaction satisfies the criteria in clause (1)
above); and
	 
	 	b.	 	with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $50.0
million, a written opinion addressed to the Board of Directors of the Company
or the Company from an independent investment banking, accounting, engineering
or appraisal firm of nationally recognized standing that such Affiliate
Transaction is fair, from a financial standpoint, to the Company or such
Restricted Subsidiary or is not materially less favorable than those that could
reasonably be expected to be obtained in a comparable transaction at such time
on an arm’s-length basis from a Person that is not an Affiliate.

          The preceding paragraph will not apply to:

	 	(1)	 	any Restricted Payment permitted to be made pursuant to Section 1112 or any
Permitted Investment;
	 
	 	(2)	 	any issuance of Capital Stock (other than Disqualified Stock), or other
payments, awards or grants in cash, Capital Stock (other than Disqualified Stock) or
otherwise pursuant to, or the funding of, employment or severance agreements and other
compensation arrangements, options to purchase Capital Stock (other than Disqualified
Stock) of the Company, restricted stock plans, long-term incentive plans, stock
appreciation rights plans, participation plans or similar employee benefits plans
and/or insurance and indemnification arrangements provided to or for the benefit of
directors and employees approved by the Board of Directors of the Company;
	 
	 	(3)	 	loans or advances to employees, officers or directors in the ordinary course of
business of the Company or any of its Restricted Subsidiaries not to exceed $5.0
million in the aggregate at any one time outstanding;
	 
	 	(4)	 	advances to or reimbursements of employees for moving, entertainment and travel
expenses, drawing accounts and similar expenditures in the ordinary course of business
of the Company or any of its Restricted Subsidiaries;
	 
	 	(5)	 	any transaction between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries and Guarantees issued by the Company or a Restricted Subsidiary
for the benefit of the Company or a Restricted Subsidiary, as the case may be, in
accordance with Section 1111;
	 
	 	(6)	 	any transaction with a joint venture or similar entity (other than an
Unrestricted Subsidiary) which would constitute an Affiliate Transaction solely because
the Company or a Restricted Subsidiary owns, directly or indirectly, an Equity Interest
in or otherwise controls such joint venture or similar entity;
	 
	 	(7)	 	the issuance or sale of any Capital Stock (other than Disqualified Stock) of
the Company or the receipt by the Company of any capital contribution from its
shareholders;
	 
	 	(8)	 	indemnities of officers, directors and employees of the Company or any of its
Restricted Subsidiaries permitted by charter, bylaw or statutory provisions and any

93

 

	 	 	 	employment agreement or other employee compensation plan or arrangement entered into in
the ordinary course of business by the Company or any of its Restricted Subsidiaries;
	 
	 	(9)	 	the payment of reasonable compensation and fees paid to, and indemnity provided
on behalf of, officers or directors of the Company or any Restricted Subsidiary;
	 
	 	(10)	 	the performance of obligations of the Company or any of its Restricted
Subsidiaries under the terms of any agreement to which the Company or any of its
Restricted Subsidiaries is a party as of or on the Issue Date, as these agreements may
be amended, modified, supplemented, extended or renewed from time to time; provided,
however, that any future amendment, modification, supplement, extension or renewal
entered into after the Issue Date will be permitted only to the extent that its terms
are not materially more disadvantageous, taken as a whole, to the Holders of the Notes
than the terms of the agreements in effect on the Issue Date;
	 
	 	(11)	 	transactions with customers, clients, suppliers, or purchasers or sellers of
goods or services, in each case in the ordinary course of business and otherwise in
compliance with the terms of the Indenture, provided that in the reasonable
determination of the Board of Directors of the Company or the senior management of the
Company, such transactions are on terms not materially less favorable to the Company or
the relevant Restricted Subsidiary than those that could reasonably be expected to be
obtained in a comparable transaction at such time on an arm’s-length basis from a
Person that is not an Affiliate of the Company;
	 
	 	(12)	 	transactions with a Person (other than an Unrestricted Subsidiary) that is an
Affiliate of the Company solely because the Company owns, directly or through a
Restricted Subsidiary, an Equity Interest in such Person; and
	 
	 	(13)	 	transactions between the Company or any Restricted Subsidiary and any Person, a
director of which is also a director of the Company or any direct or indirect parent
company of the Company and such director is the sole cause for such Person to be deemed
an Affiliate of the Company or any Restricted Subsidiary; provided, however, that
such director shall abstain from voting as a director of the Company or such direct or
indirect parent company, as the case may be, on any matter involving such other Person.

Section 1117. Future Subsidiary Guarantors.

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

94

 

Section 1118. Payments for Consent.

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

Section 1119. Covenant Termination.

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

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

ARTICLE TWELVE

REDEMPTION OF NOTES

Section 1201. Applicability of Article.

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

Section 1202. Election to Redeem; Notice to Trustee.

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

Section 1203. Optional Redemption.

          (a) On and after February 1, 2014, the Company may redeem all or, from time to time, a part of
the Notes, at the following Redemption Prices (expressed as a percentage of principal amount of the
Notes) plus accrued and unpaid interest on the Notes, if any, to the applicable Redemption Date
(subject to the right of holders of record on the relevant record date to receive interest due on
the relevant Interest Payment Date), if redeemed during the twelve-month period beginning on
October 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2014
	 	 	104.313	%
	2015
	 	 	102.156	%

95

 

	 	 	 	 	 
	Year	 	Percentage
	2016
	 	 	100.000	%

          (b) Prior to February 1, 2013, the Company may, at its option, on any one or more occasions
redeem up to 35% of the aggregate principal amount of the Notes (including any Additional Notes)
issued under the Indenture with the Net Cash Proceeds of one or more Equity Offerings at a
Redemption Price of 108.625% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the Redemption Date (subject to the right of holders of record on the relevant record date
to receive interest due on the relevant Interest Payment Date); provided that

	 	(1)	 	at least 65% of the original principal amount of the Notes issued on
the Issue Date remains outstanding after each such redemption; and
	 
	 	(2)	 	the redemption occurs within 180 days after the closing of the related
Equity Offering.

          (c) In addition, the Notes may be redeemed, in whole or in part, at any time prior to February
1, 2014 at the option of the Company at a Redemption Price equal to 100% of the principal amount of
the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest to, the
applicable Redemption Date (subject to the right of holders of record on the relevant record date
to receive interest due on the relevant Interest Payment Date).

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

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

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

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

Section 1205. Notice of Redemption.

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

          All notices of redemption shall state:

	 	(1)	 	the Redemption Date,

96

 

	 	(2)	 	the Redemption Price, if then determined and otherwise the basis for its
determination,
	 
	 	(3)	 	if less than all the Outstanding Notes are to be redeemed, the identification
(and, in the case of partial redemption of any such Notes, the principal amounts) of
the particular Notes to be redeemed,
	 
	 	(4)	 	that on the Redemption Date the Redemption Price will become due and payable
upon each such Note be redeemed and that interest thereon will cease to accrue on and
after said date,
	 
	 	(5)	 	the place or places where each such Note is to be surrendered for payment of
the Redemption Price, and
	 
	 	(6)	 	the CUSIP/ISIN numbers of the Notes.

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

Section 1206. Deposit of Redemption Price.

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

Section 1207. Notes Payable on Redemption Date.

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

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

Section 1208. Notes Redeemed in Part.

          Any Note which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the

97

 

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 or pursuant to a Board Resolution delivered to the Trustee.

Section 1402. Defeasance and Discharge.

          Upon the Company’s exercise of its option to have this Section applied to the Notes, the
Company shall be deemed to have been discharged from its obligations with respect to such Notes as
provided in this Section on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness represented by such
Notes and to have satisfied all its other obligations under such Notes and the Indenture insofar as
the Notes are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following, which shall survive until otherwise
terminated or discharged hereunder: (1) the rights of Holders of such Notes to receive, solely from
the trust fund described in Section 1404 and as more fully set forth in such Section, payments in
respect of the principal of and any premium and interest on such Notes when payments are due, (2)
the Company’s obligations with respect to such Notes under Sections 404, 405, 406, 1102, 1103 and
1104(a) and its obligations under Section 314(a) of the Trust Indenture Act, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (4) this Article. If the Company
exercises its defeasance option pursuant to this Section 1402, the Subsidiary Guarantees will
terminate with respect to the Notes, and payment of the Notes may not be accelerated pursuant to
Section 602 because of an Event of Default. Subject to compliance with this Article, the Company
may exercise its option (if any) to have this Section applied to any Notes notwithstanding the
prior exercise of its option (if any) to have Section 1403 applied to such Notes.

Section 1403. Covenant Defeasance.

          Upon the Company’s exercise of its option to have this Section applied to the Notes, (1) the
Company shall be released from its obligations under Section 901(3), Section 1107, Sections
1110 through 1118, inclusive; (2) the occurrence of any event specified in

98

 

Sections 601(3) (with
respect only to the obligation under Section 901(3)), 601(4), 601(5), 601(6), 601(7) (with respect
only to Significant Subsidiaries) or (8) (with respect only to Significant Subsidiaries), 601(9)
and 601(10) shall be deemed not to be or to result in an Event of Default, and (3) the Subsidiary
Guarantees shall be automatically released, in each case with respect to such Notes as provided in
this Section on and after the date the conditions set forth in Section 1404 are satisfied
(hereinafter called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that,
with respect to such Notes, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such specified Section, whether
directly or indirectly by reason of any reference elsewhere herein to any such Section or Article
or by reason of any reference in any such Section or Article to any other provision herein or in
any other document, but the remainder of the Indenture and such Notes shall be unaffected thereby.

Section 1404. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions to the application of Section 1402 or Section 1403 to
any Notes:

	 	(1)	 	The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee which satisfies the requirements contemplated by Section
709 and agrees to comply with the provisions of this Article applicable to it) as trust
funds in trust for the purpose of making the following payments and specifically
dedicated solely to the benefit of the Holders of such Notes, (A) money in an amount,
or (B) U.S. Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment, money in an amount, or (C) a combination
thereof, in each case sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered
to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or any
such other qualifying trustee) to pay and discharge, the principal of and any premium
and interest on such Notes on the Stated Maturities or Redemption Date, as applicable,
in accordance with the terms of the Indenture and such Notes.
	 
	 	(2)	 	In the event of an election to have Section 1402 apply to any Notes, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal Revenue Service
a ruling or (B) since the date of the Indenture, there has been a change in the
applicable Federal income tax law, in either case (A) or (B) to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Notes will not
recognize income, gain or loss for Federal income tax purposes as a result of the
deposit, Defeasance and discharge to be effected with respect to such Notes and will be
subject to Federal income tax on the same amount, in the same manner and at the same
times as would be the case if such deposit, Defeasance and discharge were not to occur.
	 
	 	(3)	 	In the event of an election to have Section 1403 apply to any Notes, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the 

99

 

	 	 	 	Holders of such Notes will not recognize income, gain or loss for Federal income tax purposes as
a result of the deposit and Covenant Defeasance to be effected with respect to such
Notes and will be subject to Federal income tax on the same amount, in the same manner
and at the same times as would be the case if such deposit and Covenant Defeasance were
not to occur.

	 	(4)	 	The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that the Notes, if then listed on any securities exchange, will not be delisted
as a result of such deposit.
	 
	 	(5)	 	No Default with respect to such Notes shall have occurred and be continuing at
the time of such deposit or, with regard to any such event specified in Sections 601(7)
and (8), at any time on or prior to the 121st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after such
121st day), other than a Default resulting from the borrowing of funds to be applied to
such deposit.
	 
	 	(6)	 	Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act.
	 
	 	(7)	 	Such Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, any other agreement or instrument (other
than the Indenture) to which the Company is a party or by which it is bound.
	 
	 	(8)	 	The Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that such deposit shall not cause either the Trustee or the trust so created to
be subject to the Investment Company Act.
	 
	 	(9)	 	The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

Section 1405. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

          Subject to the provisions of the last paragraph of Section 1103, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1406, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1404 in respect of any Notes shall
be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and
the Indenture, to the payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Notes,
of all sums due and to become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the extent required by
law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of Outstanding Notes.

100

 

          Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or U.S. Government Obligations held by
it as provided in Section 1404 with respect to any Notes which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Notes.

Section 1406. Reinstatement.

          If the Trustee or any Paying Agent is unable to apply any money in accordance with this
Article with respect to any Notes by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the obligations
under the Indenture and such Notes from which the Company has been discharged or released pursuant
to Section 1402 or 1403 shall be revived and reinstated as though no deposit had occurred pursuant
to this Article with respect to such Notes, until such time as the Trustee or Paying Agent is
permitted to apply all money held in trust pursuant to Section 1405 with respect to such Notes in
accordance with this Article; provided, however, that if the Company makes any payment of
principal of or any premium or interest on any such Note following such reinstatement of its
obligations, the Company shall be subrogated to the rights (if any) of the Holders of such Notes to
receive such payment from the money so held in trust.

ARTICLE FIFTEEN

[INTENTIONALLY DELETED]

ARTICLE SIXTEEN

SUBSIDIARY GUARANTEES

Section 1601. Unconditional Guarantee.

          (a) For value received, each of the Subsidiary Guarantors hereby fully and unconditionally
guarantees (the “Subsidiary Guarantee”) to the Holders and to the Trustee the due and punctual
payment of the principal of, and premium, if any, and interest on the Notes and all other amounts
due and payable under the Indenture and the Notes by the Company (collectively, the “Obligations”),
when and as such principal, premium, if any, and interest shall become due and payable, whether at
the stated maturity or by declaration of acceleration, call for redemption or otherwise, according
to the terms of the Notes and the Indenture, subject to the limitations set forth in Section 1603.

          (b) Failing payment when due of any amount guaranteed pursuant to its Subsidiary Guarantee,
for whatever reason, each of the Subsidiary Guarantors will be jointly and severally obligated to
pay the same immediately. Each Subsidiary Guarantee hereunder is intended to be a general,
unsecured, senior obligation of each of the Subsidiary Guarantors and will rank pari passu in right
of payment with all debt of such Subsidiary Guarantor that is not, by its terms,
expressly subordinated in right of payment to the Subsidiary Guarantee. Each of the Subsidiary
Guarantors hereby agrees that its obligations hereunder shall be full, unconditional and absolute,

101

 

irrespective of the validity, regularity or enforceability of the Notes, the Subsidiary Guarantee
of any other Subsidiary Guarantor or the Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company or any other Subsidiary Guarantor, or any action
to enforce the same or any other circumstances which might otherwise constitute a legal or
equitable discharge or defense of the Subsidiary Guarantors. Each of the Subsidiary Guarantors
hereby agrees that in the event of a default in payment of the principal of, or premium, if any, or
interest on the Notes, whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf of the
Holders or, subject to Section 607, by the Holders, on the terms and conditions set forth in the
Indenture, directly against such Subsidiary Guarantor to enforce its Subsidiary Guarantee without
first proceeding against the Company or any other Subsidiary Guarantor.

          (c) The obligations of each of the Subsidiary Guarantors under this Article shall be as
aforesaid full and unconditional and shall not be impaired, modified, released or limited by any
occurrence or condition whatsoever, including, without limitation, (A) any compromise, settlement,
release, waiver, renewal, extension, indulgence or modification of, or any change in, any of the
obligations and liabilities of the Company or any of the other Subsidiary Guarantors contained in
the Notes or the Indenture, (B) any impairment, modification, release or limitation of the
liability of the Company, any of the other Subsidiary Guarantors or any of their estates in
bankruptcy, or any remedy for the enforcement thereof, resulting from the operation of any present
or future provision of any applicable bankruptcy law, or other statute or from the decision of any
court, (C) the assertion or exercise by the Company, any of the other Subsidiary Guarantors or the
Trustee of any rights or remedies under the Notes or the Indenture or their delay in or failure to
assert or exercise any such rights or remedies, (D) the assignment or the purported assignment of
any property as security for the Notes, including all or any part of the rights of the Company or
any of the other Subsidiary Guarantors under the Indenture, (E) the extension of the time for
payment by the Company or any of the other Subsidiary Guarantors of any payments or other sums or
any part thereof owing or payable under any of the terms and provisions of the Notes or the
Indenture or of the time for performance by the Company or any of the other Subsidiary Guarantors
of any other obligations under or arising out of any such terms and provisions or the extension or
the renewal of any thereof, (F) the modification or amendment (whether material or otherwise) of
any duty, agreement or obligation of the Company or any of the other Subsidiary Guarantors set
forth in the Indenture, (G) the voluntary or involuntary liquidation, dissolution, sale or other
disposition of all or substantially all of the assets, marshaling of assets and liabilities,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of, or other similar proceeding affecting, the Company or
any of the other Subsidiary Guarantors or any of their respective assets, or the disaffirmance of
the Notes, the Subsidiary Guarantee or the Indenture in any such proceeding, (H) the release or
discharge of the Company or any of the other Subsidiary Guarantors from the performance or
observance of any agreement, covenant, term or condition contained in any of such instruments by
operation of law, (I) the unenforceability of the Notes or the Indenture or (J) any other
circumstances (other than payment in full or discharge of all amounts guaranteed pursuant to the
Subsidiary Guarantees) which might otherwise constitute a legal or equitable discharge of a surety
or guarantor.

          (d) Each of the Subsidiary Guarantors hereby (A) waives diligence, presentment, demand of
payment, filing of claims with a court in the event of the merger, insolvency or bankruptcy of

102

 

the Company or any of the Subsidiary Guarantors, and all demands whatsoever, (B) acknowledges that any
agreement, instrument or document evidencing its Subsidiary Guarantee may be transferred and that
the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument
or document evidencing the Subsidiary Guarantee without notice to it and (C) covenants that its
Subsidiary Guarantee will not be discharged except by complete performance of the Subsidiary
Guarantee. Each of the Subsidiary Guarantors further agrees that if at any time all or any part of
any payment theretofore applied by any Person to its Subsidiary Guarantee is, or must be, rescinded
or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of the Company or any of the Subsidiary Guarantors, the Subsidiary Guarantee shall,
to the extent that such payment is or must be rescinded or returned, be deemed to have continued in
existence notwithstanding such application, and the Subsidiary Guarantee shall continue to be
effective or be reinstated, as the case may be, as though such application had not been made.

          (e) Each of the Subsidiary Guarantors shall be subrogated to all rights of the Holders and the
Trustee against the Company in respect of any amounts paid by such Subsidiary Guarantor pursuant to
the provisions of the Indenture, provided, however, that such Subsidiary Guarantor, shall not be
entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Notes and the Subsidiary Guarantees shall have been paid in full or
discharged.

Section 1602. Execution and Delivery of Notation of Subsidiary Guarantee.

          To further evidence its Subsidiary Guarantee set forth in Section 1601, each of the Subsidiary
Guarantors hereby agrees that a notation relating to such Subsidiary Guarantee, substantially in
the form attached hereto as Annex B, shall be endorsed on each Note entitled to the benefits of the
Subsidiary Guarantee authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an Officer of such Subsidiary Guarantor, or in the case of a Subsidiary
Guarantor that is a 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

103

 

Guarantees and the Subsidiary Guarantors hereby irrevocably agree that the obligations
of each Subsidiary Guarantor under its Subsidiary Guarantee shall be limited to the maximum amount
as will, after giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary
Guarantee, result in the obligations of such Subsidiary Guarantor under the Subsidiary Guarantee
not constituting a fraudulent conveyance or fraudulent transfer under Federal or State law.

Section 1604. Release of Subsidiary Guarantors from Guarantee.

          (a) Notwithstanding any other provisions of the Indenture, the Subsidiary Guarantee of any
Subsidiary Guarantor shall be released upon the terms and subject to the conditions set forth in
this Section 1604. Any Subsidiary Guarantee incurred by a Subsidiary Guarantor pursuant to this
Article shall be unconditionally released and discharged (i) automatically upon (A) any sale,
exchange or other disposition, whether by way of merger, consolidation or otherwise, to any Person
that is not the Company or a Restricted Subsidiary, of all of the Capital Stock of such Subsidiary
Guarantor, (B) any sale, exchange or other disposition (other than a lease) of all or substantially
all of the assets of such Subsidiary Guarantor to any Person that is not the Company or a
Restricted Subsidiary ( provided, in respect of both clauses (A) and (B), such sale, exchange or
other disposition is not prohibited by Section 1115), (C) the merger of such Subsidiary Guarantor
into the Company or any other Subsidiary Guarantor or the liquidation and dissolution of such
Subsidiary Guarantor (in each case to the extent not prohibited by the Indenture), (D) the
designation by the Company of such Subsidiary as an Unrestricted Subsidiary in compliance with the
other applicable provisions of the Indenture or (E) in connection with any Covenant Defeasance,
Legal Defeasance or satisfaction and discharge of the Notes as provided under Article Five or
Article Fourteen of the Indenture or (ii) upon delivery of a written notice of such release or
discharge by the Company to the Trustee, following the release or discharge of all Guarantees by
such Subsidiary Guarantor of any Indebtedness that resulted in the creation of such Subsidiary
Guarantee pursuant to Section 1117, except a discharge or release by or as a result of payment
under such Guarantees.

          (b) The Trustee shall deliver an appropriate instrument evidencing any release of a Subsidiary
Guarantor from the Subsidiary Guarantee upon receipt of a Company Request accompanied by an
Officers’ Certificate and an Opinion of Counsel the Subsidiary Guarantor is entitled to such
release in accordance with the provisions of the Indenture.

          (c) Any Subsidiary Guarantor not released in accordance with the provisions of the Indenture
will remain liable for the full amount of principal of (and premium, if any, on) and interest on
the Notes as provided in this Article Sixteen, subject to the limitations of Section 1603.

Section 1605. Subsidiary Guarantor Contribution.

          In order to provide for just and equitable contribution among the Subsidiary Guarantors, the
Subsidiary Guarantors hereby agree, inter se, that in the event any payment or distribution is made
by any Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee,
such Funding Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor (if
any) in a pro rata amount based on the net assets of each Subsidiary Guarantor (including the

104

 

Funding Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in
discharging the Company’s Obligations with respect to the Notes or any other Subsidiary Guarantor’s
obligations with respect to its Subsidiary Guarantee.

 

          The Trustee hereby accepts the trusts in the Indenture upon the terms and conditions herein
set forth.

[Signature Page Follows]

105

 

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

	 	 	 	 	 
	 	STONE ENERGY CORPORATION

 	 
	 	By:  	/s/ Kenneth H. Beer
 	 
	 	 	Kenneth H. Beer 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 
	 
	 	STONE ENERGY OFFSHORE, L.L.C.,

by and through its sole member,

STONE ENERGY CORPORATION

 	 
	 	By:  	/s/ Kenneth H. Beer
 	 
	 	 	Kenneth H. Beer 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/ Rafael Martinez
 	 
	 	 	Rafael Martinez 	 
	 	 	Senior Associate 	 
	 

106

 

ANNEX A

     CUSIP 861642AK2

ISIN US861642AK21

[Form of Face of Note]

[If a Global Note, insert the Global Note Legend.]

STONE ENERGY CORPORATION

8.625% Senior Note due 2017

	 	 	 	 	 
	No.
	 	$	 	 

          Stone Energy Corporation, 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 February 1, 2017 [ if this Note is a Global Note, insert — or such greater or lesser amount as
may be indicated on the Schedule of Exchanges of Interests in the Global Note attached hereto,] to
pay interest thereon from January 26, 2010 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on February 1 and August 1 in each year,
commencing August 1, 2010, at the rate of 8.625% per annum, until the principal hereof is paid or
made available for payment, and to pay interest on any overdue principal hereof or installment of
interest hereon at the same rate, to the extent lawful, from the dates such amounts are due until
they are paid or made available for payment, and such interest shall be payable on demand. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will,
as provided in such Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest, which shall be the January 15 or July 15 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less
than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Notes may be listed,
and upon such notice as may be required by such exchange, all as more fully provided in said
Indenture.

          Payment of the principal of (and premium, if any) and any such interest on this Note will be
made at the office or agency of the Company maintained for that purpose in the City and State of
New York, [ if this Note is a Global Note, insert — in immediately available funds] in such coin
or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that, unless this Note is a Global Note, at the
option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

A-1

 

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

     Unless the certificate of authentication hereon has been manually signed in the name of the
Trustee referred to on the reverse hereof by an authorized signatory, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

A-2

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by its
undersigned officer.

	 	 	 	 	 
	 	STONE ENERGY CORPORATION

 	 
	 	By:  	
 	 

Trustee’s Certificate of Authentication

          This is one of the 8.625% Senior Notes due 2017 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON 

TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated:                                        

A-3

 

[Form of Reverse of Note]

          This Note is one of a duly authorized series of senior notes of the Company (herein called the
“Note”), issued under an Indenture, dated as of January 26, 2010 (the “Base Indenture”), as
supplemented and amended by the First Supplemental Indenture, dated as of January 26, 2010 (the
“Supplemental Indenture” and, together with the Base Indenture, herein called the “Indenture”),
among the Company, the Subsidiary Guarantors named therein and The Bank of New York Mellon Trust
Company, N.A., as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Subsidiary Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on
the face hereof, initially limited in aggregate principal amount to $275.0 million but subject to
re-opening as provided in the Supplemental Indenture.

          On and after February 1, 2014, the Company may redeem all or, from time to time, a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the following Redemption Prices
(expressed as a percentage of principal amount of the Notes) plus accrued and unpaid interest on
the Notes, if any, to the applicable Redemption Date (subject to the right of holders of record on
the relevant record date to receive interest due on the relevant Interest Payment Date), if
redeemed during the twelve-month period beginning on February 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2014
	 	 	104.313	%
	2015
	 	 	102.156	%
	2016
	 	 	100.000	%

          Prior to February 1, 2013, the Company may, at its option, on any one or more occasions, upon
not less than 30 nor more than 60 days’ notice, redeem up to 35% of the aggregate principal amount
of the Notes (including any Additional Notes) issued under the Indenture with the Net Cash Proceeds
of one or more Equity Offerings at a Redemption Price of 108.625% of the principal amount thereof,
plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of holders
of record on the relevant record date to receive interest due on the relevant Interest Payment
Date); provided that

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

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

          In addition, the Notes may be redeemed, in whole or in part, at any time prior to February 1,
2014 at the option of the Company upon not less than 30 nor more than 60 days’ notice at a
Redemption Price equal to 100% of the principal amount of the Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest to, the applicable Redemption Date (subject to the
right of holders of record on the relevant record date to receive interest due on the relevant
interest payment date). “Applicable Premium” means, with respect to any Note on any

A-4

 

applicable Redemption Date, the greater of:

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

          (2) the excess, if any, of:

	 	(a)	 	the present value at such redemption date of (i) the Redemption
Price of such Note at February 1, 2014 (such Redemption Price being set forth
in the table appearing above) plus (ii) all required interest payments
(excluding accrued and unpaid interest to such Redemption Date) due on such
Note through February 1, 2014, computed using a discount rate equal to the
Treasury Rate as of such Redemption Date plus 50 basis points; over
	 
	 	(b)	 	the principal amount of such Note.

          “Treasury Rate” means, as of any Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source or similar market data)) most nearly
equal to the period from the Redemption Date to February 1, 2014; provided, however, that if the
period from the redemption date to February 1, 2014 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Rate shall
be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the Redemption Date to February 1, 2014 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

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

          In the event of redemption of this Note in part only, a new Note or Notes of like tenor for
the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

          The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Note as well as certain restrictive covenants and Events of Default with respect to this Note,
in each case upon compliance with certain conditions set forth in the Indenture.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Notes to be affected under the Indenture at any time by the Company, the Subsidiary Guarantors and
the Trustee with the consent of the Holders of a majority in principal amount of the Notes at the
time Outstanding to be affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the
Holders of all Notes, to waive compliance by the Company with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any

A-5

 

Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

          If an Event of Default with respect to the Notes shall occur and be continuing, the Notes may
be declared (or shall automatically become) due and payable in the manner and with the effect
provided in the Indenture.

          As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable security or indemnity, and the Trustee shall
not have received from the Holders of a majority in principal amount of Notes at the time
Outstanding a direction inconsistent with such request (and such Holders shall not have waived such
Event of Default), and the Trustee shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of security or indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office of the Security Registrar, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the Security Registrar
duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Notes of like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

          The Notes are issuable only in registered form without coupons in denominations of $2,000 and
any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount
of Notes of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any transfer tax or other governmental
taxes and fees required by law or permitted by the Indenture.

          Prior to due presentment of this Note for registration of transfer, the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors or the
Trustee may treat the Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the Subsidiary Guarantors,
the Trustee nor any such agent shall be affected by notice to the contrary.

A-6

 

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

          All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

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

A-7

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

	 	 	 
	(I)
or (we) assign and 

transfer
this Security to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint
	 	 
	 

	 	 

to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:                                         

	 	 	 	 	 
	 	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-8

 

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-9

 

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:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	Amount of	 	 	 	 	 	Signature of
	 	 	 	 	decrease in	 	increase in	 	Principal Amount of	 	authorized
	 	 	 	 	Principal	 	Principal Amount	 	this Global Note	 	signatory of
	Date of	 	Amount of this	 	of this Global	 	following such	 	Trustee or
	Exchange	 	Global Note	 	Note	 	decrease (or increase)	 	Custodian

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-10

 

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 January 26, 2010, by and among
Stone Energy Corporation, as issuer, the Subsidiary Guarantors and The Bank of New York Mellon
Trust Company, N.A., as Trustee (the “Supplemental Indenture”) to the Indenture, dated as of
January 26, 2010 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 Subsidiary Guarantee 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(s)] (the “New Subsidiary
Guarantor ”), a subsidiary of Stone Energy Corporation, a Delaware corporation [or its permitted
successor] (the “ Company ”), the existing Subsidiary Guarantors (as defined in the Indenture
referred to herein) and The Bank of New York Mellon Trust Company, N.A., 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.”

WITNESSETH

          WHEREAS, the Company and the existing Subsidiary Guarantors have heretofore executed and
delivered to the Trustee an indenture, dated as of January 26, 2010, and a First Supplemental
Indenture (herein so called) of even date therewith relating to the 8.625% Senior Notes due 2017
(the “ Securities ”) of the Company;

          WHEREAS, Section 1117 of the First Supplemental Indenture obligates the Company to cause
certain Restricted Subsidiaries to become Subsidiary Guarantors by executing a supplemental
indenture as provided in such Section; and

          WHEREAS, pursuant to Section 1001 of the First Supplemental Indenture, the Company, the
Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental
Indenture to amend or supplement the Indenture without the consent of any Holder;

          NOW THEREFORE, to comply with the provisions of the First Supplemental Indenture and in
consideration of the foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the New Subsidiary Guarantor, the other Subsidiary Guarantors, the Company
and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:

          1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings
assigned to them in the First Supplemental Indenture.

          2. AGREEMENT TO GUARANTEE. The New Subsidiary Guarantor hereby agrees, jointly and severally,
with all other Subsidiary Guarantors, to fully and unconditionally Guarantee to each Holder and to
the Trustee the Obligations, to the extent set forth in Article Sixteen of the First Supplemental
Indenture and subject to the provisions thereof. The obligations of the Subsidiary Guarantors to
the Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees and the
Indenture are expressly set forth in Article Sixteen of the First Supplemental Indenture and
reference is hereby made to such Article for the precise terms of the Subsidiary Guarantees.

C-1

 

          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. 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. RECITALS AND THE EFFECT OF THIS SUPPLEMENTAL INDENTURE. The recitals contained herein
shall be taken as statements of New Subsidiary Guarantor, the Company and the existing Subsidiary
Guarantors, and the Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Supplemental Indenture. Except as
specifically supplemented above, the Indenture, the Notes, and the Subsidiary Guarantees are and
shall continue to be in full force and effect and are hereby in all respects ratified and
confirmed.

          7. 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.

[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:  	 	 
	 
	 	STONE ENERGY CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A.,

as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]