Document:

Exhibit 4.2

 

 

FORM OF
SUBORDINATED INDENTURE

 

 

GEOKINETICS
INC.

as Issuer

 

and

 

THE
POTENTIAL SUBSIDIARY GUARANTORS

LISTED
ON THE SIGNATURE PAGES HERETO

 

as Potential Subsidiary Guarantors

 

and

 

 

[                            ]

as Trustee

 

 

Indenture

 

Dated as of
                          ,

 

 

Subordinated Debt
Securities

 

 

GEOKINETICS
INC.

 

Reconciliation
and tie between Trust Indenture Act of 1939

and
Indenture, dated as of
                            ,

 

 

	
  Section of

  	
   

  	
   

  
	
  Trust Indenture

  	
   

  	
  Section(s) of

  
	
  Act of 1939

  	
   

  	
  Indenture

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.08, 7.10

  
	
  § 311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  § 312

  	
  (a)

  	
   

  	
  2.07

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  § 313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  7.06

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  § 314

  	
  (a)

  	
   

  	
  4.03, 4.04

  
	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
  12.05

  
	
  § 315

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
  (d)(1)

  	
   

  	
  7.01(c)(1)

  
	
   

  	
  (d)(2)

  	
   

  	
  7.01(c)(2)

  
	
   

  	
  (d)(3)

  	
   

  	
  7.01(c)(3)

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  § 316

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(last sentence)

  	
   

  	
  2.11

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  § 317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.06

  
	
  § 318

  	
  (a)

  	
   

  	
  12.01

  

 

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

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  I DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  1

  
	
  SECTION 1.01

  	
  Definitions

  	
  1

  
	
  SECTION 1.02

  	
  Other Definitions

  	
  5

  
	
  SECTION 1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  5

  
	
  SECTION 1.04

  	
  Rules of Construction

  	
  5

  
	
  ARTICLE
  II THE SECURITIES

  	
  6

  
	
  SECTION 2.

  	
  Amount Unlimited; Issuable in Series

  	
  6

  
	
  SECTION 2.02

  	
  Denominations

  	
  8

  
	
  SECTION 2.03

  	
  Forms Generally

  	
  8

  
	
  SECTION 2.04

  	
  Execution, Authentication, Delivery and Dating

  	
  8

  
	
  SECTION 2.06

  	
  Paying Agent to Hold Money in Trust

  	
  10

  
	
  SECTION 2.07

  	
  Holder Lists

  	
  10

  
	
  SECTION 2.08

  	
  Transfer and Exchange

  	
  10

  
	
  SECTION 2.09

  	
  Replacement Securities

  	
  11

  
	
  SECTION 2.10

  	
  Outstanding Securities

  	
  11

  
	
  SECTION 2.11

  	
  Original Issue Discount, Foreign-Currency Denominated and Treasury
  Securities

  	
  11

  
	
  SECTION 2.12

  	
  Temporary Securities

  	
  12

  
	
  SECTION 2.13

  	
  Cancellation

  	
  12

  
	
  SECTION 2.14

  	
  Payments; Defaulted Interest

  	
  12

  
	
  SECTION 2.15

  	
  Persons Deemed Owners

  	
  12

  
	
  SECTION 2.16

  	
  Computation of Interest

  	
  13

  
	
  SECTION 2.17

  	
  Global Securities; Book-Entry Provisions

  	
  13

  
	
  ARTICLE
  III REDEMPTION

  	
  14

  
	
  SECTION 3.01

  	
  Applicability of Article

  	
  14

  
	
  SECTION 3.02

  	
  Notice to the Trustee

  	
  14

  
	
  SECTION 3.04

  	
  Notice of Redemption

  	
  15

  
	
  SECTION 3.05

  	
  Effect of Notice of Redemption

  	
  15

  
	
  SECTION 3.06

  	
  Deposit of Redemption Price

  	
  16

  
	
  SECTION 3.07

  	
  Securities Redeemed or Purchased in Part

  	
  16

  
	
  SECTION 3.08

  	
  Purchase of Securities

  	
  16

  
	
  SECTION 3.09

  	
  Mandatory and Optional Sinking Funds

  	
  16

  
	
  SECTION 3.10

  	
  Satisfaction of Sinking Fund Payments
  with Securities

  	
  16

  
	
  SECTION 3.11

  	
  Redemption of Securities for Sinking Fund

  	
  17

  
	
  ARTICLE
  IV COVENANTS

  	
  17

  
	
  SECTION 4.01

  	
  Payment of Securities

  	
  17

  
	
  SECTION 4.02

  	
  Maintenance of Office or Agency

  	
  17

  
	
  SECTION 4.03

  	
  SEC Reports; Financial Statements

  	
  18

  
	
  SECTION 4.04

  	
  Compliance Certificate

  	
  18

  
	
  SECTION 4.05

  	
  Corporate Existence

  	
  18

  
	
  SECTION 4.06

  	
  Waiver of Stay, Extension or Usury Laws

  	
  19

  
	
  SECTION 4.07

  	
  Additional Amounts

  	
  19

  
	
  ARTICLE
  V SUCCESSORS

  	
  19

  
	
  SECTION 5.01

  	
  Limitations on Mergers and Consolidations

  	
  19

  
	
  SECTION 5.02

  	
  Successor Person Substituted

  	
  19

  
	
  ARTICLE
  VI DEFAULTS AND REMEDIES

  	
  20

  
	
  SECTION 6.01

  	
  Events of Default

  	
  20

  
	
  SECTION 6.02

  	
  Acceleration

  	
  21

  
	
  SECTION 6.04

  	
  Waiver
  of Defaults

  	
  22

  
	
  SECTION 6.05

  	
  Control
  by Majority

  	
  22

  
	
  SECTION 6.06

  	
  Limitations
  on Suits

  	
  23

  
	
  SECTION 6.07

  	
  Rights of Holders to Receive Payment

  	
  23

  

 

i

 

	
  SECTION 6.08

  	
  Collection Suit by Trustee

  	
  23

  
	
  SECTION 6.09

  	
  Trustee May File Proofs of Claim

  	
  23

  
	
  SECTION 6.10

  	
  Priorities

  	
  24

  
	
  SECTION 6.11

  	
  Undertaking for Costs

  	
  24

  
	
  ARTICLE
  VII TRUSTEE

  	
  24

  
	
  SECTION 7.01

  	
  Duties
  of Trustee

  	
  24

  
	
  SECTION 7.02

  	
  Rights of Trustee

  	
  25

  
	
  SECTION 7.03

  	
  May Hold Securities

  	
  26

  
	
  SECTION 7.04

  	
  Trustee’s Disclaimer

  	
  26

  
	
  SECTION 7.05

  	
  Notice of Defaults

  	
  26

  
	
  SECTION 7.06

  	
  Reports by Trustee to Holders

  	
  26

  
	
  SECTION 7.07

  	
  Compensation and Indemnity

  	
  26

  
	
  SECTION 7.08

  	
  Replacement of Trustee

  	
  27

  
	
  SECTION 7.09

  	
  Successor Trustee by Merger, etc.

  	
  28

  
	
  SECTION 7.10

  	
  Eligibility; Disqualification

  	
  28

  
	
  SECTION 7.11

  	
  Preferential Collection of Claims Against the Company or a
  Subsidiary Guarantor

  	
  29

  
	
  ARTICLE
  VIII DISCHARGE OF INDENTURE

  	
  29

  
	
  SECTION 8.01

  	
  Termination of the Company’s and the Subsidiary Guarantors’
  Obligations

  	
  29

  
	
  SECTION 8.02

  	
  Application of Trust Money

  	
  31

  
	
  SECTION 8.03

  	
  Repayment to Company

  	
  32

  
	
  SECTION 8.04

  	
  Reinstatement

  	
  32

  
	
  ARTICLE
  IX SUPPLEMENTAL INDENTURES AND AMENDMENTS

  	
  32

  
	
  SECTION 9.01

  	
  Without Consent of Holders

  	
  32

  
	
  SECTION 9.02

  	
  With Consent of Holders

  	
  33

  
	
  SECTION 9.03

  	
  Compliance with Trust Indenture Act

  	
  35

  
	
  SECTION 9.04

  	
  Revocation and Effect of Consents

  	
  35

  
	
  SECTION 9.05

  	
  Notation on or Exchange of Securities

  	
  35

  
	
  SECTION 9.06

  	
  Trustee to Sign Amendments, etc.

  	
  35

  
	
  ARTICLE
  X SUBORDINATION OF SECURITIES AND GUARANTEES

  	
  36

  
	
  SECTION 10.01

  	
  Securities and Guarantees Subordinated to Senior Debt

  	
  36

  
	
  SECTION 10.02

  	
  No Payment on Securities in Certain Circumstances

  	
  36

  
	
  SECTION 10.03

  	
  Securities and Guarantees Subordinated to Prior Payment of
  All Senior Debt on Dissolution, Liquidation or Reorganization

  	
  36

  
	
  SECTION 10.04

  	
  Subrogation to Rights of Holders of Senior Debt

  	
  37

  
	
  SECTION 10.05

  	
  Obligations of the Company and the Subsidiary Guarantors Unconditional

  	
  37

  
	
  SECTION 10.06

  	
  Trustee Entitled to Assume Payments Not Prohibited in
  Absence of Notice

  	
  38

  
	
  SECTION 10.07

  	
  Application by Trustee of Amounts Deposited with It

  	
  38

  
	
  SECTION 10.08

  	
  Subordination Rights Not Impaired by Acts or Omissions of
  the Company, the Subsidiary Guarantors or Holders of Senior Debt

  	
  38

  
	
  SECTION 10.09

  	
  Trustee to Effectuate Subordination of Securities

  	
  39

  
	
  SECTION 10.10

  	
  Right of Trustee to Hold Senior Debt

  	
  39

  
	
  SECTION 10.11

  	
  Article X Not to Prevent Events of Default

  	
  39

  
	
  SECTION 10.12

  	
  No Fiduciary Duty of Trustee to Holders of Senior Debt

  	
  39

  
	
  SECTION 10.13

  	
  Article Applicable to Paying Agent

  	
  40

  
	
  ARTICLE
  XI GUARANTEE

  	
  40

  
	
  SECTION 11.01

  	
  Guarantee

  	
  40

  
	
  SECTION 11.02

  	
  Execution and Delivery of Guarantees

  	
  41

  
	
  SECTION 11.03

  	
  Limitation on Liability of the Subsidiary Guarantors

  	
  41

  
	
  SECTION 11.04

  	
  Release of Subsidiary Guarantors from Guarantee

  	
  42

  
	
  SECTION 11.05

  	
  Contribution

  	
  42

  
	
  ARTICLE
  XII MISCELLANEOUS

  	
  42

  
	
  SECTION 12.01

  	
  Trust Indenture Act Controls

  	
  42

  

 

ii

 

	
  SECTION 12.02

  	
  Notices

  	
  42

  
	
  SECTION 12.03

  	
  Communication by Holders with Other Holders

  	
  43

  
	
  SECTION 12.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  43

  
	
  SECTION 12.05

  	
  Statements Required in Certificate or Opinion

  	
  44

  
	
  SECTION 12.06

  	
  Rules by Trustee and Agents

  	
  44

  
	
  SECTION 12.07

  	
  Legal Holidays

  	
  44

  
	
  SECTION 12.08

  	
  No Recourse Against Others

  	
  44

  
	
  SECTION 12.09

  	
  Governing Law

  	
  44

  
	
  SECTION 12.10

  	
  No Adverse Interpretation of Other Agreements

  	
  44

  
	
  SECTION 12.11

  	
  Successors

  	
  45

  
	
  SECTION 12.12

  	
  Severability

  	
  45

  
	
  SECTION 12.13

  	
  Counterpart Originals

  	
  45

  
	
  SECTION 12.14

  	
  Table of Contents, Headings, etc.

  	
  45

  

 

iii

 

INDENTURE dated as of
                                      ,
                between
Geokinetics Inc., a Delaware corporation (the “Company”), the potential
subsidiary guarantors listed on the signature pages hereto (the “Potential
Subsidiary Guarantors”), and
                                                            ,
as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Company’s
unsecured subordinated debentures, notes or other evidences of indebtedness
(the “Securities”), and the related Guarantees (as hereinafter defined), to be
issued from time to time in one or more series as provided in this Indenture:

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01     Definitions.

 

“Additional Amounts” means any additional amounts required by
the express terms of a Security or by or pursuant to a Board Resolution, under
circumstances specified therein or pursuant thereto, to be paid by the Company
with respect to certain taxes, assessments or other governmental charges
imposed on certain Holders and that are owing to such Holders.

 

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person. For purposes of this
definition, “control” of a Person shall mean 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” shall have meanings correlative to the foregoing.

 

“Agent” means any Registrar or Paying Agent.

 

“Bankruptcy Law” means Title 11 of the United States Code
or any similar federal, state or foreign law for the relief of debtors.

 

“Board of Directors” means the Board of Directors of the
Company or any committee thereof duly authorized, with respect to any
particular matter, to act by or on behalf of the Board of Directors of the
Company.

 

“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 the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Trustee.

 

“Business Day” means any day that is not a Legal
Holiday.

 

“Capitalized Lease
Obligation”
of any Person means any obligation of such Person to pay rent or other amounts
under a lease of property, real or personal, that is required to be capitalized
for financial reporting purposes in accordance with GAAP; and the amount of
such obligation shall be the capitalized amount thereof determined in
accordance with GAAP.

 

“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; provided, however, that for purposes of
any provision contained herein which is required by the TIA, “Company” shall
also mean each other obligor (if any) on the Securities of a series.

 

“Company Order” and “Company Request” mean, respectively, a
written order or request signed in the name of the Company by two Officers of
the Company, and delivered to the Trustee.

 

“Corporate Trust
Office of the Trustee” means the office of the Trustee located at
                                          ,
Attention: 
                                                      ,
and as may be located at such other address as the Trustee may give notice to
the Company.

 

1

 

“Debt” of any Person means, without
duplication: (i) all indebtedness or obligations of such Person for
borrowed money (whether or not the recourse of the lender is to the whole of
the assets of such Person or only to a portion thereof); (ii) all
obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments; (iii) all obligations of such Person in respect of
letters of credit or other similar instruments (or reimbursement obligations
with respect thereto), other than standby letters of credit, bid or performance
bonds and other obligations issued by or for the account of such Person in the
ordinary course of business, to the extent not drawn or, to the extent drawn, if
such drawing is reimbursed not later than the third Business Day following
demand for reimbursement; (iv) all obligations of such Person to pay the
deferred and unpaid purchase price of property or services, except trade
payables and accrued expenses incurred in the ordinary course of business; (v) all
Capitalized Lease Obligations of such Person; (vi) all Debt of others
secured by a lien on any asset of such Person, whether or not such Debt is
assumed by such Person (provided that if the obligations so secured have not
been assumed in full by such Person or are not otherwise such Person’s legal
liability in full, then such obligations shall be deemed to be in an amount
equal to the greater of (a) the lesser of (1) the full amount of such
obligations and (2) the fair market value of such assets, as determined in
good faith by the Board of Directors of such Person, which determination shall
be evidenced by a Board Resolution, and (b) the amount of obligations as
have been assumed by such Person or which are otherwise such Person’s legal
liability); and (vii) all Debt of others (other than endorsements in the
ordinary course of business) guaranteed by such Person to the extent of such
guarantee.

 

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

 

“Depositary” means, with respect to the Securities of
any series issuable or issued in whole or in part in global form, the Person
specified pursuant to Section 2.01 hereof as the initial Depositary with
respect to the Securities of such series, until a successor shall have been
appointed and become such pursuant to the applicable provision of this
Indenture, and thereafter “Depositary” shall mean or include such successor.

 

“Dollar” or “$” means a dollar or other equivalent unit
in such coin or currency of the United States as at the time shall be legal
tender for the payment of public and private debt.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and any successor statute.

 

“GAAP” means generally accepted accounting
principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession of the United
States, as in effect from time to time.

 

“Global Security” means a Security that is issued in
global form in the name of the Depositary with respect thereto or its nominee.

 

“Government
Obligations”
means, with respect to a series of Securities, direct obligations of the
government that issues the currency in which the Securities of the series are
payable for the payment of which the full faith and credit of such government
is pledged, or obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of such government, the payment of which is unconditionally
guaranteed as a full faith and credit obligation by such government.

 

“Guarantee” means the guarantee of the Company’s
obligations under the Securities of a series by a Subsidiary Guarantor
(specified with respect to such series as contemplated by Section 2.01(9))
as provided in Article XI.

 

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

 

“Indenture” means this Indenture as amended or
supplemented from time to time pursuant to the provisions hereof, and includes
the terms of a particular series of Securities established as contemplated by Section 2.01.

 

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

 

2

 

“Interest Payment
Date,” when
used with respect to any Security, shall have the meaning assigned to such term
in the Security as contemplated by Section 2.01.

 

“Issue Date” means, with respect to Securities of a
series, the date on which the Securities of such series are originally issued
under this Indenture.

 

“Legal Holiday” means a Saturday, a Sunday or a day on
which banking institutions in any of The City of New York, New York; Houston,
Texas or a Place of Payment are authorized or obligated by law, regulation or
executive order to remain closed.

 

“Maturity” means, with respect to any Security, 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 thereof, or by declaration of acceleration, call for redemption or
otherwise.

 

“Officer” means the Chairman of the Board, the
President, any Vice Chairman of the Board, any Vice President, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Assistant Secretary of a Person.

 

“Officers’
Certificate”
means a certificate signed by two Officers of a Person.

 

“Opinion of Counsel” means a written opinion from legal
counsel who is acceptable to the Trustee. Such counsel may be an employee of or
counsel to the Company or the Trustee.

 

“Original Issue
Discount Security” means any Security that 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 6.02.

 

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

 

“Place of Payment” means, with respect to the Securities of
any series, the place or places where the principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of that
series are payable as specified in accordance with Section 2.01 subject to
the provisions of Section 4.02.

 

“principal” of a Security means the principal of the
Security plus, when appropriate, the premium, if any, on the Security.

 

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

 

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

 

“Responsible
Officer”
means any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant secretary,
assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Rule 144A
Securities”
means Securities of a series designated pursuant to Section 2.01 as
entitled to the benefits of Section 4.03(b).

 

“SEC” means the Securities and Exchange
Commission.

 

3

 

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

 

“Security Custodian” means, with respect to Securities of a
series issued in global form, the Trustee for Securities of such series, as
custodian with respect to the Securities of such series, or any successor
entity thereto.

 

“Senior Debt” of the Company, unless otherwise
provided with respect to the Securities of a series as contemplated by Section 2.01,
means (i) all Debt of the Company, and, in the case of the Guarantee, the
Subsidiary Guarantor, whether currently outstanding or hereafter created,
incurred or assumed, unless, by the terms of the instrument creating or
evidencing such Debt or pursuant to which such Debt is outstanding, it is
provided that such Debt is not superior in right of payment to the Securities,
in the case of the Company, or the Guarantee, in the case of the Subsidiary
Guarantor, or to other Debt which is pari
passu with or subordinated to the Securities, and (ii) any
modifications, refunding, deferrals, renewals or extensions of any such Debt or
any securities, notes or other evidences of Debt issued in exchange for such
Debt; provided that, unless
otherwise provided with respect to the Securities of a series as contemplated
by Section 2.01, in no event shall “Senior Debt” include (a) Debt
evidenced by the Securities or any Guarantee, (b) Debt of the Company or
the Subsidiary Guarantor owed or owing to any other Subsidiary or any officer,
director or employee of the Company, the Subsidiary Guarantor or any
Subsidiary, (c) Debt to trade creditors or (d) any liability for
taxes owed or owing by the Company.

 

“Significant
Subsidiary”
means a Subsidiary of the Company that is a “significant subsidiary” of the
Company as such term is defined in Rule 1-02(w) of Regulation S-X as
of the date hereof.

 

“Stated Maturity” means, when used with respect to any
Security or any installment of principal thereof or interest thereon, 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” means a Person at least a majority of
the outstanding voting stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries. For the purposes of this definition, “voting stock” means
stock having voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of
any contingency.

 

“Subsidiary
Guarantors”
means, with respect to any series of Securities, the Person or Persons, if any,
named in accordance with Section 2.01(9) as the “Subsidiary
Guarantors” (i) in or pursuant to a Board Resolution, and set forth, or
determined in the manner provided, in an Officers’ Certificate of the Company
or in a Company Order, or (ii) in an indenture supplemental hereto
establishing the terms of such series of Securities until a successor Person or
Persons shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Subsidiary Guarantor” with respect to such series of
Securities shall mean such successor Person or Persons, in any case until the
Guarantee is released pursuant to the provisions of Article XI. If a
series of Securities does not have any Subsidiary Guarantors, all references in
this Indenture to the Subsidiary Guarantors shall be ignored with respect to
such series of Securities.

 

“TIA” means the Trust Indenture Act of 1939,
as amended, as in effect on the date hereof.

 

“Trustee” means the Person named as such above
until a successor replaces it in accordance with the applicable provisions of
this Indenture, and thereafter “Trustee” means 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 means the Trustee with
respect to Securities of that series.

 

“United States” means the United States of America
(including the States and the District of Columbia) and its territories and
possessions, which include Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands.

 

“U.S. Government Obligations” means Government Obligations with
respect to Securities payable in Dollars.

 

4

 

SECTION 1.02     Other Definitions.

 

	
   

  	
   

  	
  Defined

  
	
  Term

  	
   

  	
  in Section

  
	
   

  	
   

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.17

  
	
  “Bankruptcy
  Custodian”

  	
   

  	
  6.01

  
	
  “Conversion
  Event”

  	
   

  	
  6.01

  
	
  “covenant
  defeasance”

  	
   

  	
  8.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Exchange Rate”

  	
   

  	
  2.11

  
	
  “Judgment
  Currency”

  	
   

  	
  6.10

  
	
  “legal
  defeasance”

  	
   

  	
  8.01

  
	
  “mandatory
  sinking fund payment”

  	
   

  	
  3.09

  
	
  “optional sinking
  fund payment”

  	
   

  	
  3.09

  
	
  “Paying Agent”

  	
   

  	
  2.05

  
	
  “Payment Default”

  	
   

  	
  10.02

  
	
  “Registrar”

  	
   

  	
  2.05

  
	
  “Required
  Currency”

  	
   

  	
  6.10

  
	
  “Successor”

  	
   

  	
  5.01

  

 

SECTION 1.03     Incorporation by Reference of Trust
Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture (and if the Indenture is not qualified under the TIA at that time, as
if it were so qualified unless otherwise provided). The following TIA terms
used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture
securities”
means the Securities.

 

“indenture security
holder” means
a Holder.

 

“indenture to be
qualified”
means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

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

 

All terms used in this Indenture that are defined by
the TIA, defined by a TIA reference to another statute or defined by an SEC rule under
the TIA have the meanings so assigned to them.

 

SECTION 1.04     Rules of Construction.

 

Unless the context otherwise requires:

 

(1)           a term has the meaning assigned to it;

 

(2)           an accounting term not otherwise defined
has the meaning assigned to it in accordance with GAAP;

 

(3)           “or” is not exclusive;

 

(4)           words in the singular include the plural,
and in the plural include the singular;

 

5

 

(5)                                  provisions apply to successive events and
transactions; and

 

(6)                                  all references in this instrument to
Articles and Sections are references to the corresponding Articles and Sections
in and of this instrument.

 

ARTICLE II

THE SECURITIES

 

SECTION 2.                            Amount Unlimited;
Issuable in Series.

 

The aggregate principal amount of Securities that 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 set forth,
or determined in the manner provided, in an Officers’ Certificate of the
Company or in a Company Order, 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 the Securities of
all other series);

 

 (2)                               if there is to be a limit, the limit upon
the aggregate principal amount of the Securities of the series that 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 2.08,
2.09, 2.12, 2.17, 3.07 or 9.05 and except for any Securities which, pursuant to
Section 2.04 or 2.17, are deemed never to have been authenticated and
delivered hereunder); provided, however, that
unless otherwise provided in the terms of the series, the authorized aggregate
principal amount of such series may be increased before or after the issuance
of any Securities of the series by a Board Resolution (or action pursuant to a
Board Resolution) to such effect;

 

(3)                                  whether any Securities of the series are
to be issuable initially in temporary global form and whether any Securities of
the series are to be issuable in permanent global form, as Global Securities or
otherwise, and, if so, whether beneficial owners of interests in any such
Global Security may exchange such interests for Securities of such series and
of like tenor of any authorized form and denomination and the circumstances
under which any such exchanges may occur, if other than in the manner provided
in Section 2.17, and the initial Depositary and Security Custodian, if any,
for any Global Security or Securities of such series;

 

(4)                                  the manner in which any interest payable
on a temporary Global Security on any Interest Payment Date will be paid if
other than in the manner provided in Section 2.14;

 

(5)                                  the date or dates on which the principal
of and premium (if any) on the Securities of the series is payable or the
method of determination thereof;

 

(6)                                  the rate or rates, or the method of
determination thereof, at which the Securities of the series shall bear
interest, if any, whether and under what circumstances Additional Amounts with
respect to such Securities shall be payable, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall
be payable and the record date for the interest payable on any Securities on
any Interest Payment Date, or if other than provided herein, the Person to whom
any interest on Securities of the series shall be payable;

 

(7)                                  the place or places where, subject to the
provisions of Section 4.02, the principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of the
series shall be payable;

 

(8)                                  the period or periods within which, the
price or prices (whether denominated in cash, securities or otherwise) at which
and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company, if the Company is
to have that option, and the manner in which the Company must exercise any such
option, if different from those set forth herein;

 

6

 

(9)                                  whether Securities of the series are
entitled to the benefits of any Guarantee of any Subsidiary Guarantor pursuant
to this Indenture, the identity of any such Subsidiary Guarantors and any terms
of such Guarantee with respect to the Securities of the series in addition to
those set forth in Article XI, or any exceptions to or changes to those
set forth in Article XI;

 

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

 

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

 

(12)                            if other than Dollars, the currency or
currencies (including composite currencies) or the form, including equity
securities, other debt securities (including Securities), warrants or any other
securities or property of the Company or any other Person, in which payment of
the principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of the series shall be payable;

 

(13)                            if the principal of, premium (if any) or
interest on or any Additional Amounts with respect to the Securities of the
series are to be payable, at the election of the Company or a Holder thereof,
in a currency or currencies (including composite currencies) other than that in
which the Securities are stated to be payable, the currency or currencies
(including composite currencies) in which payment of the principal of, premium
(if any) and interest on and any Additional Amounts with respect to Securities
of such series as to which such election is made shall be payable, and the
periods within which and the terms and conditions upon which such election is
to be made;

 

(14)                            if the amount of payments of principal
of, premium (if any) and interest on and any Additional Amounts with respect to
the Securities of the series may be determined with reference to any
commodities, currencies or indices, values, rates or prices or any other index
or formula, the manner in which such amounts shall be determined;

 

(15)                            if other than the entire principal amount
thereof, the portion of the principal amount of Securities of the series that
shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 6.02;

 

(16)                            any additional means of satisfaction and
discharge of this Indenture and any additional conditions or limitations to
discharge with respect to Securities of the series and the related Guarantees,
if any, pursuant to Article VIII or any modifications of or deletions from
such conditions or limitations;

 

(17)                            any deletions or modifications of or
additions to the Events of Default set forth in Section 6.01 or covenants
of the Company or any Subsidiary Guarantor set forth in Article IV
pertaining to the Securities of the series;

 

 (18)                         any restrictions or other provisions with
respect to the transfer or exchange of Securities of the series, which may
amend, supplement, modify or supersede those contained in this Article II;

 

(19)                            if the Securities of the series are to be
convertible into or exchangeable for capital stock, other debt securities
(including Securities), warrants, other equity securities or any other
securities or property of the Company, any Subsidiary Guarantor or any other
Person, at the option of the Company or the Holder or upon the occurrence of
any condition or event, the terms and conditions for such conversion or
exchange;

 

(20)                            if the Securities of the series are to be
entitled to the benefit of Section 4.03(b) (and accordingly
constitute Rule 144A Securities), that fact;

 

(21)                            any modifications to the definition of “Senior
Debt,” to Article X or to the other provisions regarding subordination
with respect to the Securities of the series; and

 

(22)                            any other terms of the series (which
terms shall not be prohibited by the provisions of this Indenture).

 

7

 

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 2.03) set forth, or determined in the manner provided,
in the Officers’ Certificate or Company Order 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, together with such Board Resolution, shall be set forth in an
Officers’ Certificate or 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 or Company Order setting forth the terms of the series.

 

The Securities shall be subordinated in right of
payment to Senior Debt as provided in Article X and/or as specified as
contemplated pursuant to this Section 2.01.

 

SECTION 2.02              Denominations.

 

The Securities of each series shall be issuable in
such denominations as shall be specified as contemplated by Section 2.01.
In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series denominated in Dollars shall be issuable
in denominations of $1,000 and any integral multiples thereof.

 

SECTION 2.03              Forms Generally.

 

The Securities of each series shall be in fully
registered form and in substan­tially such form or forms (including temporary
or permanent global form) established by or pursuant to a Board Resolution or
in one or more indentures supplemental hereto. The Securities may have
notations, legends or endorsements required by law, securities exchange rule,
the Company’s certificate of incorporation, bylaws or other similar governing
documents, agreements to which the Company is subject, if any, or usage
(provided that any such notation, legend or endorsement is in a form acceptable
to the Company).  A copy of the Board
Resolution establishing the form or forms of Securities of any series shall be
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 2.04 for the authentication and delivery of such
Securities.

 

The definitive Securities of each series 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 thereof.

 

The Trustee’s certificate 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.

 

                                                       
             , as Trustee

 

	
  By:

  	
   

  
	
   

  	
  Authorized Signatory”.

  

 

SECTION 2.04              Execution, Authentication, Delivery
and Dating.

 

Two Officers of the Company shall sign the Securities
on behalf of the Company and, with respect to any related Guarantee, an Officer
of each Subsidiary Guarantor shall sign the Notation of Guarantee on behalf of
such Subsidiary Guarantor, in each case by manual or facsimile signature. If an
Officer of the Company whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security shall be valid
nevertheless.

 

A Security shall not be entitled to any benefit under
this Indenture or the related Guarantees, if any, or be valid or obligatory for
any purpose until authenticated by the manual signature of an authorized
signatory of the Trustee, which signature shall be conclusive evidence that the
Security has been authenticated under this Indenture. 

 

8

 

Notwithstanding the foregoing, if any Security has
been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company delivers such Security to the Trustee for cancellation
as provided in Section 2.13, together with a written statement (which need
not comply with Section 12.05 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the
Company, 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 or the related Guarantees, if any.

 

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 to the Trustee for authentication, and the
Trustee shall authenticate and deliver such Securities for original issue upon
a Company Order for the authentication and delivery of such Securities or
pursuant to such procedures acceptable to the Trustee as may be specified from
time to time by Company Order. Such order shall specify the amount of the
Securities to be authenticated, the date on which the original issue of
Securities is to be authenticated, the name or names of the initial Holder or
Holders and any other terms of the Securities of such series not otherwise
determined. If provided for in such procedures, such Company Order may
authorize (1) authentication and delivery of Securities of such series for
original issue from time to time, with certain terms (including, without
limitation, the Maturity dates or dates, original issue date or dates and
interest rate or rates) that differ from Security to Security and (2) may
authorize authentication and delivery pursuant to oral or electronic instructions
from the Company or its duly authorized agent, which instructions shall be
promptly confirmed in writing.

 

If the form or terms of the Securities of the series
have been established in or pursuant to one or more Board Resolutions as
permitted by Section 2.01, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive (in addition to the
Company Order referred to above and the other documents required by Section 12.04),
and (subject to Section 7.01) shall be fully protected in relying upon:

 

(a)                                  an Officers’ Certificate setting forth
the Board Resolution and, if applicable, an appropriate record of any action
taken pursuant thereto, as contemplated by the last paragraph of Section 2.01;
and

 

(b)                                 an Opinion of Counsel to the effect that:

 

(i)                                     the form of such Securities has been
established in conformity with the provisions of this Indenture;

 

(ii)                                  the terms of such Securities have been
established in conformity with the provisions of this Indenture; and

 

(iii)                               that such Securities and the related Guarantees, if
any, 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 binding obligations of the Company and the
Subsidiary Guarantors, respectively, enforceable against the Company and the
Subsidiary Guarantors, respectively, in accordance with their respective terms,
except as the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws in effect from time to time affecting the rights of creditors generally,
and the application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

 

If all the Securities of any series are not to be
issued at one time, it shall not be necessary to deliver an Officers’
Certificate and Opinion of Counsel at the time of issuance of each such
Security, but such Officers’ Certificate and Opinion of Counsel shall be
delivered at or before the time of issuance of the first Security of the series
to be issued.

 

The Trustee shall not be required to authenticate such
Securities if the issuance of such Securities pursuant to this Indenture would
affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.

 

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Securities. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee 

 

9

 

may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company,
any Subsidiary Guarantor or any other Affiliate of the Company.

 

Each Security shall be dated the date of its
authentication.

 

SECTION 2.05              Registrar
and Paying Agent.

 

The Company shall maintain an office or agency for
each series of Securities where Securities of such series may be presented for
registration of transfer or exchange (“Registrar”) and an office or agency
where Securities of such series may be presented for payment (“Paying Agent”).
The Registrar shall keep a register of the Securities of such series and of
their transfer and exchange. The Company may appoint one or more co-registrars
and one or more additional paying agents. The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying agent.

 

The Company shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this Indenture. The
agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall notify the Trustee of the name and address of any Agent
not a party to this Indenture. The Company may change any Paying Agent or
Registrar without notice to any Holder. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as
such. The Company or any Subsidiary may act as Paying Agent or Registrar.

 

The Company initially appoints the Trustee as
Registrar and Paying Agent.

 

SECTION 2.06              Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal of, premium, if any, or interest on or any Additional
Amounts with respect to Securities and will notify the Trustee of any default
by the Company in making any such payment. 
While any such default continues, the Trustee may require a Paying Agent
to pay all money held by it to the Trustee and to account for any funds
disbursed. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed. Upon payment
over to the Trustee and upon accounting for any funds disbursed, the Paying
Agent (if other than the Company, a Subsidiary Guarantor or another Subsidiary)
shall have no further liability for the money. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders all money held by it as Paying Agent. Each Paying
Agent shall otherwise comply with TIA § 317(b).

 

SECTION 2.07              Holder Lists.

 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders and shall otherwise comply with TIA § 312(a). If the
Trustee is not the Registrar with respect to a series of Securities, the
Company shall furnish to the Trustee at least five Business Days before each
Interest Payment Date with respect to such series of Securities, and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of
Holders of such series, and the Company shall otherwise comply with TIA §
312(a).

 

SECTION 2.08              Transfer and Exchange.

 

Except as set forth in Section 2.17 or as may be
provided pursuant to Section 2.01:

 

When Securities of any series are presented to the
Registrar with the request to register the transfer of such Securities or to
exchange such Securities for an equal principal amount of Securities of the
same series of like tenor and of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its
requirements and the requirements of this Indenture for such transactions are
met; provided, however, that the
Securities presented or surrendered for registration of transfer or exchange
shall be duly endorsed or accompanied 

 

10

 

by a written instruction of transfer in form
reasonably satisfactory to the Registrar duly executed by the Holder thereof or
by his attorney, duly authorized in writing, on which instruction the Registrar
can rely.

 

To permit registrations of transfers and exchanges,
the Company shall execute and the Trustee shall authenticate Securities at the
Registrar’s written request and submission of the Securities or Global
Securities. No service charge shall be made to a Holder for any registration of
transfer or exchange (except as otherwise expressly permitted herein), but the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than such
transfer tax or similar governmental charge payable upon exchanges pursuant to Section 2.12,
3.07 or 9.05). The Trustee shall authenticate Securities in accordance with the
provisions of Section 2.04. Notwithstanding any other provisions of this
Indenture to the contrary, the Company shall not be required to register the
transfer or exchange of (a) any Security selected for redemption in whole
or in part pursuant to Article III, except the unredeemed portion of any
Security being redeemed in part, or (b) any Security during the period
beginning 15 Business Days prior to the mailing of notice of any offer to
repurchase Securities of the series required pursuant to the terms thereof or
of redemption of Securities of a series to be redeemed and ending at the close
of business on the day of mailing.

 

SECTION 2.09              Replacement Securities.

 

If any mutilated Security is surrendered to the
Trustee, or if the Holder of a Security claims that the Security has been
destroyed, lost or stolen and the Company and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of such Security, the
Company shall issue and the Trustee shall authenticate a replacement Security
of the same series if the Trustee’s requirements are met. If any such
mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new
Security, pay such Security. If required by the Trustee, any Subsidiary
Guarantor or the Company, such Holder must furnish an indemnity bond that is
sufficient in the judgment of the Trustee and the Company to protect the
Company, each Subsidiary Guarantor, the Trustee, any Agent or any
authenticating agent from any loss that any of them may suffer if a Security is
replaced. The Company and the Trustee may charge a Holder for their expenses in
replacing a Security.

 

Every replacement Security is an additional obligation
of the Company.

 

SECTION 2.10              Outstanding Securities.

 

The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest in a Global
Security effected by the Trustee hereunder and those described in this Section 2.10
as not outstanding.

 

If a Security is replaced pursuant to Section 2.09,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Security is held by a bona fide purchaser.

 

If the principal amount of any Security is considered
paid under Section 4.01, it ceases to be outstanding and interest on it
ceases to accrue.

 

A Security does not cease to be outstanding because
the Company, a Subsidiary Guarantor or another Affiliate of the Company or an
Affiliate of a Subsidiary Guarantor holds the Security.

 

SECTION 2.11              Original Issue Discount,
Foreign-Currency Denominated and Treasury Securities.

 

In determining whether the Holders of the required
principal amount of Securities have concurred in any direction, amendment,
supplement, waiver or consent, (a) the principal amount of an Original Issue
Discount Security shall be the principal amount thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof pursuant to Section 6.02, (b) the principal amount of a
Security denominated in a foreign currency shall be the Dollar equivalent, as
determined by the Company by reference to the noon buying rate in The City of
New York for cable transfers for such currency, as such rate is certified for
customs purposes by the Federal Reserve Bank of New York (the “Exchange Rate”)
on the date of original issuance of such Security, of the principal amount (or,
in the case of an Original Issue Discount Security, the Dollar equivalent, as
determined by the Company 

 

11

 

by reference to the Exchange Rate on the date of
original issuance of such Security, of the amount determined as provided in (a) above),
of such Security and (c) Securities owned by the Company, a Subsidiary
Guarantor or any other obligor upon the Securities or any Affiliate of the
Company or a Subsidiary Guarantor or of such other obligor shall be
disregarded, except that, for the purpose of determining whether the Trustee
shall be protected in relying upon any such direction, amendment, supplement,
waiver or consent, only Securities that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

 

SECTION 2.12              Temporary Securities.

 

Until definitive Securities of any series are ready
for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities, but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate definitive Securities in
exchange for temporary Securities. Until so exchanged, the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.

 

SECTION 2.13              Cancellation.

 

The Company or any Subsidiary Guarantor at any time
may deliver Securities to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange, payment or redemption or for credit
against any sinking fund payment. The Trustee shall cancel all Securities
surrendered for registration of transfer, exchange, payment, redemption,
replacement or cancellation or for credit against any sinking fund. Unless the
Company shall direct in writing that canceled Securities be returned to it,
after written notice to the Company all canceled Securities held by the Trustee
shall be disposed of in accordance with the usual disposal procedures of the
Trustee, and the Trustee shall maintain a record of their disposal. The Company
may not issue new Securities to replace Securities that have been paid or that
have been delivered to the Trustee for cancellation.

 

SECTION 2.14              Payments; Defaulted Interest.

 

Unless otherwise provided as contemplated by Section 2.01,
interest (except defaulted interest) on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Persons who are registered Holders of that Security at the close of
business on the record date next preceding such Interest Payment Date, even if
such Securities are canceled after such record date and on or before such
Interest Payment Date. The Holder must surrender a Security to a Paying Agent
to collect principal payments. Unless otherwise provided with respect to the
Securities of any series, the Company will pay the principal of, premium (if
any) and interest on and any Additional Amounts with respect to the Securities
in Dollars. Such amounts shall be payable at the offices of the Trustee or any
Paying Agent, provided that at
the option of the Company, the Company may pay such amounts (1) by wire
transfer with respect to Global Securities or (2) by check payable in such
money mailed to a Holder’s registered address with respect to any Securities.

 

If the Company defaults in a payment of interest on
the Securities of any series, the Company shall pay the defaulted interest in
any lawful manner plus, to the extent lawful, interest on the defaulted
interest, in each case at the rate provided in the Securities of such series
and in Section 4.01. The Company may pay the defaulted interest to the
Persons who are Holders on a subsequent special record date. At least 15 days
before any special record date selected by the Company, the Company (or the
Trustee, in the name of and at the expense of the Company upon 20 days’ prior
written notice from the Company setting forth such special record date and the
interest amount to be paid) shall mail to Holders a notice that states the
special record date, the related payment date and the amount of such interest
to be paid.

 

SECTION 2.15              Persons Deemed Owners.

 

The Company, the Subsidiary Guarantors, the Trustee,
any Agent and any authenticating agent may treat the Person in whose name any
Security is registered as the owner of such Security for the purpose of
receiving payments of principal of, premium (if any) or interest on or any
Additional Amounts with respect to such Security and for all other purposes.
None of the Company, any Subsidiary Guarantor, the Trustee, any Agent or any
authenticating agent 

 

12

 

shall be affected by any notice to the contrary.

 

SECTION 2.16              Computation of Interest.

 

Except as otherwise specified as contemplated by Section 2.01
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a year comprising twelve 30-day months.

 

SECTION 2.17              Global Securities; Book-Entry
Provisions.

 

If Securities of a series are issuable in global form
as a Global Security, as contemplated by Section 2.01, then,
notwithstanding clause (10) of Section 2.01 and the provisions of Section 2.02,
any such Global Security shall represent such of the outstanding Securities of
such series as shall be specified therein and may provide that it shall
represent the aggregate amount of outstanding Securities from time to time
endorsed thereon and that the aggregate amount of outstanding Securities
represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, transfers or redemptions. Any endorsement of
a Global Security to reflect the amount, or any increase or decrease in the
amount, of outstanding Securities represented thereby shall be made by the
Trustee (i) in such manner and upon instructions given by such Person or
Persons as shall be specified in such Security or in a Company Order to be
delivered to the Trustee pursuant to Section 2.04 or (ii) otherwise
in accordance with written instructions or such other written form of
instructions as is customary for the Depositary for such Security, from such
Depositary or its nominee on behalf of any Person having a beneficial interest
in such Global Security. Subject to the provisions of Section 2.04 and, if
applicable, Section 2.12, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified in such Security or in the applicable Company
Order. With respect to the Securities of any series that are represented by a
Global Security, the Company and the Subsidiary Guarantors authorize the
execution and delivery by the Trustee of a letter of representations or other similar
agreement or instrument in the form customarily provided for by the Depositary
appointed with respect to such Global Security. Any Global Security may be
deposited with the Depositary or its nominee, or may remain in the custody of
the Trustee or the Security Custodian therefor pursuant to a FAST Balance
Certificate Agreement or similar agreement between the Trustee and the
Depositary. If a Company Order has been, or simultaneously is, delivered, any
instructions by the Company with respect to endorsement or delivery or
redelivery of a Security in global form shall be in writing but need not comply
with Section 12.05 and need not be accompanied by an Opinion of Counsel.

 

Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary, or the Trustee or the Security
Custodian as its custodian, or under such Global Security, and the Depositary
may be treated by the Company, any Subsidiary Guarantor, the Trustee or the
Security Custodian and any agent of the Company, any Subsidiary Guarantor, the
Trustee or the Security Custodian as the absolute owner of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, (i) the registered
holder of a Global Security of a series may grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action that a Holder of Securities
of such series is entitled to take under this Indenture or the Securities of
such series and (ii) nothing herein shall prevent the Company, any
Subsidiary Guarantor, the Trustee or the Security Custodian, or any agent of
the Company, any Subsidiary Guarantor, the Trustee or the Security Custodian,
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or shall impair, as between the Depositary and its
Agent Members, the operation of customary practices governing the exercise of
the rights of a beneficial owner of any Security.

 

Notwithstanding Section 2.08, and except as
otherwise provided pursuant to Section 2.01: Transfers of a Global
Security shall be limited to transfers of such Global Security in whole, but
not in part, to the Depositary, its successors or their respective nominees.
Interests of beneficial owners in a Global Security may be transferred in
accordance with the rules and procedures of the Depositary. Securities
shall be transferred to all beneficial owners in exchange for their beneficial
interests in a Global Security if, and only if, either (1) the Depositary
notifies the Company that it is unwilling or unable to continue as Depositary
for the Global Security and a successor Depositary is not appointed by the Company
within 90 days of such notice, (2) an Event of Default has occurred with
respect to such series and is continuing and the Registrar has received a
request from the Depositary to issue Securities in lieu of all or a portion of
the Global Security (in which case the Company shall deliver Securities within
30 days of such request) or (3) the Company determines not to have the
Securities represented by a Global Security.

 

13

 

In connection with any transfer of a portion of the
beneficial interests in a Global Security to beneficial owners pursuant to this
Section 2.17, the Registrar shall reflect on its books and records the
date and a decrease in the principal amount of the Global Security in an amount
equal to the principal amount of the beneficial interests in the Global
Security to be transferred, and the Company shall execute, and the Trustee upon
receipt of a Company Order for the authentication and delivery of Securities
shall authenticate and deliver, one or more Securities of the same series of
like tenor and amount.

 

In connection with the transfer of all the beneficial
interests in a Global Security to beneficial owners pursuant to this Section 2.17,
the Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interests in the Global Security, an equal aggregate principal
amount of Securities of authorized denominations.

 

None of the Company, any Subsidiary Guarantor or the
Trustee will have any responsibility or liability for any aspect of the records
relating to, or payments made on account of, Securities by the Depositary, or
for maintaining, supervising or reviewing any records of the Depositary
relating to such Securities. None of the Company, any Subsidiary Guarantor or
the Trustee shall be liable for any delay by the related Global Security Holder
or the Depositary in identifying the beneficial owners, and each such Person
may conclusively rely on, and shall be protected in relying on, instructions
from such Global Security Holder or the Depositary for all purposes (including
with respect to the registration and delivery, and the respective principal
amounts, of the Securities to be issued).

 

The provisions of the last sentence of the third
paragraph of Section 2.04 shall apply to any Global Security if such
Global Security was never issued and sold by the Company and the Company or a
Subsidiary Guarantor delivers to the Trustee the Global Security together with
written instructions (which need not comply with Section 12.05 and need
not be accompanied by an Opinion of Counsel) with regard to the cancellation or
reduction in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of the third
paragraph of Section 2.04.

 

Notwithstanding the provisions of Sections 2.03 and
2.14, unless otherwise specified as contemplated by Section 2.01, payment
of principal of, premium (if any) and interest on and any Additional Amounts
with respect to any Global Security shall be made to the Person or Persons
specified therein.

 

ARTICLE III 

REDEMPTION

 

SECTION 3.01              Applicability of Article.

 

Securities of any series that are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 2.01 for
Securities of any series) in accordance with this Article III.

 

SECTION 3.02              Notice to the Trustee.

 

If the Company elects to redeem Securities of any
series pursuant to this Indenture, it shall notify the Trustee of the
Redemption Date and the principal amount of Securities of such series to be
redeemed. The Company shall so notify the Trustee at least 45 days before the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee)
by delivering to the Trustee an Officers’ Certificate stating that such
redemption will comply with the provisions of this Indenture and of the
Securities of such series. Any such notice may be canceled at any time prior to
the mailing of such notice of such redemption to any Holder and shall thereupon
be void and of no effect.

 

SECTION 3.03              Selection
of Securities To Be Redeemed.

 

If less than all the Securities of any series are to
be redeemed (unless all of the Securities of such series of a specified tenor
are to be redeemed), the particular Securities to be redeemed shall be selected
not more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Securities of such series (and tenor) not 

 

14

 

previously called for redemption, either pro rata, by
lot or by such other method as the Trustee shall deem fair and appropriate and
that may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral
multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series or of the principal amount of Global Securities of such series.

 

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

 

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

 

SECTION 3.04              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 Securities to be redeemed, at the
address of such Holder appearing in the register of Securities maintained by
the Registrar.

 

All notices of redemption shall identify the
Securities to be redeemed and shall state:

 

(1)                                  the Redemption Date;

 

(2)                                  the Redemption Price;

 

(3)                                  that, unless the Company and the
Subsidiary Guarantors default in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption
Date, and the only remaining right of the Holders of such Securities is to
receive payment of the Redemption Price upon surrender to the Paying Agent of the
Securities redeemed;

 

(4)                                  if any Security is to be redeemed in
part, the portion of the principal amount thereof to be redeemed and that on
and after the Redemption Date, upon surrender for cancellation of such Security
to the Paying Agent, a new Security or Securities in the aggregate principal
amount equal to the unredeemed portion thereof will be issued without charge to
the Holder;

 

(5)                                  that Securities called for redemption
must be surrendered to the Paying Agent to collect the Redemption Price and the
name and address of the Paying Agent;

 

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

 

(7)                                  the CUSIP number, if any, relating to
such Securities.

 

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
written request, by the Trustee in the name and at the expense of the Company.

 

SECTION 3.05              Effect of Notice of Redemption.

 

Once notice of redemption is mailed, Securities called
for redemption become due and payable on the Redemption Date and at the
Redemption Price. Upon surrender to the Paying Agent, such Securities called
for redemption shall be paid at the Redemption Price, but interest installments
whose maturity is on or prior to such Redemption Date will be payable on the
relevant Interest Payment Dates to the Holders of record at the close of
business on the relevant record dates specified pursuant to Section 2.01.

 

15

 

SECTION 3.06              Deposit of Redemption Price.

 

On or prior to 11:00 a.m., New York City time, on
any Redemption Date, the Company or a Subsidiary Guarantor shall deposit with
the Trustee or the Paying Agent (or, if the Company or a Subsidiary Guarantor
is acting as the Paying Agent, segregate and hold in trust as provided in Section 2.06)
an amount of money in same day funds sufficient to pay the Redemption Price of,
and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on and any Additional Amounts with respect to, the Securities or
portions thereof which are to be redeemed on that date, other than Securities
or portions thereof called for redemption on that date which have been
delivered by the Company or a Subsidiary Guarantor to the Trustee for
cancellation.

 

If the Company or a Subsidiary Guarantor complies with
the preceding paragraph, then, unless the Company or the Subsidiary Guarantors
default in the payment of such Redemption Price, interest on the Securities to
be redeemed will cease to accrue on and after the applicable Redemption Date,
whether or not such Securities are presented for payment, and the Holders of
such Securities shall have no further rights with respect to such Securities
except for the right to receive the Redemption Price upon surrender of such
Securities. If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal, premium, if any, any
Additional Amounts, and, to the extent lawful, accrued interest thereon shall,
until paid, bear interest from the Redemption Date at the rate specified
pursuant to Section 2.01 or provided in the Securities or, in the case of
Original Issue Discount Securities, such Securities’ yield to maturity.

 

SECTION 3.07              Securities Redeemed or Purchased in
Part.

 

Upon surrender to the Paying Agent of a Security to be
redeemed in part, the Company shall execute 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 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 that is not redeemed.

 

SECTION 3.08              Purchase of Securities.

 

Unless otherwise specified as contemplated by Section 2.01,
the Company, any Subsidiary Guarantor or any Affiliate of the Company or any
Subsidiary Guarantor may, subject to applicable law, at any time purchase or
otherwise acquire Securities in the open market or by private agreement. Any
such acquisition shall not operate as or be deemed for any purpose to be a
redemption of the indebtedness represented by such Securities. Any Securities
purchased or acquired by the Company or a Subsidiary Guarantor may be delivered
to the Trustee and, upon such delivery, the indebtedness represented thereby
shall be deemed to be satisfied. Section 2.13 shall apply to all
Securities so delivered.

 

SECTION 3.09              Mandatory and Optional Sinking Funds.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series 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 Securities of any series is herein referred
to as an “optional sinking fund payment.” Unless otherwise provided by the
terms of Securities of any series, the cash amount of any sinking fund payment
may be subject to reduction as provided in Section 3.10. Each sinking fund
payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series and by this Article III.

 

SECTION 3.10              Satisfaction of Sinking Fund
Payments with Securities.

 

The Company or a Subsidiary Guarantor may deliver
outstanding Securities of a series (other than any previously called for
redemption) and may apply as a credit Securities of a series that have been
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 the Securities
of such series required to be made pursuant to the terms of such series of
Securities; provided that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through 

 

16

 

operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.

 

SECTION 3.11              Redemption of Securities for Sinking
Fund.

 

Not less than 45 days prior (unless a shorter period
shall be satisfactory to the Trustee) to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers’
Certificate of the Company specifying the amount of the next ensuing sinking
fund payment for that series pursuant to the terms of that series, 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 delivery of or by crediting
Securities of that series pursuant to Section 3.10 and will also deliver
or cause to be delivered to the Trustee any Securities to be so delivered.
Failure of the Company to timely deliver or cause to be delivered such Officers’
Certificate and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute the election of the Company (i) that
the mandatory sinking fund payment for such series due on the next succeeding
sinking fund payment date shall be paid entirely in cash without the option to
deliver or credit Securities of such series in respect thereof and (ii) that
the Company will make no optional sinking fund payment with respect to such
series as provided in this Section.

 

If the sinking fund payment or payments (mandatory or
optional or both) to be made in cash on the next succeeding sinking fund
payment date plus any unused balance of any preceding sinking fund payments
made in cash shall exceed $100,000 (or the Dollar equivalent thereof based on
the applicable Exchange Rate on the date of original issue of the applicable
Securities) or a lesser sum if the Company shall so request with respect to the
Securities of any particular series, such cash shall be applied on the next
succeeding sinking fund payment date to the redemption of Securities of such
series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption. If such amount shall be $100,000 (or the Dollar
equivalent thereof as aforesaid) or less and the Company makes no such request
then it shall be carried over until a sum in excess of $100,000 (or the Dollar
equivalent thereof as aforesaid) is available. Not less than 30 days before
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 3.03
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 3.04. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.05, 3.06 and 3.07.

 

ARTICLE IV 

COVENANTS

 

SECTION 4.01              Payment of Securities.

 

The Company shall pay the principal of, premium (if
any) and interest on and any Additional Amounts with respect to the Securities
of each series on the dates and in the manner provided in the Securities of
such series and in this Indenture. Principal, premium, interest and any
Additional Amounts shall be considered paid on the date due if the Paying Agent
(other than the Company, a Subsidiary Guarantor or other Subsidiary) holds on
that date money deposited by the Company or a Subsidiary Guarantor designated
for and sufficient to pay all principal, premium, interest and any Additional
Amounts then due.

 

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

 

SECTION 4.02              Maintenance of Office or Agency.

 

The Company will maintain in each Place of Payment for
any series of Securities an office or agency (which may be an office of the
Trustee, the Registrar or the Paying Agent) where Securities of that series may
be presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or upon
the Company or a Subsidiary Guarantor in respect of the Securities of that
series and this Indenture may be served. Unless otherwise designated by the
Company by written notice to the Trustee and the Subsidiary Guarantors, such
office or agency shall be the office of the Trustee in The City of New York,
which on 

 

17

 

the date hereof is located at
                                                              .
The Company will give prompt written notice to the Trustee and the Subsidiary
Guarantors 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 and the Subsidiary
Guarantors with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

 

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 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 4.03              SEC Reports; Financial Statements.

 

(a)                                  If the Company is subject to the
requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall file with the Trustee, within 15 days after it files the same with the
SEC, copies of 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 the Company is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act. If this
Indenture is qualified under the TIA, but not otherwise, the Company shall also
comply with the provisions of TIA § 314(a). Delivery of such reports,
information and documents to the Trustee shall be for informational purposes
only, and the Trustee’s receipt thereof shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Company’s and the Subsidiary Guarantors’ compliance with
any of their covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates or certificates delivered pursuant to Section 4.04).

 

(b)                                 If the Company is not subject to the
requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall furnish to all Holders of Rule 144A Securities and prospective
purchasers of Rule 144A Securities designated by the Holders of Rule 144A
Securities, promptly upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended.

 

SECTION 4.04              Compliance Certificate.

 

(a)                                  Each of the Company and the Subsidiary
Guarantors shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, a statement signed by an Officer of the Company and
each Subsidiary Guarantor, respectively, which need not constitute an Officers’
Certificate, complying with TIA § 314(a)(4) and stating that in the course
of performance by the signing Officer of his duties as such Officer of the
Company or such Subsidiary Guarantor, as the case may be, he would normally
obtain knowledge of the keeping, observing, performing and fulfilling by the
Company or such Subsidiary Guarantor, as the case may be, of its obligations
under this Indenture, and further stating that to the best of his knowledge the
Company or such Subsidiary Guarantor, as the case may be, has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and
is not in default in the performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which such
Officer may have knowledge and what action the Company or such Subsidiary
Guarantor, as the case may be, is taking or proposes to take with respect
thereto).

 

(b)                                 The Company or any Subsidiary Guarantor
shall, so long as Securities of any series are outstanding, deliver to the
Trustee, forthwith upon any Officer of the Company or such Subsidiary
Guarantor, as the case may be, becoming aware of any Default or Event of
Default under this Indenture, an Officers’ Certificate specifying such Default
or Event of Default and what action the Company or such Subsidiary Guarantor,
as the case may be, is taking or proposes to take with respect thereto.

 

SECTION 4.05              Corporate Existence.

 

Subject to Article V, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence.

 

18

 

SECTION 4.06              Waiver of Stay, Extension or Usury
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 stay or extension law or any usury law or other
law that would prohibit or forgive it from paying all or any portion of the
principal of or interest on the Securities as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) each of the Company and the Subsidiary Guarantors 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.

 

SECTION 4.07              Additional Amounts.

 

If the Securities of a series expressly provide for
the payment of Additional Amounts, the Company will pay to the Holder of any
Security of such series Additional Amounts as expressly provided therein.
Whenever in this Indenture there is mentioned, in any context, the payment of
the principal of or any premium or interest on, or in respect of, any Security
of any series or the net proceeds received from the sale or exchange of any
Security of any series, such mention shall be deemed to include mention of the
payment of Additional Amounts provided for in this Section 4.07 to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof pursuant to the provisions of this Section 4.07 and
express mention of the payment of Additional Amounts (if applicable) in any
provisions hereof shall not be construed as excluding Additional Amounts in
those provisions hereof where such express mention is not made.

 

ARTICLE V 

SUCCESSORS

 

SECTION 5.01              Limitations on Mergers and
Consolidations.

 

Neither the Company nor any Subsidiary Guarantor
shall, in any transaction or series of transactions, consolidate with or merge
into any Person, or sell, lease, convey, transfer or otherwise dispose of all
or substantially all of its assets to any Person (other than a consolidation or
merger of the Company and one or more Subsidiary Guarantors or two or more
Subsidiary Guarantors, or a sale, lease, conveyance, transfer or other
disposition of all or substantially all of the assets of the Company to a
Subsidiary Guarantor, a Subsidiary Guarantor to the Company or of a Subsidiary
Guarantor to another Subsidiary Guarantor), unless:

 

(1)                                  either (a) the Company or such
Subsidiary Guarantor, as the case may be, shall be the continuing Person or (b) the
Person (if other than the Company or such Subsidiary Guarantor) formed by such
consolidation or into which the Company or such Subsidiary Guarantor is merged,
or to which such sale, lease, conveyance, transfer or other disposition shall
be made (collectively, the “Successor”), is organized and validly existing
under the laws of the United States, any political subdivision thereof or any
State thereof or the District of Columbia, and expressly assumes by
supplemental indenture the due and punctual payment of the principal of,
premium (if any) and interest on and any Additional Amounts with respect to all
the Securities and the performance of the Company’s covenants and obligations
under this Indenture and the Securities, or, in the case of such Subsidiary
Guarantor, the performance of the Guarantee and such Subsidiary Guarantor’s
covenants and obligations under this Indenture and the Securities;

 

(2)                                  immediately after giving effect to such
transaction or series of transactions, no Default or Event of Default shall
have occurred and be continuing or would result therefrom; and

 

(3)                                  the Company delivers to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that the
transaction and such supplemental indenture comply with this Indenture.

 

SECTION 5.02              Successor Person Substituted.

 

Upon any consolidation or merger of the Company or a
Subsidiary Guarantor, as the case may be, or any sale, lease, 

 

19

 

conveyance, transfer or other disposition of all or
substantially all of the assets of the Company or such Subsidiary Guarantor in
accordance with Section 5.01, the Successor formed by such consolidation
or into or with which the Company or the Subsidiary Guarantor is merged or to
which such sale, lease, conveyance, transfer or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of
the Company or such Subsidiary Guarantor, as the case may be, under this
Indenture and the Securities with the same effect as if such Successor had been
named as the Company or such Subsidiary Guarantor, as the case may be, herein
and the predecessor Company or Subsidiary Guarantor, in the case of a sale,
conveyance, transfer or other disposition, shall be released from all
obligations under this Indenture, the Securities and, in the case of a
Subsidiary Guarantor, the Guarantee.

 

ARTICLE VI 

DEFAULTS AND REMEDIES

 

SECTION 6.01              Events of Default.

 

Unless either inapplicable to a particular series or
specifically deleted or modified in or pursuant to the supplemental indenture
or Board Resolution establishing such series of Securities or in the form of
Security for such series, an “Event of Default,” wherever used herein with
respect to Securities of any series, occurs if:

 

(1)                                  the Company defaults in the payment of
interest on or any Additional Amounts with respect to any Security of that
series when the same becomes due and payable and such default continues for a
period of 30 days;

 

(2)                                  the Company defaults in the payment of (A) the
principal of any Security of that series at its Maturity or (B) premium
(if any) on any Security of that series when the same becomes due and payable;

 

(3)                                  the Company defaults in the deposit of
any sinking fund payment, when and as due by the terms of a Security of that
series, and such default continues for a period of 30 days;

 

(4)                                  the Company, or if any series of
Securities outstanding is entitled to the benefits of a Guarantee, any
Subsidiary Guarantor, fails to comply with any of its other covenants or agreements
in, or provisions of, the Securities of such series or this Indenture (other
than an agreement, covenant or provision that has expressly been included in
this Indenture solely for the benefit of one or more series of Securities other
than that series) which shall not have been remedied within the specified
period after written notice, as specified in the last paragraph of this Section 6.01;

 

(5)                                  the Company, or if that series of
Securities is entitled to the benefits of a Guarantee by any Subsidiary
Guarantor, any Subsidiary Guarantor, if it is a Significant Subsidiary,
pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                              commences a voluntary case,

 

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

 

(C)                                consents to the appointment of a
Bankruptcy Custodian of it or for all or substantially all of its property, or

 

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

 

(6)                                  a court of competent jurisdiction enters
an order or decree under any Bankruptcy Law that remains unstayed and in effect
for 90 days and that:

 

(A)                              is for relief against the Company or any
Subsidiary Guarantor with respect to such series, if it is a Significant
Subsidiary, as debtor in an involuntary case,

 

(B)                                appoints a Bankruptcy Custodian of the
Company or any Subsidiary Guarantor, if it is a 

 

20

 

Significant Subsidiary, or a Bankruptcy Custodian for
all or substantially all of the property of the Company, or any Subsidiary Guarantor
with respect to such series, if it is a Significant Subsidiary, or

 

(C)                                orders the liquidation of the Company or
any Subsidiary Guarantor with respect to such series, if it is a Significant
Subsidiary; or

 

(7)                                  any Guarantee of any Subsidiary Guarantor
that is a Significant Subsidiary with respect to such series ceases to be in
full force and effect with respect to Securities of that series (except as
otherwise provided in this Indenture) or is declared null and void in a
judicial proceeding, or any such Subsidiary Guarantor denies or disaffirms its
obligations under this Indenture or such Guarantee; or

 

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

 

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

 

The Trustee shall not be deemed to know or have notice
of any Default or Event of 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 or Event of Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the
Securities and this Indenture.

 

When a Default is cured, it ceases.

 

Notwithstanding the foregoing provisions of this Section 6.01,
if the principal of, premium (if any) or interest on or Additional Amounts with
respect to any Security is payable in a currency or currencies (including a
composite currency) other than Dollars and such currency or currencies are not
available to the Company or a Subsidiary Guarantor for making payment thereof
due to the imposition of exchange controls or other circumstances beyond the
control of the Company or such Subsidiary Guarantor (a “Conversion Event”), the
Company will be entitled to satisfy its obligations to Holders of the
Securities by making such payment in Dollars in an amount equal to the Dollar
equivalent of the amount payable in such other currency, as determined by the
Company or the Subsidiary Guarantor, as the case may be, by reference to the
Exchange Rate on the date of such payment, or, if such rate is not then
available, on the basis of the most recently available Exchange Rate.
Notwithstanding the foregoing provisions of this Section 6.01, any payment
made under such circumstances in Dollars where the required payment is in a
currency other than Dollars will not constitute an Event of Default under this
Indenture.

 

Promptly after the occurrence of a Conversion Event,
the Company or a Subsidiary Guarantor shall give written notice thereof to the
Trustee; and the Trustee, promptly after receipt of such notice, shall give
notice thereof in the manner provided in Section 12.02 to the Holders.
Promptly after the making of any payment in Dollars as a result of a Conversion
Event, the Company or a Subsidiary Guarantor, as the case may be, shall give
notice in the manner provided in Section 12.02 to the Holders, setting
forth the applicable Exchange Rate and describing the calculation of such
payments.

 

A Default under clause (4) or (7) of this Section 6.01
is not an Event of Default until the Trustee notifies the Company and the
Subsidiary Guarantors, or the Holders of at least 25% in principal amount of
the then outstanding Securities of the series affected by such Default (or, in
the case of a Default under clause (4) of this Section 6.01, if
outstanding Securities of other series are affected by such Default, then at
least 25% in principal amount of the then outstanding Securities so affected)
notify the Company, the Subsidiary Guarantors and the Trustee, of the Default,
and the Company or the applicable Subsidiary Guarantor, as the case may be,
fails to cure the Default within 90 days after receipt of the notice. The
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”

 

SECTION 6.02              Acceleration.

 

If an Event of Default with respect to any Securities
of any series at the time outstanding (other than an Event of Default specified
in clause (5) or (6) of Section 6.01) occurs and is continuing,
the Trustee by notice to the Company and the Subsidiary Guarantors, or the
Holders of at least 25% in principal amount of the then outstanding Securities 

 

21

 

of the series affected by such Event of Default (or,
in the case of an Event of Default described in clause (4) of Section 6.01,
if outstanding Securities of other series are affected by such Event of
Default, then at least 25% in principal amount of the then outstanding
Securities so affected) by notice to the Company, the Subsidiary Guarantors and
the Trustee, may declare the principal of (or, if any such Securities are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of that series) and all accrued and unpaid interest
on all then outstanding Securities of such series or of all series, as the case
may be, to be due and payable. Upon any such declaration, the amounts due and
payable on the Securities shall be due and payable immediately. If an Event of
Default specified in clause (5) or (6) of Section 6.01 hereof
occurs, such amounts shall ipso facto
become and be immediately due and payable without any declaration, notice or
other act on the part of the Trustee or any Holder. The Holders of a majority
in principal amount of the then outstanding Securities of the series affected
by such Event of Default or all series, as the case may be, by written notice
to the Trustee may rescind an acceleration and its consequences (other than
nonpayment of principal of or premium or interest on or any Additional Amounts
with respect to the Securities) if the rescission would not conflict with any
judgment or decree and if all existing Events of Default with respect to
Securities of that series (or of all series, as the case may be) have been
cured or waived, except nonpayment of principal, premium, interest or any
Additional Amounts that has become due solely because of the acceleration.

 

SECTION 6.03              Other
Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of,
or premium, if any, or interest on the Securities or to enforce the performance
of any provision of the Securities or this Indenture.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Holder in exercising any
right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All
remedies are cumulative to the extent permitted by law.

 

SECTION 6.04              Waiver of Defaults.

 

Subject to Sections 6.07 and 9.02, the Holders of a
majority in principal amount of the then outstanding Securities of any series
or of all series (acting as one class) by notice to the Trustee may waive an
existing or past Default or Event of Default with respect to such series or all
series, as the case may be, and its consequences (including waivers obtained in
connection with a tender offer or exchange offer for Securities of such series
or all series or a solicitation of consents in respect of Securities of such
series or all series, provided
that in each case such offer or solicitation is made to all Holders of then
outstanding Securities of such series or all series (but the terms of such
offer or solicitation may vary from series to series)), except (1) a
continuing Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on or any Additional Amounts with respect to any
Security or (2) a continued Default in respect of a provision that under Section 9.02
cannot be amended or supplemented without the consent of each Holder affected.
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 6.05              Control by Majority.

 

With respect to Securities of any series, the Holders
of a majority in principal amount of the then outstanding Securities of such
series may direct in writing the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it relating to or arising under an Event of Default
described in clause (1), (2), (3) or (7) of Section 6.01, and
with respect to all Securities, the Holders of a majority in principal amount
of all the then outstanding Securities affected may direct in writing the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it not relating to or
arising under such an Event of Default. However, the Trustee may refuse to
follow any direction that conflicts with applicable law or this Indenture, that
the Trustee determines may be unduly prejudicial to the rights of other
Holders, or that may involve the Trustee in personal liability; provided, however, that the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent
with such direction. Prior to taking any action hereunder, the Trustee shall be
entitled to indemnification satisfactory to it in its sole 

 

22

 

discretion from Holders directing the Trustee against
all losses and expenses caused by taking or not taking such action.

 

SECTION 6.06              Limitations on Suits.

 

Subject to Section 6.07 hereof, a Holder of a
Security of any series may pursue a remedy with respect to this Indenture or
the Securities of such series or any related Guarantees only if:

 

(1)                                  the Holder gives to the Trustee written notice of a
continuing Event of Default with respect to such series;

 

(2)                                  the Holders of at least 25% in principal
amount of the then outstanding Securities of such series make a written request
to the Trustee to pursue the remedy;

 

(3)                                  such Holder or Holders offer to the
Trustee indemnity satisfactory to the Trustee against any loss, liability or
expense;

 

(4)                                  the Trustee does not comply with the request within 60
days after receipt of the request and the offer of indemnity; and

 

(5)                                  during such 60-day period the Holders of
a majority in principal amount of the Securities of that series do not give the
Trustee a direction inconsistent with the request.

 

A Holder may not use this Indenture to prejudice the
rights of another Holder or to obtain a preference or priority over another
Holder.

 

SECTION 6.07              Rights of Holders to Receive
Payment.

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security to receive payment of principal of and
premium, if any, and interest on and any Additional Amounts with respect to the
Security, on or after the respective due dates expressed in the Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

 

SECTION 6.08              Collection Suit by Trustee.

 

If an Event of Default specified in clause (1) or
(2) of Section 6.01 hereof occurs and is continuing, the Trustee is
authorized to recover judgment in its own name and as trustee of an express
trust against the Company or a Subsidiary Guarantor for the amount of
principal, premium (if any), interest and any Additional Amounts remaining
unpaid on the Securities of the series affected by the Event of Default, and
interest on overdue principal and premium, if any, and, to the extent lawful,
interest on overdue interest, and 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.

 

SECTION 6.09              Trustee May File Proofs of
Claim.

 

The Trustee is authorized to file such proofs of claim
and other papers or documents and to take such actions, including participating
as a member, voting or otherwise, of any committee of creditors, as may be
necessary or advisable to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company or a Subsidiary Guarantor or their
respective creditors or properties and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any Bankruptcy Custodian 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 to it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee 

 

23

 

under Section 7.07. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07
out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other properties
which the Holders of the Securities may be entitled to receive in such
proceeding whether in liquidation or under any plan of reorganization or arrangement
or otherwise. Nothing herein contained 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 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.

 

SECTION 6.10              Priorities.

 

If the Trustee collects any money pursuant to this Article VI,
it shall, subject to Article X, pay out the money in the following order:

 

First:  to the
Trustee for amounts due under Section 7.07;

 

Second:  to
Holders for amounts due and unpaid on the Securities in respect of which or for
the benefit of which such money has been collected, for principal, premium (if
any), interest and any Additional Amounts ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal, premium (if any), interest and any Additional
Amounts, respectively; and

 

Third:  to the
Company.

 

The Trustee, upon prior written notice to the Company,
may fix record dates and payment dates for any payment to Holders pursuant to
this Article VI.  To the fullest
extent allowed under applicable law, if for the purpose of obtaining a judgment
against the Company or a Subsidiary Guarantor in any court it is necessary to
convert the sum due in respect of the principal of, premium (if any) or
interest on or Additional Amounts with respect to the Securities of any series
(the “Required Currency”) into a currency in which a judgment will be rendered
(the “Judgment Currency”), the rate of exchange used shall be the rate at which
in accordance with normal banking procedures the Trustee could purchase in The
City of New York the Required Currency with the Judgment Currency on the
Business Day in The City of New York next preceding that on which final
judgment is given. None of the Company, any Subsidiary Guarantor or the Trustee
shall be liable for any shortfall nor shall it benefit from any windfall in
payments to Holders of Securities under this Section 6.10 caused by a
change in exchange rates between the time the amount of a judgment against it
is calculated as above and the time the Trustee converts the Judgment Currency
into the Required Currency to make payments under this Section 6.10 to
Holders of Securities, but payment of such judgment shall discharge all amounts
owed by the Company and the Subsidiary Guarantors on the claim or claims
underlying such judgment.

 

SECTION 6.11              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 or
omitted by it as a trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07, or a suit by a Holder or
Holders of more than 10% in principal amount of the then outstanding Securities
of any series.

 

ARTICLE VII 

TRUSTEE

 

SECTION 7.01              Duties of Trustee.

 

(a)                                  If an Event of Default has occurred and
is continuing, the Trustee shall exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in such
exercise, as a prudent 

 

24

 

person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

 

(b)                                 Except during the continuance of an Event
of Default with respect to the Securities of any series:

 

(1)                                  the Trustee need perform only those
duties that are specifically set forth in this Indenture and no others, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and

 

(2)                                  in the absence of bad faith on its part,
the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture.
However, the Trustee shall examine such certificates and opinions to determine
whether, on their face, they appear to conform to the requirements of this
Indenture.

 

(c)                                  The Trustee may not be relieved from
liabilities for its own negligent action, its own negligent failure to act or
its own willful misconduct, except that:

 

(1)                                  this paragraph does not limit the effect
of Section 7.01(b);

 

(2)                                  the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(3)                                  the Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in accordance
with a direction received by it pursuant to Section 6.05.

 

(d)                                 Whether or not therein expressly so
provided, every provision of this Indenture that in any way relates to the
Trustee is subject to the provisions of this Section 7.01.

 

(e)                                  No provision of this Indenture shall
require the Trustee to expend or risk its own funds or incur any liability. The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                    The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the
Company and the Subsidiary Guarantors. Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law. All
money received by the Trustee shall, until applied as herein provided, be held
in trust for the payment of the principal of, premium (if any) and interest on
and Additional Amounts with respect to the Securities.

 

SECTION 7.02              Rights of Trustee.

 

(a)                                  The Trustee may conclusively rely on any
document believed by it to be genuine and to have been signed or presented by
the proper Person. The Trustee need not investigate any fact or matter stated
in the document.

 

(b)                                 Before the Trustee acts or refrains from
acting, it may require instruction, an Officers’ Certificate or an Opinion of
Counsel or both to be provided. The Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance on such instruction,
Officers’ Certificate or Opinion of Counsel. The Trustee may consult at the
Company’s expense with counsel of its selection 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.

 

(c)                                  The Trustee may act through agents and
shall not be responsible for the misconduct or negligence of any agent
appointed with due care.

 

(d)                                 The Trustee shall not be liable for any
action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers conferred upon it by this Indenture.

 

25

 

(e)           Unless otherwise specifically provided in this
Indenture, any demand, request, direction or notice from the Company or any
Subsidiary Guarantor shall be sufficient if signed by an Officer of the
Company.

 

SECTION 7.03     May Hold Securities.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Company, any Subsidiary Guarantor or any of their respective Affiliates with
the same rights it would have if it were not Trustee. Any Agent may do the same
with like rights and duties. However, the Trustee is subject to Sections 7.10
and 7.11.

 

SECTION 7.04     Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Company’s use of the proceeds from the Securities or any money paid to
the Company or any Subsidiary Guarantor or upon the Company’s or such
Subsidiary Guarantor’s direction under any provision hereof, it shall not be
responsible for the use or application of any money received by any Paying
Agent other than the Trustee and it shall not be responsible for any statement
or recital herein or any statement in the Securities other than its certificate
of authentication.

 

SECTION 7.05     Notice of Defaults.

 

If a Default or Event of Default with respect to the
Securities of any series occurs and is continuing and it is known to the
Trustee, the Trustee shall mail to Holders of Securities of such series a
notice of the Default or Event of Default within 90 days after it occurs.
Except in the case of a Default or Event of Default in payment of principal of,
premium (if any) and interest on and Additional Amounts or any sinking fund
installment with respect to the Securities of such series, the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers
in good faith determines that withholding the notice is in the interests of
Holders of Securities of such series.

 

SECTION 7.06     Reports by Trustee to Holders.

 

Within 60 days after each of each year after the
execution of this Indenture, the Trustee shall mail to Holders of a series, the
Subsidiary Guarantors and the Company a brief report dated as of such reporting
date that complies with TIA § 313(a); provided,
however, that if no event described in TIA § 313(a) has
occurred within the twelve months preceding the reporting date with respect to
a series, no report need be transmitted to Holders of such series. The Trustee
also shall comply with TIA § 313(b). The Trustee shall also transmit by mail
all reports if and as required by TIA §§ 313(c) and 313(d).

 

A copy of each report at the time of its mailing to
Holders of a series of Securities shall be filed by the Company or a Subsidiary
Guarantor with the SEC and each securities exchange, if any, on which the
Securities of such series are listed. The Company shall notify the Trustee if
and when any series of Securities is listed on any securities exchange.

 

SECTION 7.07     Compensation and Indemnity.

 

The Company agrees to pay to the Trustee for its
acceptance of this Indenture and services hereunder such compensation as the
Company and the Trustee shall from time to time agree in writing. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company agrees to reimburse the Trustee upon request for all
reasonable disbursements, advances and expenses incurred by it. Such expenses
shall include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel.

 

The Company hereby indemnifies the Trustee and any
predecessor Trustee against any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee), incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, except as set forth in the next following paragraph. The Trustee
shall notify the Company and the 

 

26

 

Subsidiary Guarantors promptly of any claim for which
it may seek indemnity. The Company shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company
shall pay the reasonable fees and expenses of such counsel. The Company need
not pay for any settlement made without its consent.

 

The Company shall not be obligated to reimburse any
expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee’s negligence or bad faith.

 

To secure the payment obligations of the Company in
this Section 7.07, the Trustee shall have a lien prior to the Securities
on all money or property held or collected by the Trustee, except that held in
trust to pay principal of, premium (if any) and interest on and any Additional
Amounts with respect to Securities of any series. Such lien and the Company’s
obligations under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture.

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(5) or (6) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

SECTION 7.08     Replacement of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign and be discharged at any time
with respect to the Securities of one or more series by so notifying the
Company and the Subsidiary Guarantors. The Holders of a majority in principal
amount of the then outstanding Securities of any series may remove the Trustee
with respect to the Securities of such series by so notifying the Trustee, the
Company and the Subsidiary Guarantors. The Company may remove the Trustee if:

 

(1)           the Trustee fails to comply with Section 7.10;

 

(2)           the Trustee is adjudged a bankrupt or an insolvent or
an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

(3)           a Bankruptcy Custodian or public officer takes charge
of the Trustee or its property; or

 

(4)           the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, with respect to the Securities
of one or more series, the Company 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). Within one year after the successor Trustee with respect to the
Securities of any series takes office, the Holders of a majority in principal
amount of the Securities of such series then outstanding may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities
of any series does not take office within 30 days after the retiring or removed
Trustee resigns or is removed, the retiring or removed Trustee, the Company,
any Subsidiary Guarantor or the Holders of at least 10% in principal amount of
the then outstanding Securities of such series may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

 

If the Trustee with respect to the Securities of a
series fails to comply with Section 7.10, any Holder of Securities of such
series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee with respect to the
Securities of such series.

 

In case of the appointment of a successor Trustee with
respect to all Securities, each such successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee, to the Company and to
the Subsidiary 

 

27

 

Guarantors. Thereupon the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the retiring Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it
as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

 

In case of the appointment 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 (but not all) series shall execute and
deliver an indenture supplemental hereto in which each successor Trustee shall
accept such appointment and that (1) shall confer to each successor
Trustee all the rights, powers 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 confirm that all the rights, powers 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. Nothing
herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust, and 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. 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 shall have all the rights, powers 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. On request of the Company or any successor
Trustee, such retiring Trustee shall transfer to such successor Trustee all
property held by such retiring Trustee as Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates.

 

Notwithstanding replacement of the Trustee or Trustees
pursuant to this Section 7.08, the obligations of the Company under Section 7.07
shall continue for the benefit of the retiring Trustee or Trustees.

 

SECTION 7.09     Successor Trustee by Merger, etc.

 

Subject to Section 7.10, if the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act shall be the successor Trustee; provided, however, that in the case of a
transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee’s
liabilities hereunder.

 

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; and in case at that
time any of the Securities shall not have been authenticated, any successor to
the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in
all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the
Trustee shall have.

 

SECTION 7.10     Eligibility; Disqualification.

 

There shall at all times be a Trustee hereunder which
shall be a corporation or banking or trust company or association organized and
doing business under the laws of the United States, any State thereof or the
District of Columbia and authorized under such laws to exercise corporate trust
power, shall be subject to supervision or examination by Federal or State (or
the District of Columbia) authority and shall have, or be a subsidiary of a
bank or bank holding company having, a combined capital and surplus of at least
$50 million as set forth in its most recent published annual report of
condition.

 

The Indenture shall always have a Trustee who
satisfies the requirements of TIA §§ 310(a)(1), 310(a)(2) and 310(a)(5).
The Trustee is subject to and shall comply with the provisions of TIA § 310(b) during
the period of time required by this Indenture. Nothing in this Indenture shall
prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA § 310(b).

 

28

 

SECTION 7.11     Preferential Collection of Claims
Against the Company or a Subsidiary Guarantor.

 

The Trustee is subject to and shall comply with the
provisions of TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA §
311(a) to the extent indicated therein.

 

ARTICLE VIII

DISCHARGE OF INDENTURE

 

SECTION 8.01     Termination of the Company’s and the
Subsidiary Guarantors’ Obligations.

 

(a)           This Indenture shall cease to be of further effect
with respect to the Securities of a series (except that the Company’s
obligations under Section 7.07, the Trustee’s and Paying Agent’s
obligations under Section 8.03 and the rights, powers, protections and
privileges accorded the Trustee under Article VII shall survive), and the
Trustee, on demand of the Company, shall execute proper instruments
acknowledging the satisfaction and discharge of this Indenture with respect to
the Securities of such series, when:

 

(1)           either:

 

(A)          all outstanding Securities of such series theretofore
authenticated and issued (other than destroyed, lost or stolen Securities that
have been replaced or paid) have been delivered to the Trustee for
cancellation; or

 

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

 

(i)            have become due and payable, or

 

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

 

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

 

and, in the case of clause (i), (ii) or (iii) above,
the Company or a Subsidiary Guarantor has irrevocably deposited or caused to be
deposited with the Trustee as funds (immediately available to the Holders in
the case of clause (i)) in trust for such purpose (x) cash in an amount,
or (y) Government Obligations, maturing as to principal and interest at
such times and in such amounts as will ensure the availability of cash in an
amount or (z) a combination thereof, which will be sufficient, in the
opinion (in the case of clauses (y) and (z)) of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge the entire indebtedness
on the Securities of such series for principal and interest to the date of such
deposit (in the case of Securities which have become due and payable) or for
principal, premium, if any, and interest to the Stated Maturity or Redemption
Date, as the case may be; or

 

(C)           the Company and the Subsidiary Guarantors have
properly fulfilled such other means of satisfaction and discharge as is
specified, as contemplated by Section 2.01, to be applicable to the
Securities of such series;

 

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

 

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

 

29

 

(b)           Unless this Section 8.01(b) is specified as
not being applicable to Securities of a series as contemplated by Section 2.01,
the Company may, at its option, terminate certain of its and the Subsidiary
Guarantors’ respective obligations under this Indenture (“covenant defeasance”)
with respect to the Securities of a series if:

 

(1)           the Company or a Subsidiary Guarantor has irrevocably
deposited or caused to be irrevocably deposited with the Trustee as trust funds
in trust for the purpose of making the following payments, specifically pledged
as security for and dedicated solely to the benefit of the Holders of
Securities of such series, (i) money in the currency in which payment of
the Securities of such series is to be made in an amount, or (ii) Government
Obligations with respect to such series, maturing as to principal and interest
at such times and in such amounts as will ensure the availability of money in
the currency in which payment of the Securities of such series is to be made in
an amount or (iii) a combination thereof, that is sufficient, in the
opinion (in the case of clauses (ii) and (iii)) of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay the principal of and premium (if any)
and interest on all Securities of such series on each date that such principal,
premium (if any) or interest is due and payable and (at the Stated Maturity
thereof or upon redemption as provided in Section 8.01(e)) to pay all
other sums payable by it hereunder; provided
that the Trustee shall have been irrevocably instructed to apply such money
and/or the proceeds of such Government Obligations to the payment of said
principal, premium (if any) and interest with respect to the Securities of such
series as the same shall become due;

 

(2)           the Company has delivered to the Trustee an Officers’
Certificate stating that all conditions precedent to satisfaction and discharge
of this Indenture with respect to the Securities of such series have been
complied with, and an Opinion of Counsel to the same effect;

 

(3)           no Default or Event of Default with respect to the
Securities of such series shall have occurred and be continuing on the date of
such deposit;

 

(4)           the Company shall have delivered to the Trustee an
Opinion of Counsel from a nationally recognized counsel acceptable to the
Trustee or a tax ruling to the effect that the Holders will not recognize
income, gain or loss for U.S. Federal income tax purposes as a result of the
Company’s exercise of its option under this Section 8.01(b) and will
be subject to U.S. Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such option had not been
exercised;

 

(5)           the Company and the Subsidiary Guarantors have
complied with any additional conditions specified pursuant to Section 2.01
to be applicable to the discharge of Securities of such series pursuant to this
Section 8.01; and

 

(6)           such deposit and discharge shall not cause the Trustee
to have a conflicting interest as defined in TIA § 310(b).

 

In such event, this Indenture shall cease to be of
further effect (except as set forth in this paragraph), and the Trustee, on
demand of the Company, shall execute proper instruments acknowledging
satisfaction and discharge under this Indenture.  However, the Company’s and the Subsidiary
Guarantors’ respective obligations in Sections 2.05, 2.06, 2.07, 2.08, 2.09,
4.01, 4.02, 7.07, 7.08 and 8.04, the Trustee’s and Paying Agent’s obligations
in Section 8.03 and the rights, powers, protections and privileges
accorded the Trustee under Article VII shall survive until all Securities
of such series are no longer outstanding. Thereafter, only the Company’s
obligations in Section 7.07 and the Trustee’s and Paying Agent’s
obligations in Section 8.03 shall survive with respect to Securities of
such series.

 

After such irrevocable deposit made pursuant to this Section 8.01(b) and
satisfaction of the other conditions set forth herein, the Trustee upon request
shall acknowledge in writing the discharge of the Company’s and the Subsidiary
Guarantors’ obligations under this Indenture with respect to the Securities of
such series except for those surviving obligations specified above.

 

In order to have money available on a payment date to
pay principal of or premium (if any) or interest on the Securities, the
Government Obligations shall be payable as to principal or interest on or
before such payment date in 

 

30

 

such amounts as will provide the necessary money.
Government Obligations shall not be callable at the issuer’s option.

 

(c)           If the Company and the Subsidiary Guarantors have
previously complied or is concurrently complying with Section 8.01(b) (other
than any additional conditions specified pursuant to Section 2.01 that are
expressly applicable only to covenant defeasance) with respect to Securities of
a series, then, unless this Section 8.01(c) is specified as not being
applicable to Securities of such series as contemplated by Section 2.01,
the Company may elect that its and the Subsidiary Guarantors’ respective
obligations to make payments with respect to Securities of such series be
discharged (“legal defeasance”), if:

 

(1)           no Default or Event of Default under clauses (5) and
(6) of Section 6.01 hereof shall have occurred at any time during the
period ending on the 91st day after the date of deposit contemplated by Section 8.01(b) (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period);

 

(2)           unless otherwise specified with respect to Securities
of such series as contemplated by Section 2.01, the Company has delivered
to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable
to the Trustee to the effect referred to in Section 8.01(b)(4) with
respect to such legal defeasance, which opinion is based on (i) a private
ruling of the Internal Revenue Service addressed to the Company, (ii) a
published ruling of the Internal Revenue Service pertaining to a comparable
form of transaction or (iii) a change in the applicable federal income tax
law (including regulations) after the date of this Indenture;

 

(3)           the Company and the Subsidiary Guarantors have
complied with any other conditions specified pursuant to Section 2.01 to
be applicable to the legal defeasance of Securities of such series pursuant to
this Section 8.01(c); and

 

(4)           the Company has delivered to the Trustee a Company
Request requesting such legal defeasance of the Securities of such series and
an Officers’ Certificate stating that all conditions precedent with respect to
such legal defeasance of the Securities of such series have been complied with,
together with an Opinion of Counsel to the same effect.

 

In such event, the Company and the Subsidiary
Guarantors will be discharged from its obligations under this Indenture and the
Securities of such series to pay principal of, premium (if any) and interest on
and any Additional Amounts with respect to Securities of such series, the
Company’s and the Subsidiary Guarantors’ respective obligations under Sections
4.01, 4.02 and 10.01 shall terminate with respect to such Securities, and the
entire indebtedness of the Company evidenced by such Securities and of the
Subsidiary Guarantors evidenced by the related Guarantee shall be deemed paid
and discharged.

 

(d)           If and to the extent additional or alternative means
of satisfaction, discharge or defeasance of Securities of a series are
specified to be applicable to such series as contemplated by Section 2.01,
each of the Company and the Subsidiary Guarantors may terminate any or all of
its obligations under this Indenture with respect to Securities of a series and
any or all of its obligations under the Securities of such series if it
fulfills such other means of satisfaction and discharge as may be so specified,
as contemplated by Section 2.01, to be applicable to the Securities of
such series.

 

(e)           If Securities of any series subject to subsections
(a), (b), (c) or (d) of this Section 8.01 are to be redeemed
prior to their Stated Maturity, whether pursuant to any optional redemption
provisions or in accordance with any mandatory or optional sinking fund
provisions, the terms of the applicable trust arrangement shall provide for such
redemption, and the Company shall make such arrangements as are reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

 

SECTION 8.02     Application of Trust Money.

 

The Trustee or a trustee satisfactory to the Trustee
and the Company shall hold in trust money or Government Obligations deposited
with it pursuant to Section 8.01 hereof. It shall apply the deposited
money and the money 

 

31

 

from Government Obligations through the Paying Agent
and in accordance with this Indenture to the payment of principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities of the series with respect to which the deposit was made. Money and
securities held in trust are not subject to Article X.

 

SECTION 8.03     Repayment to Company.

 

The Trustee and the Paying Agent shall promptly pay to
the Company or any Subsidiary Guarantor any excess money or Government
Obligations (or proceeds therefrom) held by them at any time upon the written
request of the Company.

 

Subject to the requirements of any applicable
abandoned property laws, the Trustee and the Paying Agent shall pay to the
Company upon written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that remain
unclaimed for two years after the date upon which such payment shall have
become due. After payment to the Company, Holders entitled to the money must
look to the Company for payment as general creditors unless an applicable
abandoned property law designates another Person, and all liability of the
Trustee and the Paying Agent with respect to such money shall cease.

 

SECTION 8.04     Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply
any money or Government Obligations deposited with respect to Securities of any
series in accordance with Section 8.01 by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the
obligations of the Company and the Subsidiary Guarantors under this Indenture
with respect to the Securities of such series and under the Securities of such
series shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 until such time as the Trustee or the Paying
Agent is permitted to apply all such money or Government Obligations in
accordance with Section 8.01; provided,
however, that if the Company or any Subsidiary Guarantor has made
any payment of principal of, premium (if any) or interest on or any Additional
Amounts with respect to any Securities because of the reinstatement of its
obligations, the Company or such Subsidiary Guarantor, as the case may be,
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or Government Obligations held by the Trustee or
the Paying Agent.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES
AND AMENDMENTS

 

SECTION 9.01     Without Consent of Holders.

 

The Company, the Subsidiary Guarantors and the Trustee
may amend or supplement this Indenture or the Securities or waive any provision
hereof or thereof without the consent of any Holder:

 

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

 

(2)           to comply with Section 5.01;

 

(3)           to provide for uncertificated Securities in addition
to or in place of certificated Securities, or to provide for the issuance of
bearer Securities (with or without coupons);

 

(4)           to provide any security for, or to add any guarantees
of or additional obligors on, any series of Securities or the related
Guarantees, if any;

 

(5)           to comply with any requirement in order to effect or
maintain the qualification of this Indenture under the TIA;

 

(6)           to add to the covenants of the Company or any
Subsidiary Guarantor 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 any Subsidiary Guarantor;

 

32

 

(7)           to add any additional Events of Default with respect
to all or any series of the Securities (and, if any Event of Default is
applicable to less than all series of Securities, specifying the series to
which such Event of Default is applicable);

 

(8)           to change or eliminate any of the provisions of this
Indenture; provided that any such
change or elimination shall become effective only when there is no outstanding
Security of any series created prior to the execution of such amendment or
supplemental indenture that is adversely affected in any material respect by
such change in or elimination of such provision; provided, further, that any
change made solely to conform the provisions of this Indenture to a description
of any Security in a prospectus supplement will not be deemed to adversely
affect any Security of any series in any material respect;

 

(9)           to establish the form or terms of Securities of any
series as permitted by Section 2.01;

 

(10)         to supplement any of the provisions of this Indenture
to such extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Section 8.01; provided, however, that any such action
shall not adversely affect the interest of the Holders of Securities of such
series or any other series of Securities in any material respect; or

 

(11)         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 7.08.

 

Upon the request of the Company, accompanied by a
Board Resolution, and upon receipt by the Trustee of the documents described in
Section 9.06, the Trustee shall, subject to Section 9.06, join with
the Company and the Subsidiary Guarantors in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture and make any
further appropriate agreements and stipulations that may be therein contained.

 

SECTION 9.02     With Consent of Holders.

 

Except as provided below in this Section 9.02,
the Company, the Subsidiary Guarantors and the Trustee may amend or supplement
this Indenture with the written consent (including consents obtained in
connection with a tender offer or exchange offer for Securities of any one or
more series or all series or a solicitation of consents in respect of
Securities of any one or more series or all series, provided that in each case such offer or solicitation is
made to all Holders of then outstanding Securities of each such series (but the
terms of such offer or solicitation may vary from series to series)) of the
Holders of at least a majority in principal amount of the then outstanding
Securities of all series affected by such amendment or supplement (acting as
one class).

 

Upon the request of the Company, accompanied by a
Board Resolution, and upon the filing with the Trustee of evidence of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Company and the Subsidiary Guarantors in the execution of such
amendment or supplemental indenture.

 

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

 

The Holders of a majority in principal amount of the
then outstanding Securities of one or more series or of all series may waive
compliance in a particular instance by the Company or any Subsidiary Guarantor
with any provision of this Indenture with respect to Securities of such series
(including waivers obtained in connection with a tender offer or exchange offer
for Securities of such series or a solicitation of consents in respect of
Securities of such series, provided
that in each case such offer or solicitation is made to all Holders of then
outstanding Securities of such series (but the terms of such offer or
solicitation may vary from series to series)).

 

However, without the consent of each Holder affected,
an amendment, supplement or waiver under this Section 9.02 may not:

 

33

 

(1)           reduce the amount of Securities whose Holders must
consent to an amendment, supplement or waiver;

 

(2)           reduce the rate of or change the time for payment of
interest, including default interest, on any Security;

 

(3)           reduce the principal of, any premium on or any
mandatory sinking fund payment with respect to, or change the Stated Maturity
of, any Security or reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 6.02;

 

(4)           reduce the premium, if any, payable upon the
redemption of any Security or change the time at which any Security may or shall
be redeemed;

 

(5)           change any obligation of the Company or any Subsidiary
Guarantor to pay Additional Amounts with respect to any Security;

 

(6)           change the coin or currency or currencies (including
composite currencies) in which any Security or any premium, interest or
Additional Amounts with respect thereto are payable;

 

(7)           impair the right to institute suit for the enforcement
of any payment of principal of, premium (if any) or interest on or any
Additional Amounts with respect to any Security pursuant to Sections 6.07 and
6.08, except as limited by Section 6.06;

 

(8)           make any change in the percentage of principal amount
of Securities necessary to waive compliance with certain provisions of this
Indenture pursuant to Section 6.04 or 6.07 or make any change in this
sentence of Section 9.02;

 

(9)           modify the provisions of this Indenture with respect
to the subordination of any Security in a manner adverse to the Holder thereof;

 

(10)         except as provided in Section 11.04, release any
Subsidiary Guarantor or modify the related Guarantee in any manner materially
adverse to the Holders; or

 

(11)         waive a continuing Default or Event of Default in the
payment of principal of, premium (if any) or interest on or Additional Amounts
with respect to the Securities.

 

An amendment under this Section 9.02 may not make
any change that adversely affects the rights under Article X of any holder
of an issue of Senior Debt unless the holders of the issue pursuant to its
terms consent to the change.

 

A supplemental indenture that 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.

 

The right of any Holder to participate in any consent
required or sought pursuant to any provision of this Indenture (and the
obligation of the Company or any Subsidiary Guarantor to obtain any such
consent otherwise required from such Holder) may be subject to the requirement
that such Holder shall have been the Holder of record of any Securities with
respect to which such consent is required or sought as of a date identified by
the Company or such Subsidiary Guarantor in a notice furnished to Holders in
accordance with the terms of this Indenture.

 

After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders of each Security
affected thereby a notice briefly describing the amendment, supplement or
waiver. Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amendment, supplement or waiver.

 

34

 

SECTION 9.03     Compliance with Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the
Securities shall comply in form and substance with the TIA as then in effect.

 

SECTION 9.04     Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation of
the consent is not made on any Security. However, any such Holder or subsequent
Holder may revoke the consent as to his or her Security or portion of a
Security if the Trustee receives written notice of revocation before a date and
time therefor identified by the Company or any Subsidiary Guarantor in a notice
furnished to such Holder in accordance with the terms of this Indenture or, if
no such date and time shall be identified, the date the amendment, supplement
or waiver becomes effective. An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

 

The Company or any Subsidiary Guarantor may, but shall
not be obligated to, fix a record date (which need not comply with TIA §
316(c)) for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver or to take any other action under this
Indenture. If a record date is fixed, then notwithstanding the provisions of
the immediately preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only those Persons, shall
be entitled to consent to such amendment, supplement or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date. No consent shall be valid or effective for more than 90
days after such record date unless consents from Holders of the principal
amount of Securities required hereunder for such amendment or waiver to be
effective shall have also been given and not revoked within such 90-day period.

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it is of the type described in
any of clauses (1) through (9) of Section 9.02 hereof. In such
case, the amendment, supplement or waiver shall bind each Holder who has
consented to it and every subsequent Holder that evidences the same debt as the
consenting Holder’s Security.

 

SECTION 9.05     Notation on or Exchange of
Securities.

 

If an amendment or supplement changes the terms of an
outstanding Security, the Company may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the
Security at the request of the Company regarding the changed terms and return
it to the Holder. Alternatively, if the Company so determines, the Company in
exchange for the Security shall issue and the Trustee shall authenticate a new
Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment or supplement.

 

Securities of any series authenticated and delivered
after the execution of any amendment or supplement 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 amendment or supplement.

 

SECTION 9.06     Trustee to Sign Amendments, etc.

 

The Trustee shall sign any amendment or supplement
authorized pursuant to this Article if the amendment or supplement does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may, but need not, sign it. In signing or
refusing to sign such amendment or supplement, the Trustee shall be entitled to
receive, and, subject to Section 7.01 hereof, shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel provided at
the expense of the Company or a Subsidiary Guarantor as conclusive evidence
that such amendment or supplement is authorized or permitted by this Indenture,
that it is not inconsistent herewith, and that it will be valid and binding
upon the Company in accordance with its terms.

 

35

 

ARTICLE X

SUBORDINATION OF
SECURITIES AND GUARANTEES

 

SECTION 10.01  Securities and Guarantees
Subordinated to Senior Debt.

 

The Company, the Subsidiary Guarantors and each Holder
of a Security of a series, by his acceptance thereof, agree that (a) the
payment of the principal of, premium (if any) and interest on and any
Additional Amounts with respect to each and all the Securities of such series
and any related Guarantee and (b) any other payment in respect of the
Securities and any related Guarantee of such series, including on account of
the acquisition or redemption of Securities of such series by the Company or
the Subsidiary Guarantor, as the case may be, is subordinated, to the extent
and in the manner provided in this Article X, to the prior payment in full
of all Senior Debt of the Company, whether outstanding at the date of this
Indenture or thereafter created, incurred, assumed or guaranteed, and that
these subordination provisions are for the benefit of the holders of Senior
Debt.

 

This Article X shall constitute a continuing
offer to all Persons who, in reliance upon such provisions, become holders of,
or continue to hold, Senior Debt, and such provisions are made for the benefit
of the holders of Senior Debt, and such holders are made obligees hereunder and
any one or more of them may enforce such provisions.

 

SECTION 10.02  No Payment on Securities in Certain
Circumstances.

 

(a)           Unless otherwise provided with respect to the
Securities of a series as contemplated by Section 2.01, no payment shall
be made by or on behalf of the Company or the Subsidiary Guarantor, as the case
may be, on account of the principal of, premium (if any) or interest on or any
Additional Amounts with respect to the Securities and any related Guarantees of
any series or to acquire any Securities of such series (including any repurchases
of Securities of such series pursuant to the provisions thereof at the option
of the Holder thereof) for cash or property, or on account of any redemption
provisions of Securities of such series, in the event of default in payment of
any principal of, premium (if any) or interest on any Senior Debt of the
Company when the same becomes due and payable, whether at maturity or at a date
fixed for prepayment or by acceleration of maturity or otherwise (a “Payment
Default”), unless and until such Payment Default has been cured or waived or
otherwise has ceased to exist or such Senior Debt shall have been discharged or
paid in full.

 

(b)           In furtherance of the provisions of Section 10.01,
in the event that, notwithstanding the foregoing provisions of this Section 10.02,
any payment or distribution of assets of the Company or the Subsidiary
Guarantors, as the case may be, shall be received by the Trustee, the Paying
Agent or the Holders of Securities of any series and any related Guarantees at
a time when such payment or distribution was prohibited by the provisions of
this Section 10.02, then, unless such payment or distribution is no longer
prohibited by this Section 10.02, such payment or distribution (subject to
the provisions of Section 10.07) shall be received and held in trust by
the Trustee, the Paying Agent or such Holder for the benefit of the holders of
Senior Debt of the Company, and shall be paid or delivered by the Trustee, the
Paying Agent or such Holders, as the case may be, to the holders of Senior Debt
of the Company remaining unpaid or unprovided for or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Senior Debt of the Company may have been
issued, ratably, according to the aggregate amounts remaining unpaid on account
of such Senior Debt of the Company held or represented by each, for application
to the payment of all Senior Debt in full after giving effect to all concurrent
payments and distributions to or for the holders of such Senior Debt.

 

SECTION 10.03  Securities and Guarantees
Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or
Reorganization.

 

Upon any distribution of assets of the Company or the
Subsidiary Guarantors, as the case may be, or upon any dissolution, winding up,
total or partial liquidation or reorganization of the Company or the Subsidiary
Guarantors, as the case may be, whether voluntary or involuntary, in
bankruptcy, insolvency, receivership or similar proceeding or upon assignment
for the benefit of creditors:

 

(1)           the holders of all Senior Debt of the Company shall
first be entitled to receive payments in full before the Holders of Securities
of any series and any related Guarantees are entitled to receive any payment on
account of the principal of, premium (if any) or interest on or any Additional
Amounts with respect to Securities of 

 

36

 

such series and any related Guarantees;

 

(2)           any payment or distribution of assets of the Company
or the Subsidiary Guarantors, as the case may be, of any kind or character,
whether in cash, property or securities, to which the Holders of Securities of
any series and any related Guarantees, or the Trustee on behalf of such Holders
would be entitled, except for the provisions of this Article X, shall be
paid by the liquidating trustee or agent or other Person making such a payment
or distribution directly to the holders of such Senior Debt or their
representative, ratably according to the respective amounts of Senior Debt held
or represented by each, to the extent necessary to make payment in full of all
such Senior Debt remaining unpaid after giving effect to all concurrent
payments and distributions to the holders of such Senior Debt; and

 

(3)           in the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Company or the Subsidiary Guarantors,
as the case may be, of any kind or character, whether in cash, property or
securities, shall be received by the Trustee or the Holders of Securities of
any series and any related Guarantees or any Paying Agent (or, if the Company,
the Subsidiary Guarantor or any other Subsidiary is acting as the Paying Agent,
money for any such payment or distribution shall be segregated or held in
trust) on account of the principal of, premium (if any) or interest on or any
Additional Amounts with respect to the Securities of such series and any
related Guarantees before all Senior Debt of the Company is paid in full, such
payment or distribution (subject to the provisions of Section 10.07) shall
be received and held in trust by the Trustee or such Holder or Paying Agent for
the benefit of the holders of such Senior Debt, or their respective
representatives, ratably according to the respective amounts of such Senior
Debt held or represented by each, to the extent necessary to make payment as
provided herein of all such Senior Debt remaining unpaid after giving effect to
all concurrent payments and distributions and all provisions therefor to or for
the holders of such Senior Debt, but only to the extent that as to any holder
of such Senior Debt, as promptly as practical following notice from the Trustee
to the holders of such Senior Debt that such prohibited payment has been
received by the Trustee, Holder(s) or Paying Agent (or has been segregated
as provided above), such holder (or a representative therefor) notifies the
Trustee of the amounts then due and owing on such Senior Debt, if any, held by
such holder and only the amounts specified in such notices to the Trustee shall
be paid to the holders of such Senior Debt.

 

SECTION 10.04  Subrogation to Rights of Holders of
Senior Debt.

 

Subject to the payment in full of all Senior Debt of
the Company as provided herein, the Holders of the Securities of any series and
any related Guarantees shall be subrogated (to the extent of the payments or
distributions made to the holders of such Senior Debt pursuant to the
provisions of this Article X) to the rights of the holders of such Senior
Debt to receive payments or distributions of assets of the Company or the
Subsidiary Guarantors, as the case may be, applicable to the Senior Debt until
all amounts owing on the Securities of such series and any related Guarantees
shall be paid in full. For the purpose of such subrogation, no such payments or
distributions to the holders of such Senior Debt by the Company or the
Subsidiary Guarantors, as the case may be, or by or on behalf of the Holders of
the Securities of such series and any related Guarantees by virtue of this Article X,
which otherwise would have been made to such Holders shall, as between the
Company or the Subsidiary Guarantors, as the case may be, and such Holders, be
deemed to be payment by the Company or the Subsidiary Guarantors, as the case
may be, or on account of such Senior Debt, it being understood that the
provisions of this Article X are and are intended solely for the purpose
of defining the relative rights of the Holders of the Securities of a series
and any related Guarantees, on the one hand, and the holders of such Senior
Debt, on the other hand.

 

If any payment or distribution to which the Holders of
the Securities and any related Guarantees would otherwise have been entitled
but for the provisions of this Article X shall have been applied, pursuant
to the provisions of this Article X, to the payment of amounts payable
under Senior Debt, then such Holders shall be entitled to receive from the
holders of such Senior Debt any payments or distributions received by such
holders of Senior Debt in excess of the amount sufficient to pay all amounts
payable under or in respect of such Senior Debt in full.

 

SECTION 10.05  Obligations of the Company and the
Subsidiary Guarantors Unconditional.

 

Nothing contained in this Article X or elsewhere
in this Indenture or in the Securities is intended to or shall impair, as
between the Company or the Subsidiary Guarantors, as the case may be, and the
Holders of the Securities of any series and any related Guarantee, the
obligation of the Company or the Subsidiary Guarantors, as the case may be, 

 

37

 

which is absolute and unconditional, to pay to such
Holders the principal of such series, premium (if any) and interest on and any
Additional Amounts with respect to the Securities of such series and any
related Guarantees of such series as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of such Holders and creditors of the Company or the Subsidiary
Guarantors, as the case may be, other than the holders of the Senior Debt, nor
shall anything herein or therein prevent the Trustee or any Holder from
exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article X,
of the holders of Senior Debt in respect of cash, property or securities of the
Company or the Subsidiary Guarantors, as the case may be, received upon the
exercise of any such remedy. Notwithstanding anything to the contrary in this Article X
or elsewhere in this Indenture or in the Securities, upon any distribution of
assets of the Company or the Subsidiary Guarantors, as the case may be,
referred to in this Article X, the Trustee, subject to the provisions of
Sections 7.01 and 7.02, and the Holders of the Securities and any related
Guarantees shall be entitled to rely upon any order or decree made by any court
of competent jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending, or a certificate of the liquidating
trustee or agent or other Person making any distribution to the Trustee or to
such Holders for the purpose of ascertaining the Persons entitled to
participate in such distribution, the holders of the Senior Debt and other Debt
of the Company or any Subsidiary Guarantors, as the case may be, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article X so long as such
court has been apprised of the provisions of, or the order, decree or
certificate makes reference to, the provisions of this Article X.

 

SECTION 10.06  Trustee Entitled to Assume Payments
Not Prohibited in Absence of Notice.

 

The Trustee shall not at any time be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment to or by the Trustee unless and until a Responsible Officer of the
Trustee or any Paying Agent shall have received, no later than two Business
Days prior to such payment, written notice thereof from the Company or any
Subsidiary Guarantor, as the case may be, or from one or more holders of Senior
Debt or from any representative thereof and, prior to the receipt of any such
written notice, the Trustee, subject to the provisions of Sections 7.01 and
7.02, shall be entitled in all respects conclusively to assume that no such
fact exists.

 

SECTION 10.07  Application by Trustee of Amounts
Deposited with It.

 

Amounts deposited in trust with the Trustee pursuant
to and in accordance with Article VIII shall be for the sole benefit of
Holders of Securities of the series for the benefit of which such amounts were
deposited, and, to the extent allocated for the payment of Securities and any
related Guarantees of such series, shall not be subject to the subordination
provisions of this Article X. Otherwise, any deposit of assets with the
Trustee or the Paying Agent (whether or not in trust) for the payment of
principal of, premium (if any) or interest on or any Additional Amounts with
respect to any Securities of any series and any related Guarantees shall be
subject to the provisions of Sections 10.01, 10.02, 10.03 and 10.04; provided that if prior to two Business
Days preceding the date on which by the terms of this Indenture any such assets
may become distributable for any purpose (including, without limitation, the
payment of either principal of, premium (if any) or interest on or any
Additional Amounts with respect to any Security and any related Guarantees), a
Responsible Officer of the Trustee or such Paying Agent shall not have received
with respect to such assets the written notice provided for in Section 10.06,
then the Trustee or such Paying Agent shall have full power and authority to
receive such assets and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it on or after such date; and provided
further that nothing contained in
this Article X shall prevent the Company or the Subsidiary Guarantors, as
the case may be, from making, or the Trustee from receiving or applying, any
payment in connection with the redemption of Securities of a series if the
first publication of notice of such redemption (whether by mail or otherwise in
accordance with this Indenture) has been made, and the Trustee has received
such payment from the Company or the Subsidiary Guarantors, as the case may be,
prior to the occurrence of any of the contingencies specified in Section 10.02
or 10.03.

 

SECTION 10.08  Subordination Rights Not Impaired by
Acts or Omissions of the Company, the Subsidiary Guarantors or Holders of
Senior Debt.

 

No right of any present or future holders of any
Senior Debt to enforce subordination provisions contained in this Article X
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the 

 

38

 

Company or the Subsidiary Guarantors, as the case may
be, or by any act or failure to act, in good faith, by any such holder, or by
any noncompliance by the Company or the Subsidiary Guarantors, as the case may
be, with the terms of this Indenture, regardless of any knowledge thereof that
any such holder may have or be otherwise charged with. The holders of Senior
Debt may extend, renew, modify or amend the terms of the Senior Debt or any
security therefor and release, sell or exchange such security and otherwise
deal freely with the Company or the Subsidiary Guarantors, as the case may be,
all without affecting the liabilities and obligations of the parties to this
Indenture or the Holders of the Securities of any series and any related
Guarantees.

 

SECTION 10.09  Trustee to Effectuate Subordination
of Securities.

 

Each Holder of a Security of any series and any
related Guarantees by his acceptance thereof authorizes and expressly directs
the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provisions contained in this Article X
and to protect the rights of the Holders of the Securities and any related
Guarantee of such series pursuant to this Indenture, and appoints the Trustee
his attorney-in-fact for such purpose, including, in the event of any dissolution,
winding up, liquidation or reorganization of the Company or the Subsidiary
Guarantors, as the case may be (whether in bankruptcy, insolvency or
receivership proceedings or upon an assignment for the benefit of creditors of
the Company or the Subsidiary Guarantors, as the case may be), the filing of a
claim for the unpaid balance of his Securities and any related Guarantees in
the form required in said proceedings and cause said claim to be approved. If
the Trustee does not file a proper claim or proof of debt in the form required
in such proceeding prior to 30 days before the expiration of the time to file
such claim or claims, then the holders of the Senior Debt or their
representative is hereby authorized to have the right to file and is hereby authorized
to file an appropriate claim for and on behalf of the Holders of Securities of
such series and any related Guarantees. Nothing contained herein shall be
deemed to authorize the Trustee or the holders of Senior Debt or their
representative to authorize or consent to or accept or adopt on behalf of any
Holder of Securities of any series and any related Guarantees any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
of such series and any related Guarantees or the rights of any Holder thereof,
or to authorize the Trustee or the holders of Senior Debt or their
representative to vote in respect of the claim of any Holder of the Securities
of such series and any related Guarantees in any such proceeding.

 

SECTION 10.10  Right of Trustee to Hold Senior
Debt.

 

The Trustee in its individual capacity shall be
entitled to all of the rights set forth in this Article X in respect of
any Senior Debt at any time held by it to the same extent as any other holder
of Senior Debt, and nothing in this Indenture shall be construed to deprive the
Trustee of any of its rights as such holder.

 

SECTION 10.11  Article X Not to Prevent Events
of Default.

 

The failure to make a payment on account of principal
of or premium (if any) or interest on the Securities of any series and any
related Guarantees by reason of any provision of this Article X shall not
be construed as preventing the occurrence of a Default or an Event of Default
under Section 6.01 with respect to Securities of such series and any
related Guarantees or in any way prevent the Holders of the Securities of such
series and any related Guarantees from exercising any right hereunder other
than the right to receive payment on the Securities of such series and any
related Guarantees.

 

SECTION 10.12  No Fiduciary Duty of Trustee to
Holders of Senior Debt.

 

The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Debt, and shall not be liable to any such holders
(other than for its willful misconduct or negligence) if it shall in good faith
mistakenly pay over or distribute to the Holders of the Securities of any
series and any related Guarantees or the Company or the Subsidiary Guarantors,
as the case may be, or any other Person, cash, property or securities to which
any holders of Senior Debt shall be entitled by virtue of this Article X
or otherwise. Nothing in this Section 10.12 shall affect the obligation of
any other such Person to hold such payment for the benefit of, and to pay such
payment over to, the holders of Senior Debt or their representative.

 

39

 

SECTION 10.13  Article Applicable to Paying Agent.

 

In case at any
time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article X
shall in such case (unless the context shall otherwise require) be construed as
extending to and including such Paying Agent within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article X
in addition to or in place of the Trustee; provided,
however, that this Section 10.13
shall not apply to the Company, any Subsidiary Guarantor or any other
Subsidiary if the Company, such Subsidiary Guarantor or such other Subsidiary
acts as Paying Agent.

 

ARTICLE XI

GUARANTEE

 

SECTION 11.01  Guarantee.

 

(a)           Notwithstanding any provision of this Article XI
to the contrary, the provisions of this Article XI relating to the
Subsidiary Guarantors shall be applicable only to, and inure solely to the
benefit of, the Securities of any series designated, pursuant to Section 2.01,
as entitled to the benefits of the related Guarantee of each of the Subsidiary
Guarantors.

 

(b)           For value received, each of the Subsidiary Guarantors
hereby fully, unconditionally and absolutely guarantees (each, a “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 Securities and all other amounts
due and payable under this Indenture and the Securities by the Company, 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 Securities and this
Indenture, subject to the limitations set forth in Section 11.03 and the
subordination provisions contained in Article X.

 

(c)           Failing payment when due of any amount guaranteed
pursuant to the related Guarantee, for whatever reason, each of the Subsidiary
Guarantors will be jointly and severally obligated to pay the same immediately,
subject to the subordination provisions contained in Article X. Each of
the Guarantees hereunder is intended to be a general, unsecured, subordinated
obligation of the related Subsidiary Guarantor 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 such Guarantee. Each of
the Subsidiary Guarantors hereby agrees that its obligations hereunder shall be
full, unconditional and absolute, irrespective of the validity, regularity or
enforceability of the Securities, its Guarantee, the Guarantee of any other
Subsidiary Guarantor or this Indenture, the absence of any action to enforce
the same, any waiver or consent by any Holder of the Securities with respect to
any provisions hereof or thereof, the recovery of any judgment against the
Company or any 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 Securities of such series,
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 6.06, by the Holders, on the
terms and conditions set forth in this Indenture, directly against such
Subsidiary Guarantor to enforce such Guarantee without first proceeding against
the Company or any other Subsidiary Guarantor.

 

(d)           The obligations of each of the Subsidiary Guarantors
under this Article XI shall be as aforesaid full, unconditional and
absolute and shall not be impaired, modified, released or limited by any
occurrence or condition whatsoever, including, without limitation, (i) 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 Subsidiary Guarantors contained in the Securities or
this Indenture, (ii) any impairment, modification, release or limitation
of the liability of the Company, any of the 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, as amended, or other statute or from the decision of
any court, (iii) the assertion or exercise by the Company, any of the
Subsidiary Guarantors or the Trustee of any rights or remedies under the
Securities or this Indenture or their delay in or failure to assert or exercise
any such rights or remedies, (iv) the assignment or the purported
assignment of any property as security for the Securities, including all or any
part of 

 

40

 

the rights of the Company or any of the Subsidiary
Guarantors under this Indenture, (v) the extension of the time for payment
by the Company or any of the Subsidiary Guarantors of any payments or other
sums or any part thereof owing or payable under any of the terms and provisions
of the Securities or this Indenture or of the time for performance by the
Company or any of the 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, (vi) the modification or amendment (whether material or
otherwise) of any duty, agreement or obligation of the Company or any of the
Subsidiary Guarantors set forth in this Indenture, (vii) 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 Subsidiary Guarantors or any of
their respective assets, or the disaffirmance of the Securities, the Guarantees
or this Indenture in any such proceeding, (viii) the release or discharge
of the Company or any of the Subsidiary Guarantors from the performance or
observance of any agreement, covenant, term or condition contained in any of
such instruments by operation of law, (ix) the unenforceability of the
Securities of such series, the related Guarantees or this Indenture or (x) any
other circumstances (other than payment in full or discharge of all amounts
guaranteed pursuant to the related Guarantees) which might otherwise constitute
a legal or equitable discharge of a surety or guarantor.

 

(e)           Each of the Subsidiary Guarantors hereby (i) waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of the merger, insolvency or bankruptcy of the Company or any of the
Subsidiary Guarantors, and all demands whatsoever, (ii) acknowledges that
any agreement, instrument or document evidencing its Guarantee may be
transferred and that the benefit of its obligations hereunder shall extend to
each holder of any agreement, instrument or document evidencing its Guarantee
without notice to it and (iii) covenants that its Guarantee will not be
discharged except by complete performance of such 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 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, such 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 such Guarantee shall continue to be
effective or be reinstated, as the case may be, as though such application had
not been made.

 

(f)            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
this 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 Securities of such series and the related Guarantees shall have been
paid in full or discharged.

 

SECTION 11.02  Execution and Delivery of
Guarantees.

 

To further evidence its Guarantee set forth in Section 11.01,
each of the Subsidiary Guarantors hereby agrees that a notation relating to
such Guarantee, substantially in the form attached hereto as Annex A, shall be
endorsed on each Security of the series entitled to the benefits of such
Guarantee authenticated and delivered by the Trustee, which notation of
Guarantee shall be executed by either manual or facsimile signature of an
Officer of such Subsidiary Guarantor. Each of the Subsidiary Guarantors hereby
agrees that its Guarantee set forth in Section 11.01 shall remain in full
force and effect notwithstanding any failure to endorse on each Security a
notation relating to such Guarantee. If any Officer of such Subsidiary
Guarantor whose signature is on this Indenture or a notation of Guarantee no
longer holds that office at the time the Trustee authenticates such Security or
at any time thereafter, the Guarantee of such Security shall be valid
nevertheless. The delivery of any Security of a series entitled to the benefits
of a Guarantee under this Article XI by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Guarantee set forth in this Indenture on behalf of each Subsidiary Guarantor.

 

SECTION 11.03  Limitation on Liability of the
Subsidiary Guarantors.

 

Each Subsidiary Guarantor and by its acceptance hereof
each Holder of a Security of a series entitled to the benefits of a Guarantee
under this Article XI hereby confirms that it is the intention of all such
parties that the guarantee by such Subsidiary Guarantor pursuant to its
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 Security entitled to the benefits of 

 

41

 

such Guarantee and the Subsidiary Guarantors hereby
irrevocably agree that the obligations of each Subsidiary Guarantor under its
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 Guarantee, result in the obligations of such Subsidiary
Guarantor under its Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law.

 

SECTION 11.04  Release of Subsidiary Guarantors
from Guarantee.

 

(a)           Notwithstanding any other provisions of this
Indenture, the Guarantee of any Subsidiary Guarantor may be released upon the
terms and subject to the conditions set forth in this Section 11.04. Provided
that no Default shall have occurred and shall be continuing under this
Indenture, any Guarantee incurred by a Subsidiary Guarantor pursuant to this Article XI
shall be unconditionally released and discharged (i) automatically upon (A) any
sale, exchange or transfer, whether by way of merger or otherwise, to any
Person that is not an Affiliate of the Company, of all of the Company’s direct
or indirect equity interests in such Subsidiary Guarantor (provided such sale, exchange or transfer
is not prohibited by this Indenture) or (B) 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 this Indenture) or (ii) following delivery of a written
notice of such release or discharge by the Company to the Trustee, upon the
release or discharge of all guarantees by such Subsidiary Guarantor of any Debt
of the Company other than obligations arising under this Indenture and any
Securities issued hereunder, 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 its Guarantee upon
receipt of a written request of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel that the Subsidiary Guarantor is entitled
to such release in accordance with the provisions of this Indenture. If the
Subsidiary Guarantor is not so released it shall remain liable for the full
amount of principal of (and premium, if any, on) and interest on the Securities
entitled to the benefits of such Guarantee as provided in this Indenture,
subject to the limitations of Section 11.03.

 

SECTION 11.05  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 Guarantee, such Funding
Guarantor shall be entitled to a contribution from each other Subsidiary
Guarantor (as applicable) in a pro rata amount based on the net assets of each
Subsidiary Guarantor (including the Funding Guarantor) for all payments,
damages and expenses incurred by that Funding Guarantor in discharging the
Company’s obligations with respect to the Securities of a series entitled to
the benefits of a Guarantee under this Article XI or any other Subsidiary
Guarantor’s obligations with respect to its Guarantee of such series of
Securities.

 

ARTICLE XII

MISCELLANEOUS

 

SECTION 12.01  Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by operation of TIA § 318(c), the imposed
duties shall control.

 

SECTION 12.02  Notices.

 

Any notice or communication by the Company, any
Subsidiary Guarantor or the Trustee to the other is duly given if in writing
and delivered in person or mailed by first-class mail (registered or certified,
return receipt requested), telex, facsimile or overnight air courier
guaranteeing next day delivery, to the other’s address:

 

42

 

If to the Company or any Subsidiary Guarantor:

 

Geokinetics Inc.

1500 CityWest Blvd., Suite 800

Houston, Texas 77042

Attn:

Telephone: (713) 850-7600

Facsimile:

 

If to the Trustee:

 

Attn:

 

Telephone:

Facsimile:

 

The Company, any Subsidiary Guarantor or the Trustee
by notice to the other may designate additional or different addresses for
subsequent notices or communications.

 

All notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder shall be mailed
by first-class mail, postage prepaid, to the Holder’s address shown on the
register kept by the Registrar. Failure to mail a notice or communication to a
Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it, except in the case of notice to the Trustee, it is duly
given only when received.

 

If the Company or a Subsidiary Guarantor mails a
notice or communication to Holders, it shall mail a copy to the Trustee and
each Agent at the same time.

 

All notices or communications, including without
limitation notices to the Trustee, the Company or a Subsidiary Guarantor by
Holders, shall be in writing, except as otherwise set forth herein.

 

In case by reason of the suspension of regular mail
service, or by reason of any other cause, it shall be impossible to mail any
notice required by this Indenture, then such method of notification as shall be
made with the approval of the Trustee shall constitute a sufficient mailing of
such notice.

 

SECTION 12.03  Communication by Holders with Other
Holders.

 

Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the
Securities. The Company, the Subsidiary Guarantors, the Trustee, the Registrar
and anyone else shall have the protection of TIA § 312(c).

 

SECTION 12.04  Certificate and Opinion as to
Conditions Precedent.

 

Upon any request or application by the Company or a
Subsidiary Guarantor to the Trustee to take any action under this Indenture,
the Company or such Subsidiary Guarantor shall, if requested by the Trustee,
furnish to the Trustee at the expense of the Company or such Subsidiary
Guarantor, as the case may be:

 

43

 

(1)           an Officers’ Certificate (which shall
include the statements set forth in Section 12.05) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(2)           an Opinion of Counsel (which shall include the
statements set forth in Section 12.05 hereof) stating that, in the opinion
of such counsel, all such conditions precedent and covenants have been complied
with.

 

SECTION 12.05  Statements Required in Certificate
or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) shall comply with the
provisions of TIA § 314(e) and shall include:

 

(1)           a statement that the Person making such certificate or
opinion has read such covenant or condition;

 

(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 such Person, he or
she has made such examination or investigation as is necessary to enable him or
her 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 or not, in the opinion of
such Person, such condition or covenant has been complied with.

 

SECTION 12.06  Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action
by or at a meeting of Holders. The Registrar or the Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

 

SECTION 12.07  Legal Holidays.

 

If a payment date is a Legal Holiday at a Place of
Payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

 

SECTION 12.08  No Recourse Against Others.

 

A director, officer, employee, stockholder, partner or
other owner of the Company, a Subsidiary Guarantor or the Trustee, as such,
shall not have any liability for any obligations of the Company under the
Securities, for the obligations of any Subsidiary Guarantor under any
Guarantee, or for any obligations of the Company, any Subsidiary Guarantor or
the Trustee under this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder by accepting a
Security waives and releases all such liability. The waiver and release shall
be part of the consideration for the issue of Securities.

 

SECTION 12.09  Governing Law.

 

THIS INDENTURE, THE SECURITIES AND
THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TOAPPLICABLE PRINCIPLES OF
CONFLICTS OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

SECTION 12.10  No Adverse Interpretation of Other
Agreements.

 

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Company, any Subsidiary Guarantor or
any other Subsidiary. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture.

 

44

 

SECTION 12.11  Successors.

 

All agreements of the Company and each of the
Subsidiary Guarantors in this Indenture and the Securities shall bind their
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

 

SECTION 12.12  Severability.

 

In case any provision in this Indenture or in the
Securities or in any Guarantee shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall, to the
fullest extent permitted by applicable law, not in any way be affected or
impaired thereby.

 

SECTION 12.13  Counterpart
Originals.

 

The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

 

SECTION 12.14  Table of
Contents, Headings, etc.

 

The table of contents, cross-reference table and
headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof and shall
in no way modify or restrict any of the terms or provisions hereof.

 

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

 

 

	
  GEOKINETICS INC.

  	
  GEOKINETICS USA, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  ADVANCED SEISMIC TECHNOLOGY, INC.

  	
  GEOKINETICS INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GEOKINETICS MANAGEMENT, INC.

  	
  GEOKINETICS SERVICES CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  

 

45

 

	
  GEOKINETICS PROCESSING, INC.

  	
  GEOKINETICS INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [                       ], as Trustee 

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title: 

  

 

46

 

ANNEX A

 

NOTATION OF
GUARANTEE

 

Each of the Subsidiary Guarantors (which term includes
any successor Person under the Indenture) has fully, unconditionally and
absolutely guaranteed, to the extent set forth in 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 Securities and all other amounts due
and payable under the Indenture and the Securities by the Company.

 

The obligations of the Subsidiary Guarantors to the
Holders of Securities and to the Trustee pursuant to the Guarantee and the
Indenture are expressly set forth in Article XI of the Indenture and
reference is hereby made to the Indenture for the precise terms of the
Guarantee.

 

	
   

  	
  [NAME OF SUBSIDIARY GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-1ex4_1.htm

    Exhibit
4.1

     

    EXECUTION COPY

     

    
      113⁄4%
Senior Notes due 2016

       

      __________________

       

       

       

      SEVENTH
SUPPLEMENTAL INDENTURE

       

      Dated
as of June 25, 2009

       

      AMONG

       

      QUICKSILVER
RESOURCES INC.,

       

      THE
SUBSIDIARY GUARANTORS PARTIES HERETO

       

      AND

       

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

       

      as
TRUSTEE

       

       

      TO

       

       

      INDENTURE

       

      Dated
as of December 22, 2005

       

      AMONG

       

      QUICKSILVER
RESOURCES, INC.

       

      AND

       

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

       

      as
TRUSTEE

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                	 	 	
                         Page

                      
	
                        ARTICLE
      I

                      	
                        113⁄4%
      SENIOR NOTES DUE 2016

                      	
                        1

                      
	
                        Section
      1.01

                      	
                        Establishment

                      	
                        1

                      
	
                        Section
      1.02

                      	
                        Definitions

                      	
                        2

                      
	
                        Section
      1.03

                      	
                        Payment
      of Principal and Interest

                      	
                        28

                      
	
                        Section
      1.04

                      	
                        Denominations

                      	
                        28

                      
	
                        Section
      1.05

                      	
                        Global
      Securities

                      	
                        28

                      
	
                        Section
      1.06

                      	
                        Transfer

                      	
                        29

                      
	
                        Section
      1.07

                      	
                        Defeasance
      and Covenant Defeasance

                      	
                        29

                      
	
                        Section
      1.08

                      	
                        Redemption
      at the Option of the Company.

                      	
                        32

                      
	
                        Section
      1.09

                      	
                        Paying
      Agent

                      	
                        33

                      
	
                        Section
      1.10

                      	
                        Additional
      Notes

                      	
                        33

                      
	
                        ARTICLE
      II

                      	
                        SUBSIDIARY
      GUARANTEES

                      	
                        33

                      
	
                        Section
      2.01

                      	
                        Guarantee.

                      	
                        33

                      
	
                        Section
      2.02

                      	
                        Limitation
      on Subsidiary Guarantor Liability

                      	
                        34

                      
	
                        Section
      2.03

                      	
                        Releases
      of Subsidiary Guarantees

                      	
                        34

                      
	
                        ARTICLE
      III

                      	
                        PARTICULAR
      COVENANTS OF THE COMPANY WITH RESPECT TO THE NOTES

                      	
                        35

                      
	
                        Section
      3.01

                      	
                        Effectiveness
      of Covenants

                      	
                        35

                      
	
                        Section
      3.02

                      	
                        Limitation
      on Indebtedness.

                      	
                        35

                      
	
                        Section
      3.03

                      	
                        Limitation
      on Restricted Payments

                      	
                        39

                      
	
                        Section
      3.04

                      	
                        Limitation
      on Liens

                      	
                        42

                      
	
                        Section
      3.05

                      	
                        Limitation
      on Sale/Leaseback Transactions

                      	
                        43

                      
	
                        Section
      3.06

                      	
                        Limitation
      on Restrictions on Distributions from Restricted
    Subsidiaries

                      	
                        43

                      
	
                        Section
      3.07

                      	
                        Limitation
      on Sales of Assets and Subsidiary Stock

                      	
                        45

                      
	
                        Section
      3.08

                      	
                        Limitation
      on Affiliate Transactions

                      	
                        47

                      
	
                        Section
      3.09

                      	
                        Limitation
      on Sale of Capital Stock of Restricted Subsidiaries

                      	
                        48

                      
	
                        Section
      3.10

                      	
                        SEC
      Reports

                      	
                        48

                      
	
                        Section
      3.11

                      	
                        Merger
      and Consolidation

                      	
                        48

                      
	
                        Section
      3.12

                      	
                        Future
      Subsidiary Guarantors

                      	
                        50

                      
	
                        Section
      3.13

                      	
                        Limitation
      on Lines of Business

                      	
                        50

                      
	
                        Section
      3.14

                      	
                        Payments
      for Consent

                      	
                        50

                      
	
                        Section
      3.15

                      	
                        Offer
      to Repurchase Upon Change of Control.

                      	
                        50

                      
	
                        ARTICLE
      IV

                      	
                        EVENTS
      OF DEFAULT WITH RESPECT TO THE NOTES

                      	
                        51

                      
	
                        ARTICLE
      V

                      	
                        MODIFICATION
      AND WAIVER

                      	
                        52

                      
	
                        Section
      5.01

                      	
                        Without
      Consent of Holders.

                      	
                        52

                      
	
                        Section
      5.02

                      	
                        With
      Consent of Holders

                      	
                        53

                      
	
                        ARTICLE
      VI

                      	
                        MISCELLANEOUS
      PROVISIONS

                      	
                        53

                      
	
                        Section
      6.01

                      	
                        Recitals
      by the Company

                      	
                        53

                      
	
                        Section
      6.02

                      	
                        Ratification
      and Incorporation of Original Indenture

                      	
                        53

                      
	
                        Section
      6.03

                      	
                        Executed
      in Counterparts

                      	
                        53

                      
	
                        Section
      6.04

                      	
                        New
      York Law to Govern

                      	
                        53

                      
	
                        Section
      6.05

                      	
                        Successors
      and Assigns

                      	
                        53

                      
	
                        Section
      6.06

                      	
                        Separability

                      	
                        53

                      
	
                        Section
      6.07

                      	
                        Force
      Majeure

                      	
                        53

                      
	
                        Section
      6.08

                      	
                        Senior
      Indebtedness

                      	
                        54

                      
	 
      	 
      	 
      
	
                        Exhibit
      A

                      	
                        Form
      of Global Note

                      	
                        A-1

                      
	
                        Exhibit
      B

                      	
                        Form
      of Supplemental Indenture to be Delivered by Subsequent
      Guarantors

                      	
                        B-1

                      

              

            

          

        

      

    

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    THIS
SEVENTH SUPPLEMENTAL INDENTURE is made as of the 25th day of
June, 2009, by and among QUICKSILVER RESOURCES INC., a Delaware corporation (the
“Company”), the Subsidiary Guarantors (as herein defined) parties hereto and THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association duly
organized and existing under the laws of the United States of America (as
successor in interest to JPMorgan Chase Bank, National Association (the “Initial
Trustee”)), as trustee (the “Trustee”):

     

    WHEREAS,
the Company and the Initial Trustee executed and delivered an Indenture, dated
as of December 22, 2005 (the “Original Indenture”), to provide for the issuance
by the Company from time to time of unsecured debentures, notes, and other
evidences of indebtedness (the “Securities”), to be issued in one or more series
as provided in the Original Indenture;

     

    WHEREAS,
the Original Indenture is incorporated herein by this reference and the Original
Indenture, as supplemented by this Seventh Supplemental Indenture, is herein
called the “Indenture”;

     

    WHEREAS,
in the fourth quarter of 2006, the Trustee assumed and succeeded to all of the
rights and obligations of the Initial Trustee under the Original Indenture, as
supplemented on or before such date;

     

    WHEREAS,
under the Original Indenture, a new series of senior notes may at any time be
established by the Board of Directors of the Company in accordance with the
provisions of the Original Indenture and the terms of such series may be
described by a supplemental indenture executed by the Company and the
Trustee;

     

    WHEREAS,
the Company proposes to create under the Indenture a new series of senior
notes;

     

    WHEREAS,
additional senior notes of other series hereafter established, except as may be
limited in the Original Indenture as at the time supplemented and modified, may
be issued from time to time pursuant to the Indenture as at the time
supplemented and modified, and all senior notes issued by the Company of any one
series need not be issued at the same time and, unless otherwise so provided,
may be reopened for issuances of additional senior notes of such series;
and

     

    WHEREAS,
all conditions necessary to authorize the execution and delivery of this Seventh
Supplemental Indenture and make it a valid and binding obligation of the Company
and the Subsidiary Guarantors, in accordance with its terms, have been done or
performed.

     

    NOW
THEREFORE, in consideration of the agreements and obligations set forth herein
and for other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
I

     

    113⁄4%
SENIOR NOTES DUE 2016

     

    Section
1.01    Establishment.  There
is hereby established a new series of senior notes to be issued under the
Indenture, to be designated as the Company’s 113⁄4% Senior
Notes due 2016 (the “Notes”).

     

    There are
to be authenticated and delivered Notes, initially limited in aggregate
principal amount to $600,000,000, and no further Notes shall be authenticated
and delivered except as provided by the terms of the Original Indenture and the
terms of this Seventh Supplemental Indenture; provided,
however,
that the aggregate principal amount of the Notes may be increased in the future,
without the consent of the Holders, on the same terms and as part of the same
series as the Notes.  The Notes shall be issued in fully registered
form without coupons.

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    The Notes
shall be issued in the form of one or more Global Securities (as defined below)
in substantially the form set out in Exhibit A hereto.  The initial
Depositary with respect to the Notes shall be The Depository Trust
Company.

     

    Each Note
shall be dated the date of authentication thereof and shall bear interest from
the date of original issuance thereof or from the most recent Interest Payment
Date to which interest has been paid or duly provided for.

     

    Section
1.02    Definitions.  The
following defined terms used herein with respect to the Notes shall, unless the
context otherwise requires, have the meanings specified below; provided,
however,
that all amounts of Adjusted Consolidated Net Tangible Assets, Consolidated
Coverage Ratio, Consolidated EBITDA, Consolidated Income Taxes, Consolidated
Interest Expense, Consolidated Net Income or Net Working Capital (i) as of
any date or (ii) in relation to any period or portion thereof that, in
either case, precedes the Issue Date, shall be the amount thereof as calculated
as of such date or in relation to such period or portion thereof under the
indenture governing the 2016 Senior Subordinated Notes as supplemented or
amended prior to the Issue Date.  Capitalized terms used herein for
which no definition is provided herein shall have the meanings set forth in the
Original Indenture.

     

    “2015
Senior Notes” means the Company’s 81⁄4% Senior Notes due 2015.

     

    “2016
Senior Subordinated Notes” means the Company’s 71⁄8% Senior Subordinated Notes due
2016.

     

    “Acquired
Indebtedness” means Indebtedness (i) of a Person or any of its Subsidiaries
existing at the time such Person becomes 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 a Restricted Subsidiary and, with respect to clause (ii) of the
preceding sentence, on the date of consummation of such acquisition of
assets.

     

    “Additional
Assets” means:

     

    
      	
               
      

            	
              (1)

            	
              any
      property or assets (other than Indebtedness and Capital Stock) to be used
      by the Company or a Restricted Subsidiary in 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” means (without duplication), as of the date of
determination, the remainder of:

     

    
      	
               
      

            	
              (a)

            	
              the
      sum of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              estimated
      discounted future net revenues from proved oil and gas reserves of the
      Company and its Restricted Subsidiaries calculated
  in

            

    

    
 

    
      
        
           

        

        
          2 

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              accordance
      with SEC guidelines before any provincial, territorial, state, federal or
      foreign income taxes, as estimated by the Company in a reserve report
      prepared as of the end of the Company’s most recently completed fiscal
      year for which audited financial statements are available, 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 upward revisions of estimates of
      proved oil and gas reserves since such year end due to exploration,
      development, exploitation or other activities, in each case calculated in
      accordance with SEC guidelines (utilizing the prices for the fiscal
      quarter ending prior to the date of determination), and decreased by, as
      of the date of determination, the estimated discounted future net revenues
      from

            

    

     

    
      	
               
      

            	
              (C)

            	
              estimated
      proved oil and gas reserves included therein that shall have been produced
      or disposed of since such year end,
and

            

    

     

    
      	
               
      

            	
              (D)

            	
              estimated
      oil and gas reserves included therein that are subsequently removed from
      the proved oil and gas reserves of the Company and its Restricted
      Subsidiaries as so calculated due to downward revisions of estimates of
      proved oil and gas reserves since such year end due to changes in
      geological conditions or other factors which would, in accordance with
      standard industry practice, cause such revisions, in each case calculated
      on a pre-tax basis and substantially in accordance with SEC guidelines
      (utilizing the prices for the fiscal quarter ending prior to the date of
      determination), in each case as estimated by the Company’s petroleum
      engineers or any independent petroleum engineers engaged by the Company
      for that purpose;

            

    

     

    
      	
               
      

            	
              (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 annual or
      quarterly consolidated financial
statements;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Net Working Capital on a date no earlier than the date of the Company’s
      latest annual or quarterly consolidated 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 consolidated financial statements,
      and

            

    

    
 

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (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 consolidated
      financial statements (provided
      that the Company shall not be required to obtain any appraisal of any
      assets); minus

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      sum of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      amount included in (a)(i) through (a)(iv) above that is attributable to
      Minority Interests;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      net gas balancing liabilities of the Company and its Restricted
      Subsidiaries reflected in the Company’s latest audited consolidated
      financial statements;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      the extent included in (a)(i) above, the estimated discounted future net
      revenues, calculated in accordance with SEC guidelines (utilizing the
      prices utilized in the Company’s year end reserve report), 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)

            	
              to
      the extent included in (a)(i) above, the estimated 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 estimated discounted future net revenues specified in (a)(i) above,
      would be necessary to fully satisfy the payment obligations of the Company
      and its Restricted Subsidiaries with respect to Dollar-Denominated
      Production Payments (determined, if applicable, using the schedules
      specified with respect thereto).

            

    

     

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

     

    “Affiliate”
of any specified Person means any other Person, that directly or indirectly, is
in Control of, is Controlled by, or is under common Control with, such
Person.

     

    “Applicable
Premium” means, with respect to a Note at any Redemption Date, the greater of
(i) 1.0% of the principal amount of such Note and (ii) the excess of (A)
the present value at such time of (1) the redemption price of such Note at
July 1, 2013 (such redemption price being described in Section 1.08(a) of this
Seventh Supplemental Indenture exclusive of any accrued interest) plus
(2) all required interest payments due on such Note through July 1, 2013
(but excluding accrued and unpaid interest to the Redemption Date), computed
using a discount rate equal to the Treasury Rate plus 50 basis points, over (B)
the then outstanding principal amount of such Note.

     

    “Asset
Disposition” means any direct or indirect sale, lease (other than an operating
lease entered into in the ordinary course of the Oil and Gas Business),
transfer, issuance or other disposition, or a series of related sales, leases,
transfers, issuances or dispositions that are part of a common plan, of shares
of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    
 

    referred
to for the purposes of this definition as a “disposition”) by the Company or any
of its Restricted Subsidiaries, including any disposition by means of a merger,
consolidation or similar transaction.

     

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

     

    
      	
               
      

            	
              (1)

            	
              a
      disposition by a Restricted Subsidiary to the Company or by the Company or
      a Restricted Subsidiary to a Wholly-Owned
  Subsidiary;

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      sale of Cash Equivalents in the ordinary course of
    business;

            

    

     

    
      	
               
      

            	
              (3)

            	
              a
      disposition of Hydrocarbons or mineral products in the ordinary course of
      the Oil and Gas Business;

            

    

     

    
      	
               
      

            	
              (4)

            	
              a
      disposition of obsolete or worn out equipment or equipment that is no
      longer useful in the 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
      permitted by Section 3.11 of this Seventh Supplement
      Indenture;

            

    

     

    
      	
               
      

            	
              (6)

            	
              an
      issuance of Capital Stock by a Restricted Subsidiary to the Company or to
      a Wholly-Owned Subsidiary;

            

    

     

    
      	
               
      

            	
              (7)

            	
              for
      purposes of Section 3.07 of this Seventh Supplemental Indenture only, the
      making of a Permitted Investment or a disposition subject to Section 3.03
      of this Seventh Supplemental
Indenture;

            

    

     

    
      	
               
      

            	
              (8)

            	
              an
      Asset Swap effected in compliance with Section 3.07 of this Seventh
      Supplemental Indenture;

            

    

     

    
      	
               
      

            	
              (9)

            	
              dispositions
      of assets with an aggregate fair market value since the Issue Date of less
      than $5 million;

            

    

     

    
      	
               
      

            	
              (10)

            	
              dispositions
      in connection with the creation, encumbrance or existence of Permitted
      Liens or the exercise of any rights or remedies with respect
      thereto;

            

    

     

    
      	
               
      

            	
              (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 or other general
      intangibles and licenses, leases or subleases of other property in the
      ordinary course of business and which do not materially interfere with the
      business of the Company and its Restricted
  Subsidiaries;

            

    

     

    
      	
               
      

            	
              (13)

            	
              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 acquisition or financing of, and no later than 60 days after the
      acquisition of, the property that is subject
  thereto;

            

    

     

    
      	
               
      

            	
              (14)

            	
              the
      sale or transfer (whether or not in the ordinary course of the Oil and Gas
      Business) of oil and/or gas properties or direct or indirect interests in
      real property; provided
      that at the

            

    

     

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              time
      of such sale or transfer such properties do not have associated with them
      any proved reserves capable of being produced in material economic
      quantities; and

            

    

     

    
      	
               
      

            	
              (15)

            	
              the
      abandonment, farm-out, exchange, lease or sublease of developed or
      undeveloped oil and/or gas properties or interests therein in the ordinary
      course of business or in exchange for oil and/or gas properties or
      interests therein owned or held by another
  Person.

            

    

     

    “Asset
Swap” means any concurrent purchase and sale or exchange of oil and gas
properties or interests therein or other assets or properties used or useful in
the Oil and Gas Business, including Capital Stock of any Person who holds any
such properties, interests or assets, between the Company or any of its
Restricted Subsidiaries and another Person; provided
that any cash received must be applied in accordance with Section 3.07 of this
Seventh Supplemental Indenture.

     

    “Attributable
Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the time
of determination, the present value (discounted at the interest rate borne by
the Notes, compounded semi-annually) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended).

     

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

     

    “Bank
Indebtedness” means any and all amounts, whether outstanding on the Issue Date
or Incurred after the Issue Date, payable by the Company under or in respect of
a Credit Facility, and any related notes, collateral documents, letters of
credit and guarantees and any Interest Rate Agreement entered into in connection
with the Credit Facility, including principal, premium, if any, interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company at the rate specified
therein, whether or not a claim for post-filing interest is allowed in such
proceedings), fees, charges, expenses, reimbursement obligations, guarantees and
all other amounts payable thereunder or in respect thereof.

     

    “Board of
Directors” means, as to any Person, the board of directors of such Person or a
duly authorized committee of such board of directors.

     

    “Capital
Lease” means, with respect to any Person, any lease of property (whether real,
personal, or mixed) by such Person or its Subsidiaries as lessee that would be
capitalized on a balance sheet of such Person or its Subsidiaries prepared in
conformity with GAAP, other than, in the case of such Person or its
Subsidiaries, any such lease under which such Person or any of its Subsidiaries
is the lessor.

     

    “Capital
Lease Obligations” means, with respect to any Person, the capitalized amount of
all obligations of such Person and its Subsidiaries under Capital Leases, as
determined on a consolidated basis in conformity with GAAP.

     

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

     

    “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

            

    

     

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              faith
      and credit of the United States is pledged in support thereof), having a
      maturity within one year after the date of acquisition
      thereof;

            

    

     

    
      	
               
      

            	
              (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 after the date of acquisition thereof
      and, at the time of such acquisition, having a credit rating of at least
      “A” or the equivalent thereof from either Standard & Poor’s Ratings
      Services or Moody’s Investors Service, Inc. (or an equivalent rating by
      another nationally recognized rating agency if both of the two named
      rating agencies cease publishing ratings of
  investments);

            

    

     

    
      	
               
      

            	
              (3)

            	
              certificates
      of deposit, time deposits, eurodollar time deposits, overnight bank
      deposits or bankers’ acceptances having maturities of not more than one
      year after the date of acquisition thereof issued by any commercial bank
      the long-term debt of which is rated at the time of acquisition at least
      “A” or the equivalent thereof by Standard & Poor’s Ratings Services,
      or “A” or the equivalent thereof by Moody’s Investors Service, Inc. (or an
      equivalent rating by another nationally recognized rating agency if both
      of the two named rating agencies cease publishing ratings of investments),
      and having combined capital and surplus in excess of $500
      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) above
      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 Standard & Poor’s Ratings Services or “P-2” or
      the equivalent thereof by Moody’s Investors Service, Inc. (or an
      equivalent rating by another 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), other than one or more Permitted
      Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and
      13d-5 under the Exchange Act, except that such person or group shall be
      deemed to have “beneficial ownership” of all shares that such person or
      group has the right to acquire, whether such right is exercisable
      immediately or only after the passage of time), 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, such
      person or group shall be deemed to beneficially own any Voting Stock of
      the Company held by a parent entity of the Company, if such person or
      group “beneficially owns” (as defined above), directly or indirectly, more
      than 50% of the voting power of the Voting Stock of such parent entity);
      or

            

    

     

    
      	
               
      

            	
              (2)

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

            

    

     

    
      	
               
      

            	
              (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”

            

    

     

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (as
      such term is used in Sections 13(d) and 14(d) of the Exchange Act) other
      than a Permitted Holder; or

            

    

     

    
      	
               
      

            	
              (4)

            	
              the
      adoption by the stockholders of the Company of a plan or proposal for the
      liquidation or dissolution of the
Company.

            

    

     

    “Commodity
Agreements” means, in respect of any Person, any futures contract, forward
contract, commodity swap agreement, commodity option agreement or other similar
agreement or arrangement in respect of Hydrocarbons purchased, used, produced,
processed or sold by such Person and designed to protect such Person against
fluctuations in Hydrocarbon prices.

     

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

     

    “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 consolidated financial statements of the Company 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 as if such Indebtedness had been Incurred
      on the first day of such period (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
      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 facility to the date of such calculation) and the
      discharge of any other Indebtedness repaid, repurchased, defeased or
      otherwise discharged with the proceeds of such new Indebtedness as if such
      discharge had occurred on the first day of such period;
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              has
      repaid, repurchased, defeased or otherwise discharged any Indebtedness
      since the beginning of the period 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,
      including with the proceeds of such new 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 shall have made any Asset Disposition or the transaction giving
      rise to the need to calculate the Consolidated Coverage Ratio is such an
      Asset Disposition:

            

    

     

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                (a)

              	
                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 absolute value of the Consolidated
      EBITDA (if negative) directly attributable thereto for such period;
      and

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              Consolidated
      Interest Expense for such period will 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 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) shall have made an Investment in any
      Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary
      or is merged with or into the Company) or an acquisition of assets,
      including any acquisition of assets occurring in connection with a
      transaction giving rise to the need to calculate the Consolidated Coverage
      Ratio, 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
      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 shall have
      Incurred any Indebtedness or discharged any Indebtedness, 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 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
(including pro forma expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Securities Act).  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
rate in effect on the date of determination had been the applicable rate for the
entire period (taking into account any Interest Rate Agreement applicable to
such Indebtedness if such Interest Rate Agreement has a remaining term in excess
of 12 months).  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.

     

    “Consolidated
EBITDA” for any period means, without duplication, the Consolidated Net Income
for such period, plus the following to the extent deducted in calculating such
Consolidated Net Income:

     

    
      	
               
      

            	
              (1)

            	
              Consolidated
      Interest Expense;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Consolidated
      Income Taxes;

            

    

     

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (3)

            	
              consolidated
      depletion, depreciation and amortization
  expenses;

            

    

     

    
      	
               
      

            	
              (4)

            	
              consolidated
      impairment charges recorded in connection with the application of
      Financial Accounting Standard No. 142 “Goodwill and Other
      Intangibles;”

            

    

     

    
      	
               
      

            	
              (5)

            	
              consolidated
      exploration expenses, if
applicable;

            

    

     

    
      	
               
      

            	
              (6)

            	
              (a)
      any write-off of deferred financing costs, (b) any capitalized interest,
      and (c) the interest portion of any deferred payment obligations;
      and

            

    

     

    
      	
               
      

            	
              (7)

            	
              other
      consolidated non-cash charges reducing Consolidated Net Income (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);

            

    

     

    less, to
the extent included in calculating such Consolidated Net Income and in excess of
any costs or expenses attributable thereto that were deducted 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, and (y) amounts recorded in
accordance with GAAP as repayments of principal and interest pursuant to
Dollar-Denominated Production Payments.

     

    Notwithstanding
the preceding sentence, the items described in clauses (2) through (6) above
relating to amounts of a Restricted Subsidiary of a Person will be added to
Consolidated Net Income to compute Consolidated EBITDA of such Person 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
such Person and, to the extent the amounts set forth in clauses (2) through (6)
above are in excess of those necessary to offset a net loss of such Restricted
Subsidiary or if such Restricted Subsidiary has net income for such period
included in Consolidated Net Income, only if a corresponding amount would not be
prohibited at the date of determination to be dividended to the Company by such
Restricted Subsidiary 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 its stockholders, except
for restrictions under any Credit Facility.

     

    “Consolidated
Income Taxes” means, with respect to any Person for any period, taxes imposed
upon such Person or other payments required to be made by such Person by any
governmental authority which taxes or other payments are (x) calculated by
reference to the income or profits of such Person or such Person and its
Subsidiaries, or (y) any franchise taxes or equity taxes (in each case to the
extent included in computing Consolidated Net Income for such period),
regardless of whether such taxes or payments are required to be remitted to any
governmental authority.

     

    “Consolidated
Interest Expense” means, for any period, the consolidated interest expense of
the Company and its consolidated Restricted Subsidiaries, whether paid or
accrued, plus, to the extent not included in such interest expense:

     

    
      	
               
      

            	
              (1)

            	
              interest
      expense attributable to Capital Lease Obligations and the interest portion
      of rent expense associated with Attributable Indebtedness in respect of
      the relevant lease giving rise thereto, determined as if such lease were a
      Capital Lease in accordance with GAAP 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;

            

    

     

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (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
      such Person or one of its Restricted Subsidiaries or secured by a Lien on
      assets of such Person or one of its Restricted
    Subsidiaries;

            

    

     

    
      	
               
      

            	
              (6)

            	
              costs
      associated with Hedging Obligations (including amortization of fees);
      provided,
      however,
      that if Hedging Obligations result in net benefits rather than costs, such
      net 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 such Person and its Restricted
      Subsidiaries that was capitalized during such
  period;

            

    

     

    
      	
               
      

            	
              (8)

            	
              the
      product of (a) all dividends paid or payable, in cash, Cash Equivalents or
      Indebtedness or accrued during such period on any series of Disqualified
      Stock of such Person or on Preferred Stock of its Restricted Subsidiaries
      payable to a party other than the Company or a Wholly-Owned Subsidiary,
      times (b) a fraction, the numerator of which is one and the denominator of
      which is one minus the then current combined federal, state, provincial
      and local statutory tax rate of such Person, expressed as a decimal, in
      each case, on a consolidated basis and in accordance with
      GAAP;

            

    

     

    
      	
               
      

            	
              (9)

            	
              Receivables
      Fees; and

            

    

     

    
      	
               
      

            	
              (10)

            	
              the
      cash contributions to any employee stock ownership plan or similar trust
      to the extent such contributions are used by such plan or trust to pay
      interest or fees to any Person (other than the Company) in connection with
      Indebtedness Incurred by such plan or
trust.

            

    

     

    For the
purpose of calculating the Consolidated Coverage Ratio in connection with the
Incurrence of any Indebtedness described in the final paragraph of the
definition of “Indebtedness,” the calculation of Consolidated Interest Expense
shall include all interest expense (including any amounts described in clauses
(1) through (10) above) relating to any Indebtedness of the Company or any
Restricted Subsidiary described in the final paragraph of the definition of
“Indebtedness.”

     

    For
purposes of the foregoing, total interest expense will be determined (i) after
giving effect to any net payments made or received by the Company and its
Subsidiaries with respect to Interest Rate Agreements and (ii) exclusive of
amounts classified as other comprehensive income in the balance sheet of the
Company.  Notwithstanding anything to the contrary contained herein,
commissions, discounts, yield and other fees and charges Incurred in connection
with any transaction pursuant to which the Company or its Restricted
Subsidiaries may sell, convey or otherwise transfer or grant a security interest
in any accounts receivable or related assets shall be included in Consolidated
Interest Expense.

     

    “Consolidated
Net Income” means, for any period, the net consolidated income (loss) of the
Company and its consolidated Restricted Subsidiaries determined in accordance
with GAAP; provided,
however,
that there will not be included 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), (4) and (5) 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

            

    

     

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              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 (other than an
      Unrestricted Subsidiary) 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;

            

    

     

    
      	
               
      

            	
              (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 (subject, in the case of a dividend to
      another Restricted Subsidiary, to the limitation contained in this
      clause); provided,
      however,
      that the net income of a Special Entity that does not Guarantee the Notes
      will not be included in such Consolidated Net Income except for the amount
      of cash actually distributed by such Special Entity 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 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
      after tax gain (loss) realized upon the sale or other disposition of any
      property, plant or equipment of the Company or its consolidated Restricted
      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
      after tax extraordinary gain or
loss;

            

    

     

    
      	
               
      

            	
              (5)

            	
              the
      cumulative effect of a change in accounting
  principles;

            

    

     

    
      	
               
      

            	
              (6)

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

            

    

     

    
      	
               
      

            	
              (7)

            	
              any
      unrealized non-cash gains or losses on charges in respect of Hedging
      Obligations (including those resulting from the application of SFAS
      133).

            

    

     

    “Continuing
Directors” means the individuals who, as of the Issue Date, are directors of the
Company and any individual becoming a director of the Company subsequent to the
Issue Date whose election, nomination for election by the Company’s stockholders
or appointment, was approved by a majority of the then Continuing Directors
(either by a specific vote or by approval of the proxy statement of the Company
in which such individual is named as a nominee for election as a director,
without objection to such nomination).

     

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    
 

    “Control”
of a 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 of the foregoing.

     

    “Credit
Facility” means, with respect to the Company or any Subsidiary Guarantor, one or
more credit facilities (including, without limitation, the Senior Secured Credit
Agreement) or commercial paper facilities with banks or other institutional
lenders 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 (including
successive amendments, restatements, modifications, renewals, refunds,
replacements or refinancings 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, with notice or passage of time or both, would constitute
an Event of Default.

     

    “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) or upon the happening of any event:

     

    
      	
               
      

            	
              (1)

            	
              matures
      or is mandatorily redeemable pursuant to a sinking fund obligation or
      otherwise;

            

    

     

    
      	
               
      

            	
              (2)

            	
              is
      convertible or exchangeable for Indebtedness or Disqualified Stock
      (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) the first date after the Issue Date
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 disposition
(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 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 Section 3.15
and Section 3.07 of this Seventh Supplemental Indenture and such repurchase or
redemption complies with Section 3.03 of this Seventh Supplement
Indenture.

     

    “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.

     

    “Events
of Default” has the meaning set forth in Article IV.

    
 

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    
 

    “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
and any Subsidiary of such Restricted Subsidiary.

     

    “GAAP”
means generally accepted accounting principles in the United States of America
as in effect as of March 16, 2006, including those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.  All
ratios and computations based on GAAP contained in the Indenture will be
computed in conformity with GAAP.

     

    “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” will not include endorsements for collection or
deposit in the ordinary course of business.  The term “Guarantee” used
as a verb has a corresponding meaning.

     

    “Guarantor
Senior Indebtedness” means, with respect to a Subsidiary Guarantor, the
following obligations, whether outstanding on the Issue Date or thereafter
issued, without duplication:

     

    
      	
               
      

            	
              (1)

            	
              any
      Guarantee of the Bank Indebtedness or the Notes by such Subsidiary
      Guarantor and all other Guarantees by such Subsidiary Guarantor of Senior
      Indebtedness of the Company or Guarantor Senior Indebtedness of any other
      Subsidiary Guarantor; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              all
      obligations consisting of principal of and premium, if any, accrued and
      unpaid interest on, and fees and other amounts relating to, all other
      Indebtedness of the Subsidiary Guarantor.  Guarantor Senior
      Indebtedness includes interest accruing on or after the filing of any
      petition in bankruptcy or for reorganization relating to the Subsidiary
      Guarantor regardless of whether post-filing interest is allowed in such
      proceeding.

            

    

     

    Notwithstanding
anything to the contrary in the preceding paragraph, Guarantor Senior
Indebtedness will not include:

     

    
      	
               
      

            	
              (1)

            	
              any
      Indebtedness Incurred in violation of the
  Indenture;

            

    

     

    
      	
               
      

            	
              (2)

            	
              any
      obligations of such Subsidiary Guarantor to the Company or another
      Subsidiary;

            

    

     

    
      	
               
      

            	
              (3)

            	
              any
      liability for federal, state, local, foreign or other taxes owed or owing
      by such Subsidiary Guarantor;

            

    

     

    
      	
               
      

            	
              (4)

            	
              any
      accounts payable or other liability to trade creditors arising in the
      ordinary course of business (including Guarantees thereof or instruments
      evidencing such liabilities);

            

    

     

    
      	
               
      

            	
              (5)

            	
              any
      Indebtedness, Guarantee or obligation of such Subsidiary Guarantor that is
      expressly subordinate or junior in right of payment to any other
      Indebtedness, Guarantee or

            

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    
      	
               
      

            	
              obligation
      of such Subsidiary Guarantor, including, without limitation, any Guarantor
      Subordinated Obligations of such Subsidiary Guarantor;
  or

            

    

     

    
      	
               
      

            	
              (6)

            	
              any
      Capital Stock.

            

    

     

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

     

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

     

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

     

    “Hydrocarbons”
means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate,
distillate, liquid hydrocarbons, gaseous hydrocarbons, and all products,
by-products and all other substances refined, separated, settled or derived
therefrom or the processing thereof, and all other minerals and substances,
including, but not limited to, liquefied petroleum gas, natural gas, kerosene,
sulphur, lignite, coal, uranium, thorium, iron, geothermal steam, water, carbon
dioxide, helium, and any and all other minerals, ores, or substances of value,
and the products and proceeds therefrom, including, without limitation, all gas
resulting from the in-situ combustion of coal or lignite.

     

    “Incur”
means issue, create, assume, Guarantee, incur or otherwise become liable for;
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, as applied to any Person, without duplication:

     

    
      	
               
      

            	
              (1)

            	
              all
      obligations of such Person for borrowed
money;

            

    

     

    
      	
               
      

            	
              (2)

            	
              all
      obligations of such Person for the deferred purchase price of property or
      services (other than property and services purchased, and expense accruals
      and deferred compensation items arising, in the ordinary course of
      business);

            

    

     

    
      	
               
      

            	
              (3)

            	
              all
      obligations of such Person evidenced by notes, bonds, debentures,
      mandatorily redeemable preferred stock or other similar instruments (other
      than performance, surety and appeals bonds arising in the ordinary course
      of business);

            

    

     

    
      	
               
      

            	
              (4)

            	
              all
      payment obligations created or arising under any conditional sale,
      deferred price or other title retention agreement with respect to property
      acquired by such Person (unless the rights and remedies of the seller or
      lender under such agreement in the event of default are limited to
      repossession or sale of such
property);

            

    

     

    
      	
               
      

            	
              (5)

            	
              any
      Capital Lease Obligation of such Person, other than obligations under oil
      and gas leases entered into in the ordinary course of
      business;

            

    

     

    
      	
               
      

            	
              (6)

            	
              all
      reimbursement, payment or similar obligations, contingent or otherwise, of
      such Person under acceptance, letter of credit or similar facilities
      (other than letters of credit in support of trade obligations or incurred
      in connection with public liability insurance, workers’ compensation,
      unemployment insurance, old-age pensions and other social security
      benefits other than in respect of employee benefit plans subject to the
      Employee Retirement Income Security Act of 1974, as
    amended);

            

    

     

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (7)

            	
              all
      obligations of such Person, contingent or otherwise, under any guarantee
      by such Person of the obligations of another Person of the type referred
      to in clauses (1) through (6)
above;

            

    

     

    
      	
               
      

            	
              (8)

            	
              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);

            

    

     

    
      	
               
      

            	
              (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);
      and

            

    

     

    
      	
               
      

            	
              (10)

            	
              all
      obligations referred to in clauses (1) through (6) above secured by (or
      for which the holder of such Indebtedness has an existing right,
      contingent or otherwise, to be secured by) any mortgage or security
      interest in property (including without limitation accounts, contract
      rights and general intangibles) owned by such Person and as to which such
      Person has not assumed or become liable for the payment of such
      obligations other than to the extent of the property subject to such
      mortgage or security interest;

            

    

     

    except
that Indebtedness of the type referred to in clauses (7) and (10) above will be
included within the definition of “Indebtedness” only to the extent of the least
of (a) the amount of the underlying Indebtedness referred to in the applicable
clause (1) through (6) above; (b) in the case of clause (7), the limit on
recoveries, if any, from such Person under obligations of the type referred to
in clause (7) above, and (c) in the case of clause (10), the aggregate value (as
determined in good faith by the board of directors or similar governing body of
such Person) of the property of such Person subject to such mortgage or security
interest.

     

    In
addition, “Indebtedness” of any Person shall include Indebtedness described in
the preceding paragraph 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 (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;

            

    

     

    in which
case, 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 recourse to such Person or
      a Restricted Subsidiary of such Person, if the Indebtedness is evidenced
      by a writing and is for a determinable
amount.

            

    

     

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

     

    
      “Interest
Payment Date” means January 1 and July 1 of each year, commencing January 1,
2010.

    

     

    “Interest
Rate Agreement” means with respect to any Person any interest rate protection
agreement, interest rate futures contract, 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 (other than advances or extensions of credit to employees,
directors or customers in the ordinary course of business) 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) or capital contribution to (by means of any transfer of cash or other
property or any payment for property or services), or any purchase or
acquisition of Capital Stock, Indebtedness or other similar instruments issued
by, such Person and all other items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP; provided
that none of the following will be deemed to be an Investment:

     

    
      	
               
      

            	
              (1)

            	
              Hedging
      Obligations Incurred in the ordinary course of business and in compliance
      with the Indenture;

            

    

     

    
      	
               
      

            	
              (2)

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

            

    

     

    
      	
               
      

            	
              (3)

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

            

    

     

    For
purposes of Section 3.03 of this Seventh Supplemental Indenture,

     

    
      	
               
      

            	
              (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
      (as conclusively determined by the Board of Directors of the Company in
      good faith) of such Subsidiary at the time that such Subsidiary is so
      re-designated 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, in each case as
      determined in good faith by the Board of Directors of the
      Company.

            

    

     

    “Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s Investors Service, Inc. and BBB- (or the equivalent) by Standard &
Poor’s Ratings Services (or an equivalent rating by another nationally
recognized rating agency if both of the two named rating agencies cease
publishing ratings of investments), in each case, with a stable or better
outlook.

     

    “Issue
Date” means June 25, 2009.

     

    “Lien”
means any mortgage, pledge, security interest, encumbrance, lien or similar
charge of any kind (including any conditional sale or other title retention
agreement or lease in the nature thereof).

    
 

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

    
 

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

     

    “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 as a result of such Asset
      Disposition; and

            

    

     

    
      	
               
      

            	
              (4)

            	
              amounts
      accrued in accordance with GAAP in respect of liabilities associated with
      the assets disposed of in such Asset Disposition and retained by the
      Company or any Restricted Subsidiary after such Asset Disposition or
      liabilities incurred in connection with such Asset
      Disposition.

            

    

     

    “Net Cash
Proceeds” means, with respect to any issuance or sale of Capital Stock, the cash
proceeds of such issuance or sale 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 or sale 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 under Commodity Agreements, less (b) all
current liabilities of the Company and its Restricted Subsidiaries, except
current liabilities included in Indebtedness and any current liabilities under
Commodity Agreements, 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

            

    

     

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

    
 

    
      	
               
      

            	
              (3)

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

            

    

     

    “Oil and
Gas Business” means (a) the business of acquiring, exploring, exploiting,
developing, producing, operating and disposing of interests in oil, gas, liquid
natural gas and other hydrocarbon properties, (b) the business of gathering,
marketing, treating, processing, storing, refining, selling and transporting any
production from such interests or properties and products produced therefrom or
in association therewith, and (c) any business or activity relating to, arising
from, or necessary, appropriate or incidental to the activities described in the
foregoing clauses (a) and (b) of this definition.

     

    “Oil and
Gas Properties” means all properties, including equity or other ownership
interests therein, owned by such Person which contain or are believed to contain
“proved oil and gas reserves” as defined in Rule 4-10 of Regulation S-X of the
Securities Act.

     

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

     

    “Pari
Passu Indebtedness” means Indebtedness that ranks equally in right of payment to
the Notes.

     

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

     

    
      	
               
      

            	
              (1)

            	
              ownership
      interests in oil and gas properties, liquid natural gas facilities,
      refineries, drilling operations, processing facilities, gathering systems,
      pipelines or ancillary real property interests;
  and

            

    

     

    
      	
               
      

            	
              (2)

            	
              Investments
      in the form of or pursuant to oil and gas leases, operating agreements,
      gathering agreements, processing agreements, farm-in agreements, farm-out
      agreements, development agreements, area of mutual interest agreements,
      unitization or pooling designations, declarations, orders and agreements,
      gas balancing or deferred production agreements, joint bidding agreements,
      service contracts, joint venture agreements, partnership agreements
      (whether general or limited), subscription agreements, stock purchase
      agreements and other similar agreements (including for limited liability
      companies) with third parties.

            

    

     

    “Permitted
Holders” means the following:

     

    
      	
               
      

            	
              (1)

            	
              the
      Company or any Subsidiary of the
Company;

            

    

     

    
      	
               
      

            	
              (2)

            	
              a
      trustee or other fiduciary holding securities under any employee benefit
      plan (or related trust) sponsored or maintained by the Company or any
      Subsidiary of the Company; and

            

    

     

    
      	
               
      

            	
              (3)

            	
              Mercury
      Exploration Company, Quicksilver Energy, L.P., The Discovery Fund,
      Pennsylvania Avenue Limited Partnership, Pennsylvania Management Company,
      the estate of Frank Darden, Lucy Darden, Anne Darden Self, Glenn Darden or
      Thomas Darden, and their respective successors, assigns, designees, heirs,
      beneficiaries, trusts, estates or Controlled
  affiliates.

            

    

     

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

    
 

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                (1)

              	
                a
      Restricted Subsidiary (other than a Special Entity that does not Guarantee
      the Notes) or a Person which will, upon the making of such Investment,
      become a Restricted Subsidiary (other than a Special Entity that does not
      Guarantee the Notes); provided,
      however,
      that the primary business of such Restricted Subsidiary is the Oil and Gas
      Business;

              

      

       

    

    
      	
               
      

            	
              (2)

            	
              another
      Person if as a result of such Investment such other Person is merged or
      consolidated with or into, or transfers or conveys all or substantially
      all its assets to, the Company or a Restricted Subsidiary; provided,
      however,
      that such Person’s primary business is the Oil and Gas
      Business;

            

    

     

    
      	
               
      

            	
              (3)

            	
              cash
      and Cash Equivalents;

            

    

     

    
      	
               
      

            	
              (4)

            	
              receivables
      owing to the Company or any Restricted Subsidiary created or acquired in
      the ordinary course of the Oil and Gas 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,
      travel 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 and directors made in the ordinary course of
      business of the Company or such Restricted
  Subsidiary;

            

    

     

    
      	
               
      

            	
              (7)

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

            

    

     

    
      	
               
      

            	
              (8)

            	
              Investments
      made as a result of the receipt of non-cash consideration from an Asset
      Disposition that was made pursuant to and in compliance with Section 3.07
      of this Seventh Supplemental
Indenture;

            

    

     

    
      	
               
      

            	
              (9)

            	
              Investments
      in existence on the Issue Date or made pursuant to agreements or
      commitments in effect on the Issue
Date;

            

    

     

    
      	
               
      

            	
              (10)

            	
              Commodity
      Agreements, Currency Agreements, Interest Rate Agreements and related
      Hedging Obligations, which transactions or obligations are Incurred in
      compliance with Section 3.02 of this Seventh Supplemental
      Indenture;

            

    

     

    
      	
               
      

            	
              (11)

            	
              Investments
      by the Company or any of its Restricted Subsidiaries, together with all
      other Investments pursuant to this clause (11), in an aggregate amount not
      to exceed $10 million outstanding at any one time (with the fair
      market value of such Investment being measured at the time made and
      without giving effect to subsequent changes in
  value);

            

    

     

    
      	
               
      

            	
              (12)

            	
              Guarantees
      made in accordance with Section 3.02 of this Seventh Supplemental
      Indenture;

            

    

     

    
      	
               
      

            	
              (13)

            	
              Investments
      in a Special Entity that does not Guarantee the Notes in an aggregate
      amount not to exceed 10% of Adjusted Consolidated Net Tangible Assets
      (with Adjusted Consolidated Net Tangible Assets and the fair market value
      of such Investment being

            

    

     

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

    
       

      
        	
                 
      

              	
                 

              	
                measured
      at the time such Investment is made and without giving effect to
      subsequent changes in value);

              

      

       

    

    
      	
               
      

            	
              (14)

            	
              Permitted
      Business Investments in an aggregate amount not to exceed 5% of Adjusted
      Consolidated Net Tangible Assets (with Adjusted Consolidated Net Tangible
      Assets and 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); and

            

    

     

    
      	
               
      

            	
              (15)

            	
              any
      Asset Swap made in accordance with Section 3.07 of this Seventh
      Supplemental Indenture.

            

    

     

    In order
to be a Permitted Investment, an Investment need not be permitted solely by one
subsection of this definition but may be permitted in part by one such
subsection and in part by one or more other subsections of this
definition.  In the event an Investment meets the criteria of one or
more of the subsections of this definition, the Company, in its sole discretion,
may classify (or subsequently reclassify) all or any portion of such Investment
as being permitted by any one or more of such subsections.

     

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

     

    
      	
               
      

            	
              (1)

            	
              Liens
      securing Indebtedness and related obligations of the Company or any
      Restricted Subsidiary Incurred pursuant to a Credit Facility outstanding
      on June 27, 2008 or permitted to be Incurred under the Indenture under
      clause (1) of the second paragraph of Section 3.02 of this Seventh
      Supplemental Indenture;

            

    

     

    
      	
               
      

            	
              (2)

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

            

    

     

    
      	
               
      

            	
              (3)

            	
              Liens
      imposed by law, including carriers’, warehousemen’s, suppliers’,
      materialmen’s and mechanics’ Liens, in each case for sums not yet due or
      being contested in good faith by appropriate proceedings if appropriate
      reserves or other provisions required by GAAP, if any, shall have been
      made in respect thereof;

            

    

     

    
      	
               
      

            	
              (4)

            	
              Liens
      for taxes, assessments or other governmental charges not yet subject to
      penalties for non-payment or which are being contested in good faith by
      appropriate proceedings if appropriate reserves or other provisions
      required by GAAP shall have been made in respect
  thereof;

            

    

     

    
      	
               
      

            	
              (5)

            	
              Liens
      in favor of issuers of surety or performance bonds or letters of credit or
      bankers’ acceptances issued pursuant to the request of and for the account
      of such Person in the ordinary course of its business; provided,
      however,
      that such letters of credit do not constitute
  Indebtedness;

            

    

     

    
      	
               
      

            	
              (6)

            	
              encumbrances,
      easements or reservations of, or rights of others for, licenses, rights of
      way, servitudes, permits, sewers, electric lines, telegraph and telephone
      lines and other similar purposes, or zoning, building codes or surface
      leases and other similar rights in respect of surface operations 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

            

    

     

    
      
        
           

        

        
          21

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                 

              	
                properties
      which do not in the aggregate materially adversely affect the value of
      said properties or materially impair their use in the operation of the
      business of such Person;

              

      

       

      
        	
                 
      

              	
                (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)

            	
              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 Capital Lease Obligations, purchase money obligations or
      other payments Incurred to finance the acquisition, improvement or
      construction of, 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 construction or acquisition of such
      assets or property and do not encumber any other assets or property of the
      Company or any Restricted Subsidiary other than such assets or property
      and assets affixed or appurtenant
thereto;

            

    

     

    
      	
               
      

            	
              (11)

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

            

    

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (12)

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

            

    

     

    
      	
               
      

            	
              (13)

            	
              Liens
      existing on the Issue Date;

            

    

     

    
      	
               
      

            	
              (14)

            	
              Liens
      on property or shares of stock of a Person at the time such Person becomes
      a Restricted Subsidiary; provided,
      however,
      that such Liens are not created, Incurred or assumed in connection with,
      or in contemplation of, such other Person becoming a Restricted
      Subsidiary; provided
      further,
      however,
      that any such Lien may not extend to any other property owned by the
      Company or any Restricted
Subsidiary;

            

    

     

    
      	
               
      

            	
              (15)

            	
              Liens
      on property at the time the Company or a Restricted Subsidiary acquired
      the property, including any acquisition by means of a merger or
      consolidation with or into the Company or any Restricted Subsidiary; provided,
      however,
      that such Liens are not created, Incurred or assumed in connection with,
      or in contemplation of, such
acquisition;

            

    

    
 

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                 

              	
                provided
      further,
      however,
      that such Liens may not extend to any other property owned by the Company
      or any Restricted
  Subsidiary;

              

      

       

      
        	
                 
      

              	
                (16)

              	
                Liens
      securing Indebtedness or other obligations of a Restricted Subsidiary
      owing to the Company or a Wholly-Owned
  Subsidiary;

              

      

       

    

    
      	
               
      

            	
              (17)

            	
              Liens
      securing the Notes and Subsidiary
Guarantees;

            

    

     

    
      	
               
      

            	
              (18)

            	
              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 that is the
      security for a Permitted Lien
hereunder;

            

    

     

    
      	
               
      

            	
              (19)

            	
              any
      interest or title of a lessor under any Capital Lease Obligation or
      operating lease;

            

    

     

    
      	
               
      

            	
              (20)

            	
              Liens
      in respect of Production Payments and Reserve Sales, which Liens shall be
      limited to the oil and gas property or other interest that is subject to
      such Production Payments and Reserve
Sales;

            

    

     

    
      	
               
      

            	
              (21)

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

            

    

     

    
      	
               
      

            	
              (22)

            	
              Liens
      on pipelines or pipeline facilities that arise by operation of law;
      and

            

    

     

    
      	
               
      

            	
              (23)

            	
              Liens
      securing Indebtedness (other than Subordinated Obligations and Guarantor
      Subordinated Obligations) in an aggregate principal amount outstanding at
      any one time not to exceed $10
million.

            

    

     

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

     

    “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 or the right to receive
all or a portion of the production or the proceeds from the sale of production
attributable to such properties, under which the grantee or transferee thereof
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 to be
operated and maintained, the related oil and gas properties or other related
interests in a reasonably prudent manner or other customary standard or subject
to the obligation of the grantor or 

    
 

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

     

    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 Standard & Poor’s Ratings Services and Moody’s Investors
Service, Inc. or if Standard & Poor’s Ratings Services or Moody’s Investors
Service, Inc. or both shall not make a rating on the Notes publicly available, a
nationally recognized statistical rating agency or agencies, as the case may be,
selected by the Company (as certified by a resolution of the Board of Directors
or a committee thereof) which shall be substituted for Standard & Poor’s
Ratings Group, Inc. or Moody’s Investors Service, Inc. or both, as the case may
be.

     

    “Receivables”
means a right to receive payment arising from a sale or lease of goods or the
performance of services by a Person pursuant to an arrangement with another
Person pursuant to which such other Person is obligated to pay for goods or
services under terms that permit the purchase of such goods and services on
credit and shall include, in any event, any items of property that would be
classified as an “account,” “chattel paper,” “payment intangible” or
“instrument” under the Uniform Commercial Code as in effect in the State of New
York and any “supporting obligations” as so defined.

     

    “Receivables
Fees” means any fees or interest paid to purchasers or lenders providing the
financing in connection with a factoring agreement or other similar agreement,
including any such amounts paid by discounting the face amount of Receivables or
participations therein transferred in connection with a factoring agreement or
other similar arrangement, regardless of whether any such transaction is
structured as on-balance sheet or off-balance sheet or through a Restricted
Subsidiary or an Unrestricted Subsidiary.

     

    “Refinancing
Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace,
exchange, renew, repay or extend (including pursuant to any defeasance or
discharge mechanism) (collectively, “refinance,” “refinances,” and “refinanced”
shall have a correlative meaning) any Indebtedness existing on the Issue Date or
Incurred in compliance with the Indenture (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) 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 or
      premiums required by the instruments governing such existing Indebtedness
      and fees and expenses Incurred in connection therewith);
    and

            

    

     

    
      	
               
      

            	
              (4)

            	
              if
      the Indebtedness being refinanced is subordinated in right of payment to
      the Notes or the Subsidiary Guarantees, such Refinancing Indebtedness is
      subordinated in right of payment to the Notes or the Subsidiary Guarantees
      on terms at least as favorable to
the

            

    

    
 

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

    
       

      
        	
                 
      

              	
                 

              	
                holders
      as those contained in the documentation governing the Indebtedness being
      extended, refinanced, renewed, replaced, defeased or
    refunded.

              

      

       

      “Regular
Record Date” means, with respect to each Interest Payment Date, the close of
business on the immediately preceding June 15 or December 15, as the case may
be.

       

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

    

     

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

     

    “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.

     

    “Senior
Indebtedness” means the Notes and, whether outstanding on the Issue Date or
thereafter issued, created, Incurred or assumed, the 2015 Senior Notes, the Bank
Indebtedness and all amounts payable by the Company under or in respect of all
other Indebtedness of the Company, including premiums and accrued and unpaid
interest (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company at the rate specified
in the documentation with respect thereto whether or not a claim for post-filing
interest is allowed in such proceeding) and fees relating thereto; provided,
however,
that Senior Indebtedness will not include:

     

    
      	
               
      

            	
              (1)

            	
              any
      Indebtedness Incurred in violation of the
  Indenture;

            

    

     

    
      	
               
      

            	
              (2)

            	
              any
      obligation of the Company to any
Subsidiary;

            

    

     

    
      	
               
      

            	
              (3)

            	
              any
      liability for federal, state, foreign, local or other taxes owed or owing
      by the Company;

            

    

     

    
      	
               
      

            	
              (4)

            	
              any
      accounts payable or other liability to trade creditors arising in the
      ordinary course of business (including Guarantees thereof or instruments
      evidencing such liabilities);

            

    

     

    
      	
               
      

            	
              (5)

            	
              any
      Indebtedness, Guarantee or obligation of the Company that is expressly
      subordinate or junior in right of payment to any other Indebtedness,
      Guarantee or obligation of the Company, including, without limitation, any
      Subordinated Obligations; or

            

    

     

    
      	
               
      

            	
              (6)

            	
              any
      Capital Stock.

            

    

     

    “Senior
Secured Credit Agreement” means (1) the Amended and Restated Credit Agreement,
dated as of February 9, 2007, among the Company, JPMorgan Chase Bank, N.A., as
global administrative agent, and the other agents and financial institutions
from time to time party thereto, as amended; (2) the Amended and Restated Credit
Agreement, dated as of February 9, 2007, among Quicksilver Resources Canada
Inc., JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian administrative
agent, JPMorgan Chase Bank, N.A., as global administrative agent, and the
financial institutions from time to time party thereto, as amended; and (3) each
such agreement as the same may be amended, supplemented or otherwise modified
from time to time.

     

    “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.

     

    “Special
Entity” means any Restricted Subsidiary that is not a Wholly-Owned Subsidiary
that (i) is classified as a pass-through entity for U.S. federal, state,
local and foreign income tax purposes and (ii) has no
Indebtedness.

    
 

    
      
        
           

        

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

       
“Subordinated
Obligation” means any Indebtedness of the Company (whether outstanding on the
Issue Date or thereafter Incurred) that is subordinate or junior 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 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.  Each such
Subsidiary Guarantee will be in the form prescribed by the
Indenture.

     

    “Subsidiary
Guarantor” means (i) Cowtown Pipeline Funding, Inc., Cowtown Pipeline
Management, Inc., Cowtown Pipeline L.P. and Cowtown Gas Processing L.P., and
(ii) any Restricted Subsidiary (other than a Foreign Subsidiary and, except to
the extent it Guarantees the Notes, a Special Entity) created or acquired by the
Company or one or more of its Restricted Subsidiaries after the Issue
Date.

     

    “Treasury
Rate” means 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 July 1, 2013; provided,
however,
that if the period from the Redemption Date to July 1, 2013 is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the period from the Redemption Date to July 1, 2013 is
less than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be
used.

     

    “Unrestricted
Subsidiary” means

     

    
      	
               
      

            	
              (1)

            	
              each
      of Quicksilver Gas Services Holdings LLC, Quicksilver Gas Services
      Operating GP LLC, Quicksilver Gas Services GP LLC, Quicksilver Gas
      Services LP, Quicksilver Gas Services Operating LLC, Cowtown Gas
      Processing Partners L.P. and Cowtown Pipeline Partners
    L.P.;

            

    

     

    
      	
               
      

            	
              (2)

            	
              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

            

    

     

    
      	
               
      

            	
              (3)

            	
              any
      Subsidiary of an Unrestricted
Subsidiary.

            

    

     

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

     

    
      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 at all times thereafter, consist of Non-Recourse
      Debt;

            

    

     

    
      	
               
      

            	
              (3)

            	
              such
      designation and the Investment of the Company in such Subsidiary complies
      with Section 3.03 of this Seventh Supplemental
  Indenture;

            

    

     

    
      	
               
      

            	
              (4)

            	
              such
      Subsidiary, either alone or in the aggregate with all other Unrestricted
      Subsidiaries, does not operate, directly or indirectly, all or
      substantially all of the business of the Company and its
      Subsidiaries;

            

    

     

    
      	
               
      

            	
              (5)

            	
              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

            

    

     

    
      	
               
      

            	
              (6)

            	
              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
      materially less favorable to the Company than those that might have been
      reasonably obtained from Persons that 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 resolution of the Board of Directors of the
Company giving effect to such designation and an Officers’ Certificate
certifying that such designation complies with the foregoing
conditions.  If, at any time, any Unrestricted Subsidiary would fail
to meet the foregoing requirements as an Unrestricted Subsidiary, it shall
thereafter cease to be an Unrestricted Subsidiary for purposes of the Indenture
and any Indebtedness of such Subsidiary shall be deemed to be Incurred as of
such date.

     

    The Board
of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided
that immediately after giving effect to such designation, no Default or Event of
Default shall have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness
under the first paragraph of Section 3.02 of this Seventh Supplemental Indenture
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 

    
 

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

     

    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.

     

    “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 a corporation means all classes of Capital Stock of such corporation
then outstanding and normally entitled to vote in the election 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
1.03    Payment of
Principal and Interest.  The principal of the Notes shall be
due at Stated Maturity (unless earlier redeemed).  The unpaid
principal amount of the Notes shall bear interest at the rate of 11.75% per year
until paid or duly provided for, such interest to accrue from June 25, 2009
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for.  Interest shall be paid semi-annually in arrears on
each Interest Payment Date, commencing January 1, 2010, to the Person or Persons
in whose name a Note is registered at the close of business on the Regular
Record Date for such Interest Payment Date, provided
that interest payable at the Stated Maturity or on a Redemption Date as provided
herein will be paid to the Person to whom principal is payable.  Any
such interest that is not so punctually paid or duly provided for will forthwith
cease to be payable to the Holders on such Regular Record Date and may either be
paid to the Person in whose name the Note (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 not less than 10 calendar 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 the Original Indenture.

     

    Payments
of interest on the Notes will include interest accrued to but excluding the
respective Interest Payment Dates.  Interest payments for the Notes
shall be computed and paid on the basis of a 360-day year consisting of twelve
30-day months.  In the event that any date on which interest is
payable on the Notes is not a Business Day, then payment of the interest payable
on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay), except
that, if such Business Day is in the next succeeding calendar year, such payment
shall be made on the immediately preceding Business Day, in each case with the
same force and effect as if made on the date the payment was originally
payable.

     

    Subject,
in the case of any Global Security, to any applicable requirements of the
Depositary, payment of the principal, premium, if any, and interest due at the
Stated Maturity of, or on a Redemption Date for, the Notes shall be made upon
surrender of the Notes at the Corporate Trust Office of the Paying
Agent.  The principal of and interest on the Notes shall be paid 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.  Payments of
interest (including interest on any Interest Payment Date) will be made, subject
to such surrender where applicable, at the option of the Company, (i) by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer at such place and to
such account at a banking institution in the United States as may be designated
in writing to the Trustee at least 15 days prior to the date for payment by the
Person entitled thereto.

     

    Section
1.04    Denominations.  The
Notes may be issued in denominations of $2,000, or integral multiples of $1,000
in excess thereof.

     

    Section
1.05    Global
Securities.  The Notes will be initially issued in the form of
one or more Global Securities registered in the name of the Depositary (which
initially shall be The Depository Trust Company) or its
nominee.  Except under the limited circumstances described below,
Notes represented by

    
 

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

     

    such Global Securities will not be
exchangeable for, and will not otherwise be issuable as, Notes in definitive
form.  The Global Securities described above may not be transferred
except by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or to a
successor Depositary or its nominee.

    Owners of
beneficial interests in such Global Securities will not be considered the
Holders thereof for any purpose under the Indenture, and no Global Security
representing a Note shall be exchangeable, except for another Global Security of
like denomination and tenor to be registered in the name of the Depositary or
its nominee or to a successor Depositary or its nominee.  The rights
of holders of beneficial interests in such Global Securities shall be exercised
only through the Depositary.

     

    A Global
Security shall be exchangeable for Notes registered in the names of Persons
other than the Depositary or its nominee only as provided by Section 2.05 of the
Original Indenture.  Any Global Security that is exchangeable pursuant
to the preceding sentence shall be exchangeable for Notes registered in such
names as the Depositary shall direct.

     

    Section
1.06    Transfer.  No
service charge will be made for any registration of transfer or exchange of
Notes, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection
therewith.

     

    Section
1.07    Defeasance
and Covenant Defeasance.  The provisions of Article V of the
Original Indenture are hereby replaced in their entirety by this Section 1.07
with respect to the Notes.

     

    (a)           Company’s
and Subsidiary Guarantors’ Option to Effect Defeasance or Covenant
Defeasance.  The Company and the Subsidiary Guarantors may
elect, at their option by Board Resolution at any time, to have either Section
1.07(b) or Section 1.07(c) applied to the Outstanding Notes, upon compliance
with the conditions set forth below in this Section 1.07.

     

    (b)           Defeasance
and Discharge.  Upon the Company’s and the Subsidiary
Guarantors’ exercise of the option provided in Section 1.07(a) to have this
Section 1.07(b) applied to the Outstanding Notes, the Company and the Subsidiary
Guarantors will be deemed to have been discharged from their obligations with
respect to the Outstanding Notes as provided in this Section 1.07(b) on and
after the date the conditions set forth in Section 1.07(d) are satisfied
(hereinafter called “Defeasance”).  For this purpose, such Defeasance
means that the Company and the Subsidiary Guarantors will be deemed to have paid
and discharged the entire indebtedness represented by the Outstanding Notes and
to have satisfied all their other obligations under the Notes and this Seventh
Supplemental Indenture (and the Trustee, at the expense of the Company, will
execute proper instruments acknowledging the same), subject to the following
which will survive until otherwise terminated or discharged hereunder: (i) the
rights of Holders to receive, solely from the trust fund described in Section
1.07(d) and as more fully set forth in Section 1.07(d), payments in respect of
the principal of and any premium and interest on the Notes when payments are
due, (ii) the Company’s obligations with respect to the Notes under Sections
2.05, 2.06, 2.07, 6.02, 6.03 and 10.06 of the Original Indenture, (iii) the
rights, powers, trusts, duties, and immunities of the Trustee under the Original
Indenture and this Seventh Supplemental Indenture and (iv) this Section
1.07.  Subject to compliance with this Section 1.07, the Company and
the Subsidiary Guarantors may exercise their option provided in Section 1.07(a)
to have this Section 1.07(b) applied to the Outstanding Notes notwithstanding
the prior exercise of its option provided in Section 1.07(a) to have Section
1.07(c) applied to the Outstanding Notes.

     

    (c)           Covenant
Defeasance.  Upon the Company’s and Subsidiary Guarantors’
exercise of the option provided in Section 1.07(a) to have this Section 1.07(c)
applied to the Outstanding Notes, (a) the Company will be released from its
obligations under Article III of this Seventh Supplemental Indenture and Section
6.04 of the Original Indenture, and the Subsidiary Guarantors will be released
from their Guarantees and (b) the occurrence of any event specified in clauses
(3), (4), (6), (7), (8) (with respect to Significant Subsidiaries only), (9) or
(10) of Article IV of this Seventh Supplemental Indenture will be deemed not to
be or result in an Event of Default, in each case with respect to the
Outstanding Notes as provided in this Section 1.07(c) on and after the date the
conditions set forth in Section 1.07(d) are satisfied

    
 

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

    
 

    (hereinafter
called “Covenant Defeasance”).  For this purpose, such Covenant
Defeasance means that the Company and Subsidiary Guarantors may omit to comply
with and will 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 or in the Original Indenture to any
such Section or provision or by reason of any reference in any such Section or
provision to any other provision herein, in the Original ndenture or in any
other document, but the remainder of the Original Indenture, this Seventh
Supplemental Indenture and the Notes will be unaffected thereby.

     

    (d)           Conditions
to Defeasance or Covenant Defeasance.  The following will be
the conditions to application of either Section 1.07(b) or Section 1.07(c) to
the Outstanding Notes:

     

    (i) The Company shall irrevocably have deposited
or caused to be deposited with the Trustee (or another trustee that satisfies
the requirements contemplated by Section 9.08 of the Original Indenture and
agrees to comply with the provisions of this Section 1.07 applicable to it) as
trust funds in trust for the benefit of the Holders of Outstanding Notes (A)
money in an amount, or (B) U.S. Government Obligations that through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms will provide, without reinvestment, 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 to pay and discharge, and which will be applied
by the Trustee (or any such other qualifying trustee) to pay and discharge, the
principal of and any premium and interest on the Notes at the Stated Maturity or
on any earlier date or dates on which the Notes shall be subject to redemption
and the Company shall have given the Trustee irrevocable instructions
satisfactory to the Trustee to give notice to the Holders of the redemption of
the Notes, all in accordance with the terms of the Original Indenture, this
Seventh Supplemental Indenture and the Notes.

     

    (ii) In the case of an election under Section
1.07(b), the Company shall have delivered to the Trustee an Opinion of Counsel
(from a counsel who shall not be an employee of the Company) to the effect that
(i) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling or (ii) since the date of the Original Indenture there
has been a change in the applicable federal income tax law, in either case to
the effect that, and based thereon, such opinion shall confirm that, the Holders
of the Outstanding Notes 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 the 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.

     

    (iii) In the case of an election under Section
1.07(c), the Company shall have delivered to the Trustee an Opinion of Counsel
(from a counsel who shall not be an employee of the Company) to the effect that
the Holders of the Outstanding Notes 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 the 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.

     

    (iv) The Company shall have delivered to the
Trustee an Officer’s Certificate to the effect that the Notes, if then listed on
any securities exchange, will not be delisted solely as a result of such
deposit.

     

    (v) No Event of Default or event that (after
notice or lapse of time or both) would become an Event of Default shall have
occurred and be continuing at the time of such deposit or, with regard to any
Event of Default or any such event specified in Sections 8.01(a)(vi) and (vii)
of the Original Indenture, at any time on or prior to the 90th calendar day
after the date of such deposit (it being understood that this condition will not
be deemed satisfied until after such 90th calendar
day).

     

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

    
 

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

    
       

      (vii) Such Defeasance or Covenant Defeasance
will 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 Guarantor
is a party or by which it is bound.

       

    

    (viii) The Company shall have delivered to the
Trustee a certificate from a nationally recognized firm of independent
accountants or other Person acceptable to the Trustee expressing their opinion
that the payments of principal and interest when due and without reinvestment on
the deposited U.S. Government Obligations plus any deposited money without
investment will provide the cash at such times and in such amounts as will be
sufficient to pay the principal of and any premium and interest when due on the
Notes at the Stated Maturity or on any earlier date or dates on which the Notes
shall be subject to redemption.

     

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

     

    (x) Such Defeasance or Covenant Defeasance will
not result in the trust arising from such deposit constituting an investment
company within the meaning of the Investment Company Act of 1940, as amended,
unless such trust will be qualified under such Act or will be exempt from
regulation thereunder.

     

    (e)           Deposited
Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous
Provisions.

     

    (i) Subject to the provisions of Section 6.03(e)
of the Original Indenture, 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 1.07(e) and Section 1.07(f), the Trustee
and any such other trustee are referred to collectively as the Trustee) pursuant
to Section 1.07(d) in respect of the Notes will be held in trust and applied by
the Trustee, in accordance with the provisions of the Notes, the Original
Indenture and this Seventh Supplemental 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 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.

     

    (ii) The Company will 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 1.07(d) or the
principal and interest received in respect thereof other than any such tax, fee,
or other charge that by law is for the account of the Holders of Outstanding
Notes.

     

    (iii) Notwithstanding anything in this Section
1.07 to the contrary, the Trustee will deliver or pay to the Company from time
to time upon a Company Request any money or U.S. Government Obligations held by
it as provided in Section 1.07(d) with respect to Notes that are in excess of
the amount thereof that would then be required to be deposited to effect an
equivalent Defeasance or Covenant Defeasance with respect to the
Notes.

     

    (f)           Reinstatement.   If
the Trustee or the Paying Agent is unable to apply any money in accordance with
this Section 1.07 with respect to the Notes by reason of any order or judgment
of any court or governmental authority enjoining, restraining, or otherwise
prohibiting such application, then the Company’s and the Subsidiary Guarantors’
obligations under the Original Indenture, this Seventh Supplemental Indenture
and the Notes will be revived and reinstated as though no deposit had occurred
pursuant to this Section 1.07 with respect to Notes until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant
to Section 1.07(e) with respect to Notes in accordance with this Section 1.07;
provided,
however,
that if the Company or any Subsidiary Guarantor makes any payment of principal
of or any premium or interest on any Note following the reinstatement of
its

     

    
      
        
           

        

        
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    obligations, the Company and the
Subsidiary Guarantors will be subrogated to the rights of the Holders to receive
such payment from the money so held in trust. 

       

      Section
1.08    Redemption
at the Option of the
Company.

    

    (a)           Except
as described in this Section 1.08, the Notes are not redeemable until July 1,
2013.  On and after July 1, 2013, the Company may redeem all or, from
time to time, a part of the Notes upon not less than 30 nor more than 60 days’
notice, at the following Redemption Prices (expressed as a percentage of
principal amount) 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 Regular Record Date to receive interest due on the relevant Interest
Payment Date), if redeemed during the twelve-month period beginning on July 1 of
the years indicated below:

     

    
      
        
          
            	
                    Year

                  	
                    Percentage

                  
	
                    2013

                  	
                    105.875%

                  
	
                    2014

                  	
                    102.938%

                  
	
                    2015

                  	
                    100.000%

                  

          

        

      

    

    
 

    (b)           Prior
to July 1, 2012, the Company may on any one or more occasions redeem up to 35%
of the original principal amount of the Notes (which includes Additional Notes
(as defined below), if any) with the Net Cash Proceeds of one or more equity
offerings at a Redemption Price of 111.75% 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 Regular Record Date to receive
interest due on the relevant Interest Payment Date); provided
that:

     

    (i)           at
least 65% of such aggregate principal amount of the Notes (which includes
Additional Notes, if any) remains outstanding after each such redemption;
and

     

    (ii)           each
such redemption occurs within 90 days after the closing of such equity
offering.

     

    (c)           In
addition, at any time prior to July 1, 2013, the Company may redeem the Notes,
in whole but not in part, at a Redemption Price equal to 100% of the principal
amount thereof plus the Applicable Premium plus accrued and unpaid interest, if
any, to the Redemption Date (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on the relevant Interest
Payment Date).

     

    (d)           If
the optional Redemption Date is on or after a Regular Record Date and on or
before the related Interest Payment Date, the accrued and unpaid interest, if
any, will be paid to the Person in whose name the Note is registered at the
close of business on the Regular Record Date, and no additional interest will be
payable to Holders whose Notes will be subject to redemption.

     

    (e)           In
the case of any partial redemption, selection of the Notes for redemption will
be made by the Trustee:

     

    (i)           in
compliance with the requirements of the principal national securities exchange,
if any, on which the Notes are listed; or

     

    (ii)           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 may deem to be fair and
appropriate.

     

    No Note
of $2,000 in aggregate principal amount or less will be redeemed in
part.  If any Note is to be redeemed in part only, the notice of
redemption relating to such Note will state the portion of the principal amount
thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder upon
cancellation of the original Note.  Notes called for

     

    
      
        
           

        

        
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    redemption become due on the date
fixed for redemption.  On and after the redemption date, interest
ceases to accrue on Notes or portions of them called for redemption. 

       

      (f)           The
Company shall notify the Trustee of the Redemption Price with respect to the
redemption promptly after the calculation thereof.  The Trustee shall
not be responsible for calculating the Redemption Price.

    

     

    Section
1.09    Paying
Agent.  The Trustee shall initially serve as Paying Agent with
respect to the Notes, with the place of payment initially being the corporate
trust office of the Trustee in New York, New York.

     

    Section
1.10    Additional
Notes.  Subject to the terms and conditions contained herein,
the Company may from time to time, without the consent of the existing Holders
create and issue additional notes (the “Additional Notes”) having the same terms
and conditions as the Notes in all respects, except for issue date, issue price
and the first payment of interest thereon.  Such Additional Notes, at
the Company’s determination and in accordance with the provisions of the
Indenture, will be consolidated with and form a single series with the
previously outstanding Notes for all purposes of the Indenture, including,
without limitation, amendments, waivers, and redemptions.  The
aggregate principal amount of the Additional Notes, if any, shall be
unlimited.

     

    ARTICLE
II

     

    SUBSIDIARY
GUARANTEES

     

    Section
2.01    Guarantee.

     

    (a)           Subject
to this Article II, each of the Subsidiary Guarantors hereby, jointly and
severally, fully and unconditionally Guarantees, on a senior basis, to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of the Indenture, the Notes or the obligations of the Company hereunder or
thereunder, that:

     

    (1)           the
principal of, premium, if any, and interest on the Notes will be promptly paid
in full when due, whether at Stated Maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Company to the Holders or
the Trustee hereunder or thereunder will be promptly paid in full or performed,
all in accordance with the terms hereof and thereof, and

     

    (2)           in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise.

     

    Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Subsidiary Guarantors will be jointly and severally
obligated to pay the same immediately.  Each Subsidiary Guarantor
agrees that this is a guarantee of payment and not a guarantee of
collection.

     

    (b)           The
Subsidiary Guarantors hereby agree that their obligations hereunder are
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or the Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder with respect to any provisions hereof or
thereof, the recovery of any judgment against the Company, any action to enforce
the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor.

     

    
      
        
           

        

        
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      (c)           Each
Subsidiary Guarantor hereby waives diligence, presentment, demand of payment,
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,
notice and all demands whatsoever and covenants that this Subsidiary Guarantee
will not be discharged except by complete performance of the obligations
contained in the Notes and the Indenture.

       
(d)           If
any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Subsidiary Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Subsidiary Guarantors, any amount paid by either to the Trustee or such Holder,
this Subsidiary Guarantee, to the extent theretofore discharged, will be
reinstated in full force and effect.

     

    (e)           Each
Subsidiary Guarantor agrees that it will not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed
hereby.  Each Subsidiary Guarantor further agrees that, as between the
Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the
other hand, (1) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article IV hereof for the purposes of this Subsidiary
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (2) in
the event of any declaration of acceleration of such obligations as provided in
Article IV hereof, such obligations (whether or not due and payable) will
forthwith become due and payable by the Subsidiary Guarantors for the purpose of
this Subsidiary Guarantee.

     

    (f)           The
Subsidiary Guarantors will have the right to seek contribution from any
non-paying Subsidiary Guarantor so long as the exercise of such right does not
impair the rights of the Holders under the Subsidiary Guarantee.

     

    Section
2.02    Limitation
on Subsidiary Guarantor Liability.  Each Subsidiary Guarantor,
and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Subsidiary Guarantee of such Subsidiary
Guarantor not constitute a fraudulent transfer or conveyance for purposes of the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act, any
bankruptcy, insolvency or reorganization law or any similar federal or state law
to the extent applicable to any Subsidiary Guarantee.  To effectuate
the foregoing intention, the Trustee, the Holders and the Subsidiary Guarantors
hereby irrevocably agree that the obligations of such Subsidiary Guarantor will
be limited to the maximum amount that will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of such Subsidiary
Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Subsidiary Guarantor in respect of the obligations of such
other Subsidiary Guarantor under this Article II, result in the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent transfer or conveyance.

     

    Section
2.03    Releases of
Subsidiary Guarantees.  The Subsidiary Guarantee of a
Subsidiary Guarantor will be released:

     

    (1)           in
connection with any sale, disposition or other transfer (including through
merger or consolidation), other than by lease, of (x) the Capital Stock of such
Subsidiary Guarantor following which such Subsidiary Guarantor is no longer a
Subsidiary of the Company or (y) all or substantially all the assets of the
applicable Subsidiary Guarantor, in each case, to a Person that is not (either
before or after giving effect to such transaction) the Company or a Restricted
Subsidiary of the Company if such sale, disposition or other transfer is made in
compliance with the applicable provisions of the Indenture and all of the
obligations of the Subsidiary Guarantor under any Credit Facility and related
documentation and any other agreements relating to any other Indebtedness of the
Company or its Restricted Subsidiaries terminate upon consummation of such
transaction;

    
 

    
      
        
           

        

        
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      (2)           in
connection with the defeasance of the Notes and the Subsidiary Guarantees, to
the extent that the obligations of the Company have been discharged thereby;
or

       

      (3)           if
the Company designates any Restricted Subsidiary that is a Subsidiary Guarantor
as an Unrestricted Subsidiary in accordance with the applicable provisions of
the Indenture.

       

    

    ARTICLE
III

     

    PARTICULAR
COVENANTS OF THE COMPANY WITH RESPECT TO THE NOTES

     

    Section
3.01    Effectiveness
of Covenants.  From and after the first day on
which:

     

    (1)           the
Notes have an Investment Grade Rating from both of the Ratings Agencies;
and

     

    (2)           no
Default has occurred and is continuing under the Indenture;

     

    the
Company and its Restricted Subsidiaries will cease to be subject to Sections
3.02, 3.03, 3.06, 3.07, 3.08, 3.09, 3.13 and clauses (4) and (6) of Section 3.11
of this Seventh Supplemental Indenture.

     

    (collectively,
the “Suspended Covenants”).  If at any time the credit rating of the
Notes is downgraded from an Investment Grade Rating by either Rating Agency,
then the Suspended Covenants will thereafter be reinstated and again be
applicable pursuant to the terms of the Indenture, unless and until the Notes
subsequently attain an Investment Grade Rating.  Neither the failure
of the Company or any of its Subsidiaries to comply with a Suspended Covenant
after the Notes attain an Investment Grade Rating and before any reinstatement
of the Suspended Covenants nor compliance by the Company or any of its
Subsidiaries with any contractual obligation entered into in compliance with the
Indenture during that period will constitute a Default, Event of Default or
breach of any kind under the Indenture, the Notes or the Subsidiary
Guarantees.

     

    During
any period when the Suspended Covenants are not in effect, the Board of
Directors of the Company may not designate any of the Company’s Subsidiaries as
Unrestricted Subsidiaries pursuant to the Indenture.

     

    Section
3.02    Limitation
on Indebtedness.

     

    The
Company may not, and may not permit any of its Restricted Subsidiaries to, Incur
any Indebtedness (including Acquired Indebtedness); except, that the Company and
any Restricted Subsidiary may Incur Indebtedness if on the date
thereof:

     

    (1)           the
Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is
at least 2.25 to 1.0; and

     

    (2)           no
Default or Event of Default shall have occurred and be continuing or would occur
as a consequence of Incurring the Indebtedness or the transactions relating to
such Incurrence.

     

    The first
paragraph of this Section 3.02 will not prohibit the Incurrence of the following
Indebtedness:

     

    (1)           Indebtedness
of the Company and its Restricted Subsidiaries Incurred pursuant to a Credit
Facility in an aggregate principal amount up to the greater of (x) $1.2 billion
or (y) 30% of Adjusted Consolidated Net Tangible Assets, in each case,
determined as of the date of the Incurrence of the Indebtedness;

     

    
      
        
           

        

        
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      (2)           Guarantees
of Indebtedness Incurred in accordance with the provisions of the Indenture;
provided
that if the Indebtedness that is being Guaranteed is Guaranteed by a Subsidiary
Guarantor and is (a) Senior Indebtedness or Guarantor Senior Indebtedness, then
the related Guarantee shall rank equally in right of payment to the Subsidiary
Guarantee or (b) a Subordinated Obligation or a Guarantor Subordinated
Obligation, then the related Guarantee shall be subordinated in right of payment
to the Subsidiary
Guarantee;

    

    (3)           Indebtedness
of the Company owing to and held by any Wholly-Owned Subsidiary or Indebtedness
of a Restricted Subsidiary owing to and held by the Company or any Wholly-Owned
Subsidiary; provided,
however,
that:

     

    (a)           if
the Company is the obligor on the Indebtedness, the Indebtedness is subordinated
in right of payment to all obligations with respect to the Notes;

     

    (b)           if
a Subsidiary Guarantor is the obligor on the Indebtedness and the Company or a
Subsidiary Guarantor is not the obligee, such Indebtedness is subordinated in
right of payment to the Subsidiary Guarantees of that Subsidiary Guarantor;
and

     

    (c)           any
subsequent issuance or transfer of Capital Stock, sale or other transfer of any
such Indebtedness or other event that results in any such Indebtedness being
held by a Person other than the Company or a Wholly-Owned 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, as of the
date such Indebtedness first became held by such Person;

     

    (4)           Indebtedness
represented by (a) the Notes issued on the Issue Date, and the Subsidiary
Guarantees, (b) any Indebtedness (other than the Indebtedness described in
clauses (1), (2), (3), (6), (8), (9) and (10) of this paragraph) outstanding on
the Issue Date, and (c) any Refinancing Indebtedness Incurred in respect of any
Indebtedness described in this clause (4) or clause (5) of this paragraph or
Incurred pursuant to the first paragraph of this Section 3.02;

     

    (5)           Indebtedness
of a Restricted Subsidiary Incurred and outstanding on the date on which such
Restricted Subsidiary was acquired by the Company (other than Indebtedness
Incurred (a) to provide all or any portion of the funds utilized to consummate
the transaction or series of related transactions pursuant to which such
Restricted Subsidiary was acquired by the Company or (b) otherwise in connection
with, or in contemplation of, such acquisition); provided,
however,
that, at the time such Restricted Subsidiary is acquired by the Company, the
Company would have been able to Incur $1.00 of additional Indebtedness pursuant
to the first paragraph of this Section 3.02 after giving effect to the
Incurrence of such Indebtedness;

     

    (6)           Indebtedness
under Currency Agreements, Commodity Agreements and Interest Rate Agreements;
provided
that, in the case of Currency Agreements or Commodity Agreements, such Currency
Agreements or Commodity Agreements are related to business transactions of the
Company or its Restricted Subsidiaries entered into in the ordinary course of
business and, in the case of Currency Agreements, Commodity Agreements and
Interest Rate Agreements, such Currency Agreements, Commodity Agreements and
Interest Rate 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);

     

    (7)           the
Incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money
obligations with respect to assets other than Capital Stock or other
Investments, in each case Incurred for the purpose of financing all or any part
of the purchase price or cost of construction or

    
 

    
      
        
           

        

        
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    improvements
of property used in the business of the Company or the Restricted Subsidiary, in
an aggregate principal amount not to exceed $20 million at any time
outstanding;

    
       

      (8)           Indebtedness
Incurred in respect of workers’ compensation claims, self-insurance obligations,
bid, reimbursement, performance, surety, appeal and similar bonds, completion
guarantees provided by the Company or a Restricted Subsidiary in the ordinary
course of business, or required by regulatory authorities in connection with the
conduct by the Company and its
Restricted Subsidiaries of their businesses, including supporting Guarantees and
letters of credit (in each case other than for an obligation for money
borrowed);

    

     

    (9)           Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, Incurred or assumed in connection with the disposition of any business,
assets or Capital Stock of the Company or a Restricted Subsidiary;

     

    (10)           Indebtedness
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,
however,
that such Indebtedness is extinguished within five Business Days of the
Incurrence; and

     

    (11)           in
addition to the items referred to in clauses (1) through (10) of this paragraph,
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 (11) and then
outstanding, will not exceed $40 million at any time outstanding.

     

    The
Company may not Incur any Indebtedness under the preceding paragraph if the
proceeds thereof are used, directly or indirectly, to refinance any Subordinated
Obligations of the Company unless such Indebtedness will be subordinated to the
Notes to at least the same extent as such Subordinated
Obligations.  No Subsidiary Guarantor may Incur any Indebtedness under
the preceding paragraph if the proceeds thereof are used, directly or
indirectly, to refinance any Guarantor Subordinated Obligations of such
Subsidiary Guarantor unless such Indebtedness will be subordinated to the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee to at
least the same extent as such Guarantor Subordinated Obligations.

     

    For
purposes of determining compliance with, and the outstanding principal amount of
any particular Indebtedness Incurred pursuant to and in compliance with, this
Section 3.02:

     

    (1)           Indebtedness
permitted by this Section 3.02 need not be permitted solely by 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 3.02 permitting such
Indebtedness;

     

    (2)           in
the event that Indebtedness meets the criteria of more than one of the
provisions permitting the Incurrence of Indebtedness described in the first and
second paragraphs above, the Company, in its sole discretion, may classify (or
subsequently reclassify) such item of Indebtedness as being permitted by one or
more such provisions;

     

    (3)           all
Indebtedness outstanding on the date of the Indenture under the Senior Secured
Credit Agreement shall be deemed initially Incurred on the Issue Date under
clause (1) of the second paragraph of this Section 3.02 and not the first
paragraph or clause (4) of the second paragraph of this Section
3.02;

    
 

    
      
        
           

        

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

       

      (5)           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 of this Section 3.02 and the letters of credit relate to other
Indebtedness, then such other Indebtedness shall not be included;

       

    (6)           no
item of Indebtedness will be given effect more than once in any calculation
contemplated by this Section 3.02 and no individual item or related items of
Indebtedness will be given effect at an aggregate amount in excess of the
aggregate amount required to satisfy and discharge the principal amount of such
item or related items of Indebtedness;

     

    (7)           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; and

     

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

     

    Accrual
of interest, accrual of dividends, the accretion of accreted value, the payment
of interest in the form of additional Indebtedness and the payment of dividends
in the form of additional shares of Preferred Stock or Disqualified Stock will
not be deemed to be an Incurrence of Indebtedness for purposes of this Section
3.02.  The amount of any Indebtedness outstanding as of any date shall
be (i) the accreted value thereof in the case of any Indebtedness issued with
original issue discount and (ii) the principal amount or liquidation preference
thereof, together with any interest thereon that is more than 30 days past due,
in the case of any other Indebtedness.

     

    In
addition, 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
3.02, the Company shall be in Default of this Section 3.02).

     

    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 will be calculated based on
the relevant currency exchange rate in effect on the date the 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 the refinancing would cause the
applicable U.S. dollar-dominated restriction to be exceeded if calculated at the
relevant currency exchange rate in effect on the date of the refinancing, such
U.S. dollar-dominated 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 3.02,
the maximum amount of Indebtedness that the Company may Incur pursuant to this
Section 3.02 shall not be deemed to be exceeded solely as a result of
fluctuations in the exchange rate of currencies.  The principal amount
of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a
different currency from the Indebtedness being refinanced, will be calculated
based on the currency exchange rate applicable to the currencies in which the
Refinancing Indebtedness is denominated that is in effect on the date of such
refinancing.

    
 

    
      
        
           

        

        
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      Section
3.03    Limitation
on Restricted Payments.  The Company will not, and will not
permit any of its Restricted Subsidiaries, directly or indirectly,
to:

       

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

       

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

     

    (b)           dividends
or distributions payable to the Company or a Restricted Subsidiary (and if the
Restricted Subsidiary is not a Wholly-Owned Subsidiary, to its other holders of
Capital Stock on a pro rata basis);

     

    (2)           purchase,
redeem, retire or otherwise acquire 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 or any direct or indirect parent 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 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 (or, in the case of the 2016
Senior Subordinated Notes or any Refinancing Indebtedness in respect thereof, 45
days) of the date of purchase, repurchase, redemption, defeasance or other
acquisition or retirement); or

     

    (4)           make
any Restricted Investment in any Person;

     

    (any such
dividend, distribution, purchase, redemption, repurchase, defeasance, other
acquisition, retirement or Restricted Investment referred to in clauses (1)
through (4) of this paragraph being 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);
or

     

    (b)           the
Company is not able to Incur an additional $1.00 of Indebtedness pursuant to the
first paragraph under Section 3.02 above after giving effect, on a pro forma
basis, to the Restricted Payment; or

     

    (c)           the
aggregate amount of the Restricted Payment and all other Restricted Payments
made subsequent to March 16, 2006 would exceed the sum of:

     

    (i)           50%
of Consolidated Net Income for the period (treated as one accounting period)
from October 1, 2005 to the end of the most recent fiscal quarter ending prior
to the date of such Restricted Payment for which 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 received by the Company from the issue or
sale of its Capital Stock (other than 

    
 

    
      
        
           

        

        
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      Disqualified
Stock) or other capital contributions subsequent to March 16, 2006 (other than
Net Cash Proceeds received from an issuance or sale of such Capital Stock to a
Subsidiary of the Company or 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 March 16, 2006 of any
Indebtedness of the Company or its Restricted Subsidiaries convertible into 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,
distributed by the Company upon such conversion or exchange); and

     

    (iv)           the
amount equal to payments received by the Company or any Restricted Subsidiary in
respect of, or the net reduction in, Restricted Investments made by the Company
or any of its Restricted Subsidiaries in any Person resulting from:

     

    (A)           repurchases
or redemptions of such Restricted Investments by the Person in which such
Restricted Investments are made, proceeds realized upon the sale of such
Restricted Investment to an unaffiliated purchaser or payments in respect of
such Restricted Investment, whether through interest payments, principal
payments, dividends, distributions or otherwise, by such Person to the Company
or any Restricted Subsidiary; or

     

    (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 clause (iv) was included in the calculation of
the amount of Restricted Payments; provided,
however,
that no amount will be included under clause (iv) to the extent it is already
included in Consolidated Net Income.

     

    The
provisions of the preceding paragraph will not prohibit:

     

    (1)           any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Capital Stock, Disqualified Stock or Subordinated Obligations or Guarantor
Subordinated Obligations 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
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); provided,
however,
that (a) such purchase, repurchase, redemption, defeasance, acquisition or
retirement will be excluded in subsequent calculations of the amount of
Restricted Payments and (b) the Net Cash Proceeds from such sale of Capital
Stock will be excluded from clause (c)(ii) of the preceding
paragraph;

    
 

    
      
        
           

        

        
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      (2)           any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations or Guarantor Subordinated Obligations made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Subordinated Obligations or any purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Guarantor Subordinated Obligations made by
exchange for or out of the proceeds of the substantially concurrent sale of
Guarantor Subordinated Obligations that, in each case, is permitted to be
Incurred under Section 3.02 of this Seventh Supplemental Indenture and that in
each case constitutes Refinancing Indebtedness; provided,
however,
that such purchase, repurchase, redemption,
defeasance, acquisition or retirement will be excluded in 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 under Section 3.02 of this Seventh
Supplemental Indenture and that in each case constitutes Refinancing
Indebtedness; provided,
however,
that such purchase, repurchase, redemption, defeasance, acquisition or
retirement will be excluded in subsequent calculations of the amount of
Restricted Payments;

     

    (4)           dividends
paid within 60 days after the date of declaration if at such date of declaration
the dividend would have complied with this provision; provided,
however,
that such dividends will be included in subsequent calculations of the amount of
Restricted Payments;

     

    (5)           so
long as no Default or Event of Default has occurred and is
continuing,

     

    (a)           the
purchase, redemption or other acquisition, cancellation or retirement for value
of Capital Stock, or options, warrants, equity appreciation rights or other
rights to purchase or acquire Capital Stock of the Company or any Restricted
Subsidiary or any direct or indirect parent of the Company held by any existing
or former employees or directors of the Company or any Subsidiary of the Company
or their assigns, estates or heirs, in each case in accordance with the terms of
employee stock option or stock purchase agreements or other agreements to
compensate employees or directors; provided
that such purchases, redemptions, acquisitions, cancellations or retirements
pursuant to this clause will not exceed $2.0 million in the aggregate during any
calendar year; provided
further,
however,
that the amount of any such purchases, redemptions, acquisitions, cancellations
or retirements will be included in subsequent calculations of the amount of
Restricted Payments; and

     

    (b)           loans
or advances to employees or directors of the Company or any Subsidiary of the
Company the proceeds of which are used to purchase Capital Stock of the Company,
in an aggregate amount not in excess of $2.0 million at any one time
outstanding; provided,
however,
that the amount of such loans and advances will be included in subsequent
calculations of the amount of Restricted Payments;

     

    (6)           so
long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company issued in accordance with the terms of the
Indenture to the extent such dividends are included in the definition of
“Consolidated Interest Expense;” provided,
however,
that the payment of such dividends will be excluded in subsequent calculations
of the amount of Restricted Payments;

     

    (7)           repurchases
of Capital Stock deemed to occur upon the exercise of stock options, warrants or
other convertible securities if such Capital Stock represents a portion
of

    
 

    
      
        
           

        

        
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      the
exercise price thereof; provided,
however,
that such repurchases will be excluded from subsequent calculations of the
amount of Restricted Payments;

       

      (8)           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 3.15 of
this Seventh Supplemental Indenture or (ii) at a purchase price not greater than
100% of the principal amount thereof in accordance with provisions similar to
Section 3.07 of this Seventh Supplemental Indenture; provided
that, prior to or simultaneously with such purchase, repurchase, redemption,
defeasance or other acquisition or retirement, the Company has made the Change
of Control Offer or Asset Disposition Offer, as applicable, as required 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 repurchases will be excluded from subsequent calculations of the
amount of Restricted Payments;

    

     

    (9)           any
redemption of share purchase rights at a redemption price not to exceed $0.01
per right; provided,
however,
that such redemption will be included in subsequent calculations of the amount
of Restricted Payments;

     

    (10)           the
payment of cash in lieu of fractional shares of Capital Stock in connection with
any transaction otherwise permitted under the Indenture; provided,
however,
that such payment will be included in subsequent calculations of the amount of
Restricted Payments;

     

    (11)           payments
to dissenting stockholders not to exceed $5 million (x) pursuant to
applicable law or (y) 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 in connection with a transaction that is not prohibited by
the Indenture; provided,
however,
that such payments will be included in subsequent calculations of the amount of
Restricted Payments;

     

    (12)           any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of the 2016 Senior Subordinated Notes at any time on or after November 1, 2015;
provided,
however,
that after giving effect to such purchase, repurchase, redemption, defeasance or
other acquisition or retirement of the 2016 Senior Subordinated Notes, the
Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is
at least 3.25 to 1.0; provided
further,
however,
such purchase, repurchase, redemption, defeasance, acquisition or retirement
will be excluded in subsequent calculations of the amount of Restricted
Payments; and

     

    (13)           Restricted
Payments in an amount not to exceed $25 million; provided,
however,
that the amount of the 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 the 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 the Restricted
Payment.  The fair market value of any cash Restricted Payment shall
be its face amount and any non-cash Restricted Payment shall be determined
conclusively by the Board of Directors of the Company acting in good faith, such
determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market
value is estimated in good faith by the Board of Directors of the Company to
exceed $25 million.

    
       

      Section
3.04    Limitation
on Liens.  The Company may not, and may not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, Incur or suffer to
exist any Lien (other than Permitted Liens) upon any of its property or assets
(including Capital Stock of Restricted Subsidiaries), whether owned on the Issue
Date or acquired after that date, which Lien secures any Indebtedness, unless
contemporaneously with the Incurrence of such Lien effective provision is made
to secure the Indebtedness

       

    

    
      
        
           

        

        
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      due with
respect to the Notes or, with respect to Liens on any Restricted Subsidiary’s
property or assets, any Subsidiary Guarantee of such Restricted Subsidiary,
equally and ratably with (or prior 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.

       

      Section
3.05    Limitation
on Sale/Leaseback Transactions.  The Company will not, and will
not permit any Restricted Subsidiary to, enter into any Sale/Leaseback
Transaction with respect to any property unless:

    (1)           the
Company or such Restricted Subsidiary would be entitled to (A) Incur
Indebtedness in an amount equal to the Attributable Indebtedness with respect to
such Sale/Leaseback Transaction pursuant to Section 3.02 of this Seventh
Supplemental Indenture and (B) create a Lien on such property securing such
Attributable Indebtedness without equally and ratably securing the Notes
pursuant to Section 3.04 of this Seventh Supplemental Indenture;

     

    (2)           the
net proceeds received by the Company or any Restricted Subsidiary in connection
with such Sale/Leaseback Transaction are at least equal to the fair market value
(as determined by the Board of Directors) of such property; and

     

    (3)           to
the extent the Sale/Leaseback Transaction involves an Asset Disposition, the
Company applies the proceeds of such transaction in compliance with
Section 3.07 of this Seventh Supplemental Indenture.

     

    Section
3.06    Limitation
on Restrictions on Distributions from Restricted
Subsidiaries.  The Company may not, and may 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 (the priority of any Preferred Stock in receiving dividends or
liquidating distributions prior to dividends or liquidating distributions being
paid on Common Stock and any subordination of any such Indebtedness or other
obligations being deemed not to constitute such encumbrances or
restrictions);

     

    (2)           make
any loans or advances to the Company or any Restricted Subsidiary (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 being deemed not to constitute such an encumbrance or restriction);
or

     

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

     

    The
preceding provisions will not prohibit:

     

    (a)           any
encumbrance or restriction pursuant to an agreement in effect at or entered into
on the Issue Date, including, without limitation, the Indenture, the Notes and
the Senior Secured Credit Agreement in effect on such date;

     

    (b)           any
encumbrance or restriction with respect to a Restricted Subsidiary pursuant to
an agreement relating to any Capital Stock or Indebtedness Incurred by a
Restricted Subsidiary on or before the date on which the Restricted Subsidiary
was acquired by the Company (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

     

    
      
        
           

        

        
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    Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company or in
contemplation of the transaction or transactions) 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;

     

    (c)           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 clause (a) or (b) of this
paragraph
or this clause (c) or contained in any amendment to an agreement referred to in
clause (a) or (b) of this paragraph or this clause (c), including successive
refundings, replacements or refinancings; provided,
however,
that the encumbrances and restrictions with respect to such Restricted
Subsidiary contained in any such agreement are no less favorable in any material
respect to the Holders than the encumbrances and restrictions contained in such
agreements referred to in clauses (a) or (b) of this paragraph on the Issue Date
or the date such Restricted Subsidiary became a Restricted Subsidiary, whichever
is applicable;

     

    (d)           in
the case of clause (3) of the first paragraph of this Section 3.06, any
encumbrance or restriction:

     

    (i)           that
restricts in a customary manner the subletting, assignment or transfer of any
property or asset that is subject to a lease, license or similar contract, or
the assignment or transfer of any such lease, license or other
contract;

     

    (ii)           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; or

     

    (iii)           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)           (i)
purchase money obligations for property acquired in the ordinary course of
business and (ii) Capital 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 3.06 on the property so
acquired;

     

    (f)           any
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 substantially all 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;

     

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

     

    (h)           net
worth provisions in leases and other agreements entered into by the Company or
any Restricted Subsidiary in the ordinary course of business; and

     

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

    
 

    
      
        
           

        

        
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      Section
3.07    Limitation
on Sales of Assets and Subsidiary Stock.  The Company may not,
and may not permit any of its Restricted Subsidiaries to, make any Asset
Disposition unless:

       

      (1)           the
Company or the Restricted Subsidiary, as the case may be, receives consideration
at the time of the Asset Disposition at least equal to the fair market value of
the assets subject to the Asset Disposition (determined on the date of
contractually agreeing to such Asset Disposition), as determined in good faith
by senior management of the Company or, if the consideration
with respect to such Asset Disposition exceeds $10 million, the Board of
Directors of the Company (including as to the value of all non-cash
consideration); and

    

     

    (2)           at
least 75% of the consideration from the Asset Disposition received by the
Company or the Restricted Subsidiary, as the case may be, is in the form of cash
or Cash Equivalents.

     

    The
Company or such Restricted Subsidiary, as the case may be, may elect to apply
all or any portion of the Net Available Cash from such Asset Disposition
either:

     

    (1)           to
prepay, repay, purchase, repurchase, redeem, defease or otherwise acquire or
retire Senior Indebtedness of the Company (other than Disqualified Stock) or
Indebtedness of a Wholly-Owned Subsidiary (other than any Disqualified Stock or
Guarantor Subordinated Obligation of a Wholly-Owned Subsidiary Guarantor) (in
each case other than Indebtedness owed to the Company or an Affiliate of the
Company) within 365 days from the later of the date of such Asset Disposition or
the receipt of such Net Available Cash; provided,
however,
that, in connection with any prepayment, repayment, purchase, repurchase,
redemption, defeasance, or acquisition of Indebtedness pursuant to this clause
(1), the Company or such Restricted Subsidiary will retire such Indebtedness
and, in the case of revolving Indebtedness, will cause the related commitment
(if any) to be permanently reduced in an amount equal to the principal amount so
retired; or

     

    (2)           to
invest in Additional Assets or make Permitted Business Investments within 365
days from the later of the date of such Asset Disposition or the receipt of such
Net Available Cash;

     

    provided
that, pending the final application of any such Net Available Cash in accordance
with clauses (1) or (2) above, the Company and its Restricted Subsidiaries may
temporarily reduce Senior 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.”  On the 366th day after an Asset Disposition, if the
aggregate amount of Excess Proceeds exceeds $20 million, the Company must make
an offer (“Asset Disposition Offer”) to all Holders and to the extent required
by the terms of other Senior Indebtedness, to all holders of other Senior
Indebtedness outstanding with similar provisions requiring the Company to make
an offer to purchase such Senior Indebtedness with the proceeds from any Asset
Disposition (“Pari Passu Notes”), to purchase the maximum principal amount of
Notes and any 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 of the Notes and Pari Passu Notes
plus accrued and unpaid interest to the date of purchase, in accordance with the
procedures set forth in the Indenture or the agreements governing the Pari Passu
Notes, as applicable, in each case in integral multiples of
$1,000.  To the extent that the aggregate amount of Notes and Pari
Passu Notes so validly tendered and not properly withdrawn pursuant to an Asset
Disposition Offer is less than the Excess Proceeds, the Company may use any
remaining Excess Proceeds for general corporate purposes, subject to the other
covenants contained in the Indenture.  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 and Pari Passu Notes to be
purchased pro rata on the basis of the aggregate principal amount of tendered
Notes and Pari Passu Notes.  Upon completion of the Asset Disposition
Offer, the amount of Excess Proceeds will be reset at zero.

    
 

    
      
        
           

        

        
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      The Asset
Disposition Offer must 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 the
Asset Disposition Offer (the “Asset Disposition
Offer Amount”) or, if less than the Asset Disposition Offer Amount has been so
validly tendered, all Notes and Pari Passu Notes validly tendered in response to
the Asset Disposition Offer.

    

     

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

     

    On or
before the Asset Disposition Purchase Date, the Company must, 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
integral multiples of $1,000.  The Company or the Paying Agent, as the
case may be, must 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 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 or lender, as the
case may be, and accepted by the Company for purchase, and the Company must
promptly issue a new Note, and the Trustee, upon delivery of an Officers’
Certificate from the Company, must 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 principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof.  In addition, the Company must
take any and all other actions required by the agreements governing the Pari
Passu Notes.  Any Note not so accepted must 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.

     

    For the
purposes of this Section 3.07, 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
Wholly-Owned Subsidiary (other than Guarantor Subordinated Obligations or
Disqualified Stock of any Wholly-Owned Subsidiary that is a Subsidiary
Guarantor) and the release of the Company or the Restricted Subsidiary from all
liability on such Indebtedness in connection with the Asset Disposition;
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 60 days after consummation of the Asset
Disposition.

     

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

     

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

     

    (2)           in
the event the Asset Swap involves the transfer by the Company or any Restricted
Subsidiary of assets having an aggregate fair market value, as determined by the
Board of Directors of the Company in good faith, in excess of $10 million, the
terms of the Asset

    
 

    
      
        
           

        

        
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      Swap have
been approved by a majority of the members of the Board of Directors of the
Company; and

    

    (3)           in
the event the Asset Swap involves the transfer by the Company or any Restricted
Subsidiary of assets having an aggregate fair market value, as determined by the
Board of Directors of the Company in good faith, in excess of $25 million, the
Company has received a written opinion from an independent investment banking
firm of nationally recognized standing that the Asset Swap is fair to the
Company or the Restricted Subsidiary, as the case may be, from a financial point
of view.

     

    The
Company will comply, to the extent applicable, with the requirements of Section
14(e) of the Exchange Act and any other securities laws or regulations in
connection with the repurchase of Notes pursuant to the Indenture.  To
the extent that the provisions of any securities laws or regulations conflict
with provisions of this Section 3.07, the Company will comply with the
applicable securities laws and regulations and will be deemed not to have
breached its obligations under the Indenture by virtue of such
compliance.

     

    Section
3.08    Limitation
on Affiliate Transactions.  The Company may not, and may not
permit any of its Restricted Subsidiaries to, directly or indirectly, enter into
or conduct any transaction (including the purchase, sale, lease or exchange of
any property or the rendering of any service) with any Affiliate of the Company
(an “Affiliate Transaction”) unless:

     

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

     

    (2)           in
the event the Affiliate Transaction involves an aggregate consideration in
excess of $10 million, the terms of the transaction have been approved by a
majority of the members of the Board of Directors of the Company having no
personal stake in the transaction, if any (and such majority determines that the
Affiliate Transaction satisfies the criteria in clause (1) above);
and

     

    (3)           in
the event the Affiliate Transaction involves an aggregate consideration in
excess of $25 million, the Company has received a written opinion from an
independent investment banking, accounting or appraisal firm of nationally
recognized standing to the effect that the terms of the Affiliate Transaction
are not materially less favorable than those that might reasonably have been
obtained in a comparable transaction at the time of such transaction on an
arm’s-length basis from a Person that is not an Affiliate of the
Company.

     

    The
preceding paragraph will not apply to:

     

    (1)           any
Restricted Payment (other than a Restricted Investment) permitted to be made
pursuant to Section 3.03 of this Seventh Supplemental Indenture;

     

    (2)           any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements and other
compensation arrangements, options to purchase Capital Stock of the Company,
restricted stock plans, long-term incentive plans, stock appreciation rights
plans,  participation plans or similar employee plans and/or insurance
and indemnification arrangements provided to or for the benefit of employees and
directors 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, but in any event
not to

     

    
      
        
           

        

        
          47

          
            

          

        

        
           

        

      

    

     

    exceed $2.5
million in the aggregate outstanding at any one time with respect to all loans
or advances made since the Issue Date;

     

    (4)           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 3.02 of this Seventh Supplemental
Indenture; or

     

    (5)           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 so excluded only if its terms are not
more disadvantageous to the Holders than the terms of the agreements in effect
on the Issue Date.

     

    Section
3.09    Limitation
on Sale of Capital Stock of Restricted Subsidiaries.  The
Company may not, and may not permit any Restricted Subsidiary to, transfer,
convey, sell, lease or otherwise dispose of any Capital Stock of any Restricted
Subsidiary or issue any of the Capital Stock of a Restricted Subsidiary (other
than, if necessary, shares of its Voting Stock constituting directors’
qualifying shares) to any Person except:

     

    (1)           to
the Company or a Wholly-Owned Subsidiary; or

     

    (2)           in
compliance with Section 3.07 of this Seventh Supplemental Indenture and if
immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would continue to be a Restricted Subsidiary.

     

    Notwithstanding
the preceding paragraph, the Company or any Restricted Subsidiary may sell all
of the Capital Stock of a Restricted Subsidiary as long as the Company complies
with the terms of Section 3.07 of this Seventh Supplemental
Indenture.

     

    Section
3.10    SEC
Reports.  Notwithstanding that the Company may not be subject
to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Company will file with the SEC (to the extent the SEC will accept such filing),
and make available to the Trustee and the registered Holders, 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.  If the SEC
will not accept such filings, the Company will nevertheless make available such
Exchange Act information to the Trustee and the Holders as if the Company were
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act.

     

    If the
Company has designated any of its Subsidiaries as Unrestricted Subsidiaries and
any such Unrestricted Subsidiary has $10.0 million of net assets and its assets
exceed its liabilities by more than 5% of the amount by which the consolidated
assets of the Company and its Subsidiaries exceed consolidated liabilities of
the Company and its Subsidiaries, then the quarterly and annual financial
information required by the preceding paragraph shall include a reasonably
detailed presentation, either on the face of the financial statements or in the
footnotes to the financial statements 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.

     

    Section
3.11    Merger and
Consolidation.  The Company may not consolidate with or merge
with or into any other Person, or transfer all or substantially all its
properties and assets to another Person, unless:

    
 

    
      
        
           

        

        
          48

          
            

          

        

        
           

        

      

    

    
       

      (1)           the
Company is the continuing or surviving Person in the consolidation or merger;
or

    (2)           the
Person (if other than the Company) formed by the consolidation or into which the
Company is merged or to which all or substantially all of the Company’s
properties and assets are transferred is a corporation, partnership, limited
liability company, business trust, trust or other legal entity organized and
validly existing under the laws of the United States, any state thereof, or the
District of Columbia, and expressly assumes, by a supplemental indenture, all of
the Company’s obligations under the Notes and the Indenture; and

     

    (3)           immediately
after the transaction and the Incurrence or anticipated Incurrence of any
Indebtedness to be Incurred in connection therewith, no Event of Default exists;
and

     

    (4)           immediately
after giving effect to such transaction, the continuing or surviving Person
would be able to Incur at least an additional $1.00 of Indebtedness pursuant to
the first paragraph of Section 3.02 of this Seventh Supplemental Indenture;
and

     

    (5)           each
Subsidiary Guarantor shall have by supplemental indenture confirmed that its
Subsidiary Guarantee shall apply to such Person’s obligations (if other than the
Company) in respect of the Indenture and the Notes shall continue to be in
effect; and

     

    (6)           an
Officer’s Certificate is delivered to the Trustee to the effect that the
conditions set forth above have been satisfied and an Opinion of Counsel has
been delivered to the Trustee to the effect that the conditions set forth above
have been satisfied.

     

    For
purposes of the first paragraph of this Section 3.11, 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 its 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 properties and assets of the Company.

     

    The
continuing, surviving or successor Person will succeed to and be substituted for
the Company with the same effect as if it had been named in the Indenture as a
party thereof, and thereafter the predecessor Person will be relieved of all
obligations and covenants under the Indenture and the Notes.

     

    Notwithstanding
clauses (3) and (4) above and clause (1)(b) below, (x) any Restricted Subsidiary
may consolidate with, merge into or transfer all or part of its properties and
assets to the Company or another Restricted Subsidiary and (y) the Company may
merge with an Affiliate incorporated solely for the purpose of reincorporating
the Company in another jurisdiction; provided
that, in the case of a Restricted Subsidiary that merges into the Company, the
Company will not be required to comply with clause (5) above.

     

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

     

    (1)           (a)
the Person formed by the consolidation or into which the Subsidiary Guarantor
merged or to which all, or substantially all of the Subsidiary Guarantor’s
properties and assets are transferred is a corporation, partnership, limited
liability company, business trust, trust or other legal entity organized and
validly existing under the laws of the United States, any state thereof, or the
District of Columbia and such Person (if not such Subsidiary Guarantor) will
expressly assume, by supplemental indenture, all the obligations of such
Subsidiary Guarantor

    
 

    
      
        
           

        

        
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    under its
Subsidiary Guarantee; (b) immediately after the transaction and the Incurrence
or anticipated Incurrence of any Indebtedness to be Incurred in connection
therewith, no Event of Default exists; and (c) the Company will deliver to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each to the effect
that the conditions set forth above have been satisfied; or

     

    (2)           the
transaction is made in compliance with Section 3.07 of this Seventh Supplemental
Indenture.

     

    Section
3.12    Future
Subsidiary Guarantors.  The Company will cause each Restricted
Subsidiary (other than a Foreign Subsidiary or a Special Entity) created or
acquired by the Company or one or more of its Restricted Subsidiaries after the
Issue Date to execute and deliver to the Trustee a Subsidiary Guarantee pursuant
to which such Subsidiary Guarantor 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.

     

    Section
3.13    Limitation
on Lines of Business.  The Company may not, and may not permit
any Restricted Subsidiary to, engage in any business other than the Oil and Gas
Business.

     

    Section
3.14    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 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 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
3.15    Offer to
Repurchase Upon Change of Control.

     

    (a)           If
a Change of Control occurs, unless the Company has exercised its right to redeem
all of the Notes as described under Section 1.08 of this Seventh Supplemental
Indenture, the Company will be required to offer to repurchase from each Holder
all or any part (equal to $2,000 or an integral multiple of $1,000 in excess
thereof) 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
Regular Record Date to receive interest due on the relevant Interest Payment
Date).

     

    (b)           Within
30 days following any Change of Control, unless the Company has exercised its
right to redeem the Notes as described under Section 1.08 of this Seventh
Supplemental Indenture, 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 the Company is offering to purchase
the 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 a Regular Record Date to
receive interest on the relevant Interest Payment Date) (the “Change of Control
Payment”);

     

    (2)           the
repurchase 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”);
and

     

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

     

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

    
 

    
      
        
           

        

        
          50

          
            

          

        

        
           

        

      

    

    
 

    (1)           accept
for payment all Notes or portions of Notes (in integral multiples of $1,000 in
excess of $2,000) properly tendered pursuant to the Change of Control
Offer;

     

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

     

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

     

    (e)           If
the Change of Control Payment Date is on or after a Regular 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 the Regular Record Date, and no additional interest will be payable
to Holders who tender pursuant to the Change of Control Offer.

     

    (f)           The
Company will not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in the
Indenture applicable to a Change of Control Offer made by the Company and
purchases all Notes validly tendered and not withdrawn under the Change of
Control Offer.

     

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

     

    (h)           The
Company will comply, to the extent applicable, with the requirements of Section
14(e) of the Exchange Act and any other securities laws or regulations in
connection with the repurchase of Notes pursuant to this Section
3.15.  To the extent that the provisions of any securities laws or
regulations conflict with provisions of the Indenture, the Company will comply
with the applicable securities laws and regulations and will be deemed not to
have breached its obligations described in the Indenture by virtue of such
compliance.

     

    ARTICLE
IV

     

    EVENTS
OF DEFAULT WITH RESPECT TO THE NOTES

     

    The term
“Event of Default,” whenever used in the Original Indenture or this Seventh
Supplemental Indenture with respect to the Notes, means any one of the following
events:

     

    (1)           failure
to pay principal of or premium, if any, on any Note when due at its Stated
Maturity;

     

    (2)           failure
to pay any interest on any Note when due, which failure continues for 30
calendar days;

     

    (3)           failure
by the Company or any Subsidiary Guarantor to comply with its obligations under
Section 3.11 of this Seventh Supplemental Indenture;

    
 

    
      
        
           

        

        
          51

          
            

          

        

        
           

        

      

    

    
 

    (4)           failure
by the Company to comply with any of its obligations under Article III of this
Seventh Supplemental Indenture (other than a failure to purchase Notes which
will constitute an Event of Default under clause (5) below and other than a
failure to comply with Section 3.11 of this Seventh Supplemental Indenture which
is covered by clause (3) above), which failure or breach continues for 30
calendar 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” under the Indenture;

     

    (5)           failure
to redeem or repurchase any Note when required to do so under the terms
thereof;

     

    (6)           failure
to perform, or breach of, any other covenant of the Company in the Indenture
(other than a covenant included in the Indenture solely for the benefit of a
series of debt securities other than the Notes), which failure or breach
continues for 60 calendar 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” under the
Indenture;

     

    (7)           any
nonpayment at maturity or other default (beyond any applicable grace period)
under any agreement or instrument relating to any other Indebtedness of the
Company or a Significant Subsidiary, the unpaid principal amount of which is not
less than $15 million, which default results in the acceleration of the maturity
of the Indebtedness prior to its Stated Maturity or occurs at the final maturity
thereof;

     

    (8)           Events
of Default of the type and subject to the conditions set forth in clauses (vi)
and (vii) of Section 8.01(a) of the Original Indenture;

     

    (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 $15 million (net of
any amounts that a reputable and creditworthy insurance company has acknowledged
liability for in writing), which judgments are not paid, discharged or stayed
for a period of 60 calendar days; or

     

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

     

    ARTICLE
V

     

    MODIFICATION
AND WAIVER

     

    Section
5.01    Without
Consent of Holders.

     

    (a)           The
provisions of Section 10.01 of the Original Indenture shall apply to the
Notes.

     

    
      
        
           

        

        
          52

          
            

          

        

        
           

        

      

    

    
 

    (b)           The
Company, the Subsidiary Guarantors and the Trustee may amend or supplement the
Indenture or the Notes without the consent of any Holder to add Subsidiary
Guarantees with respect to the Notes.

     

    Section
5.02    With
Consent of Holders.  Without the consent of each Holder
affected, no amendment or waiver with respect to the Notes under this Article V
or under Article X of the Original Indenture may, without the consent of each
Holder of an outstanding Note affected thereby:

     

    (a)           reduce
the principal amount of, the rate of interest on, or the premium, if any,
payable upon the repurchase of, the Notes; or

     

    (b)           change
the time at which any Note may be redeemed or repurchased as described above
under Section 1.08; Section 3.07 or Section 3.15 of this Seventh Supplemental
Indenture; or

     

    (c)           change
the ranking or priority of the Notes in a manner that would adversely affect the
Holders; or

     

    (d)           modify
the Subsidiary Guarantees in any manner adverse to the Holders.

     

    ARTICLE
VI

     

    MISCELLANEOUS
PROVISIONS

     

    Section
6.01    Recitals by
the Company.  The recitals in this Seventh Supplemental
Indenture are made by the Company only and not by the Trustee, and the Trustee
assumes no responsibility for their correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Seventh Supplemental
Indenture or of the Notes.  The Trustee shall not be accountable for
the use or application by the Company of the Notes or the proceeds
thereof.  All of the provisions contained in the Original Indenture in
respect of the rights, privileges, immunities, powers and duties of the Trustee
shall be applicable in respect of the Notes and of this Seventh Supplemental
Indenture as fully and with like effect as if set forth herein in
full.

     

    Section
6.02    Ratification
and Incorporation of Original Indenture.  As supplemented
hereby, the Original Indenture is in all respects ratified and confirmed, and
the Original Indenture and this Seventh Supplemental Indenture shall be read,
taken and construed as one and the same instrument.

     

    Section
6.03    Executed in
Counterparts.  This Seventh Supplemental Indenture may be
simultaneously executed in several counterparts, each of which shall be deemed
to be an original, and such counterparts shall together constitute but one and
the same instrument.

     

    Section
6.04    New York
Law to Govern.  This Seventh Supplemental Indenture and each
Note shall be governed by and construed in accordance with the law of the State
of New York.

     

    Section
6.05    Successors
and Assigns.  All covenants and agreements in this Seventh
Supplemental Indenture and each Note by the Company shall bind its successors
and assigns, whether so expressed or not.

     

    Section
6.06    Separability.  In
case any provision in this Seventh Supplemental Indenture or in any Note shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

     

    Section
6.07    Force
Majeure.  In no event shall the Trustee be responsible or
liable for any failure or delay in the performance of its obligations hereunder
arising out of or caused by, directly or indirectly, forces beyond its control,
including strikes, work stoppages, accidents, acts of war or
terrorism,

    
 

    
      
        
           

        

        
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    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.

     

    Section
6.08    Senior
Indebtedness.  The Company and each Subsidiary Guarantor hereby
designate the obligations with respect to Notes and the Subsidiary Guarantees as
Senior Indebtedness which is senior in right of payment in full to any
Subordinated Obligation of the Company or any Subsidiary
Guarantor.  The Company and each Subsidiary Guarantor further
designate the obligations with respect to the Notes and the Subsidiary
Guarantees as “Designated Senior Indebtedness” (as defined by (i) the
indenture for the 1.875% Convertible Subordinated Debentures by and between the
Company and The Bank of New York Mellon Trust Company, N.A., as trustee (as
successor in interest to JPMorgan Chase Bank, National Association), dated as of
November 1, 2004, as amended and supplemented (the “2024 Convertible
Subordinated Debentures Indenture”), and (ii) the indenture for the 2016 Senior
Subordinated Notes by and among the Company, each Subsidiary Guarantor and The
Bank of New York Mellon Trust Company, N.A., as trustee (as successor in
interest to JPMorgan Chase Bank, National Association) dated March 16, 2006, as
amended and supplemented (the “2016 Senior Subordinated Notes Indenture”)), for
all purposes under (x) the 2024 Convertible Subordinated Debentures Indenture
and (y) the 2016 Senior Subordinated Notes Indenture, with respect to the Notes
and the Subsidiary Guarantees, respectively.

     

    
      
        
           

        

        
          54

          
            

          

        

        
           

        

      

    

    

      IN
WITNESS WHEREOF, each party hereto has caused this instrument to be signed in
its name and behalf by its duly authorized officers, all as of the day and year
first above written.

       

      
        
          
            
              
                
                  	Attest:	 	QUICKSILVER
      RESOURCES INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
                          
                            /s/
      John C. Cirone

                          

                        	 	By:	
                          
                            /s/ Philip
    Cook

                          

                        	 
	
                          Name:
      John C. Cirone

                        	 	 	
                          Name:
      Philip Cook

                        	 
	
                          Title:
      Secretary

                        	 	 	
                          Title:
      Senior Vice President - Chief Financial Officer

                        	 

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    	 	 	COWTOWN
      PIPELINE FUNDING, INC.,	 
	 	 	as
      Subsidiary Guarantor	 
	Attest:	 	 	 	 
	 	 	 	 	 
	
                            
                              /s/
      John C. Cirone

                            

                          	 	By:	
                            
                              /s/ Philip
    Cook

                            

                          	 
	
                            Name:
      John C. Cirone

                          	 	 	
                            Name:
      Philip Cook

                          	 
	
                            Title:
      Secretary

                          	 	 	
                            Title:
      Senior Vice President - Chief Financial Officer

                          	 

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    	 	 	COWTOWN
      PIPELINE MANAGEMENT, INC.,	 
	 	 	as
      Subsidiary Guarantor	 
	Attest:	 	 	 	 
	 	 	 	 	 
	
                            /s/
      John C. Cirone

                          	 	By:	
                            
                              /s/ Philip
    Cook

                            

                          	 
	
                            Name:
      John C. Cirone

                          	 	 	
                            Name:
      Philip Cook

                          	 
	
                            Title:
      Secretary

                          	 	 	
                            Title:
      Senior Vice President - Chief Financial Officer

                          	 

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 	 	COWTOWN
      PIPELINE L.P.,	 
	 	 	as
      Subsidiary Guarantor	 
	 	 	 	 	 
	Attest:	 	By:	COWTOWN
      PIPELINE MANAGEMENT, INC.,	 
	 	 	 	its
      general partner	 
	 	 	 	 	 
	
                                
                                  /s/
      John C. Cirone

                                

                              	 	By:	
                                
                                  /s/ Philip
    Cook

                                

                              	 
	
                                Name:
      John C. Cirone

                              	 	 	
                                Name:
      Philip Cook

                              	 
	
                                Title:
      Secretary

                              	 	 	
                                Title:
      Senior Vice President - Chief Financial Officer

                              	 

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 	 	COWTOWN
      GAS PROCESSING L.P.,	 
	 	 	as
      Subsidiary Guarantor	 
	 	 	 	 	 
	Attest:	 	By:	COWTOWN
      PIPELINE MANAGEMENT, INC.,	 
	 	 	 	its
      general partner	 
	 	 	 	 	 
	
                                
                                  /s/
      John C. Cirone

                                

                              	 	By:	
                                /s/ Philip Cook

                              	 
	
                                Name:
      John C. Cirone

                              	 	 	
                                Name:
      Philip Cook

                              	 
	
                                Title:
      Secretary

                              	 	 	
                                Title:
      Senior Vice President - Chief Financial Officer

                              	 

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	Attest:	 	THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A.	 
	 	 	as
      Trustee	 
	 	 	 	 	 
	
                                      /s/ Mauri J.
Cowen

                                    	 	By:	
                                      /s/ Rafael
    Martinez

                                    	 
	
                                      Name:
      Mauri J. Cowen

                                    	 	 	
                                      Name:
      Rafael Martinez

                                    	 
	
                                      Title:
      Vice President

                                    	 	 	
                                      Title:
      Assistant Treasurer

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      EXHIBIT
A

       

      [FORM OF
GLOBAL NOTE]

       

      UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO QUICKSILVER RESOURCES INC. OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY 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.

       

      THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE
THEREOF.  THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN DTC OR
A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.  EVERY SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE
FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

       

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    CUSIP No.
74837RAF1

    ISIN No.
US74837RAF10

     

    [Face of
Note]

     

    113⁄4%
Senior Notes due 2016

     

    Principal
amount at Maturity $ ______________

     

     

    QUICKSILVER
RESOURCES INC.

     

    Quicksilver
Resources Inc., a Delaware corporation (the “Company”) promises to pay to
______________, or registered assigns, the principal sum of ______________ Dollars
on January 1, 2016 or such greater or lesser amount as may be indicated on
Schedule A hereto.

     

    
      
        
          
            
              	
                      Interest
      Payment Dates:

                    	
                      January
      1 and July 1, commencing January 1, 2010

                    
	 	 
	
                      Regular
      Record Dates:

                    	
                      June
      15 and December
15

                    

            

          

        

      

    

     

    Additional
provisions of this Note are set forth on the other side of this
Note.

     

    Dated:

    
       

      
        
          
            
              
                
                  
                    
                      
                        	 	 	 	QUICKSILVER
      RESOURCES INC.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	
                                 

                              	 	 	
                                Name:
      

                              	 
	
                                 

                              	 	 	
                                Title:
      

                              	 

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	Attest:	 	 	 
	 	 	 	 
	By: 	 	 	 
	
                                               

                                            	 	
                                               

                                            	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

      

    

     

    TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

     

    This is
one of the Global Securities referred

    to in the
within-mentioned Indenture:

     

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

    

    
      as
Trustee

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	By:	 	 	 
	
                                               

                                            	
                                              Authorized
      Signatory

                                            	
                                               

                                            	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

        
          
            
            

          

          
            A-2

            
              

            

          

          
            
            

          

        

      

    

     

    [FORM OF
REVERSE OF NOTE]

     

    113⁄4%
Senior Notes due 2016

     

    Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     

    (1)           Interest.  Quicksilver
Resources Inc., a Delaware corporation (together with its permitted successors,
the “Company”), promises to pay interest on the principal amount of this Note at
11.75% per annum from June 25, 2009 until the principal hereof is paid or
made available for payment.  The Company shall pay interest, if any,
semi-annually in arrears on January 1 and July 1 of each such year, commencing
January 1, 2010 or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”).  Interest on the Notes
shall accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance[; provided that if this Note
is authenticated between a Regular Record Date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
next succeeding Interest Payment Date; provided, further, that the first
Interest Payment Date shall be the first of January 1 or July 1 to occur after
the date of issuance, unless such January 1 or July 1 occurs within one
calendar month of such date of issuance, in which case the first Interest
Payment Date shall be the second of January 1 or July 1 to occur after the
date of issuance]1.  Interest
shall be computed on the basis of a 360-day year of twelve 30-day
months.

     

    (2)           Method of
Payment.  The Company shall pay interest on the Notes (except
defaulted interest) to the Person in whose name(s) this Note is registered at
the close of business on the June 15 or December 15 next preceding the Interest
Payment Date (each, a “Regular Record Date”); provided
that interest payable at the Stated Maturity or on a Redemption Date as provided
in the Indenture will be paid to the Person to whom principal is
payable.  The Notes shall be payable as to principal of or premium, if
any, or interest at the office or agency of the Company maintained for such
purpose within or without the City and State of New York, or, at the option of
the Company, payment of interest may be made by check mailed to the Holders at
their addresses set forth in the Security Register or by wire transfer at such
place and to such account at a banking institution in the United States as may
be designated in writing to the Trustee at least 15 days prior to the date for
payment by the Person entitled thereto.  Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

     

    (3)           Paying
Agent and Registrar.  Initially, The Bank of New York Mellon
Trust Company, N.A., the Trustee under the Indenture, shall act as Paying Agent
and Registrar.  The Company may change any Paying Agent or Registrar
without notice to any Holder.  The Company or any of its Subsidiaries
may act in any such capacity.

     

    (4)           Indenture.  The
Company issued the Notes under an Indenture, dated as of December 22, 2005 (the
“Original Indenture”), between the Company and the Trustee, as supplemented by
the Seventh Supplemental Indenture, dated as of June 25, 2009, among the Company
the Subsidiary Guarantors (as defined therein) parties thereto and the Trustee
(the “Seventh Supplemental Indenture; and together with the Original Indenture,
the “Indenture”).  The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code
§§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.  The Notes are senior obligations of the
Company initially in the aggregate principal amount of
$600,000,000.  Subject to compliance with Section 1.11 of the Seventh
Supplemental Indenture, the Company is permitted to issue Additional Notes under
the Indenture in an unlimited principal amount.  Any such
Additional

     

    __________________

    1    Insert
if Notes are Additional Notes.

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    Notes
that are actually issued shall be treated as issued and outstanding Notes for
all purposes of the Indenture, unless the context clearly indicates
otherwise.

     

    (5)           Guarantees.  This
Note is guaranteed by the Persons, if any, specified as Subsidiary Guarantors in
the Indenture to the extent provided in the Indenture.  The Subsidiary
Guarantees are equal in rank to the Senior Indebtedness of the applicable
Subsidiary Guarantor in the manner and to the extent provided in the
Indenture.

     

    (6)           Optional
Redemption.

     

    (a)           Except
as set forth in Section 1.08 of the Seventh Supplemental Indenture and clauses
(b) and (c) of this Paragraph 6, the Notes are not redeemable until July 1,
2013.  On and after July 1, 2013, the Company may redeem all or, from
time to time, a part of the Notes upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as a percentage of
principal amount) plus accrued and unpaid interest on the Notes (the “Redemption
Price”), if any, to the applicable redemption date (subject to the right of
Holders of record on the Regular Record Date to receive interest due on the
relevant Interest Payment Date) (a “Redemption Date”), if redeemed during the
twelve-month period beginning on July 1 of the years indicated
below:

    
       

      
        
          
            
              
                
                  
                    	
                            YEAR

                          	
                            Percentage

                          
	 	 
	
                            2013

                          	
                            105.875%

                          
	
                            2014

                          	
                            102.938%

                          
	
                            2015

                          	
                            100.000%

                          

                  

                

              

            

          

        

      

       

    

    (b)           Notwithstanding
the provisions of clause (a) of this Paragraph 6, prior to July 1, 2012, the
Company may on any one or more occasions redeem up to 35% of the original
principal amount of the Notes (which includes Additional Notes, if any) issued
under the Indenture at a redemption price equal to 111.75% 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 Regular Record Date
to receive interest due on the relevant Interest Payment Date), with the Net
Cash Proceeds of one or more equity offerings; provided
that (1) at least 65% of such aggregate principal amount of Notes (which
includes any Additional Notes, if any) issued under the Indenture remains
Outstanding immediately after the occurrence of such redemption; and (2) each
such redemption shall occur within 90 days of the date of the closing of such
equity offering.

     

    (c)           In
addition, at any time prior to July 1, 2013, the Company may redeem the Notes,
in whole but not in part, at a Redemption Price equal to 100% of the principal
amount thereof plus the Applicable Premium plus accrued and unpaid interest, if
any, to the Redemption Date (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on the relevant Interest
Payment Date).

     

    (7)           Offer to
Repurchase Upon Change of Control.  Upon the occurrence of a
Change of Control, the Company will be required to offer to repurchase from each
Holder all or any part (equal to $2,000 or an integral multiple of $1,000 in
excess thereof) of such Holder’s Notes pursuant to the offer described below
(the “Change of Control Offer”) at an offer price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest, if any,
thereon to the date of purchase (the “Change of Control
Payment”).  Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder setting forth the procedures
governing the Change of Control Offer as required by the Indenture.

     

    (8)           Notice of
Redemption.  Notice of redemption shall be mailed at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its address appearing in the Securities
Register.  The Company shall notify the Trustee of the Redemption
Price with respect to the redemption promptly after the calculation
thereof.  The Trustee shall not be responsible for calculating the
Redemption Price.

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    (9)           Denominations,
Transfer, Exchange.  The Notes are in registered form without
coupons in minimum denominations of $2,000 and integral multiples of $1,000 in
excess thereof.  The transfer of Notes may be registered and Notes may
be exchanged as provided in the Indenture.  Every Note presented or
surrendered for registration of transfer or exchange will (if so required by the
Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument or instruments of transfer, in form reasonably satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.  The Company need not exchange or
register the transfer of any Notes for a period of 15 days before the mailing of
the notice of redemption or any Note so selected for redemption in whole or in
part, except in the case of Notes to be redeemed in part, the portion thereof
not being redeemed.  No service charge will 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 that may be imposed
in connection therewith.

     

    (10)           Persons
Deemed Owners.  The registered Holder may be treated as its
owner for all purposes.

     

    (11)           Amendment,
Supplement and Waiver.  Subject to certain exceptions, the
Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the Notes, and any existing default or compliance with any provision of the
Indenture, the Subsidiary Guarantees or the Notes (other than a Default or Event
of Default in the payment of the principal of or premium, if any, or interest on
the Notes) or compliance with any provision of the Indenture, the Subsidiary
Guarantee or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the Notes.  Without the consent of any
Holder, the Indenture, the Subsidiary Guarantee or the Notes may be amended or
supplemented (a) to evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company under the
Indenture and in the Notes, all to the extent otherwise permitted under the
Indenture; (b) to add to the covenants of the Company for the benefit of the
Holders or to surrender any right or power herein conferred upon the Company;
(c) to add any additional Events of Default; (d) to add to or change any of the
provisions of the Indenture to such extent as may be necessary to permit or
facilitate the issuance of Notes in bearer form, registrable or not registrable
as to principal, and with or without interest coupons, or to permit or
facilitate the issuance of Notes in uncertificated form; (e) to add to, change
or eliminate any of the provisions of the Indenture in respect of the Notes,
provided
that any such addition, change or elimination (i) will not apply to
any of the Notes created prior to the execution of such supplemental indenture
and entitled to the benefit of such provision, or (ii) will become
effective only when there are no Notes Outstanding (as defined in the Original
Indenture); (f) to establish the terms or form of Securities of any series as
permitted by Sections 2.01 and 2.02 of the Original Indenture; (g) to evidence
and provide for the acceptance of appointment under the Indenture by a successor
Trustee with respect to the Notes and to add to or change any of the provisions
of the Indenture as may be necessary to provide for or facilitate the
administration of the trusts under the Indenture by more than one Trustee,
pursuant to the requirements of Section 9.10 of the Original Indenture; or
(h) to cure any ambiguity, to correct or supplement any provision of the
Indenture which may be defective or inconsistent with any other provision of the
Indenture, or to make any other provisions with respect to matters or questions
arising under the Indenture, provided
that such action pursuant to this clause (h) will not adversely affect the
interests of the Holders in any material respect.

     

    (12)           Events of
Default.  Events of Default include (a) failure to pay
principal of or premium, if any, on any Note when due at its Stated Maturity;
(b) failure to pay any interest on any Note when due, which failure continues
for 30 calendar days; (c) failure by the Company or any Subsidiary Guarantor to
comply with its obligations under Section 3.11 of the Seventh Supplemental
Indenture; (d) failure by the Company to comply with any of its obligations
under Article III of the Seventh Supplemental Indenture (in each case, other
than a failure to purchase Notes which will constitute an Event of Default under
clause (e) of this paragraph and other than a failure to comply with Section
3.11 of the Seventh Supplemental Indenture which is covered by clause (c) of
this paragraph), which failure or breach continues for 30 calendar days after
written notice thereof has been given to the Company as provided in the
Indenture; (e) failure to redeem or repurchase any Note when required to do so
under the terms thereof; (f) failure to perform, or breach of, any other
covenant of the Company in the Indenture (other than a covenant
included

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    in the
Indenture solely for the benefit of a series of debt securities other than the
Notes), which failure or breach continues for 60 calendar days after written
notice thereof has been given to the Company as provided in the Indenture; (g)
any nonpayment at maturity or other default (beyond any applicable grace period)
under any agreement or instrument relating to any other Indebtedness of the
Company or a Significant Subsidiary, the unpaid principal amount of which is not
less than $15 million, which default results in the acceleration of the maturity
of the Indebtedness prior to its Stated Maturity or occurs at the final maturity
thereof; (h) specified events of bankruptcy, insolvency, or reorganization
involving the Company or a Significant Subsidiary; (i) 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 $15 million (net of
any amounts that a reputable and creditworthy insurance company has acknowledged
liability for in writing), which judgments are not paid, discharged or stayed
for a period of 60 days; or (j) any Subsidiary Guarantee of a Significant
Subsidiary or group of Subsidiary Guarantors that taken together as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be
in full force and effect (except as contemplated by the terms of the Indenture)
or is declared null and void in a judicial proceeding or any Subsidiary
Guarantor that is a Significant Subsidiary or group of Subsidiary Guarantors
that taken together as of the latest audited consolidated financial statements
of the Company and its Restricted Subsidiaries would constitute a Significant
Subsidiary denies or disaffirms its obligations under the Indenture or its
Subsidiary Guarantee.  If any Event of Default (other than an Event of
Default specified in clause (h) of this paragraph) occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare the principal amount of all the Notes to be due
and payable immediately.  Notwithstanding the foregoing, in the case
of an Event of Default specified in clause (h) of this paragraph, all
outstanding Notes shall become due and payable immediately without any
declaration or other act on the part of the Trustee or any
Holder.  However, at any time after a declaration of acceleration with
respect to the Notes has been made, but before a judgment or decree based on
such acceleration has been obtained, the holders of a majority in principal
amount of the Notes may, under specified circumstances, rescind and annul such
acceleration.

     

    Subject
to the duty of the Trustee to act with the required standard of care during an
Event of Default, the Trustee will have no obligation to exercise any of its
rights or powers under the Indenture at the request or direction of the Holders,
unless Holders shall have furnished to the Trustee reasonable security or
indemnity.  Subject to the provisions of the Indenture, including
those requiring security or indemnification of the Trustee, the Holders of a
majority in principal amount of the Notes will 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.  Pursuant to the Trust Indenture Act, the
Trustee is required, within 90 calendar days after the occurrence of a Default
in respect of the Notes, to give to the Holders notice of all uncured Defaults
known to it, except that (other than in the case of a Default of the character
contemplated in clause (a) or (b) of the immediately preceding paragraph) the
Trustee may withhold notice if and so long as it in good faith determines that
the withholding of notice is in the interests of the Holders.

     

    No Holder
will have any right to institute any proceeding with respect to the Indenture or
for any remedy thereunder unless:  (a) the Holder has previously given
to the Trustee written notice of a continuing Event of Default; (b) the Holders
of at least 25% in aggregate principal amount of the outstanding Notes have
requested the Trustee to institute a proceeding in respect of the Event of
Default; (c) the Holder or Holders have furnished reasonable indemnity to the
Trustee to institute the proceeding as Trustee; (d) the Trustee has not received
from the Holders of a majority in principal amount of the outstanding Notes a
direction inconsistent with the request; and (e) the Trustee has failed to
institute the proceeding within 60 calendar days.  However, the
limitations described above do not apply to a suit instituted by a Holder for
enforcement of payment of the principal of and interest on or after the
applicable due dates for the payment of such principal and
interest.

     

    (13)           Trustee
Dealings with Company.  The Trustee, in its individual or any
other capacity, may become the owner or pledgee of Notes and, subject to the
terms of the Indenture, may otherwise deal with the Company with the same rights
it would have if it were not Trustee.

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    (14)           No Recourse
Against Others.  No director, officer, employee, incorporator,
Affiliate or stockholder of the Company or any of the Subsidiary Guarantors, as
such, will have any liability for any obligations of the Company or such
Subsidiary Guarantor under the Notes, the Indenture, the Subsidiary Guarantee 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 the issuance of the Notes.

     

    (15)           Authentication.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an Authenticating Agent.

     

    (16)           Abbreviations.  Customary
abbreviations may be used in the name of a Holder or an assignee, such as: TEN
COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN
(= joint tenants with rights of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     

    (17)           CUSIP, ISIN
or Other Similar Numbers.  Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused CUSIP, ISIN or other similar numbers to be printed on the
Notes and the Trustee may use CUSIP, ISIN or other similar numbers in notices of
redemption as a convenience to Holders.  No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     

    (18)           Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York.

     

    (19)           Senior
Indebtedness.  The Company and each Subsidiary Guarantor hereby
designate the obligations with respect to the Notes and Subsidiary Guarantees as
Senior Indebtedness which is senior in right of payment in full to any
Subordinated Obligation of the Company or any Subsidiary
Guarantor.  The Company and each Subsidiary Guarantor further
designate the obligations with respect to the Notes and the Subsidiary
Guarantees as “Designated Senior Indebtedness” (as defined by the (i) 2024
Convertible Subordinated Debentures Indenture and (ii) the 2016 Senior
Subordinated Notes Indenture) for all purposes under the (x) 2024 Convertible
Subordinated Debentures Indenture and (y) 2016 Senior Subordinated Notes
Indenture, with respect the Notes and the Subsidiary Guarantees,
respectively.

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
FORM

     

    To assign
this Note, fill in the form below and have your signature
guaranteed:  (I) or (we) assign
and transfer this Note to

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 	 
	
                                                          (Insert
      assignee’s soc. sec. or tax I.D. no.)

                                                           

                                                        	 
	
                                                           

                                                           

                                                        	 
	
                                                           

                                                           

                                                        	 
	
                                                           

                                                           

                                                        	 
	
                                                          (Print
      or type assignee’s name, address and zip code)

                                                        	 
	 	 	 	 	 	 	 
	
                                                          and
      irrevocably appoint

                                                        	 
      	 
      	 
      	 	
                                                          agent

                                                        
	
                                                          to
      transfer this Note on the books of the Company.  The agent may
      substitute another to act for him.

                                                        
	 
      	 
      	 
      	 
      	 
      	 	 
      
	 	 	 	 	 	 	 
	
                                                          Date:

                                                        	 
      	 
      	
                                                           

                                                        	Your
      Name:	 	 
      
	 
      	 
      	 
      	
                                                          (Print
      your name exactly as it appears on the face of this
  Note)

                                                        
	 
      	 
      	 
      	 
      	 
      	 	 
      
	
                                                           

                                                        	 
      	 
      	
                                                           

                                                        	Your
      Signature:	 	 
      
	 
      	 
      	 
      	
                                                          (Sign
      exactly as your name appears on the face of this
  Note)

                                                        
	 
      	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	 
      	
                                                          Signature
      Guarantee*:

                                                        	 	 
      

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      __________________

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

    

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

     

    The
following exchanges of a part of this Global Note for an interest in another
Global Note, or exchanges of a part of another Global Note for an interest in
this Global Note, have been made:

     

    
      
        
          
            
              	
                      Date
      of Exchange

                    	
                      Amount
      of decrease in Principal Amount of this Global Note

                    	
                      Amount
      of increase in Principal Amount of this Global Note

                    	
                      Principal
      Amount of this Global Note following such decrease (or
      increase)

                    	
                      Signature
      of authorized officer of Trustee or

                      Note
      Custodian

                    

            

          

        

      

    

    
 

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
B

     

    [FORM OF
SUPPLEMENTAL INDENTURE

    TO BE
DELIVERED BY SUBSEQUENT GUARANTORS]

     

    This
SUPPLEMENTAL INDENTURE, dated as of ________________, 20__, among
__________________ (the “Guaranteeing Subsidiary”), a subsidiary of Quicksilver
Resources Inc. (or its permitted successor), a Delaware corporation (the
“Company”), the Company, the other Subsidiary Guarantors (as defined in the
Indenture referred to herein) and The Bank of New York Mellon Trust Company,
N.A., as Trustee.

     

    W I T N E
S S E T H

     

    WHEREAS,
the Company and the Trustee entered into an Indenture (the “Original
Indenture”), dated as of December 22, 2005, as supplemented by a Seventh
Supplemental Indenture, dated as of June 25, 2009 among the Company, the
Subsidiary Guarantors and the Trustee (the “Seventh Supplemental Indenture”; and
together with the Original Indenture, the “Indenture”), pursuant to which the
Company has issued $600,000,000 of aggregate principal amount of 113⁄4% Senior
Notes due 2016 (the “Notes”);

     

    WHEREAS,
Section 5.01(b) of the Seventh Supplemental Indenture provides that the Company,
the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture
in order to add Subsidiary Guarantees with respect to the Notes, without the
consent of the Holders; and

     

    WHEREAS,
all acts and things prescribed by the Indenture, by law and by the certificate
of incorporation and the bylaws (or comparable constituent documents) of the
Company, the Subsidiary Guarantors, the Guaranteeing Subsidiary and the Trustee
necessary to make this Supplemental Indenture a valid instrument legally binding
on the Company, the Subsidiary Guarantors, the Guaranteeing Subsidiary and the
Trustee, in accordance with its terms, have been duly done and
performed;

     

    NOW
THEREFORE, to comply with the provisions of the Indenture, and in consideration
of the foregoing, the Guaranteeing Subsidiary, the Company, the Subsidiary
Guarantors and the Trustee mutually covenant and agree for the equal and ratable
benefit of the Holders as follows:

     

    ARTICLE
1

     

    Section
1.01    This
Supplemental Indenture is supplemental to the Indenture and does and shall be
deemed to form a part of, and shall be construed in connection with and as part
of, the Indenture for any and all purposes.

     

    Section
1.02    This
Supplemental Indenture shall become effective immediately upon its execution and
delivery by the Guaranteeing Subsidiary, the Company, the Subsidiary Guarantors
and the Trustee.

     

    ARTICLE
2

     

    Section
2.01    The
Guaranteeing Subsidiary hereby agrees to be bound by the terms, conditions and
other provisions of the Indenture with all attendant rights, duties and
obligations stated therein, on a joint and several basis with the Subsidiary
Guarantors parties hereto and thereto, with the same force and effect as if
originally named as a Subsidiary Guarantor therein and as if such party executed
the Indenture on the date thereof.

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
3

     

    Section
3.01    Except
as specifically modified herein, the Indenture and the Notes are in all respects
ratified and confirmed (mutatis mutandis) and shall remain in full force and
effect in accordance with their terms.

     

    Section
3.02    All
capitalized terms used but not defined herein shall have the same respective
meanings ascribed to them in the Indenture.

     

    Section
3.03    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 of 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.

     

    Section
3.04    THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

     

    Section
3.05    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.

     

    Section
3.06    The
headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this
Supplemental Indenture.

     

    Section
3.07    The
recitals hereto are statements only of the Company, the Subsidiary Guarantors
and the Guaranteeing Subsidiary and shall not be considered statements of or
attributable to the Trustee.

     

    Section
3.08    The
Guaranteeing Subsidiary hereby designates the obligations with respect to the
Notes and the Subsidiary Guarantees as Senior Indebtedness which is senior in
right of payment in full to any Subordinated Obligation of the Company or any
Subsidiary Guarantor.  The Guaranteeing Subsidiary further designates
the obligations with respect to the Notes and the Subsidiary Guarantees as
“Designated Senior Indebtedness” (as defined by the (i) 2024 Convertible
Subordinated Debentures Indenture and (ii) the 2016 Senior Subordinated Notes
Indenture) for all purposes under (x) the 2024 Convertible Subordinated
Debentures Indenture and (y) the 2016 Senior Subordinated Notes Indenture, with
respect to the Notes and the Subsidiary Guarantees, respectively.

     

    
      
        
        

      

      
        B-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.

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        	 	 	[GUARANTEEING
      SUBSIDIARY]	 
	 	 	 	 	 
	 	 	 	 	 
	
                                 

                              	 	By:	
                                 

                              	 
	 	 	 	 	 
	
                                 

                              	 	 	
                                Name:

                              	 
	 	 	 	 	 
	
                                 

                              	 	 	
                                Title:

                              	 

                      

                    

                  

                

              

            

          

        

      

      
        
           

          
            
              
                
                  
                    
                      
                        
                          
                            	 	 	QUICKSILVER
      RESOURCES INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
                                     

                                  	 	By:	
                                     

                                  	 
	 	 	 	 	 
	
                                     

                                  	 	 	
                                    Name:

                                  	 
	 	 	 	 	 
	
                                     

                                  	 	 	
                                    Title:

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

          
            
               

              
                
                  
                    
                      
                        
                          
                            
                              
                                	 	 	[EXISTING
      SUBSIDIARY GUARANTORS]	 
	 	 	 	 	 
	 	 	 	 	 
	
                                         

                                      	 	By:	
                                         

                                      	 
	 	 	 	 	 
	
                                         

                                      	 	 	
                                        Name:

                                      	 
	 	 	 	 	 
	
                                         

                                      	 	 	
                                        Title:

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

              
                
                   

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

                                              	 	By:	
                                                 

                                              	 
	 	 	 	 	 
	
                                                 

                                              	 	 	
                                                Name:

                                              	 
	 	 	 	 	 
	
                                                 

                                              	 	 	
                                                Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]