Document:

<PAGE>

                                                                    Exhibit 10.4

                          FIRST NATIONAL BANK OF MORGAN
                              EMPLOYMENT AGREEMENT
                               DAVID R. ALEXANDER

     THIS EMPLOYMENT AGREEMENT (this "Agreement"), signed as of May 31, 2006,
between FIRST NATIONAL BANK OF MORGAN (the "Bank") and David R. Alexander
("Executive") and ratified by GLACIER BANCORP, INC. ("GBCI"), takes effect on
the effective date of the pending Merger (the "Effective Date") referenced
below.

                                    RECITALS

A.   The Bank has entered into a Plan and Agreement Merger (the "Merger
     Agreement") with GBCI, acting on its own behalf and on behalf of a national
     banking association to be formed by GBCI (the "New Bank"). Pursuant to the
     terms of the Merger Agreement, the Bank will merge with and into the New
     Bank, and the combined bank will become a wholly owned subsidiary of GBCI
     (the "Merger").

B.   Throughout this Agreement, for periods after the Effective Date, references
     to "the Bank" mean the combined bank formed pursuant to the Merger
     Agreement.

C.   Executive presently serves as Executive Vice President of the Bank and will
     continue to do so until the Effective Date.

D.   GBCI and the Bank desire Executive to be employed by the Bank from and
     after the Effective Date, under the terms and conditions of this Agreement.

E.   Executive desires to be employed by the Bank from and after the Effective
     Date, under the terms and conditions of this Agreement.

F.   This Agreement supercedes any and all other employment or similar
     agreements that may currently be in effect for Executive.

                                    AGREEMENT

     In consideration of the promises set forth in this Agreement, the parties
     agree as follows.

1.   EMPLOYMENT. The Bank agrees to employ Executive, and Executive accepts
     employment by the Bank on the terms and conditions set forth in this
     Agreement. Executive's title will be Executive Vice President of the Bank.

2.   EFFECTIVE DATE AND TERM.

     a.   Term. The term of this Agreement ("Term") is three years, beginning on
          the Effective Date.

                                       1

<PAGE>

     b.   Abandonment or Termination of the Merger. This Agreement is void if
          the Merger Agreement is terminated for any reason.

3.   DUTIES. The Bank will employ Executive as its Executive Vice President.
     Executive will faithfully and diligently perform the duties assigned to
     him, which duties will be consistent with his title and position. Executive
     will report directly to the Bank's President and Chief Executive Officer.
     The Bank's or GBCI's board of directors may, from time to time, modify
     Executive's performance responsibilities to accommodate management
     objectives of the Bank or of GBCI. Executive will assume any additional
     positions, duties, and responsibilities as may reasonably be requested of
     him with or without additional compensation, as appropriate and consistent
     with his title and position.

4.   EXTENT OF SERVICES. Executive will devote all of his working time,
     attention and skill to the duties and responsibilities referenced in
     Section 3. To the extent that such activities do not interfere with his
     duties under Section 3, Executive may participate in other businesses as a
     passive investor, but (a) Executive may not actively participate in the
     operation or management of those businesses, and (b) Executive may not,
     without the Bank's prior written consent, make or maintain any investment
     in a business with which the Bank and/or GBCI has an existing competitive
     or commercial relationship.

5.   SALARY. For the period beginning on the Effective Date and ending December
     31, 2006, Executive will continue to receive the annual salary that he is
     receiving from the Bank on the Effective Date. For the period beginning
     January 1, 2007 and ending December 31, 2007, Executive will receive an
     annual salary of $72,500. Executive's salary will be paid in accordance
     with the Bank's regular payroll schedule. Subsequent salary increases are
     subject to the Bank's annual review of Executive's compensation and
     performance.

6.   INCENTIVE COMPENSATION. On January 31, 2007, Executive will receive a bonus
     of $17,000, unless prior to such date Executive's employment has been
     terminated pursuant to Section 8(a) of this Agreement. Each year thereafter
     during the Term, the Bank's board of directors will determine the amount of
     bonus to be paid by the Bank to Executive for that year. In making this
     determination, the Bank's board of directors will consider factors such as
     Executive's performance of his duties and the safety, soundness and
     profitability of the Bank. Executive's bonus will reflect Executive's
     contribution to the performance of the Bank during the year. This bonus
     will be paid to Executive no later than January 31 of the year following
     the year in which the bonus is earned by Executive.

7.   VACATION AND BENEFITS.

     a.   Vacation and Holidays. Executive will receive four weeks of paid
          vacation each year. Executive's ability to carry over or accumulate
          vacation will be governed by the Bank's and/or GBCI's applicable
          policies.

     b.   Benefits. Executive will be entitled to participate in any group life
          insurance, disability, health and accident insurance plans, profit
          sharing plan and in other employee fringe benefit programs the Bank or
          GBCI may have in effect from time

                                       2

<PAGE>

          to time for its similarly situated employees, in accordance with and
          subject to any policies adopted by the Bank's or GBCI's board of
          directors with respect to the plans or programs, including without
          limitation, any incentive or employee stock option plan, deferred
          compensation plan and 401(k) plan. Neither the Bank nor GBCI through
          this Agreement obligates itself to make any particular benefits
          available to its employees.

     c.   Business Expenses. The Bank will reimburse Executive for ordinary and
          necessary expenses which are consistent with past practice at the Bank
          (including, without limitation, travel, entertainment, and similar
          expenses) and which are incurred in performing and promoting the
          Bank's business. Executive will present from time to time itemized
          accounts of these expenses, subject to any limits of Bank policy or
          the rules and regulations of the Internal Revenue Service.

8.   TERMINATION OF EMPLOYMENT.

     a.   Termination By Bank for Cause. If the Bank terminates Executive's
          employment for Cause (defined below) or Executive terminates his
          employment without Good Reason (defined below) before this Agreement
          terminates, the Bank will pay Executive the salary earned and expenses
          reimbursable under this Agreement incurred through the date of his
          termination. Executive will have no right to receive compensation or
          other benefits for any period after termination under this Section
          8(a).

     b.   Other Termination By Bank. If the Bank terminates Executive's
          employment without Cause before this Agreement terminates, or
          Executive terminates his employment for Good Reason, the Bank will pay
          Executive a lump sum payment equal to one times Executive's annual
          base salary at the time of termination.

     c.   Death or Disability. This Agreement terminates (1) if Executive dies
          or (2) if Executive is unable to perform his duties and obligations
          under this Agreement for a period of 90 consecutive days as a result
          of a physical or mental disability arising at any time during the term
          of this Agreement, unless with reasonable accommodation Executive
          could continue to perform his duties under this Agreement and making
          these accommodations would not pose an undue hardship on the Bank. If
          termination occurs under this Section 8(c), Executive or his estate
          will be entitled to receive all compensation and benefits earned and
          expenses reimbursable through the date Executive's employment
          terminated.

     d.   Return of Bank Property. If and when Executive ceases, for any reason,
          to be employed by the Bank, Executive must return to the Bank all
          keys, pass cards, identification cards and any other property of the
          Bank or GBCI. At the same time, Executive also must return to the Bank
          all originals and copies (whether in hard copy, electronic or other
          form) of any documents, drawings, notes, memoranda, designs, devices,
          diskettes, tapes, manuals, and specifications which constitute
          proprietary information or material of the Bank or GBCI. The

                                       3

<PAGE>

          obligations in this paragraph include the return of documents and
          other materials that may be in his desk at work, in his car, in place
          of residence, or in any other location under his control.

     e.   Cause. "Cause" means any one or more of the following:

          (1)  Willful misfeasance or gross negligence in the performance of
               Executive's duties;

          (2)  Conviction of a crime in connection with his duties; or

          (3)  Conduct demonstrably and significantly harmful to the Bank, as
               reasonably determined on the advice of legal counsel by the
               Bank's board of directors.

     f.   Good Reason. "Good Reason" means only any one or more of the
          following:

          (1)  Reduction of Executive's salary or reduction or elimination of
               any compensation or benefit plan benefiting Executive, unless the
               reduction or elimination is generally applicable to substantially
               all Bank employees (or employees of a successor or controlling
               entity of the Bank) formerly benefited;

          (2)  The assignment to Executive without his consent of any authority
               or duties materially inconsistent with Executive's position as of
               the date of this Agreement;

          (3)  A relocation or transfer of Executive's principal place of
               employment that would require Executive to commute on a regular
               basis more than sixty (60) miles each way from the Bank's present
               main office location.

9.   CONFIDENTIALITY. Executive will not, after the date this Agreement was
     signed, including during and after its Term, use for his own purposes or
     disclose to any other person or entity any confidential business
     information concerning the Bank or GBCI or their business operations,
     unless (1) the Bank or GBCI consents to the use or disclosure of their
     respective confidential information; (2) the use or disclosure is
     consistent with Executive's duties under this Agreement; (3) disclosure is
     required by law or court order; or (4) the information is made or otherwise
     becomes public. For purposes of this Agreement, confidential business
     information includes, without limitation, trade secrets (as defined under
     the Utah Trade Secrets Act, Section 13-24-2 of the Utah Statutes), various
     confidential information concerning all aspects of current and future
     operations, nonpublic information on investment management practices,
     marketing plans, pricing structure and technology of either the Bank or
     GBCI. Executive will also treat the terms of this Agreement as confidential
     business information.

                                       4

<PAGE>

10.  RESTRICTIVE COVENANTS.

     a.   Competitive Activities. During the period of his employment and, if
          Executive's employment with the Bank terminates pursuant to Section
          8(a) or 8(b) of this Agreement, then for one year after Executive's
          employment with the Bank has ended, Executive will not, directly or
          indirectly, as a shareholder, director, officer, employee, partner,
          agent, consultant, lessor, creditor or otherwise, provide management,
          supervisory or other similar services to any person or entity engaged
          in any business in Morgan, Weber and/or or Summit Counties, Utah,
          which is competitive with the business of the Bank or GBCI as
          conducted during the term of this Agreement or as conducted as of the
          date of termination of employment, including any preliminary steps
          associated with the formation of a new bank.

     b.   Non-Interference. During the period of his employment and, if
          Executive's employment with the Bank terminates pursuant to Section
          8(a) or 8(b) of this Agreement, then for one year after Executive's
          employment with the Bank has ended, Executive will not, directly or
          indirectly, persuade or entice, or attempt to persuade or entice, (i)
          any employee of the Bank or GBCI to terminate his/her employment with
          the Bank or GBCI, or (ii) any person or entity to terminate, cancel,
          rescind or revoke its business or contractual relationships with the
          Bank or GBCI.

11.  ENFORCEMENT.

     a.   The Bank and Executive stipulate that, in light of all of the facts
          and circumstances of the relationship between Executive and the Bank,
          the agreements referred to in Sections 9 and 10 (including without
          limitation their scope, duration and geographic extent) are fair and
          reasonably necessary for the protection of the Bank's and GBCI's
          confidential information, goodwill and other protectable interests. If
          a court of competent jurisdiction should decline to enforce any of
          those covenants and agreements, Executive and the Bank request the
          court to reform these provisions to restrict Executive's use of
          confidential information and Executive's ability to compete with the
          Bank and GBCI to the maximum extent, in time, scope of activities, and
          geography, the court finds enforceable.

     b.   Executive acknowledges the Bank and GBCI will suffer immediate and
          irreparable harm that will not be compensable by damages alone if
          Executive repudiates or breaches any of the provisions of Sections 9
          or 10 or threatens or attempts to do so. For this reason, under these
          circumstances, the Bank, in addition to and without limitation of any
          other rights, remedies or damages available to it at law or in equity,
          will be entitled to obtain temporary, preliminary and permanent
          injunctions in order to prevent or restrain the breach, and the Bank
          will not be required to post a bond as a condition for the granting of
          this relief.

12.  COVENANTS. Executive specifically acknowledges the receipt of adequate
     consideration for the covenants contained in Sections 9 and 10 and that the
     Bank is entitled to require

                                       5

<PAGE>

     him to comply with these Sections. These Sections will survive termination
     of this Agreement. Executive represents that if his employment is
     terminated, whether voluntarily or involuntarily, Executive has experience
     and capabilities sufficient to enable Executive to obtain employment in
     areas which do not violate this Agreement and that the Bank's enforcement
     of a remedy by way of injunction will not prevent Executive from earning a
     livelihood.

13.  ARBITRATION.

     a.   Arbitration. At either party's request, the parties must submit any
          dispute, controversy or claim arising out of or in connection with, or
          relating to, this Agreement or any breach or alleged breach of this
          Agreement, to arbitration under the American Arbitration Association's
          rules then in effect (or under any other form of arbitration mutually
          acceptable to the parties). A single arbitrator agreed on by the
          parties will conduct the arbitration. If the parties cannot agree on a
          single arbitrator, each party must select one arbitrator and those two
          arbitrators will select a third arbitrator. This third arbitrator will
          hear the dispute. The arbitrator's decision is final (except as
          otherwise specifically provided by law) and binds the parties, and
          either party may request any court having jurisdiction to enter a
          judgment and to enforce the arbitrator's decision. The arbitrator will
          provide the parties with a written decision naming the substantially
          prevailing party in the action. This prevailing party is entitled to
          reimbursement from the other party for its costs and expenses,
          including reasonable attorneys' fees.

     b.   Governing Law. All proceedings will be held at a place designated by
          the arbitrator in Salt Lake County, Utah. The arbitrator, in rendering
          a decision as to any state law claims, will apply Utah law.

     c.   Exception to Arbitration. Notwithstanding the above, if Executive
          violates Section 9 or 10, the Bank will have the right to initiate the
          court proceedings described in Section 11(b), in lieu of an
          arbitration proceeding under this Section 13.

14.  MISCELLANEOUS PROVISIONS.

     a.   Entire Agreement. This Agreement constitutes the entire understanding
          and agreement between the parties concerning its subject matter and
          supersedes all prior agreements, correspondence, representations, or
          understandings between the parties relating to its subject matter.

     b.   Binding Effect. This Agreement will bind and inure to the benefit of
          the Bank's, GBCI's and Executive's heirs, legal representatives,
          successors and assigns.

     c.   Litigation Expenses. If either party successfully seeks to enforce any
          provision of this Agreement or to collect any amount claimed to be due
          under it, this party will be entitled to reimbursement from the other
          party for any and all of its out-of-

                                       6

<PAGE>

          pocket expenses and costs including, without limitation, reasonable
          attorneys' fees and costs incurred in connection with the enforcement
          or collection.

     d.   Waiver. Any waiver by a party of its rights under this Agreement must
          be written and signed by the party waiving its rights. A party's
          waiver of the other party's breach of any provision of this Agreement
          will not operate as a waiver of any other breach by the breaching
          party.

     e.   Assignment. The services to be rendered by Executive under this
          Agreement are unique and personal. Accordingly, Executive may not
          assign any of his rights or duties under this Agreement.

     f.   Amendment. This Agreement may be modified only through a written
          instrument signed by both parties.

     g.   Severability. The provisions of this Agreement are severable. The
          invalidity of any provision will not affect the validity of other
          provisions of this Agreement.

     h.   Governing Law and Venue. This Agreement will be governed by and
          construed in accordance with Utah law, except to the extent that
          certain regulatory matters may be governed by federal law. The parties
          must bring any legal proceeding arising out of this Agreement in
          Morgan County, Utah.

     i.   Counterparts. This Agreement may be executed in one or more
          counterparts, each of which will be deemed an original, but all of
          which taken together will constitute one and the same document.

     j.   Counsel Review. Executive acknowledges that he has had the opportunity
          to consult with independent counsel with respect to the negotiation,
          preparation, and execution of this Agreement.

     k.   IRC Section 409A. The provisions of this Agreement are intended to
          comply with Section 409A of the U.S. Internal Code of 1986, as
          amended, U.S. Treasury regulations issued thereunder, and related U.S.
          Internal Revenue Service guidance ("409A Rules"). Such provisions will
          be interpreted and applied in a manner consistent with the 409A Rules
          so that payments and benefits provided to Executive hereunder will
          not, to the greatest extent possible, be subject to taxation under
          such Section 409A. Notwithstanding any contrary provisions hereof,
          this Agreement may be amended if and to the extent GBCI and/or the
          Bank determines that such amendment is necessary to comply with the
          409A Rules.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       7

<PAGE>

This Employment Agreement is executed as of May 31, 2006.

                                        FIRST NATIONAL BANK OF MORGAN:

                                        By /s/ Stanton R. Nielsen
                                           -------------------------------------
                                           Stanton R. Nielsen
                                        Its: President & Chief Executive Officer

                                        EXECUTIVE:

                                        /s/ David R. Alexander
                                        ----------------------------------------
                                        David R. Alexander

Ratified as of May 31, 2006:

                                        GLACIER BANCORP, INC.

                                        By /s/ Michael J. Blodnick
                                           -------------------------------------
                                           Michael J. Blodnick
                                        Its: President & Chief Executive Officer

                                       8exv4w1

 

 

Exhibit 4.1

STONE ENERGY CORPORATION

Senior Floating Rate Notes due 2010

 

INDENTURE

Dated as of June 28, 2006

 

JPMorgan Chase Bank, National Association

Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	
ARTICLE 1
	 
	Definitions and Incorporation by Reference
	 
	 	 	 	 
	SECTION
1.01   Definitions
	 	 	1	 
	SECTION
1.02   Other Definitions
	 	 	23	 
	SECTION 1.03
  Incorporation by Reference of Trust Indenture Act
	 	 	23	 
	SECTION
1.04   Rules of Construction
	 	 	24	 
	SECTION 1.05
  Acts of Holders
	 	 	24	 
	SECTION
1.06   Separability Clause
	 	 	26	 
	SECTION
1.07   Independence of Covenants
	 	 	26	 
	SECTION
1.08   Designated Senior Indebtedness
	 	 	26	 
	 
	 	 	 	 
	
ARTICLE 2
	 
	The Securities
	 
	 	 	 	 
	SECTION 2.01
  Amount of Securities; Issuable in Series
	 	 	26	 
	SECTION
2.02   Form and Dating
	 	 	27	 
	SECTION
2.03   Execution and Authentication
	 	 	28	 
	SECTION
2.04   Registrar and Paying Agent
	 	 	28	 
	SECTION
2.05   Paying Agent To Hold Money in Trust
	 	 	28	 
	SECTION 2.06
  Securityholder Lists
	 	 	29	 
	SECTION
2.07   Replacement Securities
	 	 	29	 
	SECTION 2.08
  Outstanding Securities
	 	 	29	 
	SECTION
2.09   Temporary Securities
	 	 	30	 
	SECTION
 2.10  Cancellation
	 	 	30	 
	SECTION
2.11   Defaulted Interest
	 	 	30	 
	SECTION
2.12   CUSIP Numbers
	 	 	30	 
	SECTION 2.13
  Issuance of Additional Securities
	 	 	30	 
	 
	 	 	 	 
	
ARTICLE 3
	 
	Redemption
	 
	 	 	 	 
	SECTION
3.01   Notices to Trustee
	 	 	31	 
	SECTION 3.02
  Selection of Securities To Be Redeemed
	 	 	31	 
	SECTION
3.03   Notice of Redemption
	 	 	31	 
	SECTION
3.04   Effect of Notice of Redemption
	 	 	32	 
	SECTION
3.05   Deposit of Redemption Price
	 	 	32	 
	SECTION
3.06   Securities Redeemed in Part
	 	 	33	 
	SECTION
3.07   Mandatory Redemption
	 	 	33	 

 

 

	 	 	 	 	 
	
ARTICLE 4
	 
	Covenants
	 
	 	 	 	 
	SECTION
4.01   Payment of Securities
	 	 	33	 
	SECTION 4.02
  SEC Reports
	 	 	33	 
	SECTION
4.03   Limitation on Indebtedness
	 	 	34	 
	SECTION
4.04   Limitation on Restricted Payments
	 	 	34	 
	SECTION
4.05   Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	38	 
	SECTION
4.06   Limitation on Asset Sales
	 	 	38	 
	SECTION
4.07   Limitation on Transactions with Affiliates
	 	 	41	 
	SECTION
4.08   [Intentionally Omitted]
	 	 	42	 
	SECTION 4.09
  [Intentionally Omitted]
	 	 	42	 
	SECTION
4.10   Limitation on Liens
	 	 	42	 
	SECTION
4.11   Compliance Certificate
	 	 	42	 
	SECTION
4.12   Further Instruments and Acts
	 	 	42	 
	SECTION
4.13   Future Subsidiary Guarantors
	 	 	43	 
	SECTION 4.14
  [Intentionally Omitted]
	 	 	43	 
	SECTION
4.15   Restricted and Unrestricted Subsidiaries
	 	 	43	 
	SECTION
4.16   Suspension of Certain Covenants
	 	 	44	 
	 
	 	 	 	 
	
ARTICLE 5
	 
	Successor Company
	 
	 	 	 	 
	SECTION
5.01   When Company May Merge or Transfer Assets
	 	 	44	 
	SECTION
5.02   When a Subsidiary Guarantor May Merge or Transfer Assets
	 	 	45	 
	 
	 	 	 	 
	
ARTICLE 6
	 
	Defaults and Remedies
	 
	 	 	 	 
	SECTION 6.01
  Events of Default
	 	 	45	 
	SECTION
6.02   Acceleration
	 	 	47	 
	SECTION 6.03
  Other Remedies
	 	 	47	 
	SECTION
6.04   Waiver of Past Defaults
	 	 	48	 
	SECTION
6.05   Control by Majority
	 	 	48	 
	SECTION
6.06   Limitation on Suits
	 	 	48	 
	SECTION 6.07
  Rights of Holders To Receive Payment
	 	 	49	 
	SECTION 6.08
  Collection Suit by Trustee
	 	 	49	 
	SECTION
6.09   Trustee May File Proofs of Claim
	 	 	49	 
	SECTION 6.10
  Priorities
	 	 	49	 
	SECTION
6.11   Undertaking for Costs
	 	 	49	 
	SECTION 6.12
  Stay, Extension and Usury Laws
	 	 	50	 

 

 

	 	 	 	 	 
	
ARTICLE 7
	 
	Trustee
	 
	 	 	 	 
	SECTION
7.01   Duties of Trustee
	 	 	50	 
	SECTION
7.02   Rights of Trustee
	 	 	51	 
	SECTION
7.03   Individual Rights of Trustee
	 	 	51	 
	SECTION 7.04
  Trustee’s Disclaimer
	 	 	51	 
	SECTION
7.05   Notice of Defaults
	 	 	52	 
	SECTION
7.06   Reports by Trustee to Holders
	 	 	52	 
	SECTION
7.07   Compensation and Indemnity
	 	 	52	 
	SECTION
7.08   Replacement of Trustee
	 	 	53	 
	SECTION
7.09   Successor Trustee by Merger
	 	 	54	 
	SECTION
7.10   Eligibility; Disqualification
	 	 	54	 
	SECTION
7.11   Preferential Collection of Claims Against Company
	 	 	54	 
	 
	 	 	 	 
	
ARTICLE 8
	 
	Discharge of Indenture; Defeasance
	 
	 	 	 	 
	SECTION
8.01   Discharge of Liability on Securities; Defeasance
	 	 	54	 
	SECTION
8.02   Conditions to Defeasance
	 	 	55	 
	SECTION
8.03   Application of Trust Money
	 	 	56	 
	SECTION
8.04   Repayment to Company
	 	 	56	 
	SECTION
8.05   Indemnity for Government Obligations
	 	 	57	 
	SECTION
8.06   Reinstatement
	 	 	57	 
	 
	 	 	 	 
	
ARTICLE 9
	 
	Amendments
	 
	 	 	 	 
	SECTION
9.01   Without Consent of Holders
	 	 	57	 
	SECTION
9.02   With Consent of Holders
	 	 	58	 
	SECTION
9.03   Compliance with Trust Indenture Act
	 	 	59	 
	SECTION
9.04   Revocation and Effect of Consents and Waivers
	 	 	59	 
	SECTION
9.05   Notation on or Exchange of Securities
	 	 	59	 
	SECTION
9.06   Trustee To Sign Amendments
	 	 	59	 
	SECTION 9.07
  Payment for Consent
	 	 	60	 

 

 

	 	 	 	 	 
	
ARTICLE 10
	 
	[Intentionally Omitted]
	 
	 	 	 	 
	
ARTICLE 11
	 
	Subsidiary Guaranties
	 
	 	 	 	 
	SECTION
11.01   Guaranties
	 	 	60	 
	SECTION
11.02   Contribution
	 	 	62	 
	SECTION
11.03   Successors and Assigns
	 	 	62	 
	SECTION
11.04   No Waiver
	 	 	62	 
	SECTION
11.05   Modification
	 	 	62	 
	SECTION
11.06   Execution of Supplemental Indenture for Future Subsidiary Guarantors
	 	 	62	 
	 
	 	 	 	 
	
ARTICLE 12
	 
	[Intentionally Omitted]
	 
	 	 	 	 
	
ARTICLE 13
	 
	Satisfaction and Discharge
	 
	 	 	 	 
	SECTION
13.01   Satisfaction and Discharge
	 	 	63	 
	SECTION
13.02   Application of Trust Money
	 	 	64	 
	 
	 	 	 	 
	
ARTICLE 14
	 
	Miscellaneous
	 
	 	 	 	 
	SECTION
14.01   Trust Indenture Act Controls
	 	 	65	 
	SECTION
14.02   Notices
	 	 	65	 
	SECTION
14.03   Communication by Holders with Other Holders
	 	 	66	 
	SECTION
14.04   Certificate and Opinion as to Conditions Precedent
	 	 	66	 
	SECTION
14.05   Statements Required in Certificate or Opinion
	 	 	67	 
	SECTION
14.06   When Securities Disregarded
	 	 	67	 
	SECTION
14.07   Rules by Trustee, Paying Agent and Registrar
	 	 	67	 
	SECTION
14.08   Legal Holidays
	 	 	67	 
	SECTION
14.09   Governing Law
	 	 	67	 
	SECTION
14.10   No Recourse Against Others
	 	 	67	 
	SECTION
14.11   Successors
	 	 	68	 
	SECTION
14.12   Multiple Originals
	 	 	68	 
	SECTION
14.13   Table of Contents; Headings
	 	 	68	 
	 
	 	 	 	 
	APPENDIX A            Provisions Relating to Initial Securities and Exchange Securities
	 	 	 	 

 

 

	 	 	 
	EXHIBIT 1 to
APPENDIX A

	 	Form of Initial Security
	EXHIBIT A

	 	Form of Exchange Security
	EXHIBIT B

	 	Form of Supplemental Indenture

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	TIA	 	Indenture	 
	Section	 	Section	 
	310(a)(1)
	 	 	7.10	 
	(a)(2)
	 	 	7.10	 
	(a)(3)
	 	 	N.A.	 
	(a)(4)
	 	 	N.A.	 
	(b)
	 	 	7.08; 7.10	 
	(c)
	 	 	N.A.	 
	311(a)
	 	 	7.11	 
	(b)
	 	 	7.11	 
	(c)
	 	 	N.A.	 
	312(a)
	 	 	2.06	 
	(b)
	 	 	14.03	 
	(c)
	 	 	14.03	 
	313(a)
	 	 	7.06	 
	(b)(1)
	 	 	N.A.	 
	(b)(2)
	 	 	7.06	 
	(c)
	 	 	14.02	 
	(d)
	 	 	7.06	 
	314(a)
	 	 	4.02; 4.11; 14.02	 
	(b)
	 	 	N.A.	 
	(c)(1)
	 	 	14.04	 
	(c)(2)
	 	 	14.04	 
	(c)(3)
	 	 	N.A.	 
	(d)
	 	 	N.A.	 
	(e)
	 	 	14.05	 
	(f)
	 	 	4.11	 
	315(a)
	 	 	7.01	 
	(b)
	 	 	7.05; 14.02	 
	(c)
	 	 	7.01	 
	(d)
	 	 	7.01	 
	(e)
	 	 	6.11	 
	316(a) (last sentence)
	 	 	14.06	 
	(a)(1)(A)
	 	 	6.05	 
	(a)(1)(B)
	 	 	6.04	 
	(a)(2)
	 	 	N.A.	 
	(b)
	 	 	6.07	 
	317(a)(1)
	 	 	6.08	 
	(a)(2)
	 	 	6.09	 
	(b)
	 	 	2.05	 
	318(a)
	 	 	14.01	 

(i)

 

     N.A. means Not Applicable.

 

			
	Note:	 	This Cross-Reference Table shall not, for any purposes, be deemed to be part of this
Indenture.

(ii)

 

INDENTURE dated as of June 28, 2006, between STONE

ENERGY CORPORATION, a Delaware corporation (the “Company”),

and JPMorgan Chase Bank, National Association, 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 Senior Floating Rate Notes due 2010, to be issued, from
time to time, in one or more series as in this Indenture provided (the “Initial Securities”) and,
if and when issued pursuant to a registered or private exchange for the Initial Securities, the
Company’s Senior Floating Rate Notes due 2010 (the “Exchange Securities” and, together with the
Initial Securities, the “Securities”):

ARTICLE 1

Definitions and Incorporation by Reference

          SECTION 1.01 Definitions.

          “Additional Assets” means (i) any Property (other than cash, Permitted Short-Term
Investments or securities) used in the Oil and Gas Business or any business ancillary thereto, (ii)
Investments in any other Person engaged in the Oil and Gas Business or any business ancillary
thereto (including the acquisition from third parties of Capital Stock of such Person) as a result
of which such other Person becomes a Restricted Subsidiary in compliance with Section 4.15, (iii)
the acquisition from third parties of Capital Stock of a Restricted Subsidiary or (iv) Permitted
Business Investments.

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

     (i) the sum of (a) discounted future net revenues from proved oil and gas reserves of
the Company and its Restricted Subsidiaries calculated in accordance with Commission
guidelines before any state, federal or foreign income taxes, as estimated by the Company
and confirmed by a reputable firm of independent petroleum engineers 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 (1) estimated proved oil
and gas reserves acquired since such year-end, which reserves were not reflected in such
year-end reserve report, and (2) 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 or exploitation activities, in each case calculated in accordance
with Commission guidelines (utilizing the prices utilized in such year-end reserve report),
and decreased by, as of the date of determination, the estimated discounted future net
revenues from (3) estimated proved oil and gas reserves produced or disposed of since such
year-end and (4) estimated oil and gas reserves attributable to downward revisions of
estimates of proved oil and gas reserves since such year-end due to changes in geological
conditions or other factors which would, in accordance with standard industry practice,
cause such revisions, in each case calculated in accordance with Commission

 

 

guidelines (utilizing the prices utilized in such year-end reserve report);
provided that, in the case of each of the determinations made pursuant to clauses
(1) through (4), such increases and decreases shall be as estimated by the Company’s
petroleum engineers, (b) 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 financial statements, (c) the Net
Working Capital on a date no earlier than the date of the Company’s latest annual or
quarterly financial statements and (d) the greater of (1) the net book value on a date no
earlier than the date of the Company’s latest annual or quarterly financial statements and
(2) the Fair Market Value, as estimated by the Company, of other tangible assets (including,
without duplication, Investments in unconsolidated Restricted Subsidiaries) of the Company
and its Restricted Subsidiaries, as of the date no earlier than the date of the Company’s
latest audited financial statements, minus

     (ii) the sum of (a) minority interests, (b) any net gas balancing liabilities of the
Company and its Restricted Subsidiaries reflected in the Company’s latest audited financial
statements, (c) to the extent included in (i)(a) above, the discounted future net revenues,
calculated in accordance with Commission 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 (d) the discounted
future net revenues, calculated in accordance with Commission guidelines, attributable to
reserves subject to Dollar-Denominated Production Payments which, based on the estimates of
production and price assumptions included in determining the discounted future net revenues
specified in (i)(a) 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 to the successful
efforts method or a similar method of accounting, “Adjusted Consolidated Net Tangible
Assets” shall 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 (i) which directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person or (ii) which beneficially owns or holds directly or indirectly
10% or more of any class of the Voting Stock of such specified Person or of any Subsidiary of such
specified Person. For the purposes of this definition, “control,” when used with respect to any
specified Person, means the power to direct the management and policies of such Person directly or
indirectly, whether through the ownership of Voting Stock, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

          “Applicable Margin” means, an amount per annum equal to 2.75%. The Applicable Margin will
increase by 1% on July 15, 2007.

2

 

          “Asset Sale” means, with respect to any Person, any transfer, conveyance, sale, lease
or other disposition (collectively, “dispositions,” and including dispositions pursuant to any
consolidation or merger) by such Person in any single transaction or series of transactions of (i)
shares of Capital Stock or other ownership interests of another Person (including Capital Stock of
Restricted Subsidiaries and Unrestricted Subsidiaries) or (ii) any other Property of such Person;
provided, however, that the term “Asset Sale” shall not include: (a) the
disposition of Permitted Short-Term Investments, inventory, accounts receivable, surplus or
obsolete equipment or other Property (excluding the disposition of oil and gas in place and other
interests in real property unless made in connection with a Permitted Business Investment) in the
ordinary course of business; (b) the abandonment, assignment, lease, sublease or farmout of oil and
gas properties, or the forfeiture or other disposition of such properties pursuant to standard form
operating agreements, in each case in the ordinary course of business in a manner that is customary
in the Oil and Gas Business; (c) the disposition of Property received in settlement of debts owing
to such Person as a result of foreclosure, perfection or enforcement of any Lien or debt, which
debts were owing to such Person in the ordinary course of its business; (d) any disposition that
constitutes a Restricted Payment made in compliance with Section 4.04; (e) when used with respect
to the Company, a Restricted Subsidiary or a Subsidiary Guarantor, any disposition of all or
substantially all of the Property of the Company, such Restricted Subsidiary or such Subsidiary
Guarantor permitted pursuant to Article 5; (f) the disposition of any Property by such Person to
the Company or a Restricted Subsidiary; (g) the disposition of any asset with a Fair Market Value
of less than $2,000,000; or (h) any Production Payments and Reserve Sales, provided that
any such Production Payments and Reserve Sales, other than incentive compensation programs on terms
that are reasonably customary in the Oil and Gas Business for geologists, geophysicists and other
providers of technical services to the Company or a Restricted Subsidiary, shall have been created,
Incurred, issued, assumed or Guaranteed in connection with the financing of, and within 60 days
after the acquisition of, the Property that is subject thereto.

          “Average Life” means, with respect to any Indebtedness, at any date of determination,
the quotient obtained by dividing (i) the sum of the products of (a) the number of years (and any
portion thereof) from the date of determination to the date or dates of each successive scheduled
principal payment (including any sinking fund or mandatory redemption payment requirements) of such
Indebtedness multiplied by (b) the amount of each such principal payment by (ii) the sum of all
such principal payments.

          “Bank Credit Facilities” means, with respect to any Person, one or more debt
facilities or commercial paper facilities, indentures or other debt agreements with banks or other
lenders (including pursuant to the $500,000,000 Credit Agreement, dated as of April 30, 2004, among
the Company, Bank of America, N.A., as agent, and the lenders referred to therein) 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 trade letters of credit, together with any full or partial extensions,
revisions, restatements, refinancings (including by means of sales of debt securities to
institutional investors or others) or replacements thereof (whether or not such added or
substituted parties are banks or other institutions, including any facility, indenture or agreement
that increases the amount borrowable thereunder, alters the maturity thereof, or alters, changes,
deletes or adds lenders, investors or institutional investors).

3

 

          “Board of Directors” means the Board of Directors of the Company or any committee
thereof duly authorized to act on behalf of such Board.

          “Business Day” means each day which is not a Legal Holiday.

          “Capital Lease Obligation” means any obligation which is required to be classified and
accounted for as a capital lease obligation in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such obligation determined in
accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment date of
rent or any other amount due in respect of such obligation.

          “Capital Stock” in any Person means any and all shares, interests, participations or
other equivalents in the equity interest (however designated) in such Person and any rights,
warrants or options to subscribe for or to acquire an equity interest in such Person, including any
Preferred Stock and limited liability or partnership interests (whether general or limited), but
excluding any debt securities convertible into an equity interest; provided,
however, that “Capital Stock” shall not include Redeemable Stock.

          “Change of Control” means the occurrence of any of the following events:

     (i) any “person” or “group” (within the meaning of Sections 13(d)(3) and 14(d)(2) of
the Exchange Act or any successor provision to either of the foregoing, including any group
acting for the purpose of acquiring, holding or disposing of securities within the meaning
of Rule 13d-5(b)(1) under the Exchange Act), other than one or more Permitted Holders,
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that a Person shall be deemed to have “beneficial ownership” of all shares that any
such Person has the right to acquire, whether such right is exercisable immediately or only
after the passage of time) of more than 35 percent of the total voting power of all classes
of the Voting Stock of the Company or currently exercisable warrants or options to acquire
such Voting Stock;

     (ii) the sale, lease, conveyance or transfer of all or substantially all the assets of
the Company and the Restricted Subsidiaries taken as a whole (other than to any Wholly Owned
Subsidiary) shall have occurred;

     (iii) the shareholders of the Company shall have approved any plan of liquidation or
dissolution of the Company;

     (iv) the Company consolidates with or merges into another Person (other than one or
more Permitted Holders) or any Person (other than one or more Permitted Holders)
consolidates with or merges into the Company in any such event pursuant to a transaction in
which the outstanding Voting Stock of the Company is reclassified into or exchanged for
cash, securities or other property, other than any such transaction where (a) the
outstanding Voting Stock of the Company is reclassified into or exchanged for Voting Stock
of the surviving corporation that is Capital Stock, (b) the holders of the Voting Stock of
the Company immediately prior to such transaction own, directly or indirectly, not less than
66 2/3% of the Voting Stock of the surviving corporation immediately after such transaction
in substantially the same proportion as before the

4

 

transaction and (c) within 25 days after the closing of any such transaction both
Moody’s and S&P shall have expressly affirmed credit ratings for the Securities (after
giving effect to such transaction) that are as high or higher than the highest such ratings
for the Securities given by such services, respectively, at any time during the 90 days
immediately prior to the public announcement of such transaction and such expressly affirmed
ratings are at least “Ba3” from Moody’s and “BB” from S&P;

     (v) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors (together with any new directors whose
election or appointment by the Board of Directors or whose nomination for election by the
shareholders of the Company was approved by a vote of a majority of the directors then still
in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors then in office; or

     (vi) the Merger.

          “Clearstream” means Clearstream Banking, societe anonyme (or any successor securities
clearing agency).

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

          “Company” means the party named as such in this Indenture until a successor replaces
it pursuant to the applicable provisions hereof and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other obligor on the
indenture securities.

          “Consolidated Interest Coverage Ratio” means, as of the date of the transaction giving
rise to the need to calculate the Consolidated Interest Coverage Ratio (the “Transaction Date”),
the ratio of (i) the aggregate amount of EBITDA of the Company and its consolidated Restricted
Subsidiaries for the four full fiscal quarters immediately prior to the Transaction Date for which
financial statements are available to (ii) the aggregate Consolidated Interest Expense of the
Company and its Restricted Subsidiaries that is anticipated to accrue during a period consisting of
the fiscal quarter in which the Transaction Date occurs and the three fiscal quarters immediately
subsequent thereto (based upon the pro forma amount and maturity of, and interest payments in
respect of, Indebtedness of the Company and its Restricted Subsidiaries expected by the Company to
be outstanding on the Transaction Date), assuming for the purposes of this measurement the
continuation of market interest rates prevailing on the Transaction Date and base interest rates in
respect of floating interest rate obligations equal to the base interest rates on such obligations
in effect as of the Transaction Date; provided, that if the Company or any of its
Restricted Subsidiaries is a party to any Interest Rate Protection Agreement which would have the
effect of changing the interest rate on any Indebtedness of the Company or any of its Restricted
Subsidiaries for such four quarter period (or a portion thereof), the resulting rate shall be used
for such four quarter period or portion thereof; provided further that any
Consolidated Interest Expense with respect to Indebtedness Incurred or retired by the Company or
any of its Restricted Subsidiaries during the fiscal quarter in which the Transaction Date occurs
shall be

5

 

calculated as if such Indebtedness was so Incurred or retired on the first day of the fiscal
quarter in which the Transaction Date occurs. In addition, if since the beginning of the four full
fiscal quarter period preceding the Transaction Date, (a) the Company or any of its Restricted
Subsidiaries shall have engaged in any Asset Sale, EBITDA for such period shall be reduced by an
amount equal to the EBITDA (if positive), or increased by an amount equal to the EBITDA (if
negative), directly attributable to the assets which are the subject of such Asset Sale for such
period calculated on a pro forma basis as if such Asset Sale and any related retirement of
Indebtedness had occurred on the first day of such period or (b) the Company or any of its
Restricted Subsidiaries shall have acquired any material assets, EBITDA shall be calculated on a
pro forma basis as if such asset acquisitions had occurred on the first day of such four fiscal
quarter period.

          “Consolidated Interest Expense” means, with respect to any Person for any period,
without duplication, (i) the sum of (a) the aggregate amount of cash and noncash interest expense
(including capitalized interest) of such Person and its Restricted Subsidiaries for such period as
determined on a consolidated basis in accordance with GAAP in respect of Indebtedness (including
(1) any amortization of debt discount, (2) net cash costs associated with Interest Rate Protection
Agreements (including any amortization of discounts), (3) the interest portion of any deferred
payment obligation, (4) all accrued interest and (5) all commissions, discounts, commitment fees,
origination fees and other fees and charges owed with respect to the Bank Credit Facilities and
other Indebtedness) paid, accrued or scheduled to be paid or accrued during such period; (b)
Redeemable Stock dividends of such Person (and of its Restricted Subsidiaries if paid to a Person
other than such Person or its Restricted Subsidiaries) and Preferred Stock dividends of such
Person’s Restricted Subsidiaries if paid to a Person other than such Person or its other Restricted
Subsidiaries; (c) the portion of any rental obligation of such Person or its Restricted
Subsidiaries in respect of any Capital Lease Obligation allocable to interest expense in accordance
with GAAP; (d) the portion of any rental obligation of such Person or its Restricted Subsidiaries
in respect of any Sale and Leaseback Transaction that is Indebtedness allocable to interest expense
(determined as if such obligation were treated as a Capital Lease Obligation); and (e) to the
extent any Indebtedness of any other Person (other than Restricted Subsidiaries) is Guaranteed by
such Person or any of its Restricted Subsidiaries, the aggregate amount of interest paid, accrued
or scheduled to be paid or accrued by such other Person during such period attributable to any such
Indebtedness; less (ii) to the extent included in (i) above, amortization or write-off of deferred
financing costs of such Person and its Restricted Subsidiaries during such period; in the case of
both (i) and (ii) above, after elimination of intercompany accounts among such Person and its
Restricted Subsidiaries and as determined in accordance with GAAP.

          “Consolidated Net Income” of any Person means, for any period, the aggregate net
income (or net loss, as the case may be) of such Person and its Restricted Subsidiaries for such
period on a consolidated basis, determined in accordance with GAAP; provided that there
shall be excluded therefrom, without duplication: (i) items classified as extraordinary gains or
losses net of taxes (less all fees and expenses relating thereto); (ii) any gain or loss net of
taxes (less all fees and expenses relating thereto) realized on the sale or other disposition of
Property, including the Capital Stock of any other Person (but in no event shall this clause (ii)
apply to any gains or losses on the sale in the ordinary course of business of oil, gas or other
hydrocarbons produced or manufactured); (iii) the net income of any Restricted Subsidiary of such
specified

6

 

Person to the extent the transfer to that Person of that income is restricted by contract or
otherwise, except for any cash dividends or cash distributions actually paid by such Restricted
Subsidiary to such Person during such period; (iv) the net income (or loss) of any other Person in
which such specified Person or any of its Restricted Subsidiaries has an interest (which interest
does not cause the net income of such other Person to be consolidated with the net income of such
specified Person in accordance with GAAP or is an interest in a consolidated Unrestricted
Subsidiary), except to the extent of the amount of cash dividends or other cash distributions
actually paid to such Person or its consolidated Restricted Subsidiaries by such other Person
during such period; (v) for the purposes of Section 4.04 only, the net income of any Person
acquired by such specified Person or any of its Restricted Subsidiaries in a pooling-of-interests
transaction for any period prior to the date of such acquisition; (vi) any gain or loss, net of
taxes, realized on the termination of any employee pension benefit plan; (vii) any adjustments of a
deferred tax liability or asset pursuant to Statement of Financial Accounting Standards No. 109
which result from changes in enacted tax laws or rates; (viii) the cumulative effect of a change in
accounting principles; (ix) any write-downs of noncurrent assets, provided that any ceiling
limitation write-downs under Commission guidelines shall be treated as capitalized costs, as if
such write-downs had not occurred; (x) any noncash compensation expense realized for grants of
performance shares, stock options or stock awards to officers, directors and employees of such
specified Person or any of its Restricted Subsidiaries; (xi) any non-cash gains or losses related
to Exchange Rate Contracts and Oil and Gas Hedging Contracts, net of taxes; (xii) any unrealized
losses and gains under derivative instruments included in the determination of Consolidated Net
Income, including, without limitation those resulting from the application of Statement of
Financial Accounting Standards No. 133; (xiii) any net after-tax gain or loss arising from the
early extinguishment of any Indebtedness, including the amortization or write-off of debt issuance
costs or debt discount; and (xiv) any expenses related to a write-up required or permitted by
Accounting Principles Board Opinions Nos. 16 with respect to any acquisition transaction (to the
extent not otherwise included in (ix) above).

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

          “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 of the Company that was formed
under the laws of the United States or any state of the United States or the District of Columbia.

          “EBITDA” means, with respect to any Person for any period, the Consolidated Net Income
of such Person for such period, plus (i) the sum of, to the extent reflected in the consolidated
income statement of such Person and its Restricted Subsidiaries for such period from which
Consolidated Net Income is determined and deducted in the determination of such Consolidated Net
Income, without duplication: (a) income tax expense (but excluding income tax expense relating to
sales or other dispositions of Property, including the Capital Stock of any other Person, the gains
from which are excluded in the determination of such Consolidated Net Income), (b) Consolidated
Interest Expense, (c) depreciation and depletion expense, (d)

7

 

amortization expense, (e) exploration expense (if applicable), (f) any non-recurring charges
relating to any premium or penalty paid, write-off of deferred financing costs or other financial
recapitalization charges in connection with redeeming or retiring any Indebtedness prior to its
Stated Maturity to the extent such charges were deducted in computing such Consolidated Net Income,
and (g) any other noncash charges including unrealized foreign exchange (excluding, however, any
such other noncash charge which requires an accrual of or reserve for cash charges for any future
period) less (ii) the sum of, to the extent reflected in the consolidated income statement of such
Person and its Restricted Subsidiaries for such period from which Consolidated Net Income is
determined and added in the determination of such Consolidated Net Income, without duplication (a)
income tax recovery (excluding, however, income tax recovery relating to sales or other
dispositions of Property, including the Capital Stock of any other Person, the losses from which
are excluded in the determination of such Consolidated Net Income) and (b) unrealized foreign
exchange gains.

          “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear Clearance
System (or any successor securities clearing agency).

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

          “Exchanged Properties” means properties or assets or Capital Stock representing an
equity interest in properties or assets used or useful in the Oil and Gas Business received by the
Company or a Restricted Subsidiary in a substantially concurrent purchase and sale, trade or
exchange as a portion of the total consideration for other such properties or assets.

          “Exchange Rate Contract” means, with respect to any Person, any currency swap
agreements, forward exchange rate agreements, foreign currency futures or options, exchange rate
collar agreements, exchange rate insurance and other agreements or arrangements, or any combination
thereof, entered into by such Person in the ordinary course of its business for the purpose of
limiting or managing exchange rate risks to which such Person is subject.

          “Existing Notes” mean the Company’s 8 1/4 % senior subordinated notes and 6 3/4 % senior
subordinated notes.

          “Fair Market Value” means, with respect to any assets to be transferred pursuant to
any Asset Sale or Sale and Leaseback Transaction or any noncash consideration or property
transferred or received by any Person, the fair market value of such consideration or other
property as determined by (i) any officer of the Company if such fair market value is less than
$25,000,000 and (ii) the Board of Directors of the Company as evidenced by a certified resolution
delivered to the Trustee if such fair market value is equal to or in excess of $25,000,000.

          “Fall Away Event” means the Securities shall have achieved Investment-Grade status and
the Company delivers to the Trustee an Officers’ Certificate certifying that the foregoing
condition has been satisfied.

          “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is not a
Domestic Subsidiary.

8

 

          “GAAP” means United States generally accepted accounting principles as in effect on
December 10, 2001, unless stated otherwise.

          “Guarantee” by any Person means any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other
Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any
Lien on the assets of such Person securing obligations to pay Indebtedness of the primary obligor
and any obligation of such Person (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or to purchase (or to advance or supply funds for the
purchase or payment of) any security for the payment of such Indebtedness, (ii) to purchase
Property, securities or services for the purpose of assuring the holder of such Indebtedness of the
payment of such Indebtedness or (iii) to maintain working capital, equity capital or other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness (and “Guaranteed”, “Guaranteeing” and “Guarantor” shall have
meanings correlative to the foregoing); provided, however, that a Guarantee by any
Person shall not include (a) endorsements by such Person for collection or deposit, in either case,
in the ordinary course of business or (b) a contractual commitment by one Person to invest in
another Person for so long as such Investment is reasonably expected to constitute a Permitted
Investment under clause (ii) of the definition of Permitted Investments.

          “Holder” or “Securityholder” means the Person in whose name a Security is registered
on the Securities Register.

          “Incur” means, with respect to any Indebtedness or other obligation of any Person, to
create, issue, incur (by conversion, exchange or otherwise), assume, Guarantee or become liable in
respect of such Indebtedness or other obligation or the recording, as required pursuant to GAAP or
otherwise, of any such Indebtedness or obligation on the balance sheet of such Person (and
“Incurrence”, “Incurred”, “Incurable” and “Incurring” shall have meanings correlative to the
foregoing); provided, however, that a change in GAAP that results in an obligation
of such Person that exists at such time, and is not theretofore classified as Indebtedness,
becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness. For purposes of this
definition, Indebtedness of the Company held by a Restricted Subsidiary or Indebtedness of a
Restricted Subsidiary held by another Restricted Subsidiary shall be deemed to be Incurred by the
Company or such first Restricted Subsidiary in the event such other Restricted Subsidiary ceases to
be a Restricted Subsidiary or in the event such Indebtedness is transferred to a Person other than
the Company or a Restricted Subsidiary. For purposes of this definition, any non-interest bearing
or other discount Indebtedness shall be deemed to have been Incurred (in an amount equal to its
aggregate principal amount at its Stated Maturity) only on the date of original issue thereof.

          “Indebtedness” means at any time (without duplication), with respect to any Person,
whether recourse is to all or a portion of the assets of such Person, and whether or not
contingent, (i) any obligation of such Person for borrowed money, (ii) any obligation of such
Person evidenced by bonds, debentures, notes, Guarantees or other similar instruments, including
any such obligations Incurred in connection with the acquisition of Property, assets or businesses,
(iii) any reimbursement obligation of such Person with respect to letters of credit, bankers’
acceptances or similar facilities issued for the account of such Person, (iv) any

9

 

obligation of such Person issued or assumed as the deferred purchase price of Property or
services (other than Trade Accounts Payable), (v) any Capital Lease Obligation of such Person, (vi)
the maximum fixed redemption or repurchase price of Redeemable Stock of such Person at the time of
determination, (vii) any payment obligation of such Person under Exchange Rate Contracts, Interest
Rate Protection Agreements, Oil and Gas Hedging Contracts or under any similar agreements or
instruments, (viii) any obligation to pay rent or other payment amounts of such Person with respect
to any Sale and Leaseback Transaction to which such Person is a party, (ix) with respect to a
Restricted Subsidiary, for purposes of the covenants described under Section 4.03 and Section 4.13,
the maximum fixed redemption or repurchase price of Preferred Stock issued by such Restricted
Subsidiary, and (x) any obligation of the type referred to in clauses (i) through (ix) of this
paragraph of another Person and all dividends of another Person the payment of which, in either
case, such Person has Guaranteed or is responsible or liable, directly or indirectly, as obligor,
Guarantor or otherwise; provided, however, that Indebtedness shall not include
Production Payments and Reserve Sales. For purposes of this definition, the maximum fixed
repurchase price of any Redeemable Stock or Preferred Stock that does not have a fixed redemption
or repurchase price shall be calculated in accordance with the terms of such Redeemable Stock or
Preferred Stock as if such Redeemable Stock or Preferred Stock were repurchased on any date on
which Indebtedness shall be required to be determined pursuant to this Indenture; provided,
however, that if such Redeemable Stock or Preferred Stock is not then permitted to be
repurchased, the repurchase price shall be the liquidation value of such Redeemable Stock or
Preferred Stock. The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and the maximum liability
at such date in respect of any contingent obligations described above.

          “Indenture” means this Indenture as amended or supplemented from time to time.

          “Interest Rate Protection Agreement” means, with respect to any Person, any interest
rate swap agreement, forward rate agreement, interest rate cap or collar agreement or other
financial agreement or arrangement entered into by such Person in the ordinary course of its
business for the purpose of limiting or managing interest rate risks to which such Person is
subject.

          “Investment” means, with respect to any Person (i) any amount paid by such Person,
directly or indirectly, to any other Person for Capital Stock or other Property of, or as a capital
contribution to, any other Person or (ii) any direct or indirect loan or advance to any other
Person (other than accounts receivable of such Person arising in the ordinary course of business);
provided, however, that Investments shall not include (a) in the case of clause (i)
as used in the definition of “Restricted Payments” only, any such amount paid through the issuance
of Capital Stock of the Company and (b) in the case of clause (i) or (ii), extensions of trade
credit on commercially reasonable terms in accordance with normal trade practices and any increase
in the equity ownership in any Person resulting from retained earnings of such Person.

          “Investment-Grade” means (i) BBB– or higher by S&P (or its equivalent rating under any
successor rating categories of S&P) and (ii) Baa3 or higher by Moody’s (or its equivalent rating
under any successor rating categories of Moody’s) or the equivalent rating in respect of the rating
categories of any Rating Agencies substituted for S&P or Moody’s.

10

 

          “Issue Date” means the date on which the Original Securities first were issued under
this Indenture.

          “Lien” means, with respect to any Property, any mortgage or deed of trust, pledge,
hypothecation, assignment, deposit arrangement, security interest, lien (statutory or other),
charge, easement, encumbrance, preference, priority or other security or similar agreement or
preferential arrangement of any kind or nature whatsoever on or with respect to such Property
(including any conditional sale or other title retention agreement having substantially the same
economic effect as any of the foregoing). For purposes of Section 4.10, a Capital Lease Obligation
shall be deemed to be secured by a Lien on the property being leased.

          “Liquid Securities” means securities (i) of an issuer that is not an Affiliate of the
Company, (ii) that are publicly traded on the New York Stock Exchange, the American Stock Exchange
or the Nasdaq National Market and (iii) as to which the Company is not subject to any restrictions
on sale or transfer (including any volume restrictions under Rule 144 under the Securities Act or
any other restrictions imposed by the Securities Act) or as to which a registration statement under
the Securities Act covering the resale thereof is in effect for as long as the securities are held;
provided that securities meeting the requirements of clauses (i), (ii) and (iii) above
shall be treated as Liquid Securities from the date of receipt thereof until and only until the
earlier of (x) the date on which such securities are sold or exchanged for cash or Permitted
Short-Term Investments and (y) 180 days following the date of receipt of such securities. If such
securities are not sold or exchanged for cash or Permitted Short-Term Investments within 180 days
of receipt thereof, for purposes of determining whether the transaction pursuant to which the
Company or a Restricted Subsidiary received the securities was in compliance with Section 4.06,
such securities shall be deemed not to have been Liquid Securities at any time.

          “Merger” means the transaction in which the Company or substantially all of its assets
is acquired, directly or indirectly, through a merger or sale of stock or assets by either Plains
Exploration and Production Company or Energy Partners, Ltd or any of their respective Affiliates,
including in a transaction in which the Company is the surviving entity.

          “Moody’s” means Moody’s Investors Service, Inc. and its successors.

          “Net Available Cash” from an Asset Sale means cash proceeds received therefrom
(including (i) any cash proceeds received by way of deferred payment of principal pursuant to a
note or installment receivable or otherwise, but only as and when received, and (ii) the Fair
Market Value of Liquid Securities and Permitted Short-Term Investments, and excluding (a) any other
consideration received in the form of assumption by the acquiring Person of Indebtedness or other
obligations relating to the Property that is the subject of such Asset Sale and (b) except to the
extent subsequently converted to cash, Liquid Securities or Permitted Short-Term Investments within
240 days after such Asset Sale, consideration constituting Exchanged Properties or consideration
other than as identified in the immediately preceding clauses (i) and (ii)), in each case net of
(a) all legal, title and recording expenses, commissions and other fees and expenses incurred, and
all federal, state, foreign and local taxes required to be paid or accrued as a liability under
GAAP as a consequence of such Asset Sale, (b) all payments made on any Indebtedness (but
specifically excluding Indebtedness of the Company and its Restricted

11

 

Subsidiaries assumed in connection with or in anticipation of such Asset Sale) which is
secured by any assets subject to such Asset Sale, 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
Sale or by applicable law, be repaid out of the proceeds from such Asset Sale, provided
that such payments are made in a manner that results in the permanent reduction in the balance
of such Indebtedness and, if applicable, a permanent reduction in any outstanding commitment for
future Incurrences of Indebtedness thereunder, (c) all distributions and other payments required to
be made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset
Sale and (d) the deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets disposed of in such Asset
Sale and retained by the Company or any Restricted Subsidiary after such Asset Sale;
provided, however, that if any consideration for an Asset Sale (which would
otherwise constitute Net Available Cash) is required to be held in escrow pending determination of
whether a purchase price adjustment shall be made, such consideration (or any portion thereof)
shall become Net Available Cash only at such time as it is released to such Person or its
Restricted Subsidiaries from escrow.

          “Net Working Capital” means (i) all current assets of the Company and its Restricted
Subsidiaries, less (ii) all current liabilities of the Company and its Restricted Subsidiaries,
except current liabilities included in Indebtedness, in each case as set forth in consolidated
financial statements of the Company prepared in accordance with GAAP.

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

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the Chief
Financial Officer, the Chief Accounting Officer, the President, any Vice President, the Treasurer
or the Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers at least one of
whom shall be the principal executive officer, principal accounting officer or principal financial
officer of the Company.

12

 

          “Oil and Gas Business” means the business of exploiting, exploring for, developing,
acquiring, operating, producing, processing, gathering, marketing, storing, selling, hedging,
treating, swapping, refining and transporting hydrocarbons and other related energy businesses.

          “Oil and Gas Hedging Contract” means, with respect to any Person, any agreement or
arrangement, or any combination thereof, relating to oil and gas or other hydrocarbon prices,
transportation or basis costs or differentials or other similar financial factors, that is entered
into by such Person in the ordinary course of its business for the purpose of limiting or managing
risks associated with fluctuations in such prices, costs, differentials or similar factors.

          “Oil and Gas Liens” means (i) Liens on any specific property or any interest therein,
construction thereon or improvement thereto to secure all or any part of the costs incurred for
surveying, exploration, drilling, extraction, development, operation, production, construction,
alteration, repair or improvement of, in, under or on such property and the plugging and
abandonment of wells located thereon (it being understood that, in the case of oil and gas
producing properties, or any interest therein, costs incurred for “development” shall include costs
incurred for all facilities relating to such properties or to projects, ventures or other
arrangements of which such properties form a part or which relate to such properties or interests);
(ii) Liens on an oil or gas producing property to secure obligations incurred or guarantee of
obligations incurred in connection with or necessarily incidental to commitments for the purchase
or sale of, or the transportation or distribution of, the products derived from such property;
(iii) Liens arising under partnership agreements, oil and gas leases, overriding royalty
agreements, net profits agreements, production payment agreements, royalty trust agreements,
incentive compensation programs for geologists, geophysicists and other providers of technical
services to the Company or a Restricted Subsidiary, master limited partnership agreements, farmout
agreements, farmin agreements, division orders, contracts for the sale, purchase, exchange,
transportation, gathering or processing of oil, gas or other hydrocarbons, 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 the subject of the relevant agreement, program, order
or contract; (iv) Liens arising in connection with Production Payments and Reserve Sales; and (v)
Liens on pipelines or pipeline facilities that arise by operation of law.

          “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 Offer” means an offer by the Company or a Subsidiary Guarantor to purchase
all or a portion of other Senior Indebtedness to the extent required by the indenture or other
agreement or instrument pursuant to which such other Senior Indebtedness was issued.

13

 

          “Permitted Business Investments” means Investments and expenditures made in the
ordinary course of, and of a nature that is or shall have become customary in, the Oil and Gas
Business as a means of actively engaging therein 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
Oil and Gas Business jointly with third parties, including (i) ownership interests in oil and gas
properties or gathering, transportation, processing, storage or related systems and (ii)
Investments and expenditures in the form of or pursuant to operating agreements, processing
agreements, farmin agreements, farmout agreements, development agreements, area of mutual interest
agreements, unitization agreements, pooling arrangements, joint bidding agreements, service
contracts, joint venture agreements, partnership agreements (whether general or limited) and other
similar agreements (including for limited liability companies) with third parties, excluding,
however, Investments in corporations other than Restricted Subsidiaries.

          “Permitted Hedging Agreements” means (i) Exchange Rate Contracts and Oil and Gas
Hedging Contracts and (ii) Interest Rate Protection Agreements but only to the extent that the
stated aggregate notional amount thereunder does not exceed 100% of the aggregate principal amount
of the Indebtedness of the Company or a Restricted Subsidiary covered by such Interest Rate
Protection Agreements at the time such agreements were entered into.

          “Permitted Holders” means the executive officers and directors of the Company as of
the Issue Date, and their respective estates, spouses, ancestors, and lineal descendants, the legal
representatives of any of the foregoing and the trustees of any bona fide trusts of which the
foregoing are the sole beneficiaries or the grantors, or any Person of which the foregoing
“beneficially owns” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) voting securities
representing at least
66-2/3% of the total voting power of all classes of Voting Stock of such Person
(exclusive of any matters as to which class voting rights exist).

          “Permitted Indebtedness” means any and all of the following: (i) Indebtedness arising
under this Indenture with respect to the Original Securities and any Subsidiary Guarantees relating
thereto; (ii) Indebtedness under the Bank Credit Facilities, provided that the aggregate
principal amount of all Indebtedness under the Bank Credit Facilities, together with all
Indebtedness Incurred pursuant to clause (xi) of this paragraph in respect of Indebtedness
previously Incurred pursuant to this clause (ii), at any one time outstanding does not exceed the
greater of (a) $500,000,000, which amount shall be permanently reduced by the amount of Net
Available Cash from Asset Sales used to permanently repay Indebtedness under the Bank Credit
Facilities and not subsequently reinvested in Additional Assets or used to permanently reduce other
Indebtedness to the extent permitted pursuant to Section 4.06, and (b) an amount equal to the sum
of (1) $400,000,000 and (2) 20% of Adjusted Consolidated Net Tangible Assets determined as of the
date of the Incurrence of such Indebtedness; (iii) Indebtedness to the Company or any Restricted
Subsidiary by any of its Restricted Subsidiaries or Indebtedness of the Company to any of its
Restricted Subsidiaries (but only so long as such Indebtedness is held by the Company or a
Restricted Subsidiary); (iv) Indebtedness constituting reimbursement obligations with respect to
letters of credit issued in the ordinary course of business, including, without limitation, letters
of credit in respect of workers’ compensation claims, unemployment insurance, health, disability
and other employee benefits or property, casualty or liability insurance, and Indebtedness in
respect of bid, performance, reimbursement or surety obligations
 

14

 

issued by or for the account of the Company or any Restricted Subsidiary in the ordinary
course of business, including guarantees and letters of credit functioning as or supporting such
bid, performance, reimbursement or surety obligations (in each case other than for an obligation
for money borrowed); (v) Indebtedness under Permitted Hedging Agreements; (vi) in-kind obligations
relating to oil or gas balancing positions arising in the ordinary course of business; (vii)
Indebtedness outstanding on the Issue Date not otherwise permitted in clauses (i) through (vi)
above; (viii) Non-recourse Purchase Money Indebtedness; (ix) Indebtedness of the Company to the
extent the net proceeds thereof are promptly deposited to defease the Securities pursuant to
Article 8 hereof, or to redeem, satisfy or discharge the Securities pursuant to Article 13; (x)
Indebtedness not otherwise permitted to be Incurred pursuant to this paragraph (excluding any
Indebtedness Incurred pursuant to clause (a) of Section 4.03), provided that the aggregate
principal amount of all Indebtedness Incurred pursuant to this clause (x), together with all
Indebtedness Incurred pursuant to clause (xi) of this paragraph in respect of Indebtedness
previously Incurred pursuant to this clause (x), at any one time outstanding does not exceed
$100,000,000; provided that up to $25,000,000 of such amount may be borrowed by Foreign
Subsidiaries; (xi) Indebtedness Incurred in exchange for, or the proceeds of which are used to
refinance, (a) Indebtedness referred to in clauses (i), (vii) and (x) of this paragraph (including
Indebtedness previously Incurred pursuant to this clause (xi)) and (b) Indebtedness Incurred
pursuant to clause (a) of Section 4.03, provided that, in the case of each of the foregoing
clauses (a) and (b), such Indebtedness is Permitted Refinancing Indebtedness; and (xii)
Indebtedness consisting of obligations in respect of purchase price adjustments, indemnities or
Guarantees of the same or similar matters in connection with the acquisition or disposition of
Property.

          “Permitted Investments” means any and all of the following: (i) Permitted Short-Term
Investments; (ii) Investments in property, plant and equipment used in the ordinary course of
business and Permitted Business Investments; (iii) Investments by any Restricted Subsidiary in the
Company; (iv) Investments by the Company or any Restricted Subsidiary in any Restricted Subsidiary;
(v) Investments by the Company or any Restricted Subsidiary in (a) any Person that shall, upon the
making of such Investment, become a Restricted Subsidiary or (b) any Person if as a result of such
Investment such Person is merged or consolidated with or into, or transfers or conveys all or
substantially all its Property to, the Company or a Restricted Subsidiary; (vi) any Investment made
as a result of the receipt of non-cash consideration or securities from asset sales,
provided that such asset sales are made in compliance with Section 4.06; (vii) Investments
in negotiable instruments held for collection; lease, utility and other similar deposits; and
stock, obligations or other securities received in settlement of debts (including under any
bankruptcy or other similar proceeding) owing to the Company or any of its Restricted Subsidiaries
as a result of foreclosure, perfection or enforcement of any Liens or Indebtedness, in each of the
foregoing cases in the ordinary course of business of the Company or such Restricted Subsidiary;
(viii) relocation allowances for, and advances and loans to, officers, directors and employees of
the Company or any of its Restricted Subsidiaries; provided such items do not exceed in the
aggregate $3,000,000 at any one time outstanding; (ix) Investments intended to promote the
Company’s strategic objectives in the Oil and Gas Business in an amount not to exceed 15% of
Adjusted Consolidated Net Tangible Assets (determined as of the date of the making of any such
Investment) at any one time outstanding (which Investments shall be deemed to be no longer
outstanding only upon the return of capital thereof); (x) Investments made pursuant to Permitted
Hedging Agreements of the Company and its Restricted Subsidiaries; (xi) Investments in Exchanged
Properties; (xii) Investments acquired solely in exchange for the issuance of Capital

15

 

Stock of the Company; (xiii) any Investment received in exchange for the Capital Stock of an
Unrestricted Subsidiary and Investments owned by an Unrestricted Subsidiary upon its re-designation
as a Restricted Subsidiary; and (xiv) Investments pursuant to any agreement or obligation of the
Company or any of its Restricted Subsidiaries as in effect on the Issue Date (other than
Investments described in clauses (i) through (xiii) above).

          “Permitted Liens” means any and all of the following: (i) Liens existing as of the
Issue Date; (ii) Liens securing Indebtedness permitted under clause (ii) of the definition of
Permitted Indebtedness; (iii) Liens securing the Securities, any Subsidiary Guarantees and other
obligations arising under this Indenture; (iv) any Lien existing on any Property of a Person at the
time such Person is merged or consolidated with or into the Company or a Restricted Subsidiary or
becomes a Restricted Subsidiary (and not incurred in anticipation of or in connection with such
transaction), provided that such Liens are not extended to other Property of the Company or
the Restricted Subsidiaries; (v) any Lien existing on any Property at the time of the acquisition
thereof (and not incurred in anticipation of or in connection with such transaction),
provided that such Liens are not extended to other Property of the Company or the
Restricted Subsidiaries; (vi) any Lien incurred in the ordinary course of business incidental to
the conduct of the business of the Company or the Restricted Subsidiaries or the ownership of their
Property (including (a) easements, rights of way and similar encumbrances, (b) leases, licenses,
subleases and sublicenses of assets, including, without limitation, real property (other than
Capital Lease Obligations) and intellectual property rights, (c) rights of collecting banks having
rights of setoff, revocation, refund or chargeback with respect to money or instruments of the
Company or the Restricted Subsidiaries on deposit with or in the possession of such banks, (d)
Liens imposed by law, including Liens under workers’ compensation laws, unemployment insurance
laws, social security laws or similar legislation and mechanics’, carriers’, warehousemen’s,
materialmen’s, suppliers’ and vendors’ Liens, (e) Liens incurred to secure performance of
obligations with respect to statutory or regulatory requirements, performance or return-of-money
bonds, surety bonds or other obligations of a like nature and incurred in a manner consistent with
industry practice, (f) Liens arising from Uniform Commercial Code financing statement filings
regarding operating leases, and (g) Oil and Gas Liens, in each case which are not incurred in
connection with the borrowing of money, the obtaining of advances or credit or the payment of the
deferred purchase price of Property (other than Trade Accounts Payable)); (vii) Liens for taxes,
assessments and governmental charges not yet due or the validity of which are being contested in
good faith by appropriate proceedings, promptly instituted and diligently conducted, and for which
adequate reserves have been established to the extent required by GAAP as in effect at such time;
(viii) Liens incurred to secure appeal bonds and judgment and attachment Liens, in each case in
connection with litigation or legal proceedings that are being contested in good faith by
appropriate proceedings so long as reserves have been established to the extent required by GAAP as
in effect at such time and so long as such Liens do not encumber assets by an aggregate amount
(together with the amount of any unstayed judgments against the Company or any Restricted
Subsidiary but excluding any such Liens to the extent securing insured or indemnified judgments or
orders) in excess of $25,000,000; (ix) Liens securing Permitted Hedging Agreements of the Company
and its Restricted Subsidiaries so long as such Permitted Hedging Agreements are permitted under
Section 4.03; (x) Liens securing Purchase Money Indebtedness or Capital Lease Obligations,
provided that such Liens attach only to the Property acquired with the proceeds of such
Purchase Money Indebtedness or the Property that is the subject of such Capital
 Lease Obligations;
(xi) Liens securing Non-recourse Purchase Money

16

 

Indebtedness granted in connection with the acquisition by the Company or any Restricted
Subsidiary in the ordinary course of business of fixed assets used in the Oil and Gas Business
(including office buildings and other real property used by the Company or such Restricted
Subsidiary in conducting its operations), provided that (a) such Liens attach only to the
fixed assets acquired with the proceeds of such Non-recourse Purchase Money Indebtedness and (b)
such Non-recourse Purchase Money Indebtedness is not in excess of the purchase price of such fixed
assets; (xii) Liens resulting from the deposit of funds or evidences of Indebtedness in trust for
the purpose of decreasing or legally defeasing or satisfying and discharging Indebtedness of the
Company or any of its Subsidiaries so long as such deposit of funds is permitted by Section 4.04;
(xiii) Liens resulting from a pledge of Capital Stock of a Person that is not a Restricted
Subsidiary to secure obligations of such Person and any refinancings thereof; (xiv) Liens to secure
any permitted extension, renewal, refinancing, refunding or exchange (or successive extensions,
renewals, refinancings, refundings or exchanges), in whole or in part, of or for any Indebtedness
secured by Liens referred to in clauses (i), (iii), (iv), (v), (x) and (xi) above;
provided, however, that (a) such new Lien shall be limited to all or part of the
same Property (including future improvements thereon and accessions thereto) subject to the
original Lien and (b) the Indebtedness secured by such Lien at such time is not increased to any
amount greater than the sum of (1) the outstanding principal amount or, if greater, the committed
amount of the Indebtedness secured by such original Lien immediately prior to such extension,
renewal, refinancing, refunding or exchange and (2) an amount necessary to pay any fees and
expenses, including premiums, related to such refinancing, refunding, extension, renewal or
replacement; (xv) Liens in favor of the Company or a Restricted Subsidiary; and (xvi) Liens not
otherwise permitted by clauses (i) through (xv) above incurred in the ordinary course of business
of the Company and its Restricted Subsidiaries and securing Indebtedness in an aggregate principal
amount not in excess of $10,000,000 at any one time. Notwithstanding anything in this paragraph to
the contrary, the term “Permitted Liens” shall not include Liens resulting from the creation,
incurrence, issuance, assumption or Guarantee of any Production Payments and Reserve Sales other
than (a) any such Liens existing as of the Issue Date, (b) Production Payments and Reserve Sales in
connection with the acquisition of any Property after the Issue Date, provided that any
such Lien created in connection therewith is created, incurred, issued, assumed or guaranteed in
connection with the financing of, and within 60 days after the acquisition of, such Property, (c)
Production Payments and Reserve Sales, other than those described in clauses (a) and (b) of this
sentence, to the extent such Production Payments and Reserve Sales constitute Asset Sales made
pursuant to and in compliance with Section 4.06 and (d) incentive compensation programs for
geologists, geophysicists and other providers of technical services to the Company or a Restricted
Subsidiary; provided, however, that, in the case of the immediately foregoing
clauses (a), (b), (c) and (d), any Lien created in connection with any such Production Payments and
Reserve Sales shall be limited to the Property that is the subject of such Product Payments and
Reserve Sales.

          “Permitted Refinancing Indebtedness” means Indebtedness (“new Indebtedness”) Incurred
in exchange for, or proceeds of which are used to refinance, other Indebtedness (“old
Indebtedness”); provided, however, that (i) such new Indebtedness is in an
aggregate principal amount not in excess of the sum of (a) the aggregate principal amount then
outstanding of the old Indebtedness (or, if such old Indebtedness provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such
lesser amount as of the date of determination), and (b) an amount necessary to pay any fees and
expenses, including

17

 

premiums, related to such exchange or refinancing, (ii) such new Indebtedness has a Stated
Maturity no earlier than the Stated Maturity of the old Indebtedness, (iii) such new Indebtedness
has an Average Life at the time such new Indebtedness is Incurred that is equal to or greater than
the Average Life of the old Indebtedness at such time, (iv) such new Indebtedness is subordinated
in right of payment to the Securities (or, if applicable, the Subsidiary Guarantee) to at least the
same extent, if any, as the old Indebtedness and (v) if such old Indebtedness is Non-recourse
Purchase Money Indebtedness or Indebtedness that refinanced Non-recourse Purchase Money
Indebtedness, such new Indebtedness satisfies clauses (i) and (ii) of the definition of
“Non-recourse Purchase Money Indebtedness.”

          “Permitted Short-Term Investments” means (i) Investments in U.S. Government
Obligations maturing within one year of the date of acquisition thereof, (ii) Investments in demand
accounts, time deposit accounts, certificates of deposit, bankers’ acceptances and money market
deposits maturing within one year of the date of acquisition thereof issued by a bank or trust
company which is organized under the laws of the United States of America or any State thereof or
the District of Columbia that is a member of the Federal Reserve System having capital, surplus and
undivided profits aggregating in excess of $500,000,000 and whose long-term Indebtedness is rated
“A” (or higher) according to Moody’s, (iii) Investments in deposits available for withdrawal on
demand with any commercial bank that is organized under the laws of any country in which the
Company or any Restricted Subsidiary maintains an office or is engaged in the Oil and Gas Business,
provided that (a) all such deposits have been made in such accounts in the ordinary course
of business and (b) such deposits do not at any one time exceed $20,000,000 in the aggregate, (iv)
repurchase and reverse repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clause (i) entered into with a bank meeting the
qualifications described in clause (ii), (v) Investments in commercial paper or notes, maturing not
more than one year after the date of acquisition, issued by a corporation (other than an Affiliate
of the Company) organized and in existence under the laws of the United States of America or any
State thereof or the District of Columbia with a short-term rating at the time as of which any
Investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according
to S&P or a long-term rating at the time as of which any Investment is made of “A3” (or higher)
according to Moody’s or “A-” (or higher) according to S&P, (vi) Investments in any money market
mutual fund having assets in excess of $250,000,000 substantially all of which consist of other
obligations of the types described in clauses (i), (ii), (iv) and (v) hereof and (vii) Investments
in asset-backed securities maturing within one year of the date of acquisition thereof with a
long-term rating at the time as of which any Investment therein is made of “A3” (or higher)
according to Moody’s or “A-” (or higher) according to S&P. Any of the foregoing, including any
funds comprised of any of the foregoing, may be maintained by, available to, or managed by the
Trustee or its affiliates, including any funds from which the Trustee may receive compensation.

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

          “Preferred Stock” of any Person means Capital Stock of such Person of any class or
classes (however designated) that ranks prior as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of

18

 

such Person, to shares of Capital Stock of any other class of such Person; provided
however, that “Preferred Stock” shall not include Redeemable Stock.

          “Principal” of any Indebtedness (including the Securities) means the principal amount
of such Indebtedness plus the premium, if any, on such Indebtedness.

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

          “Property” means, with respect to any Person, any interest of such Person in any kind
of property or asset, whether real, personal or mixed, or tangible or intangible, including Capital
Stock and other securities issued by any other Person (but excluding Capital Stock or other
securities issued by such first mentioned Person).

          “Rating Agencies” means (i) S&P and Moody’s or (ii) if S&P or Moody’s or both of them
are not making ratings of the Securities publicly available, a nationally recognized U.S. rating
agency or agencies, as the case may be, selected by the Company, which will be substituted for S&P
or Moody’s or both, as the case may be.

          “Redeemable Stock” of any Person means any equity security of such Person that by its
terms (or by the terms of any security into which it is convertible or for which it is
exchangeable), or otherwise (including on the happening of an event), is or could become required
to be redeemed for cash or other Property or is or could become redeemable for cash or other
Property at the option of the holder thereof, in whole or in part, on or prior to the first
anniversary of the Stated Maturity of the Securities; or is or could become exchangeable at the
option of the holder thereof for Indebtedness at any time in whole or in part, on or prior to the
first anniversary of the Stated Maturity of the Securities; provided, however, that
Redeemable Stock shall not include any security by virtue of the fact that it may be exchanged or
converted at the option of the holder for Capital Stock of the Company having no preference as to
dividends or liquidation over any other Capital Stock of the Company. Notwithstanding the
foregoing, any Capital Stock that would fail to qualify as Redeemable Stock solely because the
holders of the Capital Stock have the right to require the Company to repurchase such Capital Stock
upon the occurrence of a change of control or an asset sale, will constitute Redeemable Stock if
the terms of such Capital Stock provide that the Company may not repurchase or redeem any such
Capital Stock pursuant to such provisions unless such repurchase or redemption complies with
Section 4.04.

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          “Restricted Payment” means (i) a dividend or other distribution paid by the Company or
a Restricted Subsidiary on the Capital Stock or Redeemable Stock of the Company or to the Company’s
stockholders (other than dividends, distributions or payments made solely in Capital Stock of the
Company or in options, warrants or other rights to purchase or acquire Capital Stock), or declared
and paid by the Company or a Restricted Subsidiary to any Person other than the Company or any of
its Restricted Subsidiaries (and, if such Restricted Subsidiary is not a Wholly Owned Subsidiary,
to the other stockholders of such Restricted Subsidiary on a pro rata basis) on the Capital Stock
or Redeemable Stock of any Restricted Subsidiary, (ii) a payment made by the Company or any of its
Restricted Subsidiaries (other than to the Company or any Restricted Subsidiary) to purchase,
redeem, acquire or retire any Capital Stock or Redeemable Stock, or any options, warrants or other
rights to acquire Capital Stock or Redeemable Stock, of the Company or of a Restricted Subsidiary,
(iii) a payment made by the Company or any of its Restricted Subsidiaries to redeem, repurchase,
legally defease or otherwise acquire or retire for value (including pursuant to mandatory
repurchase covenants), prior to any scheduled maturity, scheduled sinking fund or scheduled
mandatory redemption, any Subordinated Indebtedness of the Company or a Restricted Subsidiary,
provided that this clause (iii) shall not include any such payment with respect to (a) any
such Subordinated Indebtedness to the extent of Excess Proceeds remaining after compliance with
Section 4.06 and to the extent required by the indenture or other agreement or instrument pursuant
to which such Subordinated Indebtedness was issued, (b) the purchase, repurchase or other
acquisition of any such subordinated Indebtedness purchased in anticipation of satisfying a
scheduled maturity, scheduled sinking fund or scheduled mandatory redemption, in each case due
within one year of the date of acquisition, or (iv) an Investment (other than a Permitted
Investment) by the Company or a Restricted Subsidiary in any Person.

          “Restricted Subsidiary” means any Subsidiary of the Company that has not been
designated an Unrestricted Subsidiary pursuant to Section 4.15.

          “Rule 144A” means Rule 144A under the Securities Act, as amended from time to time.

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

          “Sale and Leaseback Transaction” means, with respect to any Person, any direct or
indirect arrangement (excluding, however, any such arrangement between such Person and a Wholly
Owned Subsidiary of such Person or between one or more Wholly Owned Subsidiaries of such Person)
pursuant to which Property is sold or transferred by such Person or a Restricted Subsidiary of such
Person and is thereafter leased back from the purchaser or transferee thereof by such Person or one
of its Restricted Subsidiaries.

          “SEC” means the Securities and Exchange Commission.

          “Senior Indebtedness” when used with respect to the Company means the obligations of
the Company with respect to Indebtedness of the Company, whether outstanding on the date of the
Indenture or thereafter, which is not subordinated in right of payment to other Indebtedness of the
Company.

20

 

          “Significant Subsidiary” means, at any date of determination, 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 Securities and Exchange Commission, as in effect on the
date hereof.

          “Stated Maturity,” when used with respect to any security or any installment of
principal thereof or interest thereon, means the date specified in such security as the fixed date
on which the principal of such security or such installment of principal or interest is due and
payable, including pursuant to any mandatory redemption provision (but excluding any provision
providing for the repurchase of such security at the option of the holder thereof upon the
happening of any contingency unless such contingency has occurred).

          “Subordinated Indebtedness” means Indebtedness of the Company (or a Subsidiary
Guarantor) that is subordinated or junior in right of payment to the Securities (or a Subsidiary
Guarantee, as appropriate) pursuant to a written agreement to that effect.

          “Subsidiary” of a Person means (i) another Person which is a corporation a majority of
whose Voting Stock is at the time, directly or indirectly, owned or controlled by (a) the first
Person, (b) the first Person and one or more of its Subsidiaries or (c) one or more of the first
Person’s Subsidiaries or (ii) another Person which is not a corporation (x) at least 50% of the
ownership interests of which and (y) the power to elect or direct the election of a majority of the
directors or other governing body of which are controlled by Persons referred to in clause (a), (b)
or (c) above.

          “Subsidiary Guarantors” means, unless released from their Subsidiary Guarantee as
permitted by this Indenture, any Restricted Subsidiary that becomes a guarantor of the Securities
in compliance with the provisions of this Indenture and executes a supplemental indenture agreeing
to be bound by the terms of this Indenture.

          “Subsidiary Guarantee” means an unconditional, unsecured senior subordinated guarantee
of the Securities given by any Restricted Subsidiary pursuant to the terms of this Indenture.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb)
as in effect on the date of this Indenture except as required by Section 9.03 hereof;
provided that in the event the Trust Indenture Act of 1939 is amended after such date,
“Trust Indenture Act” means, to the extent required by any such amendment, the Trust
Indenture Act of 1939, as so amended.

          “Trade Accounts Payable” means accounts payable or other obligations of the Company or
any Restricted Subsidiary to trade creditors created or assumed by the Company or such Restricted
Subsidiary in the ordinary course of business in connection with the obtaining of goods or
services.

          “Trustee” means the party named as such in this Indenture until a successor replaces
it and, thereafter, means the successor.

21

 

          “Trust Officer” means the Chairman of the Board, the President or any other officer or
assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters.

          “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from
time to time.

          “Unrestricted Subsidiary” means (i) each Subsidiary of the Company that the Company
has designated pursuant to Section 4.15 as an Unrestricted Subsidiary and (ii) any Subsidiary of an
Unrestricted Subsidiary.

          “U.S. Government Obligations” means securities that are (i) direct obligations of the
United States of America for the timely payment of which its full faith and credit is pledged or
(ii) 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 by 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 depository
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 Obligation or a specific payment of principal of or interest
on any such U.S. Government Obligation held by such custodian for the account of the holder of such
depository receipt; provided, however, that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on the U.S. Government Obligation
evidenced by such depository 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 any Person means Capital Stock of such Person which ordinarily has
voting power for the election of directors (or persons performing similar functions) of such Person
whether at all times or only so long as no senior class of securities has such voting power by
reason of any contingency.

          “Wholly Owned Subsidiary” means, at any time, a Restricted Subsidiary of the Company
all the Voting Stock of which (other than directors’ qualifying shares) is at such time owned,
directly or indirectly, by the Company and its other Wholly Owned Subsidiaries.

22

 

          SECTION 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Bankruptcy Law”
	 	 	6.01	 
	 
	 	 	 	 
	“Claiming Guarantor”
	 	 	11.02	 
	 
	 	 	 	 
	“Contributing Party”
	 	 	11.02	 
	 
	 	 	 	 
	“covenant defeasance option”
	 	 	8.01(b)	 
	 
	 	 	 	 
	“Custodian”
	 	 	6.01	 
	 
	 	 	 	 
	“Event of Default”
	 	 	6.01	 
	 
	 	 	 	 
	“Excess Proceeds”
	 	 	4.06	 
	 
	 	 	 	 
	“Global Security”
	 	Appendix A	 
	 
	 	 	 	 
	“Initial Securities”
	 	Preamble
	 
	 	 	 	 
	“legal defeasance option”
	 	 	8.01(b)	 
	 
	 	 	 	 
	“Legal Holiday”
	 	 	14.08	 
	 
	 	 	 	 
	“Obligations”
	 	 	11.01	 
	 
	 	 	 	 
	“Offer Amount”
	 	 	4.06	 
	 
	 	 	 	 
	“Offer Period”
	 	 	4.06	 
	 
	 	 	 	 
	“OID”
	 	 	2.01	 
	 
	 	 	 	 
	“Original Securities”
	 	 	2.01	 
	 
	 	 	 	 
	“Paying Agent”
	 	 	2.04	 
	 
	 	 	 	 
	“Permitted Consideration”
	 	 	4.06	 
	 
	 	 	 	 
	“Prepayment Offer”
	 	 	4.06	 
	 
	 	 	 	 
	“Prepayment Offer Notice”
	 	 	4.06	 
	 
	 	 	 	 
	“Private Exchange Offer”
	 	Appendix A	 
	 
	 	 	 	 
	“Purchase Date”
	 	 	4.06	 
	 
	 	 	 	 
	“Registered Exchange Offer”
	 	Appendix A	 
	 
	 	 	 	 
	“Registrar”
	 	 	2.04	 
	 
	 	 	 	 
	“Successor Company”
	 	 	5.01	 

          SECTION 1.03 Incorporation by Reference of Trust Indenture Act. This Indenture is
subject to the mandatory provisions of the TIA which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:

23

 

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Securityholder.

          “indenture to be qualified” means this Indenture.

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

          “obligor” on the indenture securities means the Company, each Subsidiary Guarantor and
any other obligor on the indenture securities.

          All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.

          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) “including” means including without limitation;

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

     (5) unsecured Indebtedness shall not be deemed to be subordinate or junior to
secured Indebtedness merely by virtue of its nature as unsecured Indebtedness;

     (6) the principal amount of any noninterest bearing or other discount security
at any date shall be the principal amount thereof that would be shown on a balance
sheet of the issuer dated such date prepared in accordance with GAAP; and

     (7) unless otherwise specified herein, the principal amount of any Preferred
Stock shall be the greater of (i) the maximum liquidation value of such Preferred
Stock or (ii) the maximum mandatory redemption or mandatory repurchase price with
respect to such Preferred Stock.

          SECTION 1.05 Acts of Holders. (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders
may be embodied in and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent duly appointed in writing; and,

24

 

except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.05.

          (b) The ownership of Securities shall be proved by a security register maintained on behalf of
the Company.

          (c) Any request, demand, authorization, direction, notice, consent, waiver or other Act by the
Holder of any Security shall bind every future Holder of the same Security or the Holder of every
Security issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of
anything done, suffered or omitted to be done by the Trustee, any Paying Agent or the Company, any
Subsidiary Guarantor or any other obligor of the Securities in reliance thereon, whether or not
notation of such action is made upon such Security.

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

          (e) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to
a resolution of the Board of Directors, fix in advance a record date for the determination of such
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding Trust Indenture Act
Section 316(c), any such record date shall be the record date specified in or pursuant to such
resolution of the Board of Directors, which shall be a date not more than 30 days prior to the
first solicitation of Holders generally in connection therewith and no later than the date such
first solicitation is completed.

          If such a record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but only the Holders of
record at the close of business on such record date shall be deemed to be Holders for purposes of
determining whether Holders of the requisite proportion of Securities then outstanding have
authorized or agreed or consented to such request, demand, authorization, direction, notice,
consent, waiver or other Act, and for this purpose the Securities then outstanding shall be
computed as of such record date; provided that no such request, demand, authorization, direction,
notice, consent, waiver or other Act by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after such record date.

25

 

          (f) For purposes of this Indenture, any action by the Holders which may be taken in writing
may be taken by electronic means or as otherwise reasonably acceptable to the Trustee.

          SECTION 1.06 Separability Clause. In case any provision in this Indenture or in the
Securities or Subsidiary Guarantees, if any, 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 1.07 Independence of Covenants. Unless otherwise provided herein, all
covenants and agreements in this Indenture shall be given independent effect so that if a
particular action or condition is not permitted by any such covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitations of, another covenant shall not
avoid the occurrence of a Default or an Event of Default if such action is taken or condition
exists.

          SECTION 1.08 Designated Senior Indebtedness. The Securities shall be deemed
Designated Senior Indebtedness under the Company’s Existing Notes (as defined in the indenture
governing the Existing Notes).

ARTICLE 2

The Securities

          SECTION 2.01 Amount of Securities; Issuable in Series. The aggregate principal amount
of Securities which may be authenticated and delivered under this Indenture is unlimited. All
Securities shall be identical in all respects other than issue price and issuance dates and as to
denomination. The Securities may be issued in one or more series; provided,
however, that any Securities issued with original issue discount (“OID”) for Federal income
tax purposes shall not be issued as part of the same series as any Securities that are issued with
a different amount of OID or are not issued with OID.

          Subject to Section 2.03, the Trustee shall authenticate Securities for original issue on the
Issue Date in the aggregate principal amount of $225,000,000 (the “Original Securities”). With
respect to any Securities issued after the Issue Date (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities
pursuant to Section 2.07, 2.08, 2.09 or 3.06 or Appendix A), there shall be established in or
pursuant to a resolution of the Board of Directors and, subject to Section 2.03, set forth or
determined in the manner provided in an Officer’s Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of such Securities:

     (1) whether such Securities shall be issued as part of a new or existing series
of Securities and the title of such Securities (which shall distinguish the
Securities of the series from Securities of any other series);

     (2) the aggregate principal amount of such Securities which may be
authenticated and delivered under this Indenture, which amount shall be specified
therein and may be unlimited;

26

 

     (3) the issue price and issuance date of such Securities, including the date
from which interest on such Securities shall accrue;

     (4) if applicable, that such Securities shall be issuable in whole or in part
in the form of one or more Global Securities and, in such case, the respective
depositories for such Global Securities, the form of any legend or legends which
shall be borne by any such Global Security in addition to or in lieu of that set
forth in Exhibit 1 to Appendix A and any circumstances in addition to or in lieu of
those set forth in Section 2.3 of Appendix A in which any such Global Security may
be exchanged in whole or in part for Securities registered, and any transfer of such
Global Security in whole or in part may be registered, in the name or names of
Persons other than the depository for such Global Security or a nominee thereof; and

     (5) if applicable, that such Securities shall not be issued in the form of
Initial Securities subject to Appendix A, but shall be issued in the form of
Exchange Securities as set forth in Exhibit A.

          If any of the terms of any series are established by action taken pursuant to a resolution of
the Board of Directors, a copy of an appropriate record of such action shall be certified by the
Secretary or any Assistant Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate or the trust indenture supplementary thereto setting forth
the terms of the series. References in this Indenture to Securities shall include any additional
Securities issued after the Issue Date, unless the context otherwise requires.

          SECTION 2.02 Form and Dating. Provisions relating to the Initial Securities of each
series and the Exchange Securities are set forth in Appendix A, which is hereby incorporated in and
expressly made a part of this Indenture. The Initial Securities of each series and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibit 1 to Appendix A which
is hereby incorporated in and expressly made a part of this Indenture. The Exchange Securities and
the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A, which
is hereby incorporated in and expressly made a part of this Indenture. Initial Securities and
Exchange Securities shall be deposited upon issuance with the Securities Custodian and registered
in the name of the Depositary or a nominee of the Depository, duly executed by the Company and
authenticated by the Trustee as provided in this Indenture; provided, however, that upon such
deposit through and including the 40th day after the later of the commencement of an offering
pursuant to Regulation S and the original issue date of such Securities pursuant to Regulation S
(such period through and including such 40th day, the “Restricted Period”), all such Securities
shall be credited to or through accounts maintained at the Depositary by or on behalf of Euroclear
or Clearstream unless exchanged for interests in Securities issued pursuant to Rule 144A in
accordance with the transfer and certification requirements described in this Indenture. The
aggregate principal amount of the Initial Securities or the Exchange Securities may from time to
time be increased or decreased by adjustments made on the records of the Trustee and for the
Depositary or its nominee as hereinafter provided. The Securities of each series may have
notations, legends or endorsements required by law, stock exchange rule, agreements to which the
Company is subject, if any, or usage, provided that any such notation, legend or
endorsement is in a form reasonably acceptable to the Company. Each

27

 

Security shall be dated the date of its authentication. The terms of the Securities of each
series set forth in Exhibit 1 to Appendix A and Exhibit A are part of the terms of this Indenture.

          SECTION 2.03 Execution and Authentication. Two Officers shall sign the Securities for
the Company by manual or facsimile signature.

          If an Officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

          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, together with a written order of the Company signed by two Officers or by an
Officer and either an Assistant Treasurer or an Assistant Secretary of the Company for the
authentication and delivery of such Securities, and the Trustee in accordance with such written
order of the Company shall authenticate and deliver such Securities.

          A Security shall not be valid until an authorized officer of the Trustee manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Securities. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Securities whenever the Trustee 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 any Registrar, Paying Agent or agent for service of notices and demands.

          SECTION 2.04 Registrar and Paying Agent. The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for exchange (the
“Registrar”) and an office or agency where Securities may be presented for payment (the “Paying
Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange.
The Company may have one or more co-registrars and one or more additional paying agents. The term
“Paying Agent” includes any additional paying agent.

          The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. 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 such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.07. The Company or any of its domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer
agent.

          The Company initially appoints the Trustee as Registrar and Paying Agent in connection with
the Securities.

          SECTION 2.05 Paying Agent To Hold Money in Trust. Prior to each due date of the
principal and interest on any Security, the Company shall deposit with the Paying

28

 

Agent a sum sufficient to pay such principal and interest when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent
shall hold in trust for the benefit of Securityholders or the Trustee all money held by the Paying
Agent for the payment of principal of or interest on the Securities and shall notify the Trustee of
any default by the Company in making any such payment. If the Company or a Wholly Owned Subsidiary
acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a
separate trust fund. 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 by the Paying Agent. Upon complying with
this Section, the Paying Agent shall have no further liability for the money delivered to the
Trustee.

          SECTION 2.06 Securityholder 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
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in
writing at least five Business Days before each interest payment date 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 Securityholders.

          SECTION 2.07 Replacement Securities. If a mutilated Security is surrendered to the
Registrar or if the Holder of a Security claims that such Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the
Company, such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and
the Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar and any
co-registrar from any loss which any of them may suffer if a Security is replaced. The Company and
the Trustee may charge the Holder for their expenses in replacing a Security.

          Every replacement Security is an additional obligation of the Company.

          SECTION 2.08 Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Security does not cease to
be outstanding because the Company or an Affiliate of the Company holds the Security.

          If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a
bona fide purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal and interest payable on that
date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, and the Paying Agent is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture, then on and after that date such Securities (or
portions thereof) cease to be outstanding and interest on them ceases to accrue.

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          SECTION 2.09 Temporary Securities. Until definitive Securities 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 and
deliver them in exchange for temporary Securities.

          SECTION 2.10 Cancellation. The Company 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 or payment. The Trustee and
no one else shall cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation and
shall, upon written request, deliver a certificate of such destruction to the Company unless the
Company directs the Trustee to deliver canceled Securities to the Company. The Company may not
issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee for
cancellation.

          SECTION 2.11 Defaulted Interest. If the Company defaults in a payment of interest on
the Securities, the Company shall pay defaulted interest (plus interest on such defaulted interest
to the extent lawful) in any lawful manner. The Company may pay the defaulted interest to the
persons who are Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the reasonable satisfaction of
the Trustee and shall promptly mail to each Securityholder a notice that states the special record
date, the payment date and the amount of defaulted interest to be paid.

          SECTION 2.12 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

          SECTION 2.13 Issuance of Additional Securities. The Company shall be entitled to
issue, from to time, additional securities under this Indenture which shall have identical terms as
the Original Securities issued on the Issue Date. Any additional securities shall be part of the
same issue as the Securities being issued on the Issue Date and will vote and consent on all
matters as one class with the Securities being issued on the Issue Date, including, without
limitation, waivers, amendments and redemptions. Any issuance of additional securities is subject
to all of the covenants in the Indenture. None of the Original Securities and any additional
securities shall have the right to vote or consent as a separate class on any matter. For the
purposes of this Indenture references to the Securities include additional securities, if any.

          Notwithstanding anything else herein, with respect to any additional securities issued
subsequent to the date of this Indenture, when the context requires, (1) all references in

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this Article II and elsewhere in this Indenture to a Registration Rights Agreement shall be to
the registration rights agreement entered into with respect to such additional securities, (2) any
references in this Indenture to the registration statement, additional interest, Initial Purchaser,
and any other term related thereto shall be to such terms as they are defined in such registration
rights agreement entered into with respect to such additional securities, (3) all time periods
described in the Securities with respect to the registration of such additional securities shall be
as provided in such registration rights agreement entered into with respect to such additional
securities, (4) any additional interest, if set forth in such registration rights agreement, may be
paid to the holders of the additional securities immediately prior to the making or the
consummation of the Registered Exchange Offer regardless of any other provisions regarding record
dates herein and (5) all provisions of this Indenture shall be construed and interpreted to permit
the issuance of such additional securities and to allow such additional securities to become
fungible and interchangeable with the Original Securities originally issued under this Indenture
(and Private Exchange Securities issued in exchange therefor).

ARTICLE 3

Redemption

          SECTION 3.01 Notices to Trustee. If the Company elects to redeem Securities pursuant
to paragraph 5 of the Securities, it shall notify the Trustee in writing of the redemption date,
the principal amount of Securities to be redeemed and that such redemption is being made pursuant
to paragraph 5 of the Securities.

          Except for a redemption pursuant to Section 3.07, the Company shall give each notice to the
Trustee provided for in this Section at least 30 days before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an Officers’ Certificate and an
Opinion of Counsel from the Company to the effect that such redemption will comply with the
conditions herein.

          SECTION 3.02 Selection of Securities To Be Redeemed. If less than all the Securities
are to be redeemed at any time, selection of Securities for redemption may be made by the Trustee
in compliance with the requirements of the principal national securities exchange, if any, on which
the Securities are listed, or, if the Securities are not so listed, on a pro rata basis, by lot or
by such other method that the Trustee shall deem fair and appropriate. The Trustee shall make the
selection from outstanding Securities not previously called for redemption. The Trustee may select
for redemption portions of the principal of Securities that have denominations larger than $1,000.
Securities and portions of them the Trustee selects shall be in amounts of $1,000 or a whole
multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption
also apply to portions of Securities called for redemption. The Trustee shall notify the Company
promptly of the Securities or portions of Securities to be redeemed.

          SECTION 3.03 Notice of Redemption. In the event that the Securities are to be
redeemed pursuant to paragraph 5 of the Securities, at least 30 days but not more than 60

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days before a date for redemption of Securities, the Company shall mail a notice of redemption
by first-class mail to each Holder of Securities to be redeemed.

          The notice shall identify the Securities to be redeemed and shall state:

     (1) the redemption date;

     (2) the redemption price;

     (3) the name and address of the Paying Agent;

     (4) that Securities called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

     (5) if fewer than all the outstanding Securities are to be redeemed, the
identification and principal amounts of the particular Securities to be redeemed;

     (6) that, unless the Company defaults in making such redemption payment or the
Paying Agent is prohibited from making such payment pursuant to the terms of this
Indenture, interest on Securities (or portion thereof) called for redemption ceases
to accrue on and after the redemption date; and

     (7) that no representation is made as to the correctness or accuracy of the
CUSIP number, if any, listed in such notice or printed on the Securities.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense. In such event, the Company shall provide the Trustee with the
information required by this Section.

          SECTION 3.04 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 stated in the notice. Upon surrender to the Paying Agent, such Securities shall
be paid at the redemption price stated in the notice, plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date that is on or prior to the date of redemption). Failure to give
notice or any defect in the notice to any Holder shall not affect the validity of the notice to any
other Holder.

          SECTION 3.05 Deposit of Redemption Price. Prior to the redemption date, the Company
shall deposit with the Paying Agent (or, if the Company or a Wholly Owned Subsidiary is the Paying
Agent, shall segregate and hold in trust) money sufficient to pay the redemption price of and
accrued interest (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date that is on or prior to the date of redemption)
on all Securities to be redeemed on that date other than Securities or portions of Securities
called for redemption which have been delivered by the Company to the Trustee for cancellation.

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          SECTION 3.06 Securities Redeemed in Part. Upon surrender of a Security that is
redeemed in part, the Company shall execute and the Trustee shall authenticate for the Holder (at
the Company’s expense) a new Security equal in principal amount to the unredeemed portion of the
Security surrendered.

          SECTION 3.07 Mandatory Redemption. Upon the occurrence of a Change of Control,
including the Merger, the Company shall be required to redeem all of the outstanding Securities,
subject to the conditions and at the redemption price set forth in paragraph 6 of the Securities.
Sections 3.04 and 3.05 shall apply to such redemption but Sections 3.01, 3.02 and 3.03 shall not
apply to such redemption; provided, however, the Company shall provide in the notice required by
paragraph 6 of the Securities the information described in clauses 1 to 4 of Section 3.03.

          Notwithstanding the foregoing, no provision of the Indenture shall be deemed violated by any
agreement, arrangement or transaction related to the Merger or any related transactions, provided
that promptly following consummation of the Merger, the Company (or any successor thereto) has
delivered to the Trustee notice of its intention to redeem the Securities described under Section
3.07 above and the funds required to be deposited pursuant to paragraph 1(b) of Section 13.01 have
been so deposited.

          The Company will deliver written notice to the Trustee promptly after consummation of the
Merger.

ARTICLE 4

Covenants

          SECTION 4.01 Payment of Securities. The Company shall promptly pay the principal of
and interest on the Securities on the dates and in the manner provided in the Securities and in
this Indenture. Principal and interest shall be considered paid on the date due if on such date
the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all
principal and interest then due and the Trustee or the Paying Agent, as the case may be, is not
prohibited from paying such money to the Securityholders on that date pursuant to the terms of this
Indenture.

          The Company shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

          SECTION 4.02 SEC Reports. Notwithstanding that the Company may not be required to
remain subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Company shall file with the SEC and provide the Trustee and Holders of Securities with all
quarterly and annual financial information required to be contained in a filing with the SEC on
Forms 10-K and 10-Q, including a “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and, with respect to the annual consolidated financial statements only, a
report thereon by the Company’s registered public accounting firm; provided,
however, that the Company shall not be so obligated to file such information,

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documents and reports with the SEC if the SEC does not permit such filings. The Company also
shall comply with the other provisions of Section 314(a) of the Trust Indenture Act.

          SECTION 4.03 Limitation on Indebtedness. The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, Incur any Indebtedness unless, after
giving pro forma effect to the Incurrence of such Indebtedness and the receipt and application of
the proceeds thereof, no Default or Event of Default would occur as a consequence of, or be
continuing following, such Incurrence and application and either (a) after giving pro forma effect
to such Incurrence and application, the Consolidated Interest Coverage Ratio would exceed 2.5 to
1.0 or (b) such Indebtedness is Permitted Indebtedness.

          In the event that an item of Indebtedness (including Indebtedness Incurred by the Company to
banks or other lenders) could be Incurred pursuant to more than one of the provisions of Permitted
Indebtedness, the Company, in its sole discretion, will classify or reclassify such item of
Indebtedness and only be required to include the amount and type of such Indebtedness in (and to
have Incurred such Indebtedness pursuant to) one of the clauses of Permitted Indebtedness; and an
item of Indebtedness (including Indebtedness Incurred by the Company to banks or other lenders) may
for this purpose be divided into more than one of the types of Permitted Indebtedness. Accrual of
interest, accretion or amortization of OID and the payment of interest on any Indebtedness in the
form of additional Indebtedness with the same terms, will not be deemed to be an incurrence of
Indebtedness for purposes of this Section 4.03; provided, in each such case, that the
amount thereof is included in Consolidated Interest Expense of the Company as accrued.

          Notwithstanding any other provision of this Section 4.03, the maximum amount of Indebtedness
that the Company or any Restricted Subsidiary may incur pursuant to this covenant will not be
deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values. 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 such Indebtedness was incurred, in the case of term debt, or first committed, in the case of
revolving credit debt; provided, that (1) the U.S. dollar-equivalent principal amount of any such
Indebtedness outstanding or committed on the date of the indenture will be calculated based on the
relevant currency exchange rate in effect on the date of the indenture, and (2) if such
Indebtedness is incurred to refinance other Indebtedness denominated in a foreign currency, and
such refinancing would cause the applicable U.S. dollar-denominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such refinancing, such
U.S. dollar-denominated restriction will 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. 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 such
respective Indebtedness is denominated that is in effect on the date of such refinancing.

          SECTION 4.04 Limitation on Restricted Payments. (a) The Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly, make

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any Restricted Payment if, at the time of and after giving effect to the proposed Restricted
Payment, (i) any Default or Event of Default would have occurred and be continuing, (ii) the
Company could not Incur at least $1.00 of additional Indebtedness pursuant to clause (a) of Section
4.03 or (iii) the aggregate amount expended or declared for all Restricted Payments from the Issue
Date would exceed the sum (without duplication) of the following:

     (A) 50% of the aggregate Consolidated Net Income of the Company accrued on a cumulative
basis commencing on September 30, 2001, and ending on the last day of the fiscal quarter
ending on or immediately preceding the date of such proposed Restricted Payment (or, if such
aggregate Consolidated Net Income shall be a loss, minus 100% of such loss), plus

     (B) the aggregate net cash proceeds, or the Fair Market Value of Property other than
cash, received by the Company on or after September 30, 2001 from the issuance or sale
(other than to a Subsidiary of the Company) of Capital Stock of the Company or any options,
warrants or rights to purchase Capital Stock of the Company, plus

     (C) the aggregate net cash proceeds, or the Fair Market Value of Property other than
cash, received by the Company as capital contributions to the Company (other than from a
Subsidiary of the Company) on or after September 30, 2001, plus

     (D) the aggregate net cash proceeds received by the Company from the issuance or sale
(other than to any Subsidiary of the Company) on or after September 30, 2001 of convertible
Indebtedness that has been converted into or exchanged for Capital Stock of the Company,
together with the aggregate cash received by the Company at the time of such conversion or
exchange or received by the Company from any conversion or exchange of convertible Senior
Indebtedness issued or sold (other than to any Subsidiary of the Company) prior to the Issue
Date, plus

     (E) to the extent not otherwise included in the Company’s Consolidated Net Income, an
amount equal to the net reduction in Investments made by the Company and its Restricted
Subsidiaries subsequent to the Issue Date in any Person resulting from (1) payments of
interest on debt, dividends, repayments of loans or advances or other transfers or
distributions of Property, in each case to the Company or any Restricted Subsidiary from any
Person other than the Company or a Restricted Subsidiary and in an amount not to exceed the
book value of such Investments previously made in such Person that were treated as
Restricted Payments, or (2) the designation of any Unrestricted Subsidiary as a Restricted
Subsidiary, and in an amount not to exceed the lesser of (x) the book value of all
Investments previously made in such Unrestricted Subsidiary that were treated as Restricted
Payments and (y) the Fair Market Value of such Unrestricted Subsidiary.

          (b) The limitations set forth in paragraph (a) above shall not prevent the Company or any
Restricted Subsidiary from making the following Restricted Payments so long as, at the time
thereof, no Default or Event of Default shall have occurred and be continuing (except in the case
of clause (i) below under which the payment of a dividend is permitted):

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     (i) the payment of any dividend on Capital Stock or Redeemable Stock of the Company or
any Restricted Subsidiary within 60 days after the declaration thereof, if at such
declaration date such dividend could have been paid in compliance with paragraph (a) above;

     (ii) the repurchase, redemption or other acquisition or retirement for value of any
Capital Stock of the Company or any of its Subsidiaries held by any current or former
officers, directors or employees of the Company or any of its Subsidiaries pursuant to the
terms of agreements (including employment agreements) or plans approved by the Board of
Directors, including any such repurchase, redemption, acquisition or retirement of shares of
such Capital Stock that is deemed to occur upon the exercise of stock options or similar
rights if such shares represent all or a portion of the exercise price or are surrendered in
connection with satisfying Federal income tax obligations; provided,
however, that the aggregate amount of such repurchases, redemptions, acquisitions
and retirements shall not exceed the sum of (A) $4,000,000 in any 12-month period and (B)
the aggregate net proceeds, if any, received by the Company during such 12-month period from
any issuance of such Capital Stock pursuant to such agreements or plans;

     (iii) the purchase, redemption or other acquisition or retirement for value of any
Capital Stock or Redeemable Stock of the Company or any Restricted Subsidiary, in exchange
for, or out of the aggregate net cash proceeds of, an issuance and sale (other than to a
Subsidiary of the Company or an employee stock ownership plan or trust established by the
Company or any of its Subsidiaries, for the benefit of their employees) of Capital Stock of
the Company, within 90 days of such purchase, redemption or other acquisition or retirement;

     (iv) the making of any principal payment on or the repurchase, redemption, legal
defeasance or other acquisition or retirement for value, prior to any scheduled principal
payment, scheduled sinking fund payment or maturity, of any Subordinated Indebtedness (other
than Redeemable Stock) in exchange for, or out of the aggregate net cash proceeds of, an
issuance and sale (other than to a Subsidiary of the Company or an employee stock ownership
plan or trust established by the Company or any of its Subsidiaries, for the benefit of
their employees) of Capital Stock of the Company, within 90 days of such principal payment,
repurchase, redemption, legal defeasance or acquisition or retirement;

     (v) the making of any principal payment on or the repurchase, redemption, legal
defeasance or other acquisition or retirement for value of Subordinated Indebtedness in
exchange for, or out of the aggregate net cash proceeds of an Incurrence (other than a sale
to a Subsidiary of the Company) of Subordinated Indebtedness, within 90 days of such
principal payment, repurchase, redemption, legal defeasance or other acquisition or
retirement;

     (vi) loans made to officers, directors or employees of the Company or any Restricted
Subsidiary approved by the Board of Directors (or a duly authorized officer), the net cash
proceeds of which are used solely (A) to purchase common stock of the

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Company in connection with a restricted stock or employee stock purchase plan, or to
exercise stock options received pursuant to an employee or director stock option plan or
other incentive plan, in a principal amount not to exceed the exercise price of such stock
options or (B) to refinance loans, together with accrued interest thereon, made pursuant to
item (A) of this clause (vi);

     (vii) any prepayment, repayment, purchase, repurchase, redemption, retirement,
defeasance or other acquisition for value of Subordinated Indebtedness with any Excess
Proceeds that remain after consummation of a Prepayment Offer;

     (viii) the redemption, repurchase, acquisition or retirement of equity interests in any
Restricted Subsidiary;

     (ix) other Restricted Payments in an aggregate amount not to exceed $25.0 million since
the Issue Date; and

     (x) any cash payment to the Company’s stockholders in connection with the Merger.

The actions described in clauses (i), (ii) and (ix) of this paragraph (b) shall be included in the
calculation of the amount of Restricted Payments. The actions described in clauses (iii), (iv),
(v), (vi), (vii), (viii) and (x) of this paragraph (b) shall be excluded in the calculation of the
amount of Restricted Payments, provided that the net cash proceeds from any issuance or
sale of Capital Stock of the Company pursuant to such clause (iii), (iv) or (vi) shall be excluded
from any calculations pursuant to clause (B) or (C) under the immediately preceding paragraph (a).

          (c) In computing Consolidated Net Income of the Company under paragraph (a) above, (i) the
Company shall use audited financial statements for the portions of the relevant period for which
audited financial statements are available on the date of determination and unaudited financial
statements and other current financial data based on the books and records of the Company for the
remaining portion of such period and (ii) the Company shall be permitted to rely in good faith on
the financial statements and other financial data derived from the books and records of the Company
that are available on the date of determination. If the Company makes a Restricted Payment which,
at the time of the making of such Restricted Payment, would in the good faith determination of the
Company be permitted under the requirements of this Indenture, such Restricted Payment shall be
deemed to have been made in compliance with this Indenture notwithstanding any subsequent
adjustments made in good faith to the Company’s financial statements affecting Consolidated Net
Income of the Company for any period.

          (d) For purposes of determining compliance with the foregoing covenant:

     (i) in the event that a Restricted Payment meets the criteria of more than one of the
above provisions, the Company, in its sole discretion, may classify or reclassify such
Restricted Payment (including as a Permitted Investment) and only be required to include the
amount and type of such Restricted Payment in (and to have made such Restricted Payment
pursuant to) one of the above clauses; and

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     (ii) a Restricted Payment may for this purpose be divided into more than one of the
types of Restricted Payments described above.

          SECTION 4.05 Limitation on Restrictions on Distributions from Restricted Subsidiaries.
The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, create or otherwise cause or permit to exist or become effective any consensual
encumbrance or restriction on the legal right of any Restricted Subsidiary to (i) pay dividends, in
cash or otherwise, or make any other distributions on or in respect of its Capital Stock or
Redeemable Stock, or pay any Indebtedness or other obligation owed, to the Company or any other
Restricted Subsidiary, (ii) make loans or advances to the Company or any other Restricted
Subsidiary or (iii) transfer any of its Property to the Company or any other Restricted Subsidiary.
Such limitation shall not apply (a) with respect to clauses (i), (ii) and (iii), to encumbrances
and restrictions (1) in the Bank Credit Facilities and other agreements and instruments, in each
case as in effect on the Issue Date, (2) relating to Indebtedness of a Restricted Subsidiary and
existing at the time it became a Restricted Subsidiary if such encumbrance or restriction was not
created in anticipation of or in connection with the transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary, (3) arising or existing by reason of applicable law or
any applicable rule, regulation or order including of any regulatory body, (4) relating to
restrictions on cash or other deposits or net worth provisions in leases and other agreements
entered into by the Company or any Restricted Subsidiary in the ordinary course of business, (5)
existing under or by reason of provisions in joint venture or similar agreements customary for such
transactions and applicable only to the assets that are the subject of such agreements, or (6)
which result from the renewal, refinancing, extension or amendment of an agreement that is the
subject of clause (a)(1), (2), (3), (4) or (5) above or clause (b)(1) or (2) below,
provided that such encumbrance or restriction is not materially less favorable to the
Holders of Securities than those under or pursuant to the agreement so renewed, refinanced,
extended or amended, and (b) with respect to clause (iii) only, to (1) any restriction on the sale,
transfer or other disposition of Property relating to Indebtedness that is permitted to be Incurred
and secured under Sections 4.03 and 4.10, (2) any encumbrance or restriction applicable to Property
at the time it is acquired by the Company or a Restricted Subsidiary, so long as such encumbrance
or restriction relates solely to the Property so acquired and was not created in anticipation of or
in connection with such acquisition, (3) customary provisions restricting subletting or assignment
of leases and customary provisions in other agreements that restrict assignment of such agreements
or rights thereunder and (4) customary restrictions contained in asset sale agreements limiting the
transfer of such assets pending the closing of such sale.

          SECTION 4.06 Limitation on Asset Sales. (a) The Company shall not, and shall not
permit any Restricted Subsidiary to, consummate any Asset Sale unless (i) the Company or such
Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at
least equal to the Fair Market Value of the Property subject to such Asset Sale and (ii) all of the
consideration paid to the Company or such Restricted Subsidiary in connection with such Asset Sale
is in the form of cash, cash equivalents, Liquid Securities, Exchanged Properties (including
pursuant to asset swaps) or the assumption by the purchaser of liabilities of the Company (other
than liabilities of the Company that are by their terms subordinated to the Securities) or
liabilities of any Restricted Subsidiary that made such Asset Sale (other than liabilities of a
Subsidiary Guarantor that are by their terms subordinated to such Subsidiary

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Guarantor’s Subsidiary Guarantee), in each case as a result of which the Company and its
remaining Restricted Subsidiaries are no longer liable for such liabilities (“Permitted
Consideration”); provided, however, that the Company and its Restricted
Subsidiaries shall be permitted to receive Property other than Permitted Consideration, so long as
the aggregate Fair Market Value of all such Property other than Permitted Consideration received
from Asset Sales and held by the Company or any Restricted Subsidiary at any one time outstanding
shall not exceed 10.0% of Adjusted Consolidated Net Tangible Assets.

          The Net Available Cash from Asset Sales by the Company or a Restricted Subsidiary may be
applied by the Company, such Restricted Subsidiary or another Restricted Subsidiary, to the extent
the Company or such Restricted Subsidiary elects (or is required by the terms of any Senior
Indebtedness of the Company or a Subsidiary Guarantor), to (i) prepay, repay or purchase Senior
Indebtedness of the Company or a Subsidiary Guarantor or any Indebtedness of a Restricted
Subsidiary that is not a Subsidiary Guarantor (in each case excluding Indebtedness owed to the
Company or an Affiliate of the Company), (ii) reinvest in Additional Assets (including by means of
an Investment in Additional Assets by a Restricted Subsidiary with Net Available Cash received by
the Company or another Restricted Subsidiary) or (iii) purchase Securities or purchase both
Securities and one or more series or issues of other Senior Indebtedness on a pro rata basis
(excluding Securities and Senior Indebtedness owned by the Company or an Affiliate of the Company).
Pending any reinvestment pursuant to clause (ii) above, the Company may temporarily prepay, repay
or purchase Senior Indebtedness of the Company or a Subsidiary Guarantor.

          (b) Any Net Available Cash from an Asset Sale not applied in accordance with the preceding
paragraph within 365 days from the date of such Asset Sale shall constitute “Excess Proceeds.” When
the aggregate amount of Excess Proceeds exceeds $20,000,000, the Company shall be required to make
an offer to purchase Securities having an aggregate principal amount equal to the aggregate amount
of Excess Proceeds (the “Prepayment Offer”) at a purchase price equal to 100% of the principal
amount of such Securities plus accrued and unpaid interest, if any, to the Purchase Date (as
defined) in accordance with the procedures (including prorating in the event of oversubscription)
set forth herein, but, if the terms of any other Senior Indebtedness require that a Pari
Passu Offer be made contemporaneously with the Prepayment Offer, then the Excess Proceeds
shall be prorated between the Prepayment Offer and such Pari Passu Offer in
accordance with the aggregate outstanding principal amounts of the Securities and such other Senior
Indebtedness, and the aggregate principal amount of Securities for which the Prepayment Offer is
made shall be reduced accordingly. If the aggregate principal amount of Securities tendered by
Holders thereof exceeds the amount of available Excess Proceeds, then such Excess Proceeds shall be
allocated pro rata according to the principal amount of the Securities tendered and the Trustee
shall select the Securities to be purchased in accordance herewith. To the extent that any portion
of the amount of Excess Proceeds remains after compliance with the second sentence of this
paragraph and provided that all Holders of Securities have been given the opportunity to tender
their Securities for purchase as described in the following paragraph in accordance with this
Indenture, the Company and its Restricted Subsidiaries may use such remaining amount for purposes
permitted by this Indenture and the amount of Excess Proceeds shall be reset to zero.

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          (c) (1) Within 30 days after the 365th day following the date of an Asset Sale, the Company
shall, if it is obligated to make an offer to purchase the Securities pursuant to the preceding
paragraph, send a written Prepayment Offer notice, by first-class mail, to the Trustee and the
Holders of the Securities (the “Prepayment Offer Notice”), accompanied by such information
regarding the Company and its Subsidiaries as the Company believes shall enable such Holders of the
Securities to make an informed decision with respect to the Prepayment Offer (which at a minimum
shall include (i) the most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently filed Quarterly
Report on Form 10-Q of the Company and any Current Report on Form 8-K of the Company filed
subsequent to such Quarterly Report, other than Current Reports describing Asset Sales otherwise
described in the offering materials, or corresponding successor reports (or, during any time that
the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, corresponding reports prepared pursuant to Section 4.02), (ii) a description of material
developments in the Company’s business subsequent to the date of the latest of such reports and
(iii) if material, appropriate pro forma financial information). The Prepayment Offer Notice shall
state, among other things, (i) that the Company is offering to purchase Securities pursuant to the
provisions of this Indenture, (ii) that any Security (or any portion thereof) accepted for payment
(and duly paid on the Purchase Date) pursuant to the Prepayment Offer shall cease to accrue
interest on the Purchase Date, (iii) that any Securities (or portions thereof) not properly
tendered shall continue to accrue interest, (iv) the purchase price and purchase date, which shall
be, subject to any contrary requirements of applicable law, no less than 30 days nor more than 60
days after the date the Prepayment Offer Notice is mailed (the “Purchase Date”), (v) the aggregate
principal amount of Securities to be purchased, (vi) a description of the procedure which Holders
of Securities must follow in order to tender their Securities and the procedures that Holders of
Securities must follow in order to withdraw an election to tender their Securities for payment and
(vii) all other instructions and materials necessary to enable Holders to tender Securities
pursuant to the Prepayment Offer.

          (2) Not later than the date upon which written notice of a Prepayment Offer is delivered to
the Trustee as provided above, the Company shall deliver to the Trustee an Officers’ Certificate as
to (i) the amount of the Prepayment Offer (the “Offer Amount”), (ii) the allocation of the Net
Available Cash from the Asset Sales pursuant to which such Prepayment Offer is being made and (iii)
the compliance of such allocation with the provisions of Section 4.06(a). On such date, the
Company shall also irrevocably deposit with the Trustee or with the Paying Agent (or, if the
Company or a Wholly Owned Subsidiary is the Paying Agent, shall segregate and hold in trust) in
Permitted Short-Term Investments, maturing on the last day prior to the Purchase Date or on the
Purchase Date if funds are immediately available by open of business, an amount equal to the Offer
Amount to be held for payment in accordance with the provisions of this Section. Upon the
expiration of the period for which the Prepayment Offer remains open (the “Offer Period”), the
Company shall deliver to the Trustee for cancellation the Securities or portions thereof which have
been properly tendered to and are to be accepted by the Company. The Trustee or the Paying Agent
shall, on the Purchase Date, mail or deliver payment to each tendering Holder in the amount of the
purchase price. In the event that the aggregate purchase price of the Securities delivered by the
Company to the Trustee is less than the Offer Amount, the Trustee or the Paying Agent shall deliver
the excess to the Company immediately after the expiration of the Offer Period for application in
accordance with this Section.

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          (3)Holders electing to have a Security purchased shall be required to surrender the Security,
with an appropriate form duly completed, to the Company or its agent at the address specified in
the notice at least three Business Days prior to the Purchase Date. Holders shall be entitled to
withdraw their election if the Trustee or the Company receives not later than one Business Day
prior to the Purchase Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Security which was delivered for purchase by the
Holder and a statement that such Holder is withdrawing his election to have such Security
purchased. If at the expiration of the Offer Period the aggregate principal amount of Securities
surrendered by Holders exceeds the Offer Amount, the Company shall select the Securities to be
purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Company so
that only Securities in denominations of $1,000, or integral multiples of $1,000, shall be
purchased). Holders whose Securities are purchased only in part shall be issued new Securities
equal in principal amount to the unpurchased portion of the Securities surrendered.

          (4) At the time the Company delivers Securities to the Trustee which are to be accepted for
purchase, the Company shall also deliver an Officers’ Certificate stating that such Securities are
to be accepted by the Company pursuant to and in accordance with the terms of this Section 4.06. A
Security shall be deemed to have been accepted for purchase at the time the Trustee or the Paying
Agent mails or delivers payment therefor to the surrendering Holder.

          (d) The Company shall comply, to the extent applicable, with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws or regulations thereunder to the extent such
laws and regulations are applicable in connection with the purchase of Securities as described
above. To the extent that the provisions of any securities laws or regulations conflict with the
provisions relating to the Prepayment Offer, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its obligations described
above by virtue thereof.

          SECTION 4.07 Limitation on Transactions with Affiliates. (a) The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, conduct any
business or enter into any transaction or series of transactions (including the sale, transfer,
disposition, purchase, exchange or lease of Property, the making of any Investment, the giving of
any Guarantee or the rendering of any service) with or for the benefit of any Affiliate of the
Company (other than the Company or a Restricted Subsidiary), unless (i) such transaction or series
of transactions is on terms no less favorable to the Company or such Restricted Subsidiary than
those that could be obtained in a comparable arm’s-length transaction with a Person that is not an
Affiliate of the Company or such Restricted Subsidiary, and (ii) with respect to a transaction or
series of transactions involving aggregate payments by or to the Company or such Restricted
Subsidiary having a Fair Market Value equal to or in excess of (a) $5,000,000 but less than
$10,000,000, an Officer certifies that such transaction or series of transactions complies with
clause (i) of this paragraph, as evidenced by an Officers’ Certificate delivered to the Trustee or
(b) $10,000,000, the Board of Directors (including a majority of the disinterested members of such
Board of Directors, if any) approves such transaction or series of transactions and certifies that
such transaction or series of transactions complies with clause (i) of this paragraph, as evidenced
by a certified resolution delivered to the Trustee.

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          The limitations of the preceding paragraph do not apply to (i) the payment of reasonable and
customary regular fees to directors of the Company or any of its Restricted Subsidiaries who are
not employees of the Company or any of its Restricted Subsidiaries, (ii) indemnities of officers
and directors of the Company or any Subsidiary consistent with such Person’s charter, bylaws and
applicable statutory provisions, (iii) any issuance of securities, or other payments, awards or
grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements,
stock options and stock ownership plans approved by the Board of Directors, (iv) sales of Capital
Stock to Affiliates of the Company, (v) loans made (a) to officers, directors or employees of the
Company or any Restricted Subsidiary approved by the Board of Directors (or by a duly authorized
Officer), the proceeds of which are used solely to purchase common stock of the Company in
connection with a restricted stock or employee stock purchase plan, or to exercise stock options
received pursuant to an employee or director stock option plan or other incentive plan, in a
principal amount not to exceed the exercise price of such stock options, or (b) to refinance loans,
together with accrued interest thereon, made pursuant to this clause (v), (vi) advances and loans
to officers, directors and employees of the Company or any Subsidiary, provided such loans
and advances (excluding loans or advances made pursuant to the preceding clause (v)) do not exceed
$5,000,000 at any one time outstanding, (vii) any Restricted Payment permitted to be paid pursuant
to Section 4.04, (viii) any transaction or series of transactions between the Company and one or
more Restricted Subsidiaries or between two or more Restricted Subsidiaries, and (ix) any
transaction or series of transactions pursuant to any agreement or obligation of the Company or any
of its Restricted Subsidiaries in effect on the Issue Date.

          SECTION 4.08 [Intentionally Omitted]

          SECTION 4.09 [Intentionally Omitted]

          SECTION 4.10 Limitation on Liens. The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, enter into, create, Incur or assume any Lien on
or with respect to any Property of the Company or such Restricted Subsidiary, whether owned on the
Issue Date or acquired after the Issue Date, or any interest therein or any income or profits
therefrom, unless the Securities or any Subsidiary Guarantee of such Restricted Subsidiary, as
applicable, are secured equally and ratably with (or prior to) any and all other obligations
secured by such Lien for so long as such obligations are so secured, except that the Company and
its Restricted Subsidiaries may enter into, create, Incur or assume Permitted Liens.

          SECTION 4.11 Compliance Certificate. The Company shall deliver to the Trustee within
120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company they would
normally have knowledge of any Default and whether or not the signers know of any Default that
occurred during such period. If they do, the certificate shall describe the Default, its status
and what action the Company is taking or proposes to take with respect thereto. The Company also
shall comply with TIA Section 314(a)(4).

          SECTION 4.12 Further Instruments and Acts. Upon request of the Trustee, the Company
shall execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

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          SECTION 4.13 Future Subsidiary Guarantors. The Company shall cause each Restricted
Subsidiary that (i) Incurs Indebtedness or issues Preferred Stock following the Issue Date or (ii)
has Indebtedness or Preferred Stock outstanding on the date on which such Restricted Subsidiary
becomes a Restricted Subsidiary, to execute and deliver to the Trustee a Subsidiary Guarantee at
the time such Restricted Subsidiary Incurs such Indebtedness or becomes a Restricted Subsidiary and
a supplemental indenture in the form of Exhibit B pursuant to which such Subsidiary shall guarantee
payment of the Securities as provided in Section 11.06; provided, however, that (a)
such Restricted Subsidiary shall not be required to deliver a Subsidiary Guarantee if the aggregate
amount of such Indebtedness or Preferred Stock, together with all other Indebtedness and Preferred
Stock then outstanding (i) of such Restricted Subsidiary, is less than $10,000,000 and (ii) among
Restricted Subsidiaries that are not Subsidiary Guarantors is less than $25,000,000, and (b) any
Foreign Subsidiary shall not be required to deliver a Subsidiary Guarantee as a result of the
incurrence of Indebtedness pursuant to the proviso in clause (x) of the definition of “Permitted
Indebtedness.”

          SECTION 4.14 [Intentionally Omitted]

          SECTION 4.15 Restricted and Unrestricted Subsidiaries. Unless defined or designated
as an Unrestricted Subsidiary, any Person that becomes a Subsidiary of the Company or any of its
Restricted Subsidiaries shall be classified as a Restricted Subsidiary subject to the provisions of
the next paragraph. The Company may designate a Subsidiary (including a newly formed or newly
acquired Subsidiary) of the Company or any of its Restricted Subsidiaries as an Unrestricted
Subsidiary if (i) such Subsidiary does not at such time own any Capital Stock or Indebtedness of,
or own or hold any Lien on any Property of, the Company or any other Restricted Subsidiary, (ii)
such Subsidiary does not at such time have any Indebtedness or other obligations which, if in
default, would result (with the passage of time or notice or otherwise) in a default on any
Indebtedness of the Company or any Restricted Subsidiary and (iii)(a) such designation is effective
immediately upon such Subsidiary becoming a Subsidiary of the Company or of a Restricted
Subsidiary, (b) the Subsidiary to be so designated has total assets of $1,000 or less or (c) if
such Subsidiary has assets greater than $1,000, then such redesignation as an Unrestricted
Subsidiary is deemed to constitute a Restricted Payment in an amount equal to the Fair Market Value
of the Company’s direct and indirect ownership interest in such Subsidiary, and such Restricted
Payment would be permitted to be made at the time of such designation under Section 4.04. Except
as provided in the immediately preceding sentence, no Restricted Subsidiary may be redesignated as
an Unrestricted Subsidiary. The designation of an Unrestricted Subsidiary or removal of such
designation shall be made by the Board of Directors of the Company or a committee thereof pursuant
to a certified resolution delivered to the Trustee and shall be effective as of the date specified
in the applicable certified resolution, which shall not be prior to the date such certified
resolution is delivered to the Trustee. Upon designation of a Restricted Subsidiary as an
Unrestricted Subsidiary in compliance with this Section, such Restricted Subsidiary shall, by
delivery of a supplemental indenture in form satisfactory to the Trustee, be released from any
Subsidiary Guarantee previously made by such Subsidiary.

          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, take any
action or enter into any transaction or series of transactions that would result in a Person
becoming a Restricted Subsidiary (whether through an acquisition or otherwise) unless, after giving
effect to such action, transaction or series of transactions, on a pro forma basis, (i) the

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Company could Incur at least $1.00 of additional Indebtedness pursuant to clause (a) of
Section 4.03 and (ii) no Default or Event of Default would occur or be continuing.

          SECTION 4.16 Suspension of Certain Covenants. In the event of the occurrence of a
Fall Away Event, (a) the covenants and provisions contained hereunder under Section 4.03, Section
4.04, Section 4.05, Section 4.06, Section 4.07 and Section 4.13 shall each no longer be in effect
for the remaining term of the Securities and (b) the Company will no longer be subject to the
financial test set forth in clause (iv) of Section 5.01(i).

ARTICLE 5

Successor Company

          SECTION 5.01 When Company May Merge or Transfer Assets. The Company shall not
consolidate with or merge with or into any Person, or convey, transfer or lease, in one transaction
or a series of transactions, all or substantially all the property of the Company and its
Restricted Subsidiaries, taken as a whole, unless:

     (i) the resulting, surviving or transferee Person (the “Successor Company”) shall be a
Person organized or existing under the laws of the United States of America, any State
thereof or the District of Columbia and the Successor Company (if not the Company) shall
expressly assume, by a supplemental indenture, executed and delivered to the Trustee, in
form satisfactory to the Trustee, all the obligations of the Company under the Securities
and this Indenture; (ii) in the case of a conveyance, transfer or lease of all or
substantially all the Property of the Company and its Restricted Subsidiaries, taken as a
whole, such Property shall have been so conveyed, transferred or leased as an entirety or
virtually as an entirety to one Person; (iii) immediately after giving effect to such
transaction (and treating, for purposes of this clause (iii) and clause (iv) below, any
Indebtedness which becomes or is anticipated to become an obligation of the Successor
Company or any Restricted Subsidiary as a result of such transaction as having been Incurred
by such Successor Company or such Restricted Subsidiary at the time of such transaction), no
Default or Event of Default shall have occurred and be continuing; (iv) other than with
respect to the consolidation of the Company with or merger of the Company with or into, or
the conveyance, transfer or lease of all or substantially all of the Property of the Company
and its Restricted Subsidiaries, taken as a whole, to a Wholly Owned Subsidiary, immediately
after giving effect to such transactions, the Successor Company would be able to Incur an
additional $1.00 of Indebtedness pursuant to clause (a) of Section 4.03; and (v) the Company
shall have delivered to the Trustee an Officers’ Certificate, stating that such
consolidation, merger or transfer and such supplemental indenture (if any) comply with this
Indenture. The provisions of clauses (i), (ii), (iii), (iv) and (v) above shall not apply
to any transactions which constitute an Asset Sale if the Company complies with Section
4.06.

          The Successor Company shall be the successor to the Company and shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture, but
the predecessor Company in the case of a conveyance, transfer or lease shall not be released from
the obligation to pay the principal of and interest on the Securities.

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          SECTION 5.02 When a Subsidiary Guarantor May Merge or Transfer Assets. The Company
shall not permit any Subsidiary Guarantor to consolidate with or merge with or into, or convey,
transfer or lease, in one transaction or series of transactions, all or substantially all of its
Property to, any Person (other than the Company or any other Subsidiary Guarantor) unless:

     (a) the Successor Company (if not such Subsidiary) shall expressly assume, by a
supplemental indenture, in form satisfactory to the Trustee, all the obligations of such
Subsidiary under its Subsidiary Guarantee; (b) in the case of a conveyance, transfer or
lease of all or substantially all the Property of such Subsidiary Guarantor, such Property
shall have been so conveyed, transferred or leased as an entirety or virtually as an
entirety to one Person; (c) immediately after giving effect to such transaction no Default
or Event of Default shall have occurred and be continuing and (d) the Company shall have
delivered to the Trustee an Officers’ Certificate, stating that such consolidation, merger
or transfer and such supplemental indenture (if any) comply with this Indenture. The
provisions of clauses (a), (b), (c) and (d) above shall not apply to any transactions which
constitute an Asset Sale if the Company has complied with Section 4.06.

          The Successor Company shall be the successor to the applicable Subsidiary Guarantor and shall
succeed to, and be substituted for, and may exercise every right and power of such Subsidiary
Guarantor under its Subsidiary Guarantee, but the predecessor Subsidiary Guarantor in the case of a
conveyance, transfer or lease shall not be released from the obligation to pay the principal of and
interest on the Securities.

Notwithstanding the foregoing, in no event shall this Article 5 apply to or prohibit the Merger.

ARTICLE 6

Defaults and Remedies

          SECTION 6.01 Events of Default. The following events shall be “Events of Default”:

     (1) the Company defaults in any payment of interest on any Security 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 the principal of any Security when the same
becomes due and payable at its Stated Maturity, upon optional redemption, upon required
repurchase, upon declaration or otherwise or fails to satisfy and discharge the Securities
upon consummation of the Merger in accordance with Section 3.07 and Article 13;

     (3) the Company or any Subsidiary Guarantor fails to comply with Article 5;

     (4) (i) with respect to all quarterly financial information, failure by the Company for
90 days after notice to comply with the provisions described under Section 4.02 and (ii)
with respect to all annual financial information, failure by the Company for

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an additional 30 days after the period described in subclause (i) of this clause (4) to
comply with such provisions;

     (5) default in the performance, or breach, of any covenant or warranty of the Company
or any Subsidiary Guarantor in this Indenture (other than a covenant or warranty addressed
in clauses (1), (2) or (3) above) and continuance of such default or breach for a period of
60 days after the notice specified below;

     (6) default by the Company or any Restricted Subsidiary under any Indebtedness for
borrowed money (other than Non-recourse Purchase Money Indebtedness) of the Company or any
Restricted Subsidiary which results in acceleration of the maturity of such Indebtedness, or
the failure to pay such Indebtedness at maturity, in an amount greater than $20,000,000 or
its foreign currency equivalent at the time if such Indebtedness is not discharged or such
acceleration is not rescinded or annulled within 10 days after the notice specified below;

     (7) the Company or any 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 Custodian of it or for any substantial part of
its property; or

     (D) makes a general assignment for the benefit of its creditors; or takes any
comparable action under any foreign laws relating to insolvency;

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

     (A) is for relief against the Company or any Significant Subsidiary in an
involuntary case;

     (B) appoints a Custodian of the Company or any Significant Subsidiary or for any
substantial part of its property;

     (C) orders the winding up or liquidation of the Company or any Significant
Subsidiary; or

     (D) grants any similar relief under any foreign laws; and in each such case the
order or decree remains unstayed and in effect for 60 days;

     (9) one or more final judgments or orders by a court of competent jurisdiction are
entered against the Company or any Restricted Subsidiary in an uninsured or unindemnified
aggregate amount outstanding at any time in excess of $20,000,000 and

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such judgments or orders are not discharged, waived, stayed, satisfied or bonded for a
period of 60 consecutive days; or

     (10) a Subsidiary Guarantee ceases to be in full force and effect (other than in
accordance with the terms of this Indenture and such Subsidiary Guarantee) or a Subsidiary
Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee.

          The foregoing shall constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

          The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal
or state law for the relief of debtors. The term “Custodian” means any receiver, trustee,
assignee, liquidator, custodian or similar official under any Bankruptcy Law.

          A Default under clause (5) or (6) is not an Event of Default until the Trustee or the Holders
of at least 25% in aggregate principal amount of the outstanding Securities notify the Company (and
in the case of such notice by Holders, the Trustee) in writing of such Default and the Company does
not cure such Default within the time specified after receipt of such notice. Such notice must
specify the Default, demand that it be remedied and state that such notice is a “Notice of
Default.”

          The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any Event of Default and any event which with the
giving of notice or the lapse of time would become an Event of Default, its status and what action
the Company is taking or proposes to take with respect thereto.

          SECTION 6.02 Acceleration. If an Event of Default (other than an Event of Default
specified in Section 6.01(7) or (8)) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the Securities by notice
to the Company and the Trustee, may declare the principal of the Securities to be due and payable.
Upon such a declaration, such principal shall be due and payable immediately. If an Event of
Default specified in Section 6.01(7) or (8) occurs, the principal of the Securities shall
automatically and without any action by the Trustee or any Holder, become immediately due and
payable. The Holders of a majority in aggregate principal amount of the outstanding Securities by
notice to the Trustee and the Company may rescind any declaration of acceleration if the rescission
would not conflict with any judgment or decree, and if all existing Events of Default have been
cured or waived except nonpayment of principal or interest that has become due solely because of
the acceleration. No such rescission shall affect any subsequent Default or impair any right
consequent thereto.

          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 interest on the
Securities or to enforce the performance of any provision of the Securities or this Indenture.

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          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
Securityholder 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. No remedy
is exclusive of any other remedy. All available remedies are cumulative.

          SECTION 6.04 Waiver of Past Defaults. The Holders of a majority in aggregate
principal amount of the Securities by notice to the Trustee may waive an existing Default and its
consequences except (i) a Default in the payment of the principal of or interest on a Security or
(ii) a Default in respect of a provision that under Section 9.02 cannot be amended without the
consent of each Securityholder affected. When a Default is waived, it is deemed cured, but no such
waiver shall extend to any subsequent or other Default or impair any consequent right.

          SECTION 6.05 Control by Majority. The Holders of a majority in aggregate principal
amount of the Securities may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or of exercising any trust or power conferred on the Trustee with
respect to the Securities. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01, that the Trustee determines is unduly
prejudicial to the rights of other Securityholders or would 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 reasonable indemnity against all losses and expenses
caused by taking or not taking such action.

          SECTION 6.06 Limitation on Suits. A Securityholder may not pursue any remedy with
respect to this Indenture or the Securities unless:

     (1) such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default;

     (2) the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding shall have made a written request, and such Holder of or Holders shall have
offered reasonable indemnity, to the Trustee to institute such proceeding as trustee; and

     (3) the Trustee has failed to institute such proceeding and has not received from the
Holders of at least a majority in aggregate principal amount of the Securities outstanding a
direction inconsistent with such request, within 60 days after such notice, request and
offer.

          The foregoing limitations on the pursuit of remedies by a Securityholder shall not apply to a
suit instituted by a Holder of Securities for the enforcement of payment of the principal of or
interest on such Security on or after the applicable due date specified in such Security. A
Securityholder may not use this Indenture to prejudice the rights of another Securityholder or to
obtain a preference or priority over another Securityholder.

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          SECTION 6.07 Rights of Holders To Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of principal of and
interest on the Securities held by such Holder, on or after the respective due dates expressed in
this Securities, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.

          SECTION 6.08 Collection Suit by Trustee. If an Event of Default specified in Section
6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount then due and owing (together
with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section
7.07.

          SECTION 6.09 Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee and the Securityholders allowed in any judicial proceedings relative to the Company,
its creditors or its property and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to
make payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and
any other amounts due the Trustee under Section 7.07.

          SECTION 6.10 Priorities. If the Trustee collects any money or property pursuant to
this Article 6, it shall pay out the money or property in the following order:

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

     SECOND: to Securityholders for amounts due and unpaid on the
Securities for principal and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on
the Securities for principal and interest, respectively; and

     THIRD: to the Company.

          The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section.

At least 15 days before such record date, the Company shall mail to each Securityholder and the
Trustee a notice that states the record date, the payment date and amount to be paid.

          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 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,

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having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07 or a suit by Holders of more than 10% in aggregate principal amount of the Securities.

          SECTION 6.12 Stay, Extension and Usury Laws. The Company covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not, by resort to any such
law, 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 has been enacted.

ARTICLE 7

Trustee

          SECTION 7.01 Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent 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:

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture 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 the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liability 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 paragraph (b) of this Section;

     (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Trust 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.

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          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

          (e) 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.

          (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

          (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

          (h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

          SECTION 7.02 Rights of Trustee. (a) The Trustee may 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 an Officers’ Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

          (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; provided, however, that the
Trustee’s conduct does not constitute willful misconduct or negligence.

          (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Securities shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

          SECTION 7.03 Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or
its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent,
Registrar or co-registrar may do the same with like rights. However, the Trustee must comply with
Sections 7.10 and 7.11.

          SECTION 7.04 Trustee’s Disclaimer. The Trustee shall not be responsible for and makes
no representation as to the validity or adequacy of this Indenture or the Securities,

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it shall not be accountable for the Company’s use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company or any Subsidiary Guarantor in this
Indenture or in any document issued in connection with the sale of the Securities or in the
Securities other than the Trustee’s certificate of authentication.

          SECTION 7.05 Notice of Defaults. If a Default occurs and is continuing and if it is
known to the Trustee, the Trustee shall mail to each Securityholder notice of the Default within 90
days after it is known to a Trust Officer or written notice of it is received by the Trustee.
Except in the case of a Default in payment of principal of or interest on any Security, the Trustee
may withhold the notice if and so long as a committee of its Trust Officers in good faith
determines that withholding the notice is in the interests of Securityholders.

          The Trustee is not required to take notice or deemed to have notice of any Event of Default
with respect to the Securities, except an Event of Default under Section 6.01(1) or 6.01 (2)
hereof, unless a Trust Officer shall have received written notice of such Event of Default from the
Company, any Subsidiary Guarantor or any Securityholder or unless a Trust Officer shall otherwise
have knowledge thereof.

          SECTION 7.06 Reports by Trustee to Holders. (a) As promptly as practicable after
each May 15 beginning with May 15, 2007, and in any event prior to July 15 in each
year, the Trustee shall mail to each Securityholder a brief report dated as of May 15 each year
that complies with TIA Section 313(a), if and to the extent required by said subsection. The
Trustee also shall comply with TIA Section 313(b).

          A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to
notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.

          (b) Upon written request by the Trustee, the Company will furnish or cause to be furnished to
the Trustee within 30 days after the receipt by the Company of any such request, a list, in such
form as the Trustee may reasonably require, of the names and addresses of the Holders as of a date
not more than 15 days prior to the time such list is furnished; provided, however,
that is and so long as the Trustee shall be the security registrar, no such list need be furnished.

          SECTION 7.07 Compensation and Indemnity. The Company shall pay to the Trustee from
time to time reasonable compensation for its services. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse
the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s
agents, counsel, accountants and experts. The Company shall indemnify the Trustee against any and
all loss, liability or expense (including attorneys’ fees) incurred by it in connection with the
acceptance and administration of this trust and the performance of its duties hereunder. The
Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify the Company shall

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not relieve the Company of its obligations hereunder. The Company shall defend the claim and
the Trustee may have separate counsel and the Company shall pay the fees and expenses of such
counsel. The Company need not reimburse any expense or indemnify against any loss, liability or
expense incurred by the Trustee through the Trustee’s own willful misconduct, negligence or bad
faith. The Company need not pay for any settlement made by the Trustee without the Company’s
consent, such consent not to be unreasonably withheld.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee other than money
or property held in trust to pay principal of and interest on particular Securities.

          The Company’s payment obligations pursuant to this Section shall survive the discharge of this
Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in Section
6.01(7) or (8), the expenses are intended to constitute expenses of administration under the
Bankruptcy Law.

          SECTION 7.08 Replacement of Trustee. The Trustee may resign at any time by so
notifying the Company. The Holders of a majority in aggregate principal amount of the Securities
may remove the Trustee by so notifying the Trustee and may appoint a successor Trustee. The
Company shall remove the Trustee if:

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

     (2) the Trustee is adjudged bankrupt or insolvent;

     (3) a receiver or other public officer takes charge of the Trustee or its property; or

     (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns, is removed by the Company or by the Holders of a majority in aggregate
principal amount of the Securities and such Holders do not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event
being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor
Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. 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
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. 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.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of 10% in aggregate principal amount of the
Securities may petition any court of competent jurisdiction for the appointment of a successor
Trustee.

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          If the Trustee fails to comply with Section 7.10, any Securityholder who has been a bona fide
Holder of a Security for at least six months may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

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

          SECTION 7.09 Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation or
banking association without any further act shall be the successor Trustee.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any such 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. The Trustee shall at all times satisfy
the requirements of TIA Section 310(a). The Trustee shall have a combined capital and surplus of
at least $50,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA Section 310(b), subject to the penultimate paragraph thereof;
provided, however, that there shall be excluded from the operation of TIA Section
310(b)(1) any indenture or indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

          SECTION 7.11 Preferential Collection of Claims Against Company. The Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).
A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

ARTICLE 8

Discharge of Indenture; Defeasance

          SECTION 8.01 Discharge of Liability on Securities; Defeasance. (a) When (i) the
Company delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant
to Section 2.07) for cancellation or (ii) all outstanding Securities have become due and payable,
whether at maturity or as a result of the mailing of a notice of redemption pursuant to Article 3
and the Company irrevocably deposits with the Trustee money or U.S. Government Obligations
sufficient to pay at maturity or upon redemption all outstanding Securities, including interest
thereon to maturity or such redemption date (other than Securities

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replaced pursuant to Section 2.07), and if in either case the Company pays all other sums
payable hereunder by the Company, then this Indenture shall, subject to Sections 8.01(c), cease to
be of further effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture
on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at
the cost and expense of the Company.

          (b) Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (i) all its
obligations under the Securities and this Indenture (“legal defeasance option”) or (ii) its
obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.10, 4.13 and 4.15, the operation
of Sections 6.01(4) and 6.01(5) (to the extent relating to such other Sections), 6.01(6), 6.01(7),
6.01(8), 6.01(9) and 6.01(10) (but, in the case of Sections 6.01(7) and (8), with respect only to
Significant Subsidiaries), its obligations under Sections 5.01(iv) and 5.02 and the related
operation of Section 6.01(3) (“covenant defeasance option”). The Company may exercise its legal
defeasance option notwithstanding its prior exercise of its covenant defeasance option.

          If the Company exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default. If the Company exercises its covenant defeasance
option, payment of the Securities may not be accelerated because of an Event of Default specified
in Sections 6.01(3), 6.01(4) and 6.01(5) (with respect to the provisions of Articles 4 and 5
referred to in the immediately preceding paragraph) and Sections 6.01(6), 6.01(7), 6.01(8), 6.01(9)
and 6.01(10) (but, in the case of Sections 6.01(7) and (8), with respect only to Significant
Subsidiaries). If the Company exercises its legal defeasance option or its covenant defeasance
option, each Subsidiary Guarantor, if any, shall be released from all its obligations under its
Subsidiary Guarantee.

          Upon satisfaction of the conditions set forth herein and upon request of the Company, the
Trustee shall acknowledge in writing the discharge of those obligations that the Company
terminates.

          (c) Notwithstanding clauses (a) and (b) above, the Company’s obligations in Sections 2.04,
2.05, 2.06, 2.07, 7.07, 7.08, 8.05 and 8.06 and Appendix A shall survive until the Securities have
been paid in full. Thereafter, the Company’s obligations in Sections 7.07 and 8.05 shall survive.

          SECTION 8.02 Conditions to Defeasance. The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

     (1) the Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of principal of and interest on the Securities to maturity or
redemption, as the case may be;

     (2) the Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants 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 cash at such times and in such amounts
as will be sufficient to pay principal and interest when due on all the Securities to
maturity or redemption, as the case may be;

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     (3) 123 days pass after the deposit is made and during the 123-day period no Default
specified in Section 6.01(7) or (8) with respect to the Company occurs which is continuing
at the end of the period;

     (4) the deposit does not constitute a default under any other agreement binding on the
Company;

     (5) the Company delivers to the Trustee an Opinion of Counsel to the effect that the
trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;

     (6) in the case of the legal defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel stating 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 this
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 of Counsel shall confirm that, the
Securityholders will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such defeasance had not
occurred;

     (7) in the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Securityholders will not recognize
income, gain or loss for Federal income tax purposes as a result of such covenant defeasance
and will be subject to Federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such covenant defeasance had not occurred; and

     (8) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Securities as contemplated by this Article 8 have been complied with.

          Before or after a deposit, the Company may make arrangements for the redemption of Securities
at a future date in accordance with Article 3.

          SECTION 8.03 Application of Trust Money. The Trustee shall hold in trust money or
U.S. Government Obligations deposited with it pursuant to this Article 8. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on the Securities.

          SECTION 8.04 Repayment to Company. The Trustee and the Paying Agent shall promptly
turn over to the Company upon request any excess money or securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of

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principal or interest that remains unclaimed for two years, and, thereafter, Securityholders
entitled to the money must look to the Company for payment as general creditors.

          SECTION 8.05 Indemnity for Government Obligations. The Company shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited
U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations.

          SECTION 8.06 Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article 8 until such time as the Trustee or Paying Agent is permitted to apply all
such money or U.S. Government Obligations in accordance with this Article 8; provided,
however, that, if the Company has made any payment of interest on or principal of any
Securities because of the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

ARTICLE 9

Amendments

          SECTION 9.01 Without Consent of Holders. The Company and the Trustee may amend this
Indenture or the Securities without notice to or consent of any Securityholder:

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

     (2) to comply with Article 5;

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

     (4) to add or to remove Subsidiary Guarantors when permitted by the terms hereof, or to
secure the Securities;

     (5) 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;

     (6) to comply with any requirements of the SEC in connection with qualifying, or
maintaining the qualification of, this Indenture under the TIA; or

     (7) to make any change that does not adversely affect (evidenced by an Opinion of
Counsel delivered to the Trustee) the rights of any Securityholder in any material respect
(it being understood that any amendment described in clause (1) above made solely to conform
this Indenture to the final offering memorandum provided to

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investors in connection with the initial offering of the Securities will be deemed not
to adversely affect the rights or interests of Securityholders).

          After an amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section.

          SECTION 9.02 With Consent of Holders. The Company and the Trustee may amend this
Indenture or the Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in aggregate principal amount of the Securities. However,
without the consent of each Securityholder affected thereby an amendment or waiver may not:

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

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

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

     (4) reduce the amount payable upon the redemption or repurchase of any Security in
accordance with Article 3 or Section 4.06 or 4.09, or change the time at which any Security
may be redeemed in accordance with Article 3;

     (5) make any Security payable in a currency other than that stated in the Security;

     (6) make any change in any Subsidiary Guarantee that would adversely affect the
Securityholders;

     (7) impair the right of any Holder to institute suit for enforcement of any payment on
or with respect to such Holder’s Securities or any Subsidiary Guarantee;

     (8) release any security that may have been granted to the Trustee in respect of the
Securities;

     (9) make any change in Section 6.04 or 6.07 or the second sentence of this Section;

     (10) amend any of the provisions relating to the redemption, satisfaction and discharge
of the Securities upon consummation of the Merger; or

     (11) reduce the relative ranking of any Securities.

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

          After an amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section.

          SECTION 9.03 Compliance with Trust Indenture Act. Every amendment to this Indenture
or the Securities shall comply with the TIA as then in effect.

          SECTION 9.04 Revocation and Effect of Consents and Waivers. A consent to an amendment
or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that
Security or portion of the Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or
portion of the Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall
bind every Securityholder. An amendment or waiver becomes effective upon the execution of such
amendment or waiver by the Trustee.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to
give such consent or to revoke any consent previously given or to take any such action, whether or
not such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

          SECTION 9.05 Notation on or Exchange of Securities. If an amendment changes the terms
of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee.
The Trustee may place an appropriate notation on the Security regarding the changed terms and
return it to the Holder. Alternatively, if the Company or the Trustee 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.

          SECTION 9.06 Trustee To Sign Amendments. The Trustee shall sign any amendment
authorized pursuant to this Article 9 if such amendment 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 any amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture and that all conditions precedent have been satisfied.

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          SECTION 9.07 Payment for Consent. Neither the Company nor any Affiliate of the
Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities unless such
consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the
time frame set forth in solicitation documents relating to such consent, waiver or agreement.

ARTICLE 10

[Intentionally Omitted]

ARTICLE 11

Subsidiary Guaranties

          SECTION 11.01 Guaranties. Each Subsidiary Guarantor hereby unconditionally
guarantees, jointly and severally, to each Holder and to the Trustee and its successors and assigns
(a) the full and punctual payment of principal of and interest on the Securities when due, whether
at maturity, by acceleration, by redemption or otherwise, and all other monetary obligations of the
Company under this Indenture and the Securities and (b) the full and punctual performance within
applicable grace periods of all other obligations of the Company under this Indenture and the
Securities (all the foregoing being hereinafter collectively called the “Obligations”). Each
Subsidiary Guarantor further agrees that the Obligations may be extended or renewed, in whole or in
part, without notice or further assent from such Subsidiary Guarantor and that such Subsidiary
Guarantor will remain bound under this Article 11 notwithstanding any extension or renewal of any
Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the
Company of any of the Obligations and also waives notice of protest for nonpayment. Each
Subsidiary Guarantor waives notice of any default under the Securities or the Obligations. The
obligations of each Subsidiary Guarantor hereunder shall not be affected by (a) the failure of any
Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the
Company or any other Person under this Indenture, the Securities or any other agreement or
otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Indenture, the Securities or any other
agreement; (d) the release of any security held by any Holder or the Trustee for the Obligations or
any of them; (e) the failure of any Holder or the Trustee to exercise any right or remedy against
any other guarantor of the Obligations; or (f) any change in the ownership of such Subsidiary
Guarantor.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
guarantee of payment, performance and compliance when due (and not a guarantee of collection) and
waives any right to require that any resort be had by any Holder or the Trustee to any security
held for payment of the Obligations.

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          Except as expressly set forth in Sections 4.15, 5.02 and 8.01(b), the obligations of each
Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or unenforceability of the
Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of
each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the
failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under
this Indenture, the Securities or any other agreement, by any waiver or modification of any
thereof, by any default, failure or delay, willful or otherwise, in the performance of the
obligations, or by any other act or thing or omission or delay to do any other act or thing which
may or might in any manner or to any extent vary the risk of such Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law or equity.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein shall continue
to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof,
of principal of or interest on any Obligation is rescinded or must otherwise be restored by any
Holder or the Trustee upon the bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Company to pay the principal of or interest on any Obligation when and as the same
shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform
or comply with any other Obligation, each Subsidiary Guarantor hereby promises to and will, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders or the Trustee an amount equal to the sum of (i) the unpaid amount of such Obligations,
(ii) accrued and unpaid interest on such Obligations (but only to the extent not prohibited by law)
and (iii) all other monetary Obligations of the Company to the Holders and the Trustee.

          Each Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation in
respect of any Obligations guaranteed hereby until payment in full in cash of all Obligations. Each
Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in Article 6 for the purposes of such Subsidiary Guarantor’s Subsidiary
Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such obligations as provided in Article 6, such Obligations (whether
or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor for the
purposes of this Section.

          Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under
this Section.

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          SECTION 11.02 Contribution. Each of the Company and any Subsidiary Guarantor (a
“Contributing Party”) agrees that, in the event a payment shall be made by any other Subsidiary
Guarantor under any Subsidiary Guarantee (the “Claiming Guarantor”), the Contributing Party shall
indemnify the Claiming Guarantor in an amount equal to the amount of such payment multiplied by a
fraction, the numerator of which shall be the net worth of the Contributing Party on the date
hereof and the denominator of which shall be the aggregate net worth of the Company and all the
Subsidiary Guarantors on the date hereof (or, in the case of any Subsidiary Guarantor becoming a
party hereto pursuant to Section 9.01, the date of the amendment hereto executed and delivered by
such Subsidiary Guarantor).

          SECTION 11.03 Successors and Assigns. This Article 11 shall be binding upon each
Subsidiary Guarantor and its successors and assigns and shall enure to the benefit of the
successors and assigns of the Trustee and the Holders and, in the event of any transfer or
assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that
party in this Indenture and in the Securities shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions of this Indenture.

          SECTION 11.04 No Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this Article 11 shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege. The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 11 at law, in equity, by
statute or otherwise.

          SECTION 11.05 Modification. No modification, amendment or waiver of any provision of
this Article 11, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in
any event be effective unless the same shall be in writing and signed by the Trustee, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other
circumstances.

          SECTION 11.06 Execution of Supplemental Indenture for Future Subsidiary Guarantors.
Each Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 4.13 shall
promptly execute and deliver to the Trustee a supplemental indenture in the form of Exhibit B
hereto pursuant to which such Subsidiary shall become a Subsidiary Guarantor under this Article 11
and shall guarantee the Obligations. Concurrently with the execution and delivery of such
supplemental indenture, the Company shall deliver to the Trustee an Opinion of Counsel to the
effect that such supplemental indenture has been duly authorized, executed and delivered by such
Subsidiary and that, subject to the application of bankruptcy, insolvency, moratorium, fraudulent
conveyance or transfer and other similar laws relating to creditors’ rights generally and to the
principles of equity, whether considered in a proceeding at law or in equity, the Subsidiary
Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary
Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms.

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ARTICLE 12

[Intentionally Omitted]

ARTICLE 13

Satisfaction and Discharge

          SECTION 13.01 Satisfaction and Discharge.

          Other than in connection with a defeasance of the Securities pursuant to Article 8 hereof,
this Indenture will be discharged and will cease to be of further effect as to all Securities
issued hereunder, when:

     (1) either:

     (a) all Securities that have been authenticated, except lost, stolen or
destroyed Securities that have been replaced (pursuant to Section 2.07) or paid and
Securities for whose payment money has theretofore been deposited in trust and
thereafter repaid to the Company, have been delivered to the Trustee for
cancellation; or

     (b) all Securities that have not been delivered to the Trustee for cancellation
have become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year (including upon notice to
the Trustee to mail the notice of redemption in connection with the Merger) and the
Company or any Guarantor has irrevocably deposited or caused to be deposited with
the Trustee as trust funds in trust solely for the benefit of the Holders, cash in
U.S. dollars, U.S. Government Obligations, or a combination thereof, in such amounts
as will be sufficient, without consideration of any reinvestment of interest, to pay
and discharge the entire Indebtedness on the Securities not delivered to the Trustee
for cancellation for principal and accrued interest, including any Special Interest,
to the date of maturity or redemption;

     (2) no Default or Event of Default under clauses (1) or (2) of Section 6.01 has
occurred and is continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit) and the deposit
will not result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

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

     (4) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Securities at maturity or
on the redemption date, as the case may be; and

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     (5) the Company has delivered an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

          Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section 13.01, the provisions of
Sections 13.02 and 8.04 will survive. In addition, nothing in this Section 13.01 will be deemed to
discharge those provisions of Section 7.07, that, by their terms, survive the satisfaction and
discharge of this Indenture.

          Notwithstanding anything herein to the contrary, in connection with a redemption in connection
with the consummation of the Merger, all of the covenants in the Securities and the Indenture shall
be deemed to be of no further effect immediately prior to the Merger (and no provision of the
Indenture shall be deemed violated by any agreement or arrangement or transaction in connection
with the Merger and related transactions), provided that promptly after consummation of the Merger,
the Company (or a successor) has delivered to the Trustee notice of its intention to redeem the
Securities and the funds required to be deposited pursuant to 1(b) of this Section 13.01 above have
been so deposited.

          SECTION 13.02 Application of Trust Money.

          Subject to the provisions of Section 8.04, all money deposited with the Trustee pursuant to
Section 13.01 shall be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto under this Indenture, of the principal (and premium and Special Interest, if any)
and interest for whose payment such money has been deposited with the Trustee; but such money need
not be segregated from other funds except to the extent required by law.

          If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with Section 13.01 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 Company’s and any Guarantor’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
13.01; provided that (a) if the Company has made any payment of principal of, premium or
Special Interest, if any, or interest on, any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent and (b) the Trustee or Paying Agent shall return all such money and U.S. Government
Obligations to the Company promptly after receiving a request therefor at any time, if such
reinstatement of the Company’s obligations has occurred and continues to be in effect.

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ARTICLE 14

Miscellaneous

          SECTION 14.01 Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

          SECTION 14.02 Notices. Any notice or communication shall be in writing and delivered
in person or mailed by first-class mail or sent by facsimile (with a hard copy delivered in person
or by mail promptly thereafter) and addressed as follows:

     if to the Company or any Subsidiary Guarantor:

Stone Energy Corporation

625 E. Kaliste Saloom Road

Lafayette, LA 70508

Telephone No. : (337) 237-0410

Telecopy No: (337) 237-0426

Attention: Andrew L. Gates, III

     if to the Trustee:

          (1) for payment, registration, transfer, exchange and tender of the Securities:

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By Hand:

JPMorgan Chase Bank, National Association

2001 Bryan Street, 9th Floor

Dallas, TX 75201

By Mail:

JPMorgan Chase Bank, National Association

2001 Bryan Street, 9th Floor

Dallas, TX 75201

(2) for all other communications relating to the Securities:

JPMorgan Chase Bank, National Association

600 Travis Street, Suite 1150

Houston, TX 77002

Telephone No.: (713) 216-6815

Telecopy No.: (713) 216-6590

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

          Any notice or communication mailed to a Securityholder shall be mailed to the Securityholder
at the Securityholder’s address as it appears on the registration books of the Registrar and shall
be sufficiently given if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. Notices shall be effective only upon
receipt.

          SECTION 14.03 Communication by Holders with Other Holders. Securityholders may
communicate pursuant to TIA Section 312(b) with other Securityholders with respect to their rights
under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA Section 312(c).

          SECTION 14.04 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, except to the extent that the Company’s request or application is expressly governed by
another provision herein, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and

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     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have been
complied with.

          SECTION 14.05 Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
shall include:

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

     (4) a statement as to whether or not, in the opinion of such individual, such covenant
or condition has been complied with.

          SECTION 14.06 When Securities Disregarded. In determining whether the Holders of the
required principal amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which the Trustee
knows are so owned shall be so disregarded. Also, subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

          SECTION 14.07 Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by or a meeting of Securityholders. The Registrar, the Paying Agent
and any co-registrar may make reasonable rules for their functions.

          SECTION 14.08 Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or a day on
which banking institutions are not required to be open in the State of Texas. If a payment date is
a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and
no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday,
the record date shall not be affected.

          SECTION 14.09 Governing Law. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

          SECTION 14.10 No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company or any Subsidiary Guarantor shall not have any liability for
any obligations of the Company under the Securities or this Indenture or for any claim based

67

 

on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder shall waive and release all such liability. The waiver and release
shall be part of the consideration for the issue of the Securities.

          SECTION 14.11 Successors. All agreements of the Company and any 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 14.12 Multiple 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. One signed copy is enough to prove this Indenture.

          SECTION 14.13 Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	STONE ENERGY CORPORATION,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Kent Pierret	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Kent Pierret	 	 
	 

	 	 	 	Title: Senior Vice President – Chief Accounting
Officer and	 	 
	 

	 	 	 	Treasurer
	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION	 	 
	 	 	as Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Carol Logan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Carol Logan	 	 
	 

	 	 	 	Title: Authorized Person	 	 

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APPENDIX A

FOR OFFERINGS TO QUALIFIED INSTITUTIONAL BUYERS PURSUANT TO RULE

144A, SUBJECT TO THE APPLICABLE PURCHASE AGREEMENT, TO INSTITUTIONAL

ACCREDITED INVESTORS, OR PURSUANT TO REGULATION S.

PROVISIONS RELATING TO INITIAL SECURITIES

AND EXCHANGE SECURITIES

     1. Definitions.

     1.1 Definitions.

     For the purposes of this Appendix A the following terms shall have the meanings indicated
below:

          “Definitive Security” means a certificated Initial Security or Exchange Security bearing, if
required, the restricted securities legend set forth in Section 2.3(d).

          “Depository” means The Depository Trust Company, its nominees and their respective successors.

          “Exchange Securities” means the Senior Floating Rate Notes due 2010 to be issued pursuant to
this Indenture in connection with a Registered Exchange Offer or a Private Exchange pursuant to a
Registration Agreement.

          “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act.

          “Initial Purchaser” means Banc of America Securities LLC.

          “Initial Securities” means the Senior Floating Rate Notes due 2010, to be issued from time to
time, in one or more series as provided for in this Indenture.

          “Original Securities” means Initial Securities in the aggregate principal amount of
$225,000,000 issued on June 28, 2006.

          “Private Exchange” means the offer by the Company, pursuant to Section 2(f) of the
Registration Rights Agreement dated June 28, 2006, or pursuant to any similar provision of any
other Registration Rights Agreement, to issue and deliver to certain purchasers, in exchange for
the Initial Securities held by such purchasers as part of their initial distribution, a like
aggregate principal amount of Private Exchange Securities.

          “Private Exchange Securities” means the Senior Floating Rate Notes due 2010 to be issued
pursuant to this Indenture in connection with a Private Exchange pursuant to a Registration
Agreement.

 

          “Purchase Agreement” means the Purchase Agreement dated June 23, 2006, between the Company and
the Initial Purchaser relating to the Original Securities, or any similar agreement relating to any
future sale of Initial Securities by the Company.

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          “Registered Exchange Offer” means the offer by the Company, pursuant to a Registration
Agreement, to certain Holders of Initial Securities, to issue and deliver to such Holders, in
exchange for the Initial Securities, a like aggregate principal amount of Exchange Securities
registered under the Securities Act.

          “Registration Rights Agreement” means the Registration Rights Agreement dated June 28, 2006,
between the Company and the Initial Purchasers relating to the Original Securities, or any similar
agreement relating to any additional Initial Securities.

          “Securities” means the Initial Securities and the Exchange Securities, treated as a single
class.

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

          “Securities Custodian” means the custodian with respect to a Global Security (as appointed by
the Depository), or any successor person thereto who shall initially be the Trustee.

          “Shelf Registration Statement” means a registration statement issued by the Company in
connection with the offer and sale of Initial Securities pursuant to a Registration Agreement.

          “Transfer Restricted Securities” means Definitive Securities and any other Securities that
bear or are required to bear the legend set forth in Section 2.3(d) hereto.

     1.2 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section:
	“Agent Members”
	 	 	2.1	(b)
	“Global Security”
	 	 	2.1	(a)
	“Rule 144A”
	 	 	2.1	 

     2. The Securities.

     2.1 Form and Dating.

          (a) Global Securities. Initial Securities shall be issued initially in the form of
one or more permanent global Securities in definitive, fully registered form without interest
coupons with the global securities legend and restricted securities legend set forth in Exhibit 1
hereto (each, a “Global Security”), which shall be deposited on behalf of the purchasers of the
Initial Securities represented thereby with the Securities Custodian, and registered in the name of
the

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Depository or a nominee of the Depository, duly executed by the Company and authenticated by
the Trustee as provided in this Indenture; provided, however, that upon such deposit through and
including the 40th day after the later of the commencement of an offering of Securities pursuant to
Regulation S and the original issue date of such Securities pursuant to Regulation S (such period
through and including such 40th day, the “Restricted Period”), all such Securities shall be
credited to or through accounts maintained at the Depositary by or on behalf of Euroclear or
Clearstream unless exchanged for interests in Securities issued pursuant to Rule 144A in accordance
with the transfer and certification requirements described in this Indenture. The aggregate
principal amount of the Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter
provided.

          (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Security
deposited with or on behalf of the Depository.

          The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b) and
pursuant to an order of the Company, authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depository for such Global Security or
Global Securities or the nominee of such Depository and (b) shall be delivered by the Trustee to
such Depository or pursuant to such Depository’s instructions or held by the Trustee as Securities
Custodian.

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

          (c) Definitive Securities. [Intentionally Omitted]

     2.2 Authentication. The Trustee shall authenticate and deliver: (1) Original
Securities for original issue in an aggregate principal amount of $225,000,000, (2) additional
Initial Securities, if and when issued, in an unlimited principal amount and (3) Exchange
Securities for issue only in a Registered Exchange Offer or a Private Exchange pursuant to a
Registration Agreement, for a like principal amount of Initial Securities, upon a written order of
the Company signed by two Officers or by an Officer and either an Assistant Treasurer or an
Assistant Secretary of the Company. Such order shall specify the amount of the Securities to be
authenticated and the date on which the original issue of Securities is to be authenticated and
whether the Securities are to be Initial Securities or Exchange Securities.

     2.3 Transfer and Exchange. (a) Transfer and Exchange of Definitive Securities. When
Definitive Securities are presented to the Registrar or a co-registrar with a request:

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     (x) to register the transfer of such Definitive Securities; or

     (y) to exchange such Definitive Securities for an equal principal amount of Definitive
Securities of other authorized denominations,

the Registrar or co-registrar shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met; provided, however, that the
Definitive Securities surrendered for transfer or exchange:

     (i) shall be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar or co-registrar, duly executed by
the Holder thereof or his attorney duly authorized in writing; and

     (ii) are being transferred or exchanged pursuant to an effective registration statement
under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C)
below, and are accompanied by the following additional information and documents, as
applicable:

     (A) if such Definitive Securities are being delivered to the Registrar by a
Holder for registration in the name of such Holder, without transfer, a
certification from such Holder to that effect; or

     (B) if such Definitive Securities are being transferred to the Company, a
certification to that effect; or

     (C) if such Definitive Securities are being transferred pursuant to an
exemption from registration in accordance with Rule 144 or Regulation S, each under
the Securities Act, (i) a certification to that effect and (ii) if the Company so
requests, an opinion of counsel or other evidence reasonably satisfactory to it as
to the compliance with the restrictions set forth in the applicable legends set
forth in Section 2.3(d)(i).

          (b) Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a
Global Security. A Definitive Security may not be exchanged for a beneficial interest in a
Global Security except upon satisfaction of the requirements set forth below. Upon receipt by the
Trustee of a Definitive Security, duly endorsed or accompanied by a written instrument of transfer
in form reasonably satisfactory to the Company and the Registrar or co-registrar, together with:

     (i) certification that such Definitive Security is being transferred (A) to a QIB in
accordance with Rule 144A; (B) to an IAI that has furnished to the Trustee a signed letter,
or (C) pursuant to Regulation S; and

     (ii) written instructions directing the Trustee to make, or to direct the Securities
Custodian to make, an adjustment on its books and records with respect to such Global
Security to reflect an increase in the aggregate principal amount of the Securities
represented by the Global Security, such instructions to contain information regarding the
Depositary account to be credited with such increase,

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then the Trustee shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures existing between
the Depository and the Securities Custodian, the aggregate principal amount of Securities
represented by the Global Security to be increased by the aggregate principal amount of the
Definitive Security to be exchanged and shall credit or cause to be credited to the account of the
Person specified in such instructions a beneficial interest in the Global Security equal to the
principal amount of the Definitive Security so canceled. If no Global Securities are then
outstanding and the Global Security has not been previously exchanged pursuant to Section 2.4, the
Company shall issue and the Trustee shall authenticate, upon written order of the Company in the
form of an Officers’ Certificate, a new Global Security in the appropriate principal amount.

          (c) Transfer and Exchange of Global Securities. (i) The transfer and exchange of
Global Securities or beneficial interests therein shall be effected through the Depository, in
accordance with this Indenture (including applicable restrictions on transfer set forth herein, if
any) and the procedures of the Depository therefor. A transferor of a beneficial interest in a
Global Security shall deliver a written order given in accordance with the Depository’s procedures
containing information regarding the participant account of the Depository to be credited with a
beneficial interest in the Global Security and such account shall be credited in accordance with
such instructions with a beneficial interest in the Global Security and the account of the Person
making the transfer shall be debited by an amount equal to the beneficial interest in the Global
Security being transferred. In the case of a transfer of a beneficial interest in a Global
Security to an IAI, the transferee must furnish a signed letter to the Trustee containing certain
representations and agreements (the form of which letter can be obtained from the Trustee or the
Company).

     (ii) If the proposed transfer is a transfer of a beneficial interest in one Global
Security to a beneficial interest in another Global Security, the Registrar shall reflect on
its books and records the date and an increase in the principal amount of the Global
Security to which such interest is being transferred in an amount equal to the principal
amount of the interest to be so transferred, and the Registrar shall reflect on its books
and records the date and a corresponding decrease in the principal amount of Global Security
from which such interest is being transferred.

     (iii) Notwithstanding any other provisions of this Appendix A (other than the
provisions set forth in Section 2.4), a Global Security may not be transferred as a whole
except by the Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such successor Depository.

     (iv) In the event that a Global Security is exchanged for Securities in definitive
registered form pursuant to Section 2.4 prior to the consummation of a Registered Exchange
Offer or the effectiveness of a Shelf Registration Statement with respect to such
Securities, such Securities may be exchanged only in accordance with such procedures as are
substantially consistent with the provisions of this Section 2.3 (including the
certification requirements set forth on the reverse of the Initial Securities intended to
ensure that such transfers comply with Rule 144A, Regulation S, or such

A-5

 

other applicable exemption from registration under the Securities Act, as the case may
be) and such other procedures as may from time to time be adopted by the Company.

     (v) The Company shall use its best efforts to cause the Depositary to ensure that,
until the expiration of the Restricted Period, beneficial interests in any Security offered
pursuant to Regulation S may be held only in or through accounts maintained at the
Depositary by Euroclear or Clearstream (or by Agent Members acting for the account thereof),
and no person shall be entitled to effect any transfer or exchange that would result in any
such interest being held otherwise than in or through such an account; provided however,
that the Company may effectuate any such action deemed reasonably necessary by the Company,
to the extent that such action complies with the policies and procedures of Euroclear and
Clearstream.

          (d) Legend. (i) Except as permitted by the following paragraphs (ii), (iii), (iv)
and (vi), each Security certificate evidencing the Global Securities and the Definitive Securities
(and all Securities issued in exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form:

          THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE, NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE, BY ITS
ACCEPTANCE HEREOF, AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS
NOTE) (THE “RESALE RESTRICTION TERMINATION DATE”), EXCEPT THAT THE NOTES MAY BE TRANSFERRED (A) TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (1) PURSUANT TO
CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE RESTRICTION

A-6

 

TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

          If such Definitive Security is issued pursuant to Regulation S, such Security will also bear
the following legend:

          THIS SECURITY HAS BEEN OFFERED PURSUANT TO REGULATION S WITHIN THE MEANING OF THE INDENTURE
REFERRED TO HEREIN. INTERESTS IN THIS SECURITY MAY NOT BE OFFERED OR SOLD TO A U.S. PERSON OR FOR
THE ACCOUNT OR BENEFIT OF A U.S. PERSON PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD (AS
DEFINED IN THE INDENTURE), AND NO TRANSFER OR EXCHANGE OF AN INTEREST IN THIS SECURITY MAY BE MADE
UNTIL AFTER THE TERMINATION OF THE RESTRICTED PERIOD OR AS OTHERWISE PERMITTED BY LAW AND
CONTEMPLATED BY THE INDENTURE.

          Each Definitive Security will also bear the following additional legend:

          “IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE TRUSTEE, REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION INCLUDING, IN THE CASE OF CLAUSES (D) AND
(E) ABOVE, AN OPINION OF COUNSEL AS ANY OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.”

     (ii) Upon any sale or transfer of a Transfer Restricted Security (including any
Transfer Restricted Security represented by a Global Security) pursuant to Rule 144 under
the Securities Act:

     (A) In the case of any Transfer Restricted Security that is a Definitive
Security, the Registrar shall permit the Holder thereof to exchange such Transfer
Restricted Security for a Definitive Security that does not bear the legends set
forth above and rescind any restriction on the transfer of such Transfer Restricted
Security; and

     (B) in the case of any Transfer Restricted Security that is represented by a
Global Security, the Registrar shall permit the Holder thereof to exchange such
Transfer Restricted Security for a Definitive Security that does not bear the
legends set forth above and rescind any restriction on the transfer of such Transfer
Restricted Security,

in either case, if the Holder certifies in writing to the Registrar that its request for such
exchange was made in reliance on Rule 144 (such certification to be in the form set forth on the
reverse of

A-7

 

the Initial Security).

     (iii) After a transfer of any Initial Securities during the period of the effectiveness
of a Shelf Registration Statement with respect to such Initial Securities, all requirements
pertaining to legends on such Initial Security will cease to apply, the requirements
requiring that any such Initial Security be issued in global form will cease to apply, and
an Initial Security in certificated or global form without legends will be available to the
transferee of the Holder of such Initial Securities upon exchange of such transferring
Holder’s certificated Initial Security. Upon the occurrence of any of the circumstances
described in this paragraph, the Company will deliver an Officers’ Certificate to the
Trustee instructing the Trustee to issue Securities without legends.

     (iv) Upon the consummation of a Registered Exchange Offer with respect to the Initial
Securities pursuant to which certain Holders of such Initial Securities are offered Exchange
Securities in exchange for their Initial Securities, all requirements pertaining to such
Initial Securities that Initial Securities be issued in global form will cease to apply, and
certificated Initial Securities with the restricted securities legend set forth in Exhibit 1
hereto will be available to Holders of such Initial Securities that do not exchange their
Initial Securities, and Exchange Securities in certificated or global form will be available
to Holders that exchange such Initial Securities in such Registered Exchange Offer. Upon
the occurrence of any of the circumstances described in this paragraph, the Company will
deliver an Officers’ Certificate to the Trustee instructing the Trustee to issue Securities
without legends.

     (v) Upon the consummation of a Private Exchange with respect to the Initial Securities
pursuant to which Holders of such Initial Securities are offered Private Exchange Securities
in exchange for their Initial Securities, all requirements pertaining to such Initial
Securities that Initial Securities issued to certain Holders be issued in global form will
continue to apply, and Private Exchange Securities in global form will be available to
Holders that exchange such Initial Securities in such Private Exchange.

          (e) Cancellation or Adjustment of Global Security. At such time as all beneficial
interests in a Global Security have either been exchanged for certificated or Definitive
Securities, redeemed, repurchased or canceled, such Global Security shall be returned by the
Depository to the Trustee for cancellation or retained and canceled by the Trustee. At any time
prior to such cancellation, if any beneficial interest in a Global Security is exchanged for
certificated or Definitive Securities, redeemed, repurchased or canceled, the principal amount of
Securities represented by such Global Security shall be reduced and an adjustment shall be made on
the books and records of the Trustee (if it is then the Securities Custodian for such Global
Security) with respect to such Global Security, by the Trustee or the Securities Custodian, to
reflect such reduction.

          (f) Obligations with Respect to Transfers and Exchanges of Securities.

     (i) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate certificated Securities, Definitive Securities and Global
Securities at the Registrar’s or co-registrar’s request.

A-8

 

     (ii) No service charge shall be made for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax, assessments,
or similar governmental charge payable in connection therewith (other than any such transfer
taxes, assessments or similar governmental charge payable upon exchange or transfer pursuant
to Section 3.06, 4.06 and 9.05).

     (iii) The Registrar or co-registrar shall not be required to register the transfer of
or exchange of any Security for a period beginning 15 days before the mailing of a notice of
redemption or an offer to repurchase Securities or 15 days before an interest payment date.

A-9

 

     (iv) Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the person in whose name a Security is registered as the absolute owner of such Security for
the purpose of receiving payment of principal of and interest on such Security and for all
other purposes whatsoever, whether or not such Security is overdue, and none of the Company,
the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected by notice
to the contrary.

     (v) All Securities issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under this
Indenture as the Securities surrendered upon such transfer or exchange.

     (g) No Obligation of the Trustee.

     (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a
Global Security, a member of, or a participant in the Depository or any other Person with
respect to the accuracy of the records of the Depository or its nominee or of any
participant or member thereof, with respect to any ownership interest in the Securities or
with respect to the delivery to any participant, member, beneficial owner or other Person
(other than the Depository) of any notice (including any notice of redemption or repurchase)
or the payment of any amount, under or with respect to such Securities. All notices and
communications to be given to the Holders and all payments to be made to Holders under the
Securities shall be given or made only to the registered Holders (which shall be the
Depository or its nominee in the case of a Global Security). The rights of beneficial
owners in any Global Security shall be exercised only through the Depository subject to the
applicable rules and procedures of the Depository. The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect to its
members, participants and any beneficial owners.

     (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security (including any
transfers between or among Depository participants, members or beneficial owners in any
Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by,
the terms of this Indenture, and to examine the same to determine substantial compliance as
to form with the express requirements hereof.

     2.4 Certificated Securities.

          (a) A Global Security deposited with the Depository or with the Trustee as Securities
Custodian pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form
of certificated Securities in an aggregate principal amount equal to the principal amount of such
Global Security, in exchange for such Global Security, only if such transfer complies with Section
2.3 and (i) the Depository notifies the Company that it is unwilling or unable to continue as a
Depository for such Global Security or if at any time the Depository

A-10

 

ceases to be a “clearing agency” registered under the Exchange Act, and a successor depositary
is not appointed by the Company within 90 days of such notice, or (ii) an Event of Default has
occurred and is continuing or any event which after notice or lapse of time or both would be an
Event of Default has occurred or is continuing, or (iii) there shall have occurred and be
continuing an Event of Default with respect to the Securities and DTC notifies the Trustee in
writing that it elects to cause the issuance of the Certificated Securities.

          (b) Any Global Security that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee, to be so transferred, in whole
or from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon
such transfer of each portion of such Global Security, an equal aggregate principal amount of
certificated Securities of authorized denominations. Any portion of a Global Security transferred
pursuant to this Section shall be executed, authenticated and delivered only in denominations of
$1,000 and integral multiples of $1,000 and registered in such names as the Depository shall
direct. Any certificated Initial Security delivered in exchange for an interest in the Global
Security shall, except as otherwise provided by Section 2.3(d), bear the restricted securities
legend set forth in Exhibit 1 hereto.

          (c) Subject to the provisions of Section 2.4(b), the registered Holder of a Global Security
may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under
this Indenture or the Securities.

          (d) In the event of the occurrence of either of the events specified in Section 2.4(a)(i),
(ii) or (iii), the Company will promptly make available to the Trustee a reasonable supply of
certificated Securities in definitive, fully registered form without interest coupons.

A-11

 

EXHIBIT 1

to APPENDIX A

[FORM OF FACE OF INITIAL SECURITY]

[Global Securities Legend]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS 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.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

[Restricted Securities Legend]

          THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE, NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE, BY ITS
ACCEPTANCE HEREOF, AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS
NOTE) (THE “RESALE RESTRICTION TERMINATION DATE”), EXCEPT THAT THE NOTES MAY BE TRANSFERRED (A) TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS

 

 

BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (1)
PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN EACH OF THE FOREGOING CASES, TO REQUIRE
THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE COMPANY, TRUSTEE, REGISTRAR
AND/OR TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION, INCLUDING, IN THE CASE OF CLAUSES
(D) AND (E) ABOVE, AN OPINION OF COUNSEL, AS ANY OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

          [Regulation S Legend]

          THIS NOTE HAS BEEN OFFERED PURSUANT TO REGULATION S WITHIN THE MEANING OF THE INDENTURE
REFERRED TO HEREIN. INTERESTS IN THIS NOTE MAY NOT BE OFFERED OR SOLD TO A U.S. PERSON OR FOR THE
ACCOUNT OR BENEFIT OF A U.S. PERSON PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD (AS DEFINED IN
THE INDENTURE), AND NO TRANSFER OR EXCHANGE OF AN INTEREST IN THIS NOTE MAY BE MADE UNTIL AFTER THE
TERMINATION OF THE RESTRICTED PERIOD OR AS OTHERWISE PERMITTED BY LAW AND CONTEMPLATED BY THE
INDENTURE.

          [OID Legend]

          THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). THE ISSUE PRICE, THE ISSUE
DATE, THE TOTAL AMOUNT OF OID AND THE YIELD TO MATURITY MAY BE OBTAINED BY CONTACTING THE CHIEF
FINANCIAL OFFICER OF THE COMPANY AT (337) 237-0410.

E-2

 

[FORM OF FACE OF SECURITY]

			
	No.
	 	$                    

Senior Floating Rate Note due 2010

CUSIP No.          

          Stone Energy Corporation, a Delaware corporation, promises to pay to                    
        , or registered assigns, the principal sum of Dollars, as revised by the Schedule of Increases and Decreases in Global Security attached hereto, on July 15, 2010.

          Interest Payment Dates: January 15, April 15, July 15 and October 15.

          Record Dates: January 1, April 1, July 1 and October 1.

[SIGNATURE PAGE FOLLOWS]

E-3

 

          Additional provisions of this Security are set forth on the other side of this Security.

          IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.

	 	 	 	 	 
	 	STONE ENERGY CORPORATION,

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

Dated:

TRUSTEE’S CERTIFICATE OF

          AUTHENTICATION

JPMORGAN CHASE BANK NATIONAL

ASSOCIATION

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

By:                                                            

     Authorized Signatory

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[FORM OF REVERSE SIDE OF SECURITY]

Senior Floating Rate Note due 2010

1. Principal, Maturity and Interest

          (a) Stone Energy Corporation, a Delaware corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the Securities payable quarterly in arrears on January 15, April 15, July 15 and
October 15, commencing on October 15, 2006. Interest on each Security will accrue from the date it
was most recently paid or, if no interest has been paid on such Security, from the Issue Date.
Interest on the Securities will accrue, with respect to the period from and including the Issue
Date to but excluding the first interest payment date and each successive three-month period from
and including each interest payment date to but excluding the next interest payment date (each, an
“Interest Accrual Period”), at a rate equal to three-month LIBOR plus the Applicable Margin per
annum. Interest on the Securities will be computed on the basis of a 360-day year for actual days
elapsed in the Interest Accrual Period. Interest on overdue principal and interest and any
additional interest will accrue at a rate that is 2% higher than the then applicable interest rate
on the Securities. The Company will make each interest payment to the Holders of record on the
immediately preceding January 1, April 1, July 1 and October 1. The Company will appoint the
Trustee or another financial institution (the “Calculation Agent”) to calculate the interest rate
for the Securities.

     “Determination Date” means, with respect to an Interest Accrual Period, the second London
Banking Day preceding the first day of such Interest Accrual Period.

     “LIBOR” means, with respect to an Interest Accrual Period, the rate (expressed as a
percentage per annum) for deposits in United States dollars for a three-month period beginning on
the second London Banking Day after the Determination Date that appears on Telerate Page 3750 as of
11:00 a.m., London time, on the Determination Date. If Telerate Page 3750 does not include such a
rate or is unavailable on a Determination Date, the Calculation Agent will request the principal
London office of each of four major banks in the London interbank market, as selected by the
Calculation Agent, to provide such bank’s offered quotation (expressed as a percentage per annum),
as of approximately 11:00 a.m., London time, on such Determination Date, to prime banks in the
London interbank market for deposits in a Representative Amount in United States dollars for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such offered quotations are so provided, LIBOR for the Interest Accrual Period will be
the arithmetic mean of such quotations. If fewer than two such quotations are so provided, the
Calculation Agent will request each of three major banks in New York City, as selected by the
Calculation Agent, to provide such bank’s rate (expressed as a percentage per annum), as of
approximately 11:00 a.m., New York City time, on such Determination Date, for loans in a
Representative Amount in United States dollars to leading European banks for a three-month period
beginning on the second London Banking Day after the Determination Date. If at least two such rates
are so provided, LIBOR for the Interest Accrual Period will be the arithmetic mean of such rates.
If fewer than two such rates are so provided, then LIBOR for the Interest

E-5

 

Accrual Period will be LIBOR in effect with respect to the immediately preceding Interest
Accrual Period.

     “London Banking Day” is any day in which dealings in United States dollars are transacted
or, with respect to any future date, are expected to be transacted in the London interbank market.

     “Representative Amount” means as at any date an amount equal to, or approximately equal to,
the aggregate principal amount of the Securities then outstanding.

     “Telerate Page 3750” means the display designated as ''Page 3750’’ on the Moneyline Telerate
service (or such other page as may replace Page 3750 on that service).

     All percentages resulting from any of the above calculations will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or 0.09876545) being rounded to 9.87655% (or
0.0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).

     The interest rate on the Securities will in no event be higher than the maximum rate permitted
by New York law.

     The Calculation Agent will, upon the request of the Holder of any Security, provide the
interest rate then in effect with respect to the Securities. All calculations made by the
Calculation Agent in the absence of manifest error will be conclusive for all purposes and binding
on the Company and the Holders of the Securities.

          (b) Special Interest. The holder of this Security is entitled to the benefits of a
Registration Rights Agreement among the Company and the Initial Purchaser named therein (the
“Registration Rights Agreement”). Under certain circumstances described in the Registration Rights
Agreement, the Holder will be entitled to Special Interest.

     2. Method of Payment.

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the January 1, April 1, July 1 and
October 1 immediately preceding the interest payment date even if Securities are canceled after the
record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal and interest in money
of the United States of America that at the time of payment is legal tender for payment of public
and private debts. Payments in respect of the Securities represented by a Global Security will be
made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company. The Company will make all payments in respect of a certificated Security, by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on the Securities may also be made, in the case of a Holder of at
least $1,000,000 aggregate principal amount of Securities, by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder elects payment by
wire transfer by giving written notice to the Trustee or the Paying

E-6

 

Agent to such effect designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar.

          Initially, JPMorgan Chase Bank, National Association (the “Trustee”), will act as Paying Agent
and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4. Indenture.

          The Company issued the Securities under an Indenture dated as of June 28, 2006 (the
“Indenture”), between the Company and the Trustee. The terms of the Securities include those stated
in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the
“TIA”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto
in the Indenture. The Securities are subject to all such terms, and Securityholders are referred
to the Indenture and the TIA for a statement of those terms.

          The Securities are general unsecured obligations of the Company and may be issued in an
unlimited aggregate principal amount at any one time outstanding. [This Security is one of the
Original Securities referred to in the Indenture issued in an initial aggregate principal amount of
$                    . The Securities include the Original Securities, an unlimited aggregate principal
amount of additional Initial Securities that may be issued under the Indenture and any Exchange
Securities issued in exchange for Initial Securities. The Original Securities, such additional
Initial Securities and the Exchange Securities are treated as a single class of securities under
the Indenture.]* [This Security is one of an unlimited aggregate principal amount of
additional Initial Securities that may be issued under the Indenture. The Securities include such
additional Securities, the Original Securities in an aggregate principal amount of $225,000,000
previously issued under the Indenture and any Exchange Securities issued in exchange for Initial
Securities. The additional Initial Securities, the Original Securities and the Exchange Securities
are treated as a single class of securities under the Indenture.]* The Indenture
imposes certain limitations on the ability of the Company and its Restricted Subsidiaries to, among
other things, make certain Investments and other Restricted Payments, pay dividends and other
distributions, incur Indebtedness, enter into consensual restrictions upon the payment of certain
dividends and distributions by such Restricted Subsidiaries, enter into or permit certain
transactions with Affiliates, create or incur Liens and make Asset Sales. The Indenture also
imposes limitations on the ability of the Company or any Subsidiary Guarantor to consolidate or
merge with or into any other Person or convey, transfer or lease all or substantially all of the
Property of the Company or any Subsidiary Guarantor. Certain of the covenants under the Indenture
will be suspended or terminated as provided in the Indenture if the Securities have achieved
Investment Grade status.

          To guarantee the due and punctual payment of the principal and interest, if any,

 

			
	*	 	Insert appropriate bracketed language.
	 
	*	 	Insert appropriate bracketed language.

E-7

 

on the Securities and all other amounts payable by the Company under the Indenture and the
Securities when and as the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Securities and the Indenture, the Subsidiary Guarantors,
if any, will unconditionally guarantee the Obligations pursuant to the terms of the Indenture.

5. Optional Redemption.

          If a Change of Control has not yet occurred, the Securities will be subject to redemption at
any time at the option of the Company, in whole or in part (equal to $1,000 in principal amount or
an integral multiple thereof), on not less than 30 nor more than 60 days’ prior notice, at a price
equal to 100% of the principal amount of the Securities, plus accrued and unpaid interest, if any,
to the date of redemption (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

          If less than all the Securities are to be redeemed at any time, selection of Securities for
redemption will be made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Securities are listed, or, if the Securities are
not so listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate.

6. Mandatory Redemption.

          Upon the occurrence of a Change of Control, the Company shall (i) redeem all the Securities of
the Indenture, (ii) satisfy and discharge the Indenture as described under Section 13.01 of the
Indenture and (iii) mail (or cause the Trustee to mail) notice of mandatory redemption of all of
the outstanding Securities no later than the first business day following the 30th
calendar day (or such shorter period acceptable to the Company, the Trustee and DTC) after the
consummation of a Change of Control, including the Merger, at a redemption price equal to 100% of
the principal amount of the Securities, plus accrued and unpaid interest, if any, to the date of
redemption (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date). The redemption date shall be between 30 and 60
days after the mailing of the notice (or such shorter time acceptable to the Company, the Trustee
and DTC). If money sufficient to pay the redemption price of and accrued interest on all Securities
(or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on
or before the redemption date, on and after such date of redemption interest ceases to accrue on
such Securities (or such portions thereof) called for redemption.

          Notwithstanding anything herein to the contrary, in connection with a redemption in connection
with the consummation of the Merger, all of the covenants in the Securities or the Indenture shall
be deemed to be of no further effect immediately prior to the Merger (and no provision of the
Indenture shall be deemed violated by any agreement or arrangement or transaction in connection
with the Merger and related transactions), provided that promptly after consummation of the Merger,
the Company (or a successor) has delivered to the Trustee notice of its intention to redeem the
Securities and the funds required to be deposited pursuant to 1(b) of this Section 13.01 above have
been so deposited.

7. Notice of Optional Redemption.

E-8

 

          Notice of optional redemption will be mailed by first-class mail at least 30 days but not more
than 60 days before the redemption date to each Holder of Securities to be redeemed at his or her
registered address. Securities in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000. If money sufficient to pay the redemption price of and accrued
interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited
with the Paying Agent on or before the redemption date and certain other conditions are satisfied,
on and after such date interest ceases to accrue on such Securities (or such portions thereof)
called for redemption.

8. [Intentionally Omitted]

9. [Intentionally Omitted]

10. Denominations; Transfer; Exchange.

          The Securities are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes
required by law or permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Securities selected for redemption (except, in the case of a Security to be redeemed
in part, the portion of the Security not to be redeemed) or to transfer or exchange any Securities
for a period of 15 days prior to a selection of Securities to be redeemed or 15 days before an
interest payment date.

11. Persons Deemed Owners.

          The registered Holder of this Security may be treated as the owner of it for all purposes.

12. Unclaimed Money.

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Holders entitled to the money must
look only to the Company and not to the Trustee for payment.

13. Discharge and Defeasance.

          Subject to certain conditions, the Company at any time may terminate some of or all of its
obligations under the Securities and the Indenture if the Company deposits with the Trustee money
or U.S. Government Obligations for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

14. Amendment, Waiver.

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities
may be amended without prior notice to any Securityholder but with the written

E-9

 

consent of the Holders of at least a majority in aggregate principal amount of the outstanding
Securities and (ii) any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of any Holder of
Securities, the Company, any Subsidiary Guarantors and the Trustee may amend the Indenture or the
Securities (i) to cure any ambiguity, omission, defect or inconsistency; (ii) to comply with
Article 5 of the Indenture; (iii) to provide for uncertificated Securities in addition to or in
place of certificated Securities; (iv) to add Subsidiary Guaranties with respect to the Securities
and to remove such Subsidiary Guaranties as provided by the terms thereof; (v) to secure the
Securities; (vi) to add additional covenants or to surrender rights and powers conferred on the
Company; (vii) to comply with the requirements of the Commission in order to effect or maintain the
qualification of the Indenture under the TIA; or (viii) to make any change that does not adversely
affect the rights of any Securityholder in any material respect (it being understood that any
amendment described in clause (1) above made solely to conform the Indenture to the final offering
memorandum provided to investors in connection with the initial offering of the Securities will be
deemed not to adversely affect the rights or interests of Securityholders).

15. Defaults and Remedies.

          If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Securities, subject to certain limitations, may declare all the Securities
to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of
Default and shall result in the Securities being immediately due and payable upon the occurrence of
such Events of Default without any further act of the Trustee or any Holder.

          Holders of Securities may not enforce the Indenture or the Securities except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it
receives reasonable indemnity. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or power under the
Indenture. The Holders of a majority in aggregate principal amount of the Securities, by written
notice to the Trustee and the Company, may rescind any declaration of acceleration if the
rescission would not conflict with any judgment or decree, and if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has become due solely
because of the acceleration.

16. Trustee Dealings with the Company.

          Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

          A director, officer, employee or stockholder, as such, of the Company or any Subsidiary
Guarantor shall not have any liability for any obligations of the Company under the

E-10

 

Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder waives and releases
all such liability. The waiver and release are part of the consideration for the issue of the
Securities.

18. Authentication.

          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

19. Abbreviations.

          Customary abbreviations may be used in the name of a Securityholder 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 Gift
to Minors Act).

20. Governing Law.

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD OTHERWISE REQUIRE
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

21. CUSIP Numbers.

          Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

22. Designated Senior Indebtedness.

          The Securities are deemed Designated Senior Indebtedness under the Existing Notes.

          THE COMPANY WILL FURNISH TO ANY HOLDER OF SECURITIES UPON WRITTEN REQUEST AND WITHOUT CHARGE
TO THE HOLDER A COPY OF THE INDENTURE WHICH HAS IN IT THE TEXT OF THIS SECURITY.

E-11

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

(Print or type assignee’s name, address and zip code)

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint               agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	 	 	 
	Date:

	 	 	 	Your Signature:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

(Signature must be guaranteed)
	 	 

	 	 	 
	 

Sign exactly as your name appears on the other side of this Security.

	 	 

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

In connection with any transfer of any of the Securities evidenced by this certificate occurring
prior to the expiration of the date that is two years after the later of the date of original
issuance of such Securities and the last date, if any, on which such Securities were owned by the
Company or any Affiliate of the Company, the undersigned confirms that such Securities are being
transferred in accordance with its terms:

CHECK ONE BOX BELOW

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	[ ]
	 	to the Company; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	[ ]
	 	pursuant to an effective registration statement under
the Securities Act of 1933; or

E-12

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	[ ]
	 	to a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act of 1933) that
purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given
that such transfer is being made in reliance on Rule
144A, in each case pursuant to and in compliance with
Rule 144A under the Securities Act of 1933; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(4	)	 	[ ]
	 	pursuant to an offer and sale to non-U.S. persons
that occur outside the United States within the
meaning of, and in compliance with, Regulation S
under the Securities Act; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(5	)	 	[ ]
	 	to an institutional “accredited investor” (as defined
in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act of 1933) that has furnished to the
trustee a signed letter containing certain
representations and agreements (the form of which
letter can be obtained from the Trustee or the
Company); or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(6	)	 	[ ]
	 	pursuant to another available exemption from
registration provided by Rule 144 under the
Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered holder thereof;
provided, however, that if box (4), (5) or (6) is checked, the Trustee may require,
prior to registering any such transfer of the Securities, such legal opinions, certifications and
other information as the Company has reasonably requested to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

	 	 	 	 	 
	 

	 	 

Your Signature
	 	 

Signature Guarantee:

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature of Signature Guarantee
	 	 

Signature must be guaranteed

by a participant in a

recognized signature guarantee

medallion program or other

signature guarantor acceptable

to the Trustee

E-13

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	NOTICE:
	 	 

To be executed by an executive officer
	 	 

E-14

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

          The initial principal amount of this Global Security is $                     . The following
increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	 	 	 	 	Signature of	 
	 	 	decrease in	 	 	increase in	 	 	Principal amount of	 	 	authorized	 
	 	 	Principal	 	 	Principal	 	 	this Global Security	 	 	signatory of	 
	 	 	Amount of	 	 	Amount of	 	 	following such	 	 	Trustee or	 
	Date of	 	this Global	 	 	this Global	 	 	decrease or	 	 	Securities	 
	Exchange	 	Security	 	 	Security	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

E-15

 

OPTION OF HOLDER TO ELECT PURCHASE

          IF YOU WANT TO ELECT TO HAVE THIS SECURITY PURCHASED BY THE COMPANY PURSUANT TO SECTION 4.06
OF THE INDENTURE, CHECK THE BOX:

/ /

          IF YOU WANT TO ELECT TO HAVE ONLY PART OF THIS SECURITY PURCHASED BY THE COMPANY PURSUANT TO
SECTION 4.06 OR 4.09 OF THE INDENTURE, STATE THE AMOUNT: $

	 	 	 	 	 	 	 	 	 
	DATE:

	 	 	 	YOUR SIGNATURE:	 	 	 	 
	 

	 	 

	 	 	 	 

(SIGN EXACTLY AS YOUR NAME APPEARS ON THE
OTHER SIDE OF THE SECURITY)
	 	 

	 	 	 	 	 
	SIGNATURE GUARANTEE:
	 	 	 	 
	 

	 	 

SIGNATURE MUST BE GUARANTEED BY A PARTICIPANT IN A RECOGNIZED
SIGNATURE GUARANTEE MEDALLION PROGRAM OR OTHER SIGNATURE GUARANTOR
ACCEPTABLE TO THE TRUSTEE.
	 	 

E-16

 

EXHIBIT A

[FORM OF FACE OF EXCHANGE SECURITY]

			
	No.
	 	$                    

Senior Floating Rate Note due 2010

CUSIP No.

Stone Energy Corporation, a Delaware corporation,

promises to pay to                 , or registered assigns,

the principal sum of                Dollars on July 15, 2010

Interest Payment Dates: January 15, April 15, July 15 and October 15.

Record Dates: January 1, April 1, July 1 and October 1.

E-17

 

          Additional provisions of this Security are set forth on the other side of this Security.

          IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.

	 	 	 	 	 	 	 
	 	 	STONE ENERGY CORPORATION,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Dated:

TRUSTEE’S CERTIFICATE OF

          AUTHENTICATION

JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

E-18

 

 

			
	*/	 	If the Security is to be issued in global form, add the Global Securities Legend from Exhibit 1
to Appendix A and the attachment from such Exhibit 1 captioned “TO BE ATTACHED TO GLOBAL SECURITIES
- SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”.

E-19

 

[FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

Senior Floating Rate Note due 2010

1. Principal, Maturity and Interest. 

          (a) Stone Energy Corporation, a Delaware corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the Securities payable quarterly in arrears on January 15, April 15, July 15 and
October 15, commencing on July 15, 2006. Interest on each Security will accrue from the date it
was most recently paid or, if no interest has been paid on such Security, from the Issue Date.
Interest on the Securities will accrue, with respect to the period from and including the Issue
Date to but excluding the first interest payment date and each successive three-month period from
and including each interest payment date to but excluding the next interest payment date (each, an
“Interest Accrual Period”), at a rate equal to three-month LIBOR plus the Applicable Margin per
annum. Interest on the Securities will be computed on the basis of a 360-day year for actual days
elapsed in the Interest Accrual Period. Interest on overdue principal and interest and any
additional interest will accrue at a rate that is 2% higher than the then applicable interest rate
on the Securities. The Company will make each interest payment to the Holders of record on the
immediately preceding January 1, April 1, July 1 and October 1. The Company will appoint the
Trustee or another financial institution (the “Calculation Agent”) to calculate the interest rate
for the Securities.

     ‘‘Determination Date’’ means, with respect to an Interest Accrual Period, the second London
Banking Day preceding the first day of such Interest Accrual Period.

     ‘‘LIBOR’’ means, with respect to an Interest Accrual Period, the rate (expressed as a
percentage per annum) for deposits in United States dollars for a three-month period beginning on
the second London Banking Day after the Determination Date that appears on Telerate Page 3750 as of
11:00 a.m., London time, on the Determination Date. If Telerate Page 3750 does not include such a
rate or is unavailable on a Determination Date, the Calculation Agent will request the principal
London office of each of four major banks in the London interbank market, as selected by the
Calculation Agent, to provide such bank’s offered quotation (expressed as a percentage per annum),
as of approximately 11:00 a.m., London time, on such Determination Date, to prime banks in the
London interbank market for deposits in a Representative Amount in United States dollars for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such offered quotations are so provided, LIBOR for the Interest Accrual Period will be
the arithmetic mean of such quotations. If fewer than two such quotations are so provided, the
Calculation Agent will request each of three major banks in New York City, as selected by the
Calculation Agent, to provide such bank’s rate (expressed as a percentage per annum), as of
approximately 11:00 a.m., New York City time, on such Determination Date, for loans in a
Representative Amount in United States dollars to leading European banks for a three-month period
beginning on the second London Banking Day after the Determination Date. If at least two such rates
are so provided, LIBOR for the Interest Accrual Period will be the arithmetic mean of such rates.
If fewer than two such rates are so provided, then LIBOR for the Interest Accrual Period will be
LIBOR in effect with respect to the immediately preceding Interest Accrual Period.

E-20

 

     ‘‘London Banking Day’’ is any day in which dealings in United States dollars are transacted
or, with respect to any future date, are expected to be transacted in the London interbank market.

     ‘‘Representative Amount’’ means as at any date an amount equal to, or approximately equal to,
the aggregate principal amount of the Securities then outstanding.

     ‘‘Telerate Page 3750’’ means the display designated as ‘‘Page 3750’’ on the Moneyline Telerate
service (or such other page as may replace Page 3750 on that service).

     All percentages resulting from any of the above calculations will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or 0.09876545) being rounded to 9.87655% (or
0.0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).

     The interest rate on the Securities will in no event be higher than the maximum rate permitted
by New York law.

     The Calculation Agent will, upon the request of the Holder of any Security, provide the
interest rate then in effect with respect to the Securities. All calculations made by the
Calculation Agent in the absence of manifest error will be conclusive for all purposes and binding
on the Company and the Holders of the Securities.

          (b) Special Interest. The holder of this Security is entitled to the benefits of a
Registration Rights Agreement among the Company and the Initial Purchaser named therein (the
“Registration Rights Agreement”). Under certain circumstances described in the Registration Rights
Agreement, the Holder will be entitled to Special Interest.

2. Method of Payment.

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the January 1, April 1, July 1 and
October 1 immediately preceding the interest payment date even if Securities are canceled after the
record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal and interest in money
of the United States of America that at the time of payment is legal tender for payment of public
and private debts. Payments in respect of the Securities represented by a Global Security will be
made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company. The Company will make all payments in respect of a certificated Security (including
principal, premium, if any, and interest), by mailing a check to the registered address of each
Holder thereof; provided, however, that payments on the Securities may also be
made, in the case of a Holder of at least $1,000,000 aggregate principal amount of Securities, by
wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if
such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account

E-21

 

no later than 30 days immediately preceding the relevant due date for payment (or such other
date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar.

          Initially, JPMorgan Chase Bank, National Association (the “Trustee”), will act as Paying Agent
and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar
without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar or co-registrar.

4. Indenture.

          The Company issued the Securities under an Indenture dated as of June 28, 2006 (the
“Indenture”), between the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the
“TIA”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto
in the Indenture. The Securities are subject to all such terms, and Securityholders are referred
to the Indenture and the TIA for a statement of those terms.

          The Securities are general unsecured obligations of the Company and may be issued in an
unlimited aggregate principal amount at any one time outstanding. [This Security is one of the
Original Securities referred to in the Indenture issued in an initial aggregate principal amount of
$                    . The Securities include the Original Securities, an unlimited aggregate principal
amount of additional Initial Securities that may be issued under the Indenture and any Exchange
Securities issued in exchange for Initial Securities. The Original Securities, such additional
Initial Securities and the Exchange Securities are treated as a single class of securities under
the Indenture.]* [This Security is one of an unlimited aggregate principal amount of
additional Initial Securities that may be issued under the Indenture. The Securities include such
additional Securities, the Original Securities in an aggregate principal amount of $225,000,000
previously issued under the Indenture and any Exchange Securities issued in exchange for Initial
Securities. The additional Initial Securities, the Original Securities and the Exchange Securities
are treated as a single class of securities under the Indenture.]* The Indenture
imposes certain limitations on the ability of the Company and its Restricted Subsidiaries to, among
other things, make certain Investments and other Restricted Payments, pay dividends and other
distributions, incur Indebtedness, enter into consensual restrictions upon the payment of certain
dividends and distributions by such Restricted Subsidiaries, enter into or permit certain
transactions with Affiliates, create or incur Liens and make Asset Sales. The Indenture also
imposes limitations on the ability of the Company or any Subsidiary Guarantor to consolidate or
merge with or into any other Person or convey, transfer or lease all or substantially all of the
Property of the Company or any Subsidiary Guarantor. Certain of the covenants under the Indenture
will be suspended or terminated as provided in the Indenture if the Securities have achieved
Investment Grade status.

 

			
	*	 	Insert appropriate bracketed language.
	 
	*	 	Insert appropriate bracketed language.

E-22

 

          To guarantee the due and punctual payment of the principal and interest, if any, on the
Securities and all other amounts payable by the Company under the Indenture and the Securities when
and as the same shall be due and payable, whether at maturity, by acceleration or otherwise,
according to the terms of the Securities and the Indenture, the Subsidiary Guarantors, if any, will
unconditionally guarantee the Obligations pursuant to the terms of the Indenture.

5. Optional Redemption.

          If a Change of Control has not yet occurred, the Securities will be subject to redemption at
any time at the option of the Company, in whole or in part (equal to $1,000 in principal amount or
an integral multiple thereof), on not less than 30 nor more than 60 days’ prior notice, at a price
equal to 100% of the principal amount of the Securities, plus accrued and unpaid interest, if any,
to the date of redemption (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

          If less than all the Securities are to be redeemed at any time, selection of Securities for
redemption will be made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Securities are listed, or, if the Securities are
not so listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate.

6. Mandatory Redemption.

          Upon the occurrence of a Change of Control, the Company shall (i) redeem all the Securities of
the Indenture, (ii) satisfy and discharge the Indenture as described under Section 13.01 of the
Indenture and (iii) mail (or cause the Trustee to mail) notice of mandatory redemption of all of
the outstanding Securities no later than the first business day following the 30th
calendar day (or such shorter period acceptable to the Company, the Trustee and DTC) after the
consummation of a Change of Control, including the Merger, at a redemption price equal to 100% of
the principal amount of the Securities, plus accrued and unpaid interest, if any, to the date of
redemption (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date). The redemption date shall be between 30 and 60
days after the mailing of the notice (or such shorter time acceptable to the Company, the Trustee
and DTC). If money sufficient to pay the redemption price of and accrued interest on all Securities
(or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on
or before the redemption date, on and after such date of redemption interest ceases to accrue on
such Securities (or such portions thereof) called for redemption.

          Notwithstanding anything herein to the contrary, in connection with a redemption in connection
with the consummation of the Merger, all of the covenants in the Securities or the Indenture shall
be deemed to be of no further effect immediately prior to the Merger (and no provision of the
Indenture shall be deemed violated by any agreement or arrangement or transaction in connection
with the Merger and related transactions), provided that promptly after consummation of the Merger,
the Company (or a successor) has delivered to the Trustee notice of its intention to redeem the
Securities and the funds required to be deposited pursuant to 1(b) of this Section 13.01 above have
been so deposited.

E-23

 

7. Notice of Optional Redemption.

          Notice of optional redemption will be mailed by first-class mail at least 30 days but not more
than 60 days before the redemption date to each Holder of Securities to be redeemed at his or her
registered address. Securities in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000. If money sufficient to pay the redemption price of and accrued
interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited
with the Paying Agent on or before the redemption date and certain other conditions are satisfied,
on and after such date interest ceases to accrue on such Securities (or such portions thereof)
called for redemption.

8. [Intentionally Omitted]

9. [Intentionally Omitted]

10. Denominations; Transfer; Exchange.

          The Securities are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes
required by law or permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Securities selected for redemption (except, in the case of a Security to be redeemed
in part, the portion of the Security not to be redeemed) or to transfer or exchange any Securities
for a period of 15 days prior to a selection of Securities to be redeemed or 15 days before an
interest payment date.

11. Persons Deemed Owners.

          The registered Holder of this Security may be treated as the owner of it for all purposes.

12. Unclaimed Money.

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Holders entitled to the money must
look only to the Company and not to the Trustee for payment.

13. Discharge and Defeasance.

          Subject to certain conditions, the Company at any time may terminate some of or all of its
obligations under the Securities and the Indenture if the Company deposits with the Trustee money
or U.S. Government Obligations for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

14. Amendment, Waiver.

E-24

 

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities
may be amended without prior notice to any Securityholder but with the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding Securities and (ii)
any default or noncompliance with any provision may be waived with the written consent of the
Holders of at least a majority in principal amount of the outstanding Securities. Subject to
certain exceptions set forth in the Indenture, without the consent of any Holder of Securities, the
Company, any Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities (i) to
cure any ambiguity, omission, defect or inconsistency; (ii) to comply with Article 5 of the
Indenture; (iii) to provide for uncertificated Securities in addition to or in place of
certificated Securities; (iv) to add Subsidiary Guaranties with respect to the Securities and to
remove such Subsidiary Guaranties as provided by the terms thereof; (v) to secure the Securities;
(vi) to add additional covenants or to surrender rights and powers conferred on the Company; (vii)
to comply with the requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA; or (viii) to make any change that does not adversely affect the
rights of any Securityholder in any material respect (it being understood that any amendment
described in clause (i) above made solely to conform the Indenture to the final offering memorandum
provided to investors in connection with the initial offering of the Securities will be deemed not
to adversely affect the rights or interests of Securityholders).

15. Defaults and Remedies.

          If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Securities, subject to certain limitations, may declare all the Securities
to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of
Default and shall result in the Securities being immediately due and payable upon the occurrence of
such Events of Default without any further act of the Trustee or any Holder.

          Holders of Securities may not enforce the Indenture or the Securities except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it
receives reasonable indemnity. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or power under the
Indenture. The Holders of a majority in aggregate principal amount of the Securities, by written
notice to the Trustee and the Company, may rescind any declaration of acceleration if the
rescission would not conflict with any judgment or decree, and if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has become due solely
because of the acceleration.

16. Trustee Dealings with the Company.

          Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

E-25

 

          A director, officer, employee or stockholder, as such, of the Company or any Subsidiary
Guarantor shall not have any liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder waives and releases all such liability.
The waiver and release are part of the consideration for the issue of the Securities.

18. Authentication.

          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

19. Abbreviations.

          Customary abbreviations may be used in the name of a Securityholder 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 Gift
to Minors Act).

20. Governing Law.

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD OTHERWISE REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

21. CUSIP Numbers.

          Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

22. Designated Senior Indebtedness.

          The Securities are deemed Designated Senior Indebtedness under the Existing Notes.

          THE COMPANY WILL FURNISH TO ANY HOLDER OF SECURITIES UPON WRITTEN REQUEST AND WITHOUT CHARGE
TO THE HOLDER A COPY OF THE INDENTURE WHICH HAS IN IT THE TEXT OF THIS SECURITY.

E-26

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

(Print or type assignee’s name, address and zip code)

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint                                                  agent to transfer
this Security on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 
	 	 	 
	Date:                      Your Signature:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	 	 	Sign exactly as your name appears on the
	 	 	 
	other side of this Security. Signature must be guaranteed by a participant in a recognized
signature guarantee medallion program or other signature guarantor acceptable to the Trustee.

E-27

 

OPTION OF HOLDER TO ELECT PURCHASE

          IF YOU WANT TO ELECT TO HAVE THIS SECURITY PURCHASED BY THE COMPANY PURSUANT TO SECTION 4.06
OF THE INDENTURE, CHECK THE BOX:

[     ]

          IF YOU WANT TO ELECT TO HAVE ONLY PART OF THIS SECURITY PURCHASED BY THE COMPANY PURSUANT TO
SECTION 4.06 OR 4.09 OF THE INDENTURE, STATE THE AMOUNT:

$

	 	 	 
	Date:                                          Your Signature:
	 	 
	 

	 	 
	 

	 	(SIGN EXACTLY AS YOUR NAME APPEARS ON THE OTHER SIDE OF THE SECURITY)

	 	 	 	 	 
	SIGNATURE GUARANTEE:
	 	 	 	 
	 

	 	 

SIGNATURE MUST BE GUARANTEED BY A PARTICIPANT IN A RECOGNIZED
SIGNATURE GUARANTEE MEDALLION PROGRAM OR OTHER SIGNATURE GUARANTOR
ACCEPTABLE TO THE TRUSTEE.
	 	 

E-28

 

EXHIBIT B

FORM OF SUPPLEMENTAL INDENTURE

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of           
        , among [SUBSIDIARY GUARANTOR] (the “New Subsidiary Guarantor”), a subsidiary
of Stone Energy Corporation (or its successor), a Delaware corporation (the
“Company”), STONE ENERGY CORPORATION, on behalf of itself and the Subsidiary
Guarantors (the “Existing Subsidiary Guarantors”) under the Indenture referred to
below, and JPMorgan Chase Bank, National Association, a national banking
association, as trustee under the indenture referred to below (the “Trustee”).

WITNESSETH:

          WHEREAS the Company has heretofore executed and delivered to the Trustee an Indenture (the
“Indenture”) dated as of June 28, 2006, providing for the issuance of an unlimited aggregate
principal amount of Senior Floating Rate Notes due 2010 (the “Securities”);

          WHEREAS Section 4.13 of the Indenture provides that under certain circumstances the Company is
required to cause the New Subsidiary Guarantor to execute and deliver to the Trustee a supplemental
indenture pursuant to which the New Subsidiary Guarantor shall unconditionally guarantee all the
Company’s obligations under the Securities pursuant to a Subsidiary Guarantee on the terms and
conditions set forth herein; and

          WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee, the Company and the Existing
Subsidiary Guarantors are authorized to execute and deliver this Supplemental Indenture;

          NOW THEREFOR, in consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the New Subsidiary Guarantor, the Company, the
Existing Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and
ratable benefit of the holders of the Securities as follows:

          1. Agreement to Guarantee. The New Subsidiary Guarantor hereby agrees, jointly and
severally with all other Subsidiary Guarantors, to unconditionally guarantee the Company’s
obligations under the Securities on the term and subject to the conditions set forth in Article 11
of the Indenture and to be bound by all other applicable provisions of the Indenture.

          2. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as
expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.

E-29

 

          3. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF
CONFLICTS OF LAW THAT WOULD OTHERWISE REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

          4. Trustee Makes No Representation. The Trustee makes no representation as to the
validity or sufficiency of this Supplemental Indenture.

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

          6. Effect of Headings. The Section headings herein are for convenience only and
shall not effect the construction thereof.

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

	 	 	 	 	 	 	 
	 	 	[NEW SUBSIDIARY GUARANTOR],	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	STONE ENERGY CORPORATION, on	 	 
	 	 	behalf of itself and
the Existing Subsidiary Guarantors,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
NATIONAL ASSOCIATION	 	 
	 	 	as Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

E-30

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