Document:

exv10w61

 

Exhibit 10.61

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is made and entered into as of the 11th day of
December, 2006, by and between Tier Technologies, Inc., a Delaware corporation (together with its
successors and assigns, the “Company”), and David E. Fountain (the “Executive”).

W I T N E S S E T H

     WHEREAS, the Company desires to continue to employ the Executive as its Chief Financial
Officer and to enter into an employment agreement embodying the terms of such employment; and

     WHEREAS, the Executive desires to enter into this Agreement and to accept such continued
employment, subject to the terms and provisions of this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which is mutually
acknowledged, the Company and the Executive, intending to be legally bound, agree as follows:

     1. Definitions.

          (a) “Base Salary” shall mean the Executive’s base salary as determined in accordance with
Section 4 below, including any applicable increases.

          (b) “Board” shall mean the Board of Directors of the Company.

          (c) “Cause” shall mean a finding by the Company of:

	 	(i)	 	a conviction of the Executive of, or a plea of guilty or nolo
contendere by the Executive to, any felony;
	 
	 	(ii)	 	an intentional violation by the Executive of federal or state
securities laws;
	 
	 	(iii)	 	willful misconduct or gross negligence by the Executive that
has or is reasonably likely to have a material adverse effect on the Company;
	 
	 	(iv)	 	a failure of the Executive to perform his reasonably assigned
duties for the Company that has or is reasonably likely to have a material
adverse effect on the Company;
	 
	 	(v)	 	a material violation by the Executive of any material
provision of (i) the Company’s Code of Ethics for Chief Executive, Chief
Financial, and Chief Accounting Officers or its Business Code of Conduct (or
successor

 

 

	 	 	 	policies on similar topics) or (ii) the Executive’s Proprietary and
Confidential Information, Developments, Noncompetition and Nonsolicitation
Agreement (the “Noncompetition/NDA”); or
	 
	 	(vi)	 	fraud, embezzlement, theft or dishonesty by the Executive
against the Company,

provided that no finding of Cause shall be made pursuant to subsections (ii),
(iii), (iv), (v) or (vi) hereof unless the Company has provided the Executive with written notice
in accordance with Section 21 below stating with specificity the facts and circumstances underlying
the allegations of Cause and the Executive has failed to cure such violation, if curable, within
thirty (30) calendar days of receipt thereof. The Board shall determine whether a violation is
curable and/or cured in its reasonable discretion.

          (d) “Change in Control” shall occur upon:

	 	(i)	 	any person, entity or affiliated group becoming the
beneficial owner or owners of more than fifty percent (50%) of the outstanding
equity securities of the Company, or otherwise becoming entitled to
vote shares representing more than fifty percent (50%) of the undiluted total
voting power of the Company’s then-outstanding securities eligible to vote to
elect members of the Board (the “Voting Securities”);
	 
	 	(ii)	 	a consolidation or merger (in one transaction or a series of
related transactions) of the Company pursuant to which the holders of the
Company’s equity securities immediately prior to such transaction or series of
related transactions would not be the holders immediately after such
transaction or series of related transactions of more than fifty percent (50%)
of the Voting Securities of the entity surviving such transaction or series of
related transactions;
	 
	 	(iii)	 	the sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all
of the assets of the Company;
	 
	 	(iv)	 	the dissolution or liquidation of the Company; or
	 
	 	(v)	 	the date on which (i) the Company consummates a “going
private” transaction pursuant to Section 13 and Rule 13e-3 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or (ii) no longer has a
class of equity security registered under the Exchange Act.

          (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          (f) “Compensation Committee” shall mean the Compensation Committee of the Board or another
committee of the Board that performs the functions typically associated with a compensation
committee.

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          (g) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by reason
of his death, the date of his death, or (ii) if the Executive’s employment is terminated pursuant
to any other section, the date specified in the written notice provided in accordance with Section
21 below.

          (h) “Disability” shall mean, for purposes of this Agreement, the Executive’s inability to
substantially perform his duties and responsibilities under this Agreement for a period of six (6)
consecutive months due to a physical or mental disability, as the term “physical or mental
disability” is defined in the Company’s long-term disability insurance plan then in effect (or
would be so found if the Executive applied for coverage or benefits under such plan).

          (i) “Effective Date” shall mean December 11, 2006.

          (j) “Good Reason” shall mean, without the Executive’s prior written consent, the occurrence of
any of the following events or actions, provided that no finding of Good Reason
shall be made pursuant to subsections (ii), (iii), (iv), (v), or (vi) hereof unless the Executive
has provided the Company with written notice in accordance with Section 21 below stating with
specificity the facts and circumstances underlying the allegations of Good Reason and the Company
has failed to cure such violation within thirty (30) calendar days of receipt thereof:

	 	(i)	 	any reduction in the Executive’s Base Salary or a reduction
in minimum Bonus Opportunity below fifty percent (50%) of Base Salary,
	 
	 	(ii)	 	a material change in the applicable performance goals used to
determine the Executive’s bonus that makes it materially less likely for the
goals to be achieved and which change (I) is not reasonable in light of the
Company’s business, (II) is designed to make it materially less likely to
obtain the Bonus Opportunity, or (III) is applied solely to the Executive
(except to the extent relating only to the functions of a Chief Financial
Officer);
	 
	 	(iii)	 	any reduction in the Executive’s title, position or
reporting status, unless the Executive is provided with a comparable title,
position or reporting status, or any material diminution of the Executive’s
duties, responsibilities, powers or authorities; provided, however, that the
Executive agrees that the change in his duties, responsibilities, powers or
authorities that result solely from the Company’s ceasing to be a public
company by virtue of a Change in Control under Section 1(d)(v) hereof shall
not constitute Good Reason, unless he resigns on the basis of such a Change in
Control no later than thirty (30) calendar days after the occurrence of the
Change in Control;
	 
	 	(iv)	 	any material reduction in the scope or value of the medical
or health programs in which the Executive is entitled to participate or any
material reduction in other employee benefit plans and programs that does not
apply to other similarly situated executives;

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	 	(v)	 	any requirement imposed on the Executive to (I) relocate his
principal residence, (II) materially increase his travel time between his
principal residence and a relocated corporate headquarters beyond his
customary travel time from his date of hire to the Effective Date, or (III)
travel away from his office in the course of discharging his responsibilities
or duties hereunder at least 20% more (in terms of aggregate days in any
calendar year or in any calendar quarter when annualized for purposes of
comparison to any prior year) than was required of Executive in the year
immediately prior to the Change in Control; or
	 
	 	(vi)	 	a material breach by the Company of any material provision of
this Agreement.

          (k) “Term of Employment” shall mean the period specified in Section 2 below, as such period
may be extended.

     2. Term of Employment.

          The Company hereby continues to employ the Executive, and the Executive hereby accepts such
continued employment, for the period commencing on the Effective Date and ending on the second
anniversary of the Effective Date, subject to earlier termination of the Term of Employment in
accordance with the terms of this Agreement. This Agreement shall be automatically renewed for
additional one (1) year periods on each anniversary of the Effective Date thereafter, unless either
party notifies the other party in writing of his or its intention not to renew this Agreement not
less than thirty (30) calendar days prior to such expiration date or anniversary, as the case may
be.

     3. Position, Duties and Responsibilities.

          As of the Effective Date, the Executive shall be employed as the Chief Financial Officer of
the Company or in such other reasonably comparable position as the Chief Executive Officer of the
Company (the “Chief Executive Officer”) or the Board may determine from time to time. In this
capacity, the Executive shall be assigned such duties and responsibilities inherent in such
position and such other duties and responsibilities as the Chief Executive Officer or the Board
shall from time to time reasonably assign to him. The Executive shall serve the Company
faithfully, conscientiously, and to the best of the Executive’s ability and shall promote the
interests and reputation of the Company. The Executive shall devote all of the Executive’s time,
attention, knowledge, energy and skills during normal working hours, and at such other times as the
Executive’s duties may reasonably require, to the duties of the Executive’s employment;
provided, however, that the Executive may (a) serve on civic or charitable boards
or committees; or (b) with the approval of the Chief Executive Officer or the Board, serve on
corporate boards or committees. The Executive shall report to the Chief Executive Officer in
carrying out his duties and responsibilities under this Agreement. The Executive agrees to abide
by the rules, regulations, instructions, personnel practices and policies of the Company and any
changes therein that may be adopted from time to time.

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     4. Base Salary.

          As of the Effective Date, the Executive shall be paid an annualized Base Salary of Three
Hundred Twenty-Five Thousand Dollars ($325,000) for the one-year period commencing on the Effective
Date, payable in accordance with the regular payroll practices of the Company. The Base Salary
shall be subject to increase but not decrease thereafter, as determined by the Board in its sole
discretion.

     5. Incentive Compensation Arrangements.

          During the Term of Employment, the Executive shall be entitled to participate in any Company
incentive compensation plans, programs and/or arrangements applicable to senior-level executives as
established and modified from time to time by the Compensation Committee in its sole discretion
including, without limitation, the Executive Incentive Compensation Plan (the “Incentive Plan”).
In no event shall the minimum annual incentive opportunity (the “Bonus Opportunity”) for the
Executive be less than fifty percent (50%) of that year’s Base Salary, assuming satisfaction of
applicable performance goals. (For the avoidance of doubt, the Company may choose to pay no bonus
if applicable performance goals are not met.)

     6. Equity Compensation Programs.

          During the Term of Employment, the Executive shall be entitled to participate in any
equity-based plans, programs or arrangements applicable to senior-level executives as established
and modified from time to time by the Board or the Compensation Committee in its sole discretion,
to the extent that the Executive is eligible under (and subject to the provisions of) the plan
documents governing those programs.

     7. Employee Benefit Programs.

          During the Term of Employment, the Executive shall be entitled to participate in all employee
welfare and pension benefit plans, programs and/or arrangements applicable to senior-level
executives, to the extent that the Executive is eligible under (and subject to the provisions of)
the plan documents governing those programs.

     8. Reimbursement of Business Expenses.

          The Company shall reimburse the Executive for all reasonable travel, entertainment and other
expenses incurred or paid by the Executive in connection with, or related to, the performance of
his duties, responsibilities or services under this Agreement, upon presentation by the Executive
of documentation, expense statements, vouchers and/or such other supporting information as the
Company may request; provided, however, that the amount available for such travel,
entertainment and other expenses may be fixed in advance by the Board.

          The Company will provide the Executive with a corporate apartment located within a reasonable
daily commuting distance from the Company’s corporate headquarters and reimburse the Executive for
airfare for the Executive or his spouse between the city of Executive’s current residence and the
Company’s corporate headquarters and out of pocket expenses (including but not limited to parking,
taxicabs and meals) subject to the Company’s normal business travel

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policies. From time to time the Executive may choose to fly directly to another city instead
of to his city of residence. The airfare and out of pocket expenses (but not his lodging or meals)
for such travel shall also be reimbursed by the Company, subject to the limitation that the airfare
for any such travel shall not be reimbursed to the extent that it exceeds 100% of the airfare to
Executive’s city of residence.

          If the Executive recognizes income for income tax purposes as a result of the Company’s
payment of certain expenses pursuant to this Section 8 or Section 9(b) below, regardless of whether
he recognizes such income before or after his employment terminates, the Company shall make a tax
gross-up payment to the Executive based on the additional tax liability that he incurs by reason of
his recognition of such income.

     9. Perquisites.

          (a) During the Term of Employment, the Executive shall be entitled to participate in the
Company’s executive fringe benefit programs applicable to the Company’s senior-level executives (if
any) in accordance with the terms and conditions of such programs as in effect from time to time,
to the extent that the Executive is eligible under (and subject to the provisions of) the plan
documents governing those programs.

          (b) If Executive is required to relocate, the Company shall reimburse the Executive for
reasonable moving and travel expenses incurred by the Executive in moving himself and his immediate
family to the Company’s corporate headquarters in accordance with its relocation policy. In
accordance with Company policy, the Executive will be required to repay a pro-rata portion of the
reimbursed amount if he resigns (other than under Section 11(e) below) or is terminated for Cause
within twelve (12) months of the date of relocation.

     10. Vacation.

          The Executive shall be entitled to twenty-four (24) days of paid time off per calendar year,
prorated during the calendar year in which the Executive is initially hired and the calendar year
in which the Executive’s employment terminates, to be taken at such times as may be approved by the
Chief Executive Officer. Executive may carry over up to forty-eight (48) days of unused paid time
off.

     11. Termination of Employment.

          (a) Termination of Employment by the Company for Disability or Termination of Employment
by Death. Upon a termination of the Executive’s employment by the Company for Disability or a
termination of the Executive’s employment by reason of the Executive’s death, the Executive or his
estate and/or beneficiaries, as the case may be, shall be entitled to the following amounts,
payable within thirty (30) calendar days following such termination:

	 	(i)	 	Base Salary earned but not paid prior to the Date of
Termination and any accrued prior year bonus not paid prior to such date;
	 
	 	(ii)	 	any amounts earned, accrued or owing to the Executive but not
yet paid under Sections 7, 8, 9 or 10 above prior to the Date of Termination;

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	 	(iii)	 	in the event of termination of employment by reason of death
or, in the event the Executive is not covered by the Company’s short- and
long-term disability policies, disability:

	 	(I)	 	one year’s Base Salary, plus a bonus equal to
the average annual bonus paid to the Executive (or for the most recent
year, accrued for the Executive) for the previous three years (or such
shorter period during which the Executive was employed) (the “Average
Historic Bonus”), prorated for the number of months worked in the
fiscal year in which the date of death occurs;
	 
	 	(II)	 	a bonus equal to the Average Historic Bonus;
and
	 
	 	(III)	 	payment by the Company of the premiums for
any covered beneficiary of the Executive’s coverage under COBRA health
continuation benefits over the twelve (12) month period immediately
following the date of death, assuming such individual elects and
remains eligible for such coverage;

	 	(iv)	 	immediate vesting of one additional year on all stock
options; and
	 
	 	(v)	 	such other or additional benefits, if any, as may be provided
under applicable plans, programs and/or arrangements of the Company.

The Company must provide written notice to the Executive in accordance with Section 21 below upon a
termination of the Executive’s employment for Disability.

Notwithstanding the provisions of clause (iii) above, the Company may provide life insurance
coverage for the Executive payable in an amount that exceeds the amount payable under such clause
(the “Minimum Death Benefit”) and shall have no obligation to the Executive under such clause if an
amount at least equal to the Minimum Death Benefit is paid in a lump sum to the Executive’s estate
within (30) calendar days of his death. In the event that the insurance policy is paid out after
such thirty (30) calendar day period, the Executive’s estate shall reimburse the Company for any
amounts paid to it by the Company up to the amount of the Minimum Death Benefit. This provision
refers to life insurance coverage that supplements any group term life coverage for which the
Executive is or may become eligible under terms generally applicable to executives.

          (b) Termination of Employment by the Company for Cause, by the Executive or by Notice of
Nonrenewal by the Executive. Upon a termination of the Executive’s employment by the Company
for Cause, a termination of the Executive’s employment by the Executive (except as provided in
Section 11(e)), or a termination of the Executive’s employment by virtue of non-renewal by the
Executive pursuant to Section 2, the Executive shall be entitled to the following:

	 	(i)	 	Base Salary earned but not paid prior to the Date of
Termination and any accrued prior year bonus not paid prior to such date;

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	 	(ii)	 	any amounts earned, accrued or owing to the Executive but not
yet paid under Sections 7, 8, 9 or 10 above prior to the Date of Termination;
and
	 
	 	(iii)	 	such other or additional benefits, if any, as may be
provided under applicable plans, programs and/or arrangements of the Company.

The Executive must provide written notice to the Company in accordance with Section 21 below at
least fifteen (15) calendar days prior to the actual Date of Termination upon a termination of the
Executive’s employment. A termination by the Company for Cause and by notice of nonrenewal by the
Executive must be made as set forth herein.

          (c) Termination of Employment by the Company Without Cause. Upon a termination of the
Executive’s employment by the Company without Cause (including through notice of nonrenewal by the
Company pursuant to Section 2), other than under the circumstances described in Section 11(d), the
Executive shall be entitled to the following amounts, payable within thirty (30) calendar days
following such termination, subject to the provisions of Section 23 below:

	 	(i)	 	Base Salary earned but not paid prior to the Date of
Termination and any accrued prior year bonus not paid prior to such date;
	 
	 	(ii)	 	any amounts earned, accrued or owing to the Executive but not
yet paid under Sections 7, 8, 9 or 10 above prior to the Date of Termination;
	 
	 	(iii)	 	such other or additional benefits, if any, as may be
provided under applicable plans, programs and/or arrangements of the Company;
	 
	 	(iv)	 	a prorated portion of the Average Historic Bonus (prorated
for the number of months worked in the fiscal year in which the Date of
Termination falls);
	 
	 	(v)	 	one (1) times the Base Salary in effect on the Date of
Termination, plus a bonus equal to the Average Historic Bonus;
	 
	 	(vi)	 	immediate vesting of any stock options that would have vested
before the end of the term of this Agreement (taking into account any renewals
that have occurred under Section 2) or, if greater, one additional year of
vesting on all stock options; and
	 
	 	(vii)	 	payment by the Company of the premiums for the Executive’s
and any covered beneficiary’s coverage under COBRA health continuation
benefits over the twelve (12) month period immediately following the Date of
Termination, assuming such individuals elect and remain eligible for such
coverage;

provided that the Executive must execute and not revoke a severance agreement and
release of claims drafted by and reasonably satisfactory to the Company (the “Severance Agreement”)
to be eligible for the payments in Sections 11(c)(iv) through (vii) herein, which will contain a
full

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release of the Company (other than for exceptions specified therein), and will be in substantially
the form attached hereto as Exhibit A (with such additional reasonable grounds for release of the
Company as changes in law or circumstances may require). The Company must provide written notice
to the Executive in accordance with Section 21 below upon a termination of the Executive’s
employment without Cause.

          (d) Termination of Employment by the Company after a Change in Control. Upon a
termination of the Executive’s employment by the Company without Cause within one (1) year after a
Change in Control, the Executive shall be entitled to the following amounts, payable within thirty
(30) calendar days following such termination, subject to the provisions of Section 23 below:

	 	(i)	 	Base Salary earned but not paid prior to the Date of
Termination and any accrued prior year bonus not paid prior to such date;
	 
	 	(ii)	 	any amounts earned, accrued or owing to the Executive but not
yet paid under Sections 7, 8, 9 or 10 above prior to the Date of Termination;
	 
	 	(iii)	 	such other or additional benefits, if any, as may be
provided under applicable plans, programs and/or arrangements of the Company;
	 
	 	(iv)	 	a prorated portion of the Average Historic Bonus (prorated
for the number of months worked in the fiscal year in which the Date of
Termination falls);
	 
	 	(v)	 	three (3) times the sum of (A) the Base Salary in effect on
the Date of Termination plus (B) a bonus equal to the Average Historic Bonus,
but in no event shall the Average Historic Bonus used to calculate the amount
payable under this clause (v) be in an amount less than fifty percent (50%) of
the then current Base Salary;
	 
	 	(vi)	 	immediate vesting of any stock options; and
	 
	 	(vii)	 	payment by the Company of the premiums for the Executive’s
and any covered beneficiary’s health insurance over the thirty-six (36) month
period immediately following the Date of Termination;

provided that the Executive must execute and not revoke the Severance Agreement
(with the conditions contained in the proviso to Section 11(c)) to be eligible for the payments in
Sections 11(d)(iv) through (vii) herein. The Company must provide written notice to the Executive
in accordance with Section 21 below upon a termination of the Executive’s employment without Cause.

          (e) Resignation for Good Reason by the Executive due to a Change in Control. The
Executive may terminate his employment for Good Reason within one (1) year after a Change in
Control (extended to two (2) years after a Change in Control defined in Section 1(d)(v)), in which
event the Executive shall be entitled to the payments in and subject to

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the conditions of Section 11(d). The Executive must provide written notice to the Company of a
proposed resignation for Good Reason in accordance with Section 21 below.

     12. Nondisclosure, Inventions, Noncompetition and Nonsolicitation.

          The Executive shall execute, simultaneously with the execution of this Agreement or otherwise
upon the Company’s request, the Noncompetition/NDA attached hereto as Exhibit B.

     13. Assignability; Binding Nature.

          This Agreement shall be binding upon and inure to the benefit of both parties and their
respective successors and assigns, including any corporation or entity with which or into which the
Company may be merged or that may succeed to its assets or business; provided,
however, that the obligations of the Executive are personal and shall not be assigned by
him.

     14. Representation.

          The Company represents and warrants that it is fully authorized and empowered to enter into
this Agreement. The Executive states and represents that he has had an opportunity to fully
discuss and review the terms of this Agreement with an attorney. The Executive further states and
represents that he has carefully read this Agreement, understands the contents herein, freely and
voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free
act.

          The Company will pay or reimburse the Executive’s reasonable attorneys’ fees and expenses in
connection with the drafting and negotiation of this Agreement, to an amount not to exceed $22,000.
In addition, the Company agrees that, if a dispute arises that concerns this Agreement, the
NDA/Noncompete, or the Separation Agreement and the Executive is the prevailing party in the
dispute, he shall be entitled to recover all of his reasonable attorney’s fees and expenses
incurred in connection with the dispute. For this purpose, the Executive will be the “prevailing
party” if he is successful on any significant substantive issue in the action and achieves either a
judgment in his favor or some other affirmative recovery.

          Upon the occurrence of a Change in Control, the following additional provisions shall be in
effect and shall remain in effect until the first anniversary of the effective date of such Change
in Control (or such longer period as is needed to resolve disputes relating to the first year after
a Change in Control (or, to the extent a two (2) year period applies under Section 11(e), two (2)
years): It is the intent of the Company that the Executive not be required to incur legal fees and
the related expenses associated with the negotiation, execution, interpretation, enforcement or
defense of Executive’s rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be extended to the
Executive hereunder. Accordingly, if it should appear in good faith to the Executive that the
Company has failed to comply with any of its obligations under this Agreement or in the event that
the Company or any other person takes or threatens to take any action to declare this Agreement
void or unenforceable, or institutes any litigation or other action or proceeding designed to deny,
or to recover from the Executive, the benefits provided or intended to be provided to the Executive
hereunder, the Company irrevocably authorizes the Executive from time to time to retain counsel of
Executive’s choice , at the expense of the

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Company as
hereafter provided, to advise and represent the Executive in connection with any such interpretation,
enforcement or defense, including without limitation the initiation or defense of any litigation or
other legal action, whether by or against the Company or any Director, officer, stockholder or
other person affiliated with the Company. Notwithstanding any existing or prior attorney-client
relationship between the Company and any such counsel, the Company irrevocably consents to the
Executive’s entering into an attorney client relationship with such counsel, and in that connection
the Company and the Executive agree that a confidential relationship shall exist between the
Executive and such counsel. Without respect to whether the Executive prevails, in whole or in
part, in connection with any of the foregoing, the Company will pay and be solely financially
responsible for any and all attorneys’ and related fees and expenses incurred by the Executive in
good faith in connection with any of the foregoing. The Company will pay the Executive’s legal
fees as invoices are presented by the Executive’s legal counsel. The special provisions of this
paragraph do not apply to the Noncompete/NDA, disputes with respect to which are covered by the
preceding paragraph.

          In the event that Employee’s employment is terminated during the applicable one or two year
period, as the case may be, pursuant to Sections 11(d) or 11(e) hereof, the additional provisions
shall also apply to any payments owed him as specified in the Severance Agreement and shall remain
in effect with respect to such payments as long as necessary to receive (or be found not entitled
to) such payments.

     15. Entire Agreement.

          This Agreement contains the entire understanding and agreement between the parties concerning
the subject matter hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, with respect thereto, including, without
limitation, the Offer Letter dated as of May 2, 2005.

     16. Amendment or Waiver.

          No provision in this Agreement may be amended unless such amendment is agreed to in writing
and signed by the Executive and an authorized officer of the Company. No waiver by either party of
any breach by the other party of any condition or provision contained in this Agreement to be
performed by such other party shall be deemed a waiver of a similar or dissimilar condition or
provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by
the Executive or an authorized officer of the Company, as the case may be.

     17. Withholding.

          The Company may withhold from any amounts payable under this Agreement such federal, state and
local taxes as may be required to be withheld pursuant to any applicable law or regulation.

     18. Severability.

          In the event that any provision of this Agreement shall be determined by a court of competent
jurisdiction to be invalid or unenforceable for any reason, in whole or in part, the

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remaining parts, terms or provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

     19. Survivorship.

          The respective rights and obligations of the parties hereunder shall survive any termination
of the Executive’s employment to the extent necessary to preserve such rights and obligations.

     20. Governing Law; Jurisdiction; Dispute Resolution.

          This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia (without reference to the conflict of laws provisions thereof). In case
of any controversy or claim arising out of or related to this Agreement or relating to the
Executive’s employment (including but not limited to claims relating to employment discrimination),
except as expressly excluded herein, each party to this Agreement agrees to give the other party
notice of non-compliance with this Agreement and ten (10) days to cure. Should resolution of any
controversy or claim not be reached following provision of notice and a reasonable opportunity to
cure, then the dispute shall be settled by arbitration, under the American Arbitration
Association’s National Rules for the Resolution of Employment Disputes (the “National Rules”). A
single arbitrator shall be selected in accordance with the National Rules, and the costs of such
arbitration shall be shared equally between the parties, except to the extent expressly set forth
in Section 14 above. Any claim or controversy not submitted to arbitration in accordance with this
Section 20 (other than as provided under the Noncompetition/NDA) shall be waived, and thereafter no
arbitrator, arbitration panel, tribunal, or court shall have the power to rule or make any award on
any such claim or controversy. In determining a claim or controversy under this Agreement and in
making an award, the arbitrator must consider the terms and provisions of this Agreement, as well
as all applicable federal, state, or local laws. The award rendered in any arbitration proceeding
held under this Section 20 shall be final and binding and judgment upon the award may be entered in
any court having jurisdiction thereof. Claims for workers’ compensation or unemployment
compensation benefits are not covered by this Section 20. Without limiting the provisions of this
Section 20, the Company and the Executive agree that the decision as to whether a party is the
prevailing party in an arbitration, or a legal proceeding that is commenced in connection therewith
will be made in the sole discretion of the arbitrator or, if applicable, the court and the
arbitrator or court may award reasonable attorneys’ fees, costs and expenses, except to the extent
expressly to the contrary in Section 14 above. The Company and the Executive each hereby
irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding
arising under or relating to any provision of this Agreement.

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     21. Notices.

          All notices shall be in writing, shall be sent to the following addresses listed below using a
reputable overnight express delivery service and shall be deemed to be received one (1) calendar
day after mailing.

			
	     If to the Company:	 	10780 Parkridge Blvd.

4th Floor

Reston, Virginia 20191

Attention: General Counsel

 

with a copy to: The Chief Executive Officer

			
	     If to the Executive:	 	At his current or last known residential address

Any notice of termination must include a Date of Termination in accordance with the relevant
provisions of this Agreement.

     22. Headings.

          The headings of the sections contained in this Agreement are for convenience only and shall
not be deemed to control or affect the meaning or construction of any provision of this Agreement.

     23. Compliance with Code Section 409A.

          To the extent any payment, compensation or other benefit provided to the Executive in
connection with his employment termination is determined to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code and the Executive is a specified
employee as defined in Section 409A(2)(B)(i), such payment, compensation or other benefit shall not
be paid before the day that is six (6) months plus one (1) day after the Date of Termination (the
“New Payment Date”). The aggregate of any payments that otherwise would have been paid to the
Executive during the period between the Date of Termination and the New Payment Date shall be paid
to the Executive in a lump sum on such New Payment Date. Thereafter, any payments that remain
outstanding as of the day immediately following the New Payment Date shall be paid without delay
over the time period originally scheduled, in accordance with the terms of this Agreement.

     24. Excise Tax Gross-Up.

          Under certain circumstances the Executive may become entitled to a gross-up payment with
respect to the excise tax imposed by Section 4999 of the Code. The terms governing the gross-up
payment are set forth in Exhibit C, which is incorporated herein by reference.

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     25. Counterparts.

          This Agreement may be executed in two or more counterparts, and such counterparts shall
constitute one and the same instrument. Signatures delivered by facsimile shall be deemed
effective for all purposes to the extent permitted under applicable law.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

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

	 	 	 	 	 	 	 
	 	 	TIER TECHNOLOGIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE EXECUTIVE
	 

	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	David E. Fountain

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Exhibit A

FORM OF SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (the “Agreement”) is made by and between Tier
Technologies, Inc., a Delaware corporation (the “Company”), and ___(the “Employee”)
(collectively, the “Parties”), as of the Separation Date (as defined below).

     WHEREAS, the Employee entered into an employment agreement dated as of December ___, 2006
(the “Employment Agreement”) and [RECITE AGREEMENTS] (together, the “Prior Agreements”);

WHEREAS, the Employee has been [TITLES];

     WHEREAS, the Parties desire to set forth the terms of their joint agreements regarding the
Employee’s separation from the Company and establish the terms of the Employee’s severance
arrangement; and

     WHEREAS, the Company advises the Employee to consult with an attorney of his own choosing
prior to executing this Agreement;

     NOW, THEREFORE, in consideration of the promises and conditions set forth herein, the receipt
and sufficiency of which is hereby acknowledged, the Company and the Employee agree as follows:

     Separation Date and Termination of Prior Agreements. The Employee’s effective date of
separation from the Company [was] [shall be] [date] (the “Separation Date”). Provided that the
Employee does not revoke this Agreement pursuant to Section 18 below, the Employee acknowledges
that the Prior Agreements terminated effective as of the Separation Date, except as provided
herein, and that the Company no longer has any obligations thereunder, including any obligations to
provide benefits or perquisites to the Employee and/or his family pursuant to the

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Prior Agreements.

     Consideration. In return for the timely execution and non-revocation of this
Agreement and provided that the Employee has complied with all conditions set forth in this
Agreement, the Company agrees to provide the Employee with the following consideration (the
“Consideration”):

     [Reflect payments from Employment Agreement or other compensatory agreement.]

[Any other applicable consideration]

Release.

     In exchange for the Consideration, which the Employee acknowledges he would not otherwise be
entitled to receive, and except as otherwise provided in this Agreement, the Employee hereby fully,
forever, irrevocably and unconditionally releases, remises and discharges the Company, its
officers, directors, affiliates, subsidiaries, parent companies, agents and employees (each in
their individual and corporate capacities) (hereinafter, the “Released Parties”) from any and all
claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of
money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions,
damages, executions, obligations, liabilities and expenses (including attorneys’ fees and costs),
of every kind and nature that the Employee ever had or now has against any or all of the Released
Parties, including, but not limited to, all claims arising out of his employment with and/or
separation from the Company including, but not limited to, all employment discrimination claims
under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans
With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in
Employment Act, 29 U.S.C., § 621 et seq., the Virginia Human Rights Act,

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Va. Code § 2.2-3900 et seq., Va. Code Ann. § 51.5-40 et seq.
(Virginia rights of persons with disabilities law) and Va. Code § 40.1-28.6 (Virginia equal pay
law), all as amended, all claims arising out of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et
seq. and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et
seq., all as amended, any claims to have been or to be considered as a “whistleblower” or other
protected person under Federal or state law, including Section 806 of the Corporate and Criminal
Fraud Accountability Act; all common law claims including, but not limited to, actions in tort,
defamation and breach of contract (including, without limitation, claims arising out of or related
to the Prior Agreements), all claims to any non-vested ownership interest in the Company,
contractual or otherwise, including, but not limited to, claims to stock or stock options, and any
claim or damage arising out of the Employee’s employment with and/or separation from the Company
(including a claim for retaliation) under any common law theory or any federal, state or local
statute or ordinance not expressly referenced above. The Employee understands and agrees that by
entering into this Agreement, he is waiving any and all rights or claims you might have under the
Age Discrimination in Employment Act, as amended by the Older Workers Benefits Protection Act, and
that he has received consideration beyond that to which he was previously entitled. It is
understood that this release does not affect any rights the Employee has under this Agreement, any
vested rights that Employee may have under any pension or retirement plans sponsored by the Company
for its employees, or any rights the Employee and his beneficiaries may have to continued medical
coverage under the continuation coverage provisions of the Internal Revenue Code, ERISA, or
applicable state law, nor does it prevent the Employee from (a) filing, cooperating with, or
participating in any proceeding before the EEOC or a state fair employment practices agency (except
that the Employee acknowledges and understands that he

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may not be able to recover any monetary benefits in connection with any such claim, charge or
proceeding); or (b) making claims for indemnification and/or advancement of fees pursuant to
Section 6 hereof.

     Known and Unknown Claims. The Employee understands and agrees that the claims
released in Section 3(a) above include not only claims presently known to him, but also include all
unknown or unanticipated claims, rights, demands, actions, obligations, liabilities and causes of
action of every kind and character that would otherwise come within the scope of the released
claims as described in Section 3. The Employee understands that he may hereafter discover facts
different from what he now believes to be true, which if known, could have materially affected this
Agreement, but he nevertheless waives and releases any claims or rights based on different or
additional facts.

     Proprietary and Confidential Information, Developments, Noncompetition and Nonsolicitation
Agreement. The Employee represents and agrees that, as a condition of the payment of the
Consideration herein described, he has complied with and will continue to comply with the
Proprietary and Confidential Information, Developments, Noncompetition and Nonsolicitation
Agreement he executed previously and any successor agreements thereto.

     Cooperation. The Employee agrees to fully cooperate with the Company in the
investigation, defense or prosecution of any government investigation, claims or actions now in
existence or which may be brought in the future against or on behalf of the Company or any of its
owners, shareholders, predecessors, successors, assigns, agents, directors, officers, employees,
representatives, attorneys, subsidiaries, affiliates or parents (and agents, directors, officers,
employees, representatives and attorneys of such subsidiary, affiliate or parent) and all persons
acting by, through, under or in concert with any of them. Such cooperation shall include, but not

19 of 37

 

be limited to, meeting with representatives of the Company upon reasonable notice at
reasonable times and locations to prepare for discovery or any mediation, arbitration, trial,
administrative hearing or other proceeding or to act as a witness. In furtherance of the
cooperation to be provided under this Section 5, the Employee agrees that he will provide accurate
and complete information and testimony. Moreover, unless otherwise prohibited by law, the Employee
shall notify the General Counsel of the Company if the Employee is asked by any person, entity or
agency to assist, testify or provide information in any such proceeding or investigation. Such
notice shall be in writing and sent by overnight mail within two (2) business days of the time the
request for assistance, testimony, or information is received by the Employee. If the Employee is
not legally permitted to provide such notice, he agrees that he shall request that the person,
entity, or agency seeking assistance or information provide notice consistent with this Section 5.
If and to the extent that the cooperation is required after the period for which the Employee is
receiving payments, if any, under Section 11 of the Employment Agreement (i.e., after one year in
connection with the payment of one year’s base salary and after three years in connection with a
Change in Control payment (where “Change in Control” is defined in Section 1(d) of the Employment
Agreement)), the Corporation shall pay the Employee reasonable per diem compensation for time spent
by Employee for which he is not otherwise compensated by the Corporation or any third party while
providing such cooperation. The Board must approve the rate of compensation and estimated time
involved and may not unreasonably withhold approval. In addition, the Company shall reimburse the
Employee for all expenses (including attorney’s fees) actually and reasonably incurred by the
Employee in providing such cooperation under this Section 5.

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     Indemnification. The Company agrees that the Employee is not releasing any claims
he/she may have for indemnification under state or other law or the charter, articles, or by-laws
of the Company and its affiliated companies, or under any indemnification agreement with the
Company or under any insurance policy providing directors’ and officers’ coverage for any lawsuit
or claim relating to the period when he or she was a director or officer of the Company or any
affiliated company; provided, however, that (i) the Company’s execution of this Agreement is not a
concession or guaranty that the Employee has any such rights to indemnification, (ii) that this
Agreement does not create any additional rights to indemnification, and (iii) that the Company
retains any defenses it may have to such indemnification or coverage. 

     Resignation from Officer and Board Positions. The Employee agrees that he/she [will
cease] [has ceased], effective as of the Separation Date, to be [TITLES], as well as to hold any
and all other positions as an officer or director of any of the Company’s subsidiaries or
affiliates.

     Business Expenses and Final Compensation. The Company shall promptly reimburse the
Employee for all business expenses incurred in conjunction with the performance of his employment
duties and consistent with the Company policies. The Company shall promptly pay, to the extent not
already paid, the Employee’s salary through the Separation Date and any accrued, unused paid time
off days that the Employee has as of the Separation Date. Upon such payments, the Employee
acknowledges and agrees that he will have received payment in full for all services rendered in
conjunction with his employment by the Company and that no other compensation, including salary,
bonuses, or severance payments or benefits pursuant to any plan, policy or practice, will be or are
owed to him (other than payments specified herein).

     Return of Company Property. The Employee confirms he has returned to the Company all
keys, files, records (and copies thereof), equipment (including, but not limited to, computer

21 of 37

 

hardware, software and printers, wireless handheld devices, cellular phones and pagers),
Company identification, Company vehicles, Company confidential and proprietary information and any
other Company-owned property in his possession or control and has left intact all electronic
Company documents, including, but not limited to, those that he developed or helped to develop
during his employment. The Employee further confirms that he has cancelled all accounts for his
benefit, if any, in the Company’s name, including, but not limited to, credit cards, telephone
charge cards, cellular phone and/or pager accounts and computer accounts.

     Nondisparagement.
The Employee understands and agrees that as a condition for payment
to him of the Consideration described herein, he will not make any false, disparaging or derogatory
statements to any media outlet, industry group, financial institution or current or former
employee, consultant, client or customer of the Company or to any other entity or person regarding
the Company or any of its officers, directors, agents, consultants, employees, customers or
suppliers or about the Company’s business affairs or financial condition; provided, however, that
this shall not apply to truthful communications the Employee is required by law to make to the
Board or any governmental entity or in any litigation or arbitration. The Company understands and
agrees that (i) as a condition for the release provided under this Agreement, it will instruct its
directors and officers not to make and (ii) that its directors and officers shall not make any
false, disparaging or derogatory statements to any media outlet, industry group, financial
institution or current or former employee, consultant, client or customer of the Company or to any
other entity or person regarding the Employee or any members of his family; provided, however, that
this shall not apply to truthful communications the Company or its directors or officers are
required by law to make to the Board or any governmental entity or in any litigation or arbitration
or as part of any required public disclosures.

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     [Confidentiality.
The Parties understand and agree that the contents of the
negotiations and discussions resulting in this Agreement shall be maintained as confidential and
shall not be disclosed, provided that the Employee may make disclosure hereunder: (i) to the extent
that such disclosure is specifically required by law or legal process or as authorized in writing
by the Company; (ii) to the extent that such disclosure is necessary to enforce or implement the
provisions of this Agreement; (iii) to his tax advisors, accountants, attorneys, representatives
and members of his immediate family; and (iv) to the extent the Company has publicly disclosed a
provision of this Agreement; and provided further that the Company may make disclosure hereunder:
(i) to the extent that such disclosure is specifically required by law or legal process or as
authorized in writing by the Employee; (ii) to the extent that such disclosure is necessary to
enforce or implement the provisions of this Agreement; and (iii) to its tax advisors, accountants,
and attorneys. Notwithstanding the foregoing, the Employee acknowledges that the Company must
promptly describe the materials terms of this Agreement on a Form 8-K and will satisfy its
obligation of filing this Agreement by providing this Agreement as an exhibit to that Form 8-K.]

     Nature
of Agreement. The Parties understand and agree that this Agreement is a
severance and settlement agreement and does not constitute an admission of liability or wrongdoing
on the part of the Company.

     Amendment. This Agreement shall be binding upon the Parties and may not be modified
in any manner except by an instrument in writing of concurrent or subsequent date signed by a duly
authorized representative of the Parties hereto. This Agreement is binding upon and shall inure to
the benefit of the Parties and their respective agents, assigns, heirs, executors, successors and
administrators.

     Waiver
of Rights. No delay or omission by the Company or the Employee in exercising

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any rights under this Agreement shall operate as a waiver of that or any other right. A
waiver or consent given by the Company or the Employee on any one occasion shall be effective only
in that instance and shall not be construed as a bar to or waiver of any right on any other
occasion.

     Validity. Should any provision of this Agreement be declared or be determined by any
court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts,
terms or provisions shall not be affected thereby and said illegal or invalid part, term or
provision shall be deemed not to be a part of this Agreement.

     Governing
Law; Jurisdiction; Dispute Resolution. This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Virginia (without reference to the
conflict of laws provisions thereof). The dispute resolution provisions of Section 20 of the
Employment Agreement apply to this Agreement.

     Acknowledgments.
The Employee acknowledges that he has been given at least twenty-one
(21) calendar days to consider this Agreement and that the Company advised the Employee in writing
to consult with an attorney of his own choosing prior to executing it. The Employee further
acknowledges that any change made to this Agreement, whether material or immaterial, does not
restart the running of the twenty-one (21) day period. The Employee further understands that he
may revoke this Agreement for a period of seven (7) calendar days after he executes it, and that it
shall not be effective or enforceable until the expiration of this seven (7) day revocation period.

     Voluntary
Assent. The Employee affirms that no other promises or agreements of any
kind have been made to or with him by any person or entity whatsoever to cause him to sign this
Agreement, and that he fully understands the meaning and intent of this Agreement. The Employee
states and represents that he has had an opportunity to discuss fully and review the

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terms of this Agreement with an attorney. The Employee further states and represents that he
has carefully read this Agreement, understands the contents herein, freely and voluntarily assents
to all of the terms and conditions hereof, and signs his name of his own free act.

     Entire
Agreement. Except as provided in Sections 4, 6, or 16 herein or as specified
below, this Agreement contains and constitutes the entire understanding and agreement between the
Parties hereto with respect to severance and settlement and terminates and supersedes all previous
oral and written negotiations, agreements, commitments and writings in connection therewith,
including, but not limited to, the Prior Agreements. Notwithstanding the foregoing sentence,
Section 14 (“Representation”) of the Employment Agreement shall apply in accordance with its terms
to disputes under this Agreement.

     Recital Paragraphs. The recital paragraphs at the beginning of this Agreement are
incorporated by reference as if fully set forth herein.

     Counterparts. This Agreement may be executed in two (2) signature counterparts, each
of which shall constitute an original, but all of which taken together shall constitute one and the
same instrument.

     IN WITNESS WHEREOF, the Parties have set their hand and seal to this Agreement as of the date
set forth below.

	 	 	 
	 

	 	Signatures on Page Following

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	 	TIER TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	                          	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	[Employee]	 	 
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 

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Exhibit B

PROPRIETARY
AND CONFIDENTIAL INFORMATION, DEVELOPMENTS,
NONCOMPETITION AND
NONSOLICITATION AGREEMENT

     This Proprietary and Confidential Information, Developments, Noncompetition and
Nonsolicitation Agreement (the “Agreement”) is made by and between Tier Technologies, Inc. (the
“Company”) and David E. Fountain (the “Employee”).

     IN CONSIDERATION of the Employee’s employment and/or continued employment with the Company and
for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Employee agrees as follows:

     26. Condition of Employment.

     The Employee acknowledges that the Employee’s employment and/or the continuance of that
employment with the Company is contingent upon the Employee’s agreement to sign and adhere to the
provisions of this Agreement. Employee is receiving enhanced severance protection and additional
benefits in connection with executing an employment agreement and this Agreement. The Employee
further acknowledges that the nature of the Company’s business is such that protection of its
proprietary and confidential information is critical to its business’s survival and success. For
purposes of Sections 2, 3 and 4, the “Company” shall include Tier Technologies, Inc. and any of its
subsidiaries, corporate affiliates, and/or associated companies.

     27. Proprietary and Confidential Information.

     (a) The Employee agrees that all information and know-how, whether or not in writing, of a
private, secret, or confidential nature concerning the Company’s business or financial affairs
(collectively, “Proprietary Information”) is and shall be the exclusive property of the Company.
By way of illustration, but not limitation, Proprietary Information may include systems, software
and codes, whether existing, in the course of development, or being planned or proposed; customer
and prospect lists; contacts at or knowledge of customers or prospective

27 of 37

 

customers, customer accounts and other customer financial information; price lists and all
other pricing, marketing and sales information relating to the Company or any customer or supplier
of the Company; databases, modules, products, product improvements, product enhancements,
processes, methods, and techniques; patent and patent applications; negotiation strategies and
positions; operations, projects, developments, and plans; research data and techniques; financial
data; and personnel data. The Employee will not disclose any Proprietary Information to others
outside the Company or use the same for any unauthorized purposes without written approval by an
officer of the Company, either during or at any time after the Employee’s employment with the
Company, unless and until such Proprietary Information has become public knowledge without fault by
the Employee. While employed by the Company, the Employee will use the Employee’s best efforts to
prevent publication or disclosure of any confidential or Proprietary Information concerning the
business, products, processes, or affairs of the Company.

     (b) The Employee agrees that all disks, files, documents, letters, memoranda, reports,
records, data, drawings, notebooks, program listings, or any other written, photographic or other
record containing Proprietary Information, whether created by the Employee or others, that come
into the Employee’s custody or possession, shall be and are the exclusive property of the Company
to be used only in the performance of the Employee’s duties for the Company. Upon termination or
cessation of the Employee’s employment with the Company for any reason or at the Company’s request,
the Employee agrees to return to the Company any and all materials and copies thereof in the
Employee’s custody, possession or control containing Proprietary Information.

     (c) The Employee acknowledges that the Employee’s obligations with regard to Proprietary
Information set out in subsections 2(a) and 2(b) above extend to all information, know-how, records
and tangible property of customers of the Company or suppliers to the Company or of any third party
who may have disclosed or entrusted the same to the Company or to the Employee in the course of the
Company’s business.

     28. Developments. 

     (a) The Employee will make full and prompt disclosure to the Company of all inventions,
creations, improvements, discoveries, methods, developments, software and works of authorship,
whether patentable or not, that are created, made, conceived or reduced to practice by the Employee
or under the Employee’s direction or jointly with others during the Employee’s employment by the
Company, whether or not during normal working hours or on the premises of the Company (all of which
are collectively referred to in this Agreement as “Developments”).

     (b) The Employee agrees to assign and does hereby assign to the Company (or any person or
entity designated by the Company) all of the Employee’s right, title and interest in and to all
Developments and all related patents, patent applications, copyrights and copyright applications.
However, this subsection 3(b) shall not apply to Developments that do not relate to the present or
planned business or research and development of the Company and that are made and conceived by the
Employee not during normal working hours, not on the Company’s premises and not using the Company’s
tools, devices, equipment or Proprietary Information. The Employee understands that, to the extent
this Agreement shall be construed in accordance with the laws of any state that precludes a
requirement in an employee agreement to assign

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certain classes of inventions made by an employee, this subsection 3(b) shall be interpreted
not to apply to any invention that a court rules and/or the Company agrees falls within such
classes. The Employee hereby also waives all claims to moral rights in any Developments.

     (c) The Employee agrees to cooperate fully with the Company, both during and after the
Employee’s employment with the Company, with respect to the procurement, maintenance and
enforcement of copyrights, patents and other intellectual property rights (both in the United
States and foreign countries) relating to Developments. The Employee shall sign all papers,
including, but not limited to, copyright applications, patent applications, declarations, oaths,
formal assignments, assignments of priority rights and powers of attorney, that the Company may
deem necessary or desirable to protect its rights and interests in any Development. The Employee
further agrees that if the Company is unable, after reasonable effort, to secure the Employee’s
signature on any such papers, any executive officer of the Company shall be entitled to execute any
such papers as the Employee’s agent and attorney-in-fact, and the Employee hereby irrevocably
designates and appoints each executive officer of the Company as the Employee’s agent and
attorney-in-fact to execute any such papers on the Employee’s behalf, and to take any and all
actions as the Company may deem necessary or desirable to protect its rights and interests in any
Development under the conditions described in this sentence.

     29. Noncompetition and Nonsolicitation.

     (a) While the Employee is employed by the Company and for a period of eighteen (18) months
following the termination or cessation of such employment for any reason (except as provided in
Section 4(b)) (the “Restricted Period”), the Employee will not directly or indirectly:

In the geographical area where the Company does business or has done
business at the time of the termination or cessation of the Employee’s
employment, engage in any business or enterprise (whether as an owner,
partner, officer, employee, director, investor, lender, consultant,
independent contractor or otherwise, except as the holder of not more than
one percent (1%) of the combined voting power of the outstanding stock of a
publicly-held company) that is competitive with the Company’s business,
including, but not limited to, any business or enterprise that develops,
designs, produces, markets, sells or renders any product or service
competitive with any product or service developed, designed,

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produced, marketed, sold or rendered by the Company while the Employee was
employed by the Company;

Either alone or in association with others, (i) solicit, recruit, or induce,
or attempt to solicit, recruit, or induce, any employee of the Company to
leave the employ of the Company, or (ii) recruit, solicit or hire as an
employee or engage as an independent contractor, or attempt to recruit,
solicit or hire as an employee or engage as an independent contractor, any
person who was employed by the Company at any time during the period of the
Employee’s employment with the Company, except for an individual whose
employment with the Company ceased at least six (6) months earlier; or

Either alone or in association with others, solicit, divert or take away, or
attempt to solicit, divert or take away, the business or patronage of any of
the clients, customers or accounts, or prospective clients, customers or
accounts, of the Company that the Employee contacted, solicited or served
while the Company employed the Employee. The terms “client” and “customer”
include any person, firm, corporation, governmental department or agency, or
other entity or any parent, subsidiary, or affiliate thereof but excludes
clients and customers who have had no business relationship with the Company
within the twelve (12) months preceding the Employee’s proposed activity
with respect to such client or customer. To the extent that any customers
or clients, as defined herein, are governmental entities, the prohibition
stated herein shall apply only to the

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specific branch, division, office, group, or other subentity of the
government with which the Company had the contract.

     (b) The Restricted Period shall be limited to the Employee’s period of employment for purposes
of clause (1) of Section 4(a) with respect to nongovernmental lines of business.

     (c) If any court of competent jurisdiction finds any restriction set forth in this Section 4
to be unenforceable because the restriction extends for too long a period of time or over too great
a range of activities or in too broad a geographic area, it shall be interpreted to extend only
over the maximum period of time, range of activities or geographic area as to which it may be
enforceable.

     (d) The Employee agrees to provide a copy of this Agreement to all persons and entities with
whom the Employee seeks to be hired or do business before accepting employment or engagement with
any of them.

     (e) If the Employee violates the provisions of this Section 4, the Employee shall continue to
be held by the restrictions set forth in this Section 4 until a period equal to the period of
restriction has expired without any violation.

     30. Other Agreements.

     The Employee hereby represents that, except as the Employee has disclosed in writing to the
Company, the Employee is not bound by the terms of any agreement with any previous employer or
other party to refrain from using or disclosing any trade secret or confidential or proprietary
information in the course of the Employee’s employment with the Company, to refrain from competing,
directly or indirectly, with the business of such previous employer or other party, or to refrain
from soliciting employees, customers or suppliers of such previous employer or other party. The
Employee further represents that the Employee’s performance of all of the terms of this Agreement
and the performance of the Employee’s duties as an employee of the Company do not and will not
breach any agreement to keep in confidence proprietary information, knowledge or data acquired by
the Employee in confidence or in trust prior to the Employee’s employment with the Company. The
Employee also represents that the Employee

31 of 37

 

will not disclose to the Company or induce the Company to use any confidential or proprietary
information or material belonging to any previous employer or others.

     31. United States Government Obligations.

     The Employee acknowledges that the Company from time to time may have agreements with other
persons or with the United States Government, or agencies thereof, that impose obligations or
restrictions on the Company regarding inventions made during the course of work under such
agreements or regarding the confidential nature of such work. The Employee agrees to be bound by
all such obligations and restrictions that are made known to the Employee and to take all action
necessary to discharge the obligations of the Company under such agreements.

     32. Not An Employment Contract.

     The Employee acknowledges that this Agreement does not constitute a contract of employment and
does not imply that the Company will continue the Employee’s employment for any period of time.

     33. General Provisions.

     (a) No Conflict. The Employee represents that the execution and performance by
him/her of this Agreement does not and will not conflict with or breach the terms of any other
agreement by which the Employee is bound.

     (b) Acknowledgements and Equitable Remedies. The Employee acknowledges that the
restrictions contained in this Agreement are necessary for the protection of the business and
goodwill of the Company and considers the restrictions to be reasonable for such purpose. The
Employee agrees that any breach or threatened breach of this Agreement will cause the Company
substantial and irrevocable damage that is difficult to measure. Therefore, in the event of any
such breach or threatened breach, the Employee agrees that the Company, in addition to such other
remedies that may be available, shall have the right to seek specific performance and injunctive
relief without posting a bond. The Employee hereby waives the adequacy of a remedy at law as a
defense to such relief.

     (c) Entire Agreement. This Agreement supersedes all prior agreements, written or
oral, between the Company and the Employee relating to the subject matter of this Agreement. This
Agreement may not be modified, changed or discharged in whole or in part, except by an agreement in
writing signed by an executive officer of the Company and the Employee. The Employee agrees that
any change or changes in the Employee’s employment

32 of 37

 

duties or compensation after the signing of this Agreement shall not affect the validity or
scope of this Agreement.

     (d) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect or impair the validity or enforceability of any other provision of this
Agreement.

     (e) Waiver. No delay or omission by the Company in exercising any right under this
Agreement will operate as a waiver of that or any other right. A waiver or consent given by the
Company on any one occasion is effective only in that instance and will not be construed as a bar
to or waiver of any right on any other occasion.

     (f) Successor and Assigns. This Agreement shall be binding upon and inure to the
benefit of both parties and their respective successors and assigns, including any corporation or
entity with which or into which the Company may be merged or that may succeed to all or
substantially all of its assets or business; provided, however, that the
obligations of the Employee are personal and shall not be assigned by the Employee.

     (g) Governing Law, Forum and Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia without regard to conflicts
of law provisions. The dispute resolution provisions of Section 20 of the Employee’s employment
agreement with the Company dated as of December ___, 2006 (the “Employment Agreement”) apply to this
Agreement, except to the extent that either party seeks injunctive relief to enforce any provision
of this Agreement, in which case that party may bring an action, suit, or other legal proceeding in
a court of competent jurisdiction. Any such action, suit or other legal proceeding that is
commenced to resolve any matter arising under or relating to such injunctive relief shall be
commenced only in a court of the Commonwealth of Virginia (or, if appropriate, a federal court
located within the Commonwealth of Virginia), and the Company and the Employee each consents to the
jurisdiction of such a court. Section 14 (“Representation”) of the Employment Agreement applies in
accordance with its terms to disputes under this Agreement. The Company and the Employee each
hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding
arising under or relating to any provision of this Agreement.

     (h) Captions. The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of any section of this
Agreement.

     THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND
AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

33 of 37

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TIER TECHNOLOGIES, INC.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(print name and title)
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	DAVID E. FOUNTAIN
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	(Signature)	 	 
	 

	 	 
	 	 	 	 	 	 

34 of 37

 

EXHIBIT C

Excise Tax Gross-Up

     1. Gross-Up Payment — If any payment or benefit received or to be received by the Executive
from the Company pursuant to the terms of the Agreement to which this Exhibit C is attached or
otherwise (the “Payments”) would be subject to the excise tax (the “Excise Tax”) imposed by section
4999 of the Internal Revenue Code (the “Code”) as determined in accordance with this Exhibit C, the
Company shall pay the Executive, at the time specified below, an additional amount (the “Gross-Up
Payment”) such that the net amount that the Executive retains, after deduction of the Excise Tax on
the Payments and any federal, state, and local income tax upon the Gross-Up Payment (but not upon
the Payments) and the Excise Tax upon the Gross-Up Payment, and any interest, penalties, or
additions to tax payable by the Executive with respect thereto, shall be equal to the total present
value (using the applicable federal rate (as defined in section 1274(d) of the Code) in such
calculation) of the Payments at the time such Payments are to be made.

     2. Calculations — For purposes of determining whether any of the Payments shall be subject to
the Excise Tax and the amount of such excise tax,

	 	(a)	 	The total amount of the Payments shall be treated as “parachute payments”
within the meaning of section 280G(b)(2) of the Code, and all “excess parachute
payments” within the meaning of section 280G(b)(1) of the Code shall be treated as
subject to the excise tax, except to the extent that, in the written opinion of
independent counsel selected by the Company and reasonably acceptable to the Executive
(“Independent Counsel”), a Payment (in whole or in part) does not constitute a
“parachute payment” within the meaning of section 280G(b)(2) of the Code, or such
“excess parachute payments” (in whole or in part) are not subject to the Excise Tax;
	 
	 	(b)	 	The amount of the Payments that shall be subject to the Excise Tax shall be
equal to the lesser of (i) the total amount of the Payments or (ii) the amount of
“excess parachute payments “ within the meaning of section 280G(b)(1) of the Code
(after applying clause (a), above); and
	 
	 	(c)	 	The value of any noncash benefits or any deferred payment or benefit shall be
determined by Independent Counsel in accordance with the principles of section
280G(d)(3) and (4) of the Code.

     3. Tax Rates — For purposes of determining the amount of the Gross-Up Payment, the Executive
shall be deemed to pay federal income taxes at the highest marginal rates of federal income
taxation applicable to individuals in the calendar year in which the Gross-Up Payment is to be made
and state and local income taxes at the highest marginal rates of taxation applicable to
individuals as are in effect in the state and locality of the Executive’s residence in the calendar
year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes that can be obtained from deduction of such state and local taxes, taking into

35 of 37

 

account any limitations applicable to individuals subject to federal income tax at the highest
marginal rates.

     4. Time of Gross-Up Payments — The Gross-Up Payments provided for in this Exhibit C shall be
made upon the earlier of (a) the payment to the Executive of any Payment or (b) the imposition upon
the Executive, or any payment by the Executive, of any Excise Tax.

     5. Adjustments to Gross-Up Payments — If it is established pursuant to a final determination
of a court or an Internal Revenue Service proceeding or the written opinion of Independent Counsel
that the Excise Tax is less than the amount previously taken into account hereunder, the Executive
shall repay the Company, within 30 days of his receipt of notice of such final determination or
opinion, the portion of the Gross-Up Payment attributable to such reduction (plus the portion of
the Gross-Up Payment attributable to the Excise Tax and federal, state, and local income tax
imposed on the Gross-Up Payment being repaid by the Executive if such repayment results in a
reduction in Excise Tax or a federal, state, and local income tax deduction) plus any interest
received by the Executive on the amount of such repayment, provided that if any such amount has
been paid by the Executive as an Excise Tax or other tax, the Executive shall cooperate with the
Company in seeking a refund of any tax overpayments, and the Executive shall not be required to
make repayments to the Company until the overpaid taxes and interest thereon are refunded to the
Executive.

     6. Additional Gross-Up Payment — If it is established pursuant to a final determination of a
court or an Internal Revenue Service proceeding or the written opinion of Independent Counsel that
the Excise Tax exceeds the amount taken into account hereunder (including by reason of any payment
the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the
Company shall make an additional Gross-Up Payment in respect of such excess within 30 days of the
Company’s receipt of notice of such final determination or opinion.

     7. Change In Law or Interpretation — In the event of any change in or further interpretation
of Section 280G or 4999 of the Code and the regulations promulgated thereunder, the Executive shall
be entitled, by written notice to the Company, to request a written opinion of Independent Counsel
regarding the application of such change or further interpretation to any of the foregoing, and the
Company shall use its best efforts to cause such opinion to be rendered as promptly as practicable.

     8. Fees And Expenses — All fees and expenses of Independent Counsel incurred in connection
with this Exhibit C shall be borne by the Company.

     9. Survival — The Company’s obligation to make a Gross-Up Payment with respect to Payments
made or accrued before the end of the Term of Employment shall survive the Term of Employment.

     10. Defined Terms — Except where clearly provided to the contrary, all capitalized terms used
in this Exhibit C shall have the definitions given to those terms in the Agreement to which this
Exhibit C is attached.

36 of 37exv4w1

 

EXHIBIT 4.1

SESI, L.L.C.

AS ISSUER,

SUPERIOR ENERGY SERVICES, INC.

AS PARENT GUARANTOR,

EACH OF THE SUBSIDIARY GUARANTORS PARTY HERETO,

AS SUBSIDIARY GUARANTORS

AND

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

AS TRUSTEE

1.50% Senior Exchangeable Notes due 2026

INDENTURE

Dated as of December 12, 2006

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	Definitions and Incorporation by Reference
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions

	 	 	1	 
	Section 1.02. Other Definitions

	 	 	10	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act

	 	 	11	 
	Section 1.04. Rules of Construction

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	The Securities
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Title; Amount and Issue of Securities; Principal and Interest

	 	 	12	 
	Section 2.02. Form of Securities

	 	 	13	 
	Section 2.03. Legends

	 	 	14	 
	Section 2.04. Execution and Authentication

	 	 	18	 
	Section 2.05. Registrar and Paying Agent

	 	 	20	 
	Section 2.06. Paying Agent to Hold Money in Trust

	 	 	20	 
	Section 2.07. Holder Lists

	 	 	21	 
	Section 2.08. General Provisions Relating to Transfer and Exchange

	 	 	21	 
	Section 2.09. Book-Entry Provisions for the Global Securities

	 	 	22	 
	Section 2.10. Special Transfer Provisions

	 	 	24	 
	Section 2.11. Mutilated, Destroyed, Lost or Wrongfully Taken Securities

	 	 	25	 
	Section 2.12. Outstanding Securities

	 	 	26	 
	Section 2.13. Temporary Securities

	 	 	27	 
	Section 2.14. Cancellation

	 	 	27	 
	Section 2.15. Payment of Interest; Defaulted Interest

	 	 	28	 
	Section 2.16. Computation of Interest

	 	 	29	 
	Section 2.17. CUSIP and ISIN Numbers

	 	 	29	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Payment of Securities

	 	 	29	 
	Section 3.02. Maintenance of Office or Agency

	 	 	30	 
	Section 3.03. Corporate Existence

	 	 	30	 
	Section 3.04. Payment of Taxes and Other Claims

	 	 	30	 
	Section 3.05. Compliance Certificate

	 	 	31	 
	Section 3.06. Further Instruments and Acts

	 	 	31	 
	Section 3.07. Statement by Officers as to Default

	 	 	31	 
	Section 3.08. Additional Interest

	 	 	31	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 3.09. Additional Guarantees

	 	 	32	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Successor Company
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Consolidation, Merger and Sale of Assets

	 	 	32	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Reporting Obligations
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Reporting Obligations

	 	 	33	 
	Section 5.02. Reporting in Compliance with TIA

	 	 	34	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Redemption of Securities
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Optional Redemption.

	 	 	34	 
	Section 6.02. Election to Redeem; Notice to Trustee

	 	 	34	 
	Section 6.03. Selection by Trustee of Securities to Be Redeemed

	 	 	34	 
	Section 6.04. Notice of Redemption

	 	 	35	 
	Section 6.05. Deposit of Redemption Price

	 	 	36	 
	Section 6.06. Securities Payable on Redemption Date

	 	 	36	 
	Section 6.07. Securities Redeemed in Part

	 	 	37	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Defaults and Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Events of Default

	 	 	37	 
	Section 7.02. Acceleration

	 	 	39	 
	Section 7.03. Sole Remedy for Failure to Report

	 	 	40	 
	Section 7.04. Other Remedies

	 	 	40	 
	Section 7.05. Waiver of Past Defaults

	 	 	41	 
	Section 7.06. Control by Majority

	 	 	41	 
	Section 7.07. Limitation on Suits

	 	 	41	 
	Section 7.08. Rights of Holders to Receive Payment

	 	 	42	 
	Section 7.09. Collection Suit by Trustee

	 	 	42	 
	Section 7.10. Trustee May File Proofs of Claim

	 	 	42	 
	Section 7.11. Priorities

	 	 	42	 
	Section 7.12. Restoration of Rights and Remedies

	 	 	43	 
	Section 7.13. Undertaking of Costs

	 	 	43	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Duties of Trustee

	 	 	43	 
	Section 8.02. Rights of Trustee

	 	 	45	 
	Section 8.03. Individual Rights of Trustee

	 	 	46	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 8.04. Trustee’s Disclaimer

	 	 	46	 
	Section 8.05. Notice of Defaults

	 	 	47	 
	Section 8.06. Reports by Trustee to Holders

	 	 	47	 
	Section 8.07. Compensation and Indemnity

	 	 	47	 
	Section 8.08. Replacement of Trustee

	 	 	48	 
	Section 8.09. Successor Trustee by Merger

	 	 	49	 
	Section 8.10. Eligibility; Disqualification

	 	 	49	 
	Section 8.11. Preferential Collection of Claims Against Company

	 	 	49	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Discharge of Indenture
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Discharge of Liability on Securities

	 	 	50	 
	Section 9.02. Reinstatement

	 	 	51	 
	Section 9.03. Officers’ Certificate; Opinion of Counsel

	 	 	51	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Amendments
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Without Consent of Holders

	 	 	51	 
	Section 10.02. With Consent of Holders

	 	 	52	 
	Section 10.03. Compliance with Trust Indenture Act

	 	 	54	 
	Section 10.04. Revocation and Effect of Consents and Waivers

	 	 	54	 
	Section 10.05. Notation on or Exchange of Securities

	 	 	54	 
	Section 10.06. Trustee to Sign Amendments

	 	 	54	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Purchase at the Option of Holders Upon a Fundamental
	 	 	 	 
	Change; Purchase at the Option of Holders
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Purchase at the Option of the Holder Upon a Fundamental Change

	 	 	55	 
	Section 11.02. Purchase of Securities at the Option of the Holder

	 	 	57	 
	Section 11.03. Further Conditions and Procedures for Purchase at the Option of the Holder Upon a Fundamental Change and Purchase of Securities at the Option of the Holder

	 	 	59	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Exchange
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Exchange of Securities

	 	 	63	 
	Section 12.02. Adjustments to Exchange Rate

	 	 	71	 
	Section 12.03. Adjustment to Common Stock Delivered Upon Certain Fundamental Changes

	 	 	79	 
	Section 12.04. Exchange After a Public Acquirer Change of Control

	 	 	81	 

iv

 

	 	 	 	 	 
	 	 	Page
	Section 12.05. Effect of Recapitalizations, Reclassifications, and Changes of Common Stock

	 	 	82	 
	Section 12.06. Responsibility of Trustee

	 	 	84	 
	Section 12.07. Stockholder Rights Plan

	 	 	84	 
	Section 12.08. No Stockholder Rights

	 	 	85	 
	Section 12.09. Witholding Taxes for Adjustments in Conversation Rate

	 	 	85	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Guarantees
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Guarantee

	 	 	85	 
	Section 13.02. Limitation on Guarantor Liability

	 	 	87	 
	Section 13.03. Execution and Delivery of Guarantee

	 	 	87	 
	Section 13.04. Guarantors May Not Consolidate, etc., Except on Certain Terms

	 	 	88	 
	Section 13.05. Releases

	 	 	88	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Trust Indenture Act Controls

	 	 	89	 
	Section 14.02. Notices

	 	 	89	 
	Section 14.03. Communication by Holders with other Holders

	 	 	90	 
	Section 14.04. Certificate and Opinion as to Conditions Precedent

	 	 	90	 
	Section 14.05. Statements Required in Certificate or Opinion

	 	 	90	 
	Section 14.06. When Securities Are Disregarded

	 	 	91	 
	Section 14.07. Rules by Trustee, Paying Agent and Registrar

	 	 	91	 
	Section 14.08. Legal Holidays

	 	 	91	 
	Section 14.09. Governing Law

	 	 	91	 
	Section 14.10. No Recourse Against Others

	 	 	92	 
	Section 14.11. Successors

	 	 	92	 
	Section 14.12. Multiple Originals

	 	 	92	 
	Section 14.13. Qualification of Indenture

	 	 	92	 
	Section 14.14. Table of Contents; Headings

	 	 	92	 
	Section 14.15. Severability Clause

	 	 	92	 
	Section 14.16. Calculations

	 	 	92	 

	 	 	 
	SCHEDULE A

	 	Additional Shares
	EXHIBIT A

	 	Form of the Security
	EXHIBIT B

	 	Form of Notation of Guarantee
	EXHIBIT C

	 	Form of Supplemental Indenture

v

 

     INDENTURE dated as of December 12, 2006, among SESI, L.L.C., a Delaware limited liability
company (together with its successors and assigns, the “Company”), Superior Energy Services, Inc.,
a Delaware corporation (together with its successors and assigns, the “Parent”), the Subsidiary
Guarantors (as defined below) and THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee (the
“Trustee”).

     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Company’s 1.50% Senior Exchangeable Notes due 2026 (the
“Securities”) on the date hereof.

ARTICLE 1

Definitions and Incorporation by Reference

     Section 1.01 . Definitions.

     “Additional Interest” means all amounts, if any, payable pursuant to Section 2 of the
Registration Rights Agreement and Section 7.03 hereof.

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

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

     “Beneficial Owner” shall mean any Person who is considered a beneficial owner of a security in
accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act.

     “Board of Directors” means:

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

 

 

	 	(3)	 	with respect to a limited liability company, the managing member or members
or any controlling committee of managing members thereof; and
	 
	 	(4)	 	with respect to any other Person, the board or committee of such Person
serving a similar function.

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

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

     “Common Equity” of any Person means Capital Stock of such Person that is generally entitled to
(1) vote in the election of directors of such Person or (2) if such Person is not a corporation,
vote or otherwise participate in the selection of the governing body, partners, managers or others
that will control the management or policies of such Person.

     “Common Stock” means the Parent’s Common Stock, par value $0.001 per share.

     “Company” has the meaning set forth in the introductory paragraph to this Indenture.

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

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

     “Definitive Securities” means certificated Securities that are not Global Securities.

     “Domestic Subsidiary” means any Subsidiary of the Company other than a Foreign Subsidiary.

     “DTC” means The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the Company pursuant to the
terms of this Indenture.

     “Ex-Dividend Date” means, in respect of an issuance, a dividend or distribution to holders of
Common Stock, the first date on which Common Stock

2

 

trades on the applicable exchange or in the applicable market, regular way, without the right
to receive the issuance, dividend or distribution in question.

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

     “Exchange Agent” means the office or agency appointed by the Company where Securities may be
presented for exchange. The Exchange Agent appointed by the Company shall initially be the
Trustee.

     “Exchange Price” means, in respect of each $1,000 principal amount of Securities, $1,000
divided by the Exchange Rate, as may be adjusted from time to time as set forth herein.

     “Exchange Rate” means, in respect of each $1,000 principal amount of Securities, an initial
rate of 21.9414 shares of Common Stock, subject to adjustments as set forth herein.

     “Fair Market Value” means the amount that a willing buyer would pay a willing seller in an
arm’s length transaction.

     “Foreign Subsidiary” means any Subsidiary of the Company that is not formed under the laws of
the United States or any state of the United States or the District of Columbia and that conducts
substantially all of its operations outside the United States.

     A “Fundamental Change” shall be deemed to have occurred if any of the following occurs:

	 	(1)	 	any “person” or “group” within the meaning of Section 13(d) of the Exchange
Act, other than the Parent, any Subsidiary of the Parent or any employee benefit plan
of the Parent or any such Subsidiary, files a Schedule TO or any other schedule, form
or report under the Exchange Act disclosing that such person or group has become the
Beneficial Owner of Common Equity of the Parent representing more than 50% of the
ordinary voting power of the Parent’s Common Equity;
	 
	 	(2)	 	consummation of any share exchange, consolidation or merger of the Parent
pursuant to which the Common Stock will be converted into cash, securities or other
property or any sale, lease or other transfer (in one transaction or a series of
transactions) of all or substantially all of the assets of the Parent and its
Subsidiaries, taken as a whole, to any Person other than one of the Parent’s
Subsidiaries; provided, however, that a transaction where the

3

 

	 	 	 	holders of more than 50% of all classes of the Parent’s Common Equity immediately
prior to such transaction own, directly or indirectly, more than 50% of all
classes of Common Equity of the continuing or surviving entity or transferee or
parent thereof immediately after such event shall not be a Fundamental Change; or
	 
	 	(3)	 	the Common Stock (or other Common Equity for which the Securities are then
exchangeable) ceases to be listed on a U.S. national or regional securities exchange
or quoted on an established automated over-the-counter trading market in the United
States for a period of 30 consecutive Scheduled Trading Days,

provided, however, that a Fundamental Change described in clause (2) of the definition above shall
not be deemed to have occurred if at least 90% of the consideration received or to be received by
the holders of the Common Stock, excluding cash payments for fractional shares and cash payments in
respect of statutory dissenters’ rights, in connection with the transaction or transactions
constituting the Fundamental Change described in clause (2) consists of shares of common stock
traded on a U.S. national or regional securities exchange, or which shall be so traded when issued
or exchanged in connection with such Fundamental Change as described in clause (2) of the
definition above (such securities being referred to as “Publicly Traded Securities”) and as a
result of such transaction or transactions the Securities become exchangeable for such Publicly
Traded Securities (excluding cash payments for fractional shares and cash payments in respect of
statutory dissenters’ rights) pursuant to the terms of this Indenture.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the (i) Public Company Accounting Oversight Board, (ii) statements and
pronouncements of the Financial Accounting Standards Board, (iii) in such other statements by such
other entity as may be approved by a significant segment of the accounting profession as in effect
from time to time and (iv) the rules and regulations of the SEC governing to inclusion of financial
statements in period reports required to be filed pursuant to Section 13 of the Exchange Act,
including opinions and pronouncements in staff accounting bulletins and similar written statements
from the accounting staff of the SEC.

     “Global Securities” means certificated Securities in global form, without interest coupons,
substantially in the form of Exhibit A hereto and registered in the name of DTC or a nominee of
DTC.

     “Guarantor” means each of (1) the Parent; (2) the Company’s Subsidiaries party hereto on the
date of this Indenture; and (3) any other

4

 

Subsidiary of the Company that executes a notation of Guarantee in accordance with the
provisions of this Indenture, and their respective successors and assigns.

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

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

     “Initial Purchasers” means the several initial purchasers named in Schedule I to the Purchase
Agreement.

     “Interest Payment Date” has the meaning set forth in Exhibit A attached hereto.

     “Issue Date” means December 12, 2006.

     “Last Reported Sale Price” of the Common Stock on any date means the closing sale price per
share of the Common Stock (or, if no closing sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid and average ask prices)
on that date as reported in the composite transactions for the principal U.S. national or regional
securities exchange on which the Common Stock is listed for trading.

     If the Common Stock is not listed for trading on a U.S. national or regional securities
exchange on the relevant date, the Last Reported Sale Price shall be the mid-point of the last
quoted bid and ask prices for the Common Stock in the over-the-counter market on the relevant date
as reported by the National Quotation Bureau or similar organization.

     If the Common Stock is not so quoted, the Last Reported Sale Price shall be the average of the
midpoint of the last bid and ask prices for the Common Stock on the relevant date from each of at
least three nationally recognized independent investment banking firms (which may include one or
more Initial Purchasers or their Affiliates) selected by the Company for this purpose.

     “Majority Owner” of a Person means the Person having “beneficial ownership” (as defined in
Rule 13(d)(3) under the Exchange Act) of more than 50% of the total voting power of all shares of
the respective Person’s Common Equity.

     “Observation Period” means, with respect to a exchange of any Security, the 25 consecutive
VWAP Trading Day period beginning on and including the third Trading Day immediately following the
related Exchange Date for such Security, except that with respect to any related Exchange Date for
such Security

5

 

occurring after the date of issuance by the Company of a notice of redemption pursuant to
Section 6.04, the Observation Period shall be the 25 consecutive VWAP Trading Days beginning on and
including the 28th Scheduled Trading Day prior to the applicable Redemption Date.

     “Offering Memorandum” means the offering memorandum, dated December 7, 2006, relating to the
offering by the Company of the Securities.

     “Officer” means, with respect to any Person, the Chairman of the Board (if an executive
officer), the Chief Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Chief Administrative Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Vice President of such Person (or, if the Person is a limited
liability company, its managing member).

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be, in the case of the Officers’ Certificate referred to in Section
3.05 hereof, the principal executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company, that meets the requirements of Section 14.05 hereof.

     “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 Parent, the Company or the Trustee.

     “Parent” has the meaning set forth in the introductory paragraph to this Indenture.

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

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

     “Public Acquirer Change of Control” means a Fundamental Change of the type set forth in clause
(2) in the definition thereof (after giving effect to the proviso to the definition) in which the
acquirer has a class of common stock traded on any U.S. national securities exchange or which will
be so traded when issued or exchanged in connection with such Fundamental Change (the “Public
Acquirer Common Stock”). If an acquirer does not itself have a class of

6

 

common stock satisfying the foregoing requirement, it shall be deemed to have Public Acquirer
Common Stock if a corporation that directly or indirectly is the Majority Owner of the acquirer has
a class of common stock satisfying the foregoing requirement; in such case, all references to
Public Acquirer Common Stock shall refer to such class of common stock.

     “Purchase Agreement” means the Purchase Agreement dated as of December 7, 2006 between the
Company, the Parent, the Subsidiary Guarantors named therein and the Initial Purchasers relating to
the initial purchase and sale of the Securities.

     “QIB” means any “qualified institutional buyer” (as such term is defined in Rule 144A).

     “Record Date” means, in respect of a dividend or distribution to holders of Common Stock, the
date fixed for determination of holders of Common Stock entitled to receive such dividend or
distribution.

     “Redemption Date” means, with respect to any redemption of Securities, the date of redemption
with respect thereto.

     “Registration Rights Agreement” means the Registration Rights Agreement dated as of the Issue
Date among the Initial Purchasers, the Parent, the Subsidiary Guarantors named therein and the
Company.

     “Regular Record Date” for the payment of interest on the Securities (including Additional
Interest, if any), means the June 1 (whether or not a Business Day) immediately preceding an
Interest Payment Date on June 15 and the December 1 (whether or not a Business Day) immediately
preceding an Interest Payment Date on December 15.

     “Rule 144A” means Rule 144A under the Securities Act.

     “Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the primary U.S.
national securities exchange or market on which the Common Stock is listed or admitted to trading.

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

     “Securities” has the meaning ascribed to it in the second introductory paragraph of this
Indenture.

     “Securities Act” means the Securities Act of 1933 (15 U.S.C. §§ 77a – 77aa), as amended, and
the rules and regulations of the SEC promulgated thereunder.

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     “Securities Custodian” means the custodian with respect to the Global Security (as appointed
by DTC), or any successor Person thereto and shall initially be the Trustee.

     “Shelf Registration Statement” shall have the meaning contemplated by and in accordance with
the terms of the Registration Rights Agreement.

     “Significant Subsidiary” means any Subsidiary that would be a “Significant Subsidiary” of the
Parent within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC.

     “Stated Maturity” means December 15, 2026.

     “Stock Price” means, in respect of a Fundamental Change, the price per share of Common Stock
paid in connection with such Fundamental Change, which shall be equal to (i) if such Fundamental
Change is a transaction set forth in clause (2) of the definition thereof, and holders of Common
Stock receive only cash in such transaction, the cash amount paid per share of Common Stock and
(ii) in all other cases, the average of the Last Reported Sale Prices of the Common Stock over the
five Trading Day period ending on the Trading Day preceding the Effective Date of such Fundamental
Change.

     “Subsidiary” means, with respect to any Person, (a) any corporation, association or other
business entity of which more than 50% of the total Common Equity is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof), (b) any partnership (i) the sole general partner or the managing
general partner of which is such Person or a Subsidiary of such Person or (ii) the only general
partners of which are such Person or of one or more Subsidiaries of such Person (or any
combination thereof) and (c) any other Person whose results for financial reporting purposes are
consolidated with those of such Person in accordance with GAAP.

     “Subsidiary Guarantor” means each Guarantor other than the Parent.

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as in effect on the date of this Indenture, except as provided in Section 10.03.

     “Trading Day” means any day during which (i) trading in the Common Stock generally occurs on
the principal U.S. national or regional securities exchange in which the Common Stock is listed for
trading and (ii) there is no Market Disruption Event. “Market Disruption Event” means, for the
purpose of the definition of Trading Day, the occurrence or existence during the one half-hour
period ending on the scheduled close of trading on the principal U.S.

8

 

national or regional securities exchange on which the Common Stock is listed for trading of
any material suspension or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by the stock exchange or otherwise) in the Common Stock or in any options
contracts or future contracts relating to the Common Stock.

     “Trading Price” of the Securities on any date of determination means the average of the
secondary market bid quotations per $1,000 principal amount of the Securities obtained by the
Trustee for $5,000,000 principal amount of the Securities at approximately 3:30 p.m., New York City
time, on such determination date from three independent nationally recognized securities dealers
selected by the Company (which may include one or more Initial Purchasers or their Affiliates);
provided that, if three such bids cannot reasonably be obtained by the Trustee but two such bids
are obtained, then the average of the two bids shall be used, and if only one such bid can
reasonably be obtained by the Trustee, that one bid shall be used. If the Trustee cannot reasonably
obtain on any Trading Day at least one bid for $5,000,000 principal amount of the Securities from a
nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of
Securities for such Trading Day will be deemed to be less than 95% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Exchange Rate.

     “Trust Officer” means, when used with respect to the Trustee, the officer within the corporate
trust department of the Trustee having direct responsibility for the administration of this
Indenture.

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

     “UCC” means the Uniform Commercial Code as in effect in the State of New York.

     “VWAP Trading Day” means any Scheduled Trading Day on which (i) there is no VWAP Market
Disruption Event and (ii) the New York Stock Exchange or, if the Common Stock is not quoted on the
New York Stock Exchange, the principal U.S. national or regional securities exchange on which the
Common Stock is listed, is open for trading or, if the Common Stock is not so listed, admitted for
trading or quoted, any Business Day. A “VWAP Trading Day” only includes those Scheduled Trading
Days that have a scheduled closing time of 4:00 p.m., New York City time, or the then standard
closing time for regular trading on the relevant exchange or trading system. “VWAP Market
Disruption Event” means, for purpose of the definition of VWAP Trading Day, (i) failure by the
primary U.S. national securities exchange or market on which the Common Stock is listed or admitted
to trading to open for trading during its regular trading session or (ii) the occurrence or
existence prior to 1:00 p.m., New

9

 

York City time, on any Scheduled Trading Day for the Common Stock for an aggregate one
half-hour period of any suspension or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any
options contracts or future contracts relating to the Common Stock.

Section 1.02 . Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Additional Shares”
	 	 	12.03	(a)
	“Agent Members”
	 	 	2.09	(a)
	“Authenticating Agent”
	 	 	2.04	 
	“Company Notice”
	 	 	11.03	(a)
	“Company Notice Date”
	 	 	11.03	(a)
	“Company Order”
	 	 	2.04	 
	“Daily Settlement Amount”
	 	 	12.01	(d)
	“Daily Exchange Value”
	 	 	12.01	(d)
	“Daily VWAP”
	 	 	12.01	(d)
	“Defaulted Interest”
	 	 	2.15	 
	“Designated Institution”
	 	 	12.01	(f)
	“Effective Date”
	 	 	12.03	(b)
	“Event of Default”
	 	 	7.01	 
	“Exchange Date”
	 	 	12.01	(c)
	“Exchange Obligation”
	 	 	12.01	(d)(i)
	“Fundamental Change Purchase Date”
	 	 	11.01	 
	“Fundamental Change Purchase Notice”
	 	 	11.01	(b)
	“Fundamental Change Purchase Price”
	 	 	11.01	 
	“Global Security Legend”
	 	2.03(iv)
	“Guarantee”
	 	 	13.01	 
	“Legal Holiday”
	 	 	14.08	 
	“Measurement Period”
	 	12.01(a)(ii)
	“Paying Agent”
	 	 	2.05	 
	“Purchase Date”
	 	 	11.02	(a)
	“Purchase Notice”
	 	 	11.02	(a)
	“Purchase Price”
	 	 	11.02	(a)
	“Redemption Price”
	 	 	6.01	(b)
	“Reference Property”
	 	 	12.05	 
	“Registrar”
	 	 	2.05	 
	“Relevant Date”
	 	12.01(d)(iii)
	“Reorganization Event”
	 	 	12.05	 
	“Restricted Securities”
	 	 	2.03	 

10

 

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Restricted Securities Legend”
	 	 	2.03	 
	“Securities Register”
	 	 	2.05	 
	“Settlement Amount”
	 	 	12.01	(d)
	“Special Interest Payment Date”
	 	 	2.15	(a)
	“Special Record Date”
	 	 	2.15	(a)
	“Spin-Off”
	 	 	12.02	(c)
	“Successor Company”
	 	 	4.01	(a)

     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:

     “Commission” means the SEC.

     “indenture securities” means the Securities and the Guarantees.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

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

     “obligor” on the Securities and the Guarantees means the Company and the Guarantors,
respectively, and any other successor obligor on the Securities and the Guarantees, respectively.

     All other TIA terms used in this Indenture that are defined by the TIA, defined in the TIA by
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:

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

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

     (c) “or” is not exclusive;

     (d) “including” means including without limitation;

11

 

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

     (f) the principal amount of any non-interest 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

     (g) the principal amount of any Preferred Stock shall be the greater of (i) the maximum
liquidation value of such Preferred Stock and (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock.

ARTICLE 2

The Securities

     Section 2.01 . Title; Amount and Issue of Securities; Principal and Interest. (a) The
Securities shall be known and designated as the “1.50% Senior Exchangeable Notes due 2026” of the
Company. The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is initially limited to $400,000,000, except for Securities authenticated and
delivered upon registration of, transfer of, or in exchange for, or in lieu of other Securities
pursuant to Section 2.03, 2.04, 2.08, 2.09, 2.10, 2.11, 2.13, 6.07, 10.05, 11.03, or 12.01;
provided that additional Securities may be issued in an unlimited aggregate principal amount from
time to time thereafter as set forth pursuant to Section 2.04 but only if any such additional
Securities are considered part of the same issue of Securities as the Securities issued and sold
pursuant to the Offering Memorandum for U.S. federal income tax purposes. The Securities shall be
issuable in denominations of $1,000 or multiples thereof.

     (b) The Securities shall mature on December 15, 2026 unless earlier exchanged, redeemed or
repurchased in accordance with the provisions hereof.

     (c) Interest on the Securities shall accrue from and including the date specified on the face
of such Securities until the principal thereof is paid or made available for payment. Interest
shall be payable semiannually in arrears on June 15 and December 15 in each year, commencing June
15, 2007.

     (d) A Holder of any Security at 5:00 p.m., New York City time, on a Regular Record Date shall
be entitled to receive interest (including any Additional Interest), on such Security on the
corresponding Interest Payment Date, notwithstanding the exchange of such Securities at any time
after the close of business on such Regular Record Date. Securities surrendered for exchange
during the period after 5:00 p.m., New York City time, on any Regular Record

12

 

Date to 9:00 a.m., New York City time, on the corresponding Interest Payment Date must be
accompanied by payment of an amount equal to the interest (including any Additional Interest) that
the Holder is to receive on the Securities. Notwithstanding the foregoing, no such payment of
interest (including any Additional Interest) need be made by any exchanging Holder (i) if the
Company has specified a Redemption Date that is after a Regular Record Date and on or prior to the
third Scheduled Trading Day following the corresponding Interest Payment Date, (ii) if the Company
has specified a Fundamental Change Purchase Date that is after a Regular Record Date and on or
prior to the third Scheduled Trading Day following the corresponding Interest Payment Date, or
(iii) to the extent of any overdue interest (including any Additional Interest) existing at the
time of exchange of such Security. Except as described above, no interest or Additional Interest
on exchanged Securities will be payable by the Company on any Interest Payment Date subsequent to
the date of exchange, and delivery of shares of Common Stock or the combination of cash and shares
of Common Stock, if applicable, pursuant to Article 12 hereunder, together with any cash payment
for any fractional share, upon exchange will be deemed to satisfy in full the Company’s obligation
to pay the principal amount of the Securities and accrued and unpaid interest and Additional
Interest, if any, to, but not including, the related Exchange Date.

     (e) Principal of, and interest (including Additional Interest, if any) on, Global Securities
shall be payable to DTC in immediately available funds.

     (f) Principal of Definitive Securities shall be payable at the office or agency of the Company
maintained for such purpose, which initially shall be the corporate trust office of the Trustee.
Interest (including Additional Interest, if any), on Definitive Securities will be payable (i) to
Holders having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders
of these Securities and (ii) to Holders having an aggregate principal amount of more than
$5,000,000, either by check mailed to each Holder or, upon application by a Holder to the Registrar
not later than the relevant Regular Record Date, by wire transfer in immediately available funds to
such Holder’s account within the United States, which application shall remain in effect until the
Holder notifies, in writing, the Registrar to the contrary.

     Section 2.02 . Form of Securities.

     (a) Except as otherwise provided pursuant to this Section 2.02, the Securities are issuable in
fully registered form without coupons in substantially the form of Exhibit A hereto, with such
applicable legends as are provided for in Section 2.03. The Securities are not issuable in bearer
form. The terms and provisions contained in the form of Security shall constitute, and are hereby
expressly made, a part of this Indenture and to the extent applicable, the Company, the Guarantors
and the Trustee, by their execution and delivery of this

13

 

Indenture, expressly agree to such terms and provisions and to be bound thereby. Any of the
Securities may have such letters, numbers or other marks of identification and such notations,
legends and endorsements as the officers executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation
system on which the Securities may be listed or designated for issuance, or to conform to usage.

     (b) The Securities shall be issued initially in the form of one or more permanent Global
Securities, with the applicable legends as provided in Section 2.03. Each Global Security shall be
duly executed by the Company and authenticated and delivered by the Trustee, and shall be
registered in the name of DTC or its nominee and retained by the Trustee, as Securities Custodian,
at its corporate trust office, for credit to the accounts of the Agent Members holding the
Securities evidenced thereby. 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, as
Securities Custodian, and of DTC or its nominee, as hereinafter provided.

     Section 2.03 . Legends. Each Security issued hereunder shall, upon issuance, bear the legend
set forth in Section 2.03(i), and each Common Stock certificate representing shares of the Common
Stock issued upon exchange of any Security issued hereunder, shall, upon issuance, unless as
otherwise set forth below, bear the legend set forth in Section 2.03(ii) (each such legend, a
“Restricted Securities Legend”), and such legend shall not be removed except as provided in Section
2.03(iii). Each Security that bears or is required to bear the Restricted Securities Legend set
forth in Section 2.03(i) (together with each Common Stock certificate representing shares of the
Common Stock issued upon exchange of such Security that bears or is required to bear the Restricted
Securities Legend set forth in Section 2.03(ii), collectively, the “Restricted Securities”) shall
be subject to the restrictions on transfer set forth in this Section 2.03 (including the Restricted
Securities Legend set forth below), and the Holder of each such Restricted Security, by such
Holder’s acceptance thereof, shall be deemed to have agreed to be bound by all such restrictions on
transfer.

     As used in Section 2.03, the term “transfer” encompasses any sale, pledge, transfer or other
disposition whatsoever of any Restricted Security.

     (i) Restricted Securities Legend for Securities. Except as provided in Section
2.03(iii), any certificate evidencing such Security (and all Securities issued in exchange
therefor or substitution thereof, other than stock certificates representing shares of the
Common Stock, if any, issued upon exchange thereof which shall bear the legend set forth
in

14

 

Section 2.03(ii), if applicable) shall bear a Restricted Securities Legend in
substantially the following form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, 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, SUCH REGISTRATION. THE HOLDER OF
THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2) AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY OF THE SUPERIOR ENERGY SERVICES, INC. COMMON
STOCK ISSUABLE UPON EXCHANGE FOR SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE
TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER 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 OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE
OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT
WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS
SECURITY PURSUANT TO CLAUSE 2(B) OR

15

 

ABOVE OR UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144A UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION).”

     (ii) Restricted Securities Legend for the Common Stock Issued Upon Exchange of the
Securities. Each stock certificate representing Common Stock issued upon exchange of
Securities bearing a Restricted Securities Legend will, subject to the availability of a
Shelf Registration Statement and registration thereunder as set forth in the Registration
Rights Agreement, bear the following legend:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, 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 SUCH REGISTRATION. THE HOLDER OF
THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2) AGREES ON ITS OWN
BEHALF, AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION). ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT
THE TIME OF SUCH TRANSFER) OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. SUBJECT TO THE ISSUER’S AND THE TRANSFER AGENT’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND
(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF
THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS
SECURITY

16

 

UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).”

     (iii) Removal of the Restricted Securities Legends. The Restricted Securities Legend
may be removed from any Security or any Common Stock certificate representing shares of
the Common Stock issued upon exchange of any Security if there is delivered to the Company
such satisfactory evidence, which may include an opinion of independent counsel, as may be
reasonably required by the Company, that neither such legend nor the restrictions on
transfer set forth therein are required to ensure that transfers of such Security or
shares of the Common Stock issued upon exchange of Securities, as the case may be, will
not violate the registration requirements of the Securities Act or the qualification
requirements under any state securities laws. Upon provision of such satisfactory
evidence, at the written direction of the Company, (x) in the case of a Security, the
Trustee shall authenticate and deliver in exchange for such Security another Security or
Securities having an equal aggregate principal amount that do not bear such legend or (y)
in the case of a Common Stock certificate representing shares of the Common Stock, the
transfer agent for the Common Stock shall authenticate and deliver in exchange for the
Common Stock certificate or certificates representing such shares of Common Stock bearing
such legend, one or more new Common Stock certificates representing a like aggregate
number of shares of Common Stock that do not bear such legend. If the Restricted
Securities Legend has been removed from a Security or Common Stock certificates
representing shares of the Common Stock issued upon exchange of any Security as provided
above, no other Security issued in exchange for all or any part of such Security, or no
other Common Stock certificates issued in exchange for such Common Stock, shall bear such
legend, unless the Company has reasonable cause to believe that such other Security is a
“restricted security” (or such shares of Common Stock are “restricted securities”) within
the meaning of Rule 144 and instructs the Trustee in writing to cause a Restricted
Securities Legend to appear thereon.

     Any Security (or Security issued in exchange or substitution therefor) as to which the
conditions for removal of the Restricted Securities Legend set forth in Section 2.03(i) as set
forth therein have been satisfied may, upon surrender of such Security for exchange to the
Registrar in accordance with the provisions of Section 2.08, be exchanged for a new Security or
Securities, of like tenor and aggregate principal amount, which shall not bear the Restricted
Securities Legend required by Section 2.03(i).

     Any Common Stock certificate representing shares of Common Stock issued upon exchange of any
Security as to which the conditions for removal of

17

 

the Restricted Securities Legend set forth in Section 2.03(ii) have been satisfied may, upon
surrender of the Common Stock certificates representing such shares of Common Stock for exchange in
accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new
Common Stock certificate or certificates representing a like aggregate number of shares of Common
Stock, which shall not bear the Restricted Securities Legend.

     (iv) Global Security Legend. Each Global Security shall also bear the following
legend (the “Global Security Legend”) on the face thereof:

“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 IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

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 IN THE TERMS OF SECURITIES ATTACHED HERETO.”

     (v) Legend for Definitive Securities. Definitive Securities, in addition to the
legend set forth in Section 2.03(i), will also bear a legend substantially in the
following form:

“THIS SECURITY WILL NOT BE ACCEPTED IN EXCHANGE FOR A BENEFICIAL INTEREST IN A GLOBAL SECURITY
UNLESS THE HOLDER OF THIS SECURITY, SUBSEQUENT TO SUCH EXCHANGE, WILL HOLD NO SECURITIES.”

     Section 2.04 . Execution and Authentication. One Officer shall sign the Securities for the
Company by manual or facsimile signature. If an Officer whose

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

     A Security shall not be valid until an authorized signatory of the Trustee manually
authenticates the Security. The signature of the Trustee on a Security shall be conclusive
evidence that such Security has been duly and validly authenticated and issued under this
Indenture. A Security shall be dated the date of its authentication.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company in an unlimited aggregate principal amount
to the Trustee for authentication, together with a written order of the Company signed by two
Officers or by an Officer and an Assistant Secretary of the Company (the “Company Order”) for the
authentication and delivery of such Securities, and the Trustee in accordance with such Company
Order shall authenticate and deliver such Securities as in this Indenture provided and not
otherwise. All Securities issued on the Issue Date shall be identical in all respects with any
such Securities authenticated and delivered thereafter, other than issue dates, the date from which
interest accrues, appropriate CUSIP numbers or other identifying notations and any changes relating
thereto. Notwithstanding anything to the contrary contained in this Indenture, subject to Section
2.12, all Securities issued under this Indenture shall vote and consent together on all matters as
one class and no series of Securities will have the right to vote or consent as a separate class on
any matter.

     The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate the Securities. Initially, the Trustee will act as the Authenticating
Agent. Any such instrument shall be evidenced by an instrument signed by a Trust Officer of the
Trustee, a copy of which shall be furnished to the Company. Unless limited by the terms of such
appointment, any such Authenticating Agent may authenticate Securities whenever the Trustee may do
so. Each reference in this Indenture to authentication by the Trustee includes authentication by
the Authenticating Agent. An Authenticating Agent has the same rights as any Registrar, Paying
Agent or agent for service of notices and demands.

     In case the Company, pursuant to Article 4, shall be consolidated or merged with or into, or
shall convey, transfer or lease all or substantially all of its properties and assets to, any
Person, and the Successor Company, if not the Company, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article 4, any of the Securities authenticated or
delivered prior to such consolidation, merger, conveyance, transfer or lease may, from time to
time, at the request of the Successor Company, be exchanged for other Securities executed in the
name of the Successor Company with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the

19

 

Securities surrendered for such exchange and of like principal amount; and the Trustee, upon
Company Order of the Successor Company, shall authenticate and deliver Securities as specified in
such order for the purpose of such exchange. If Securities shall at any time be authenticated and
delivered in any new name of a Successor Company pursuant to this Section 2.04 in exchange or
substitution for or upon registration of transfer of any Securities, such Successor Company, at the
option of the Holders but without expense to them, shall provide for the exchange of all Securities
at the time outstanding for Securities authenticated and delivered in such new name.

     Section 2.05 . 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
“Securities Register”). 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 and the term
“Registrar” includes any co-registrar.

     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent 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 each 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 8.07. The Company or any of its domestically organized,
wholly owned Subsidiaries may act as Paying Agent, Registrar or transfer agent.

     The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.
The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or
Paying Agent and to the Trustee; provided, however, that no such removal shall become effective
until (i) acceptance of any appointment by a successor as evidenced by an appropriate agreement
entered into by the Company and such successor Registrar or successor Paying Agent, as the case may
be, and delivered to the Trustee or (ii) notification to the Trustee that the Trustee shall serve
as Registrar or Paying Agent until the appointment of a successor in accordance with clause (i)
above. The Registrar or Paying Agent may resign at any time upon written notice to the Company and
the Trustee.

     Section 2.06 . Paying Agent to Hold Money in Trust. By no later than 11:00 a.m., New York
City time, on the date on which any principal of, or interest (including any Additional Interest)
on, any Security is due and payable, the Company shall deposit with the Paying Agent a sum
sufficient in immediately

20

 

available funds to pay such principal, or interest (including any Additional Interest), when
due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that
such Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by
such Paying Agent for the payment of principal of, or interest (including any Additional Interest)
on, the Securities and shall notify the Trustee in writing of any default by the Company in making
any such payment. If the Company or a 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 (other than the Trustee) to pay all money held by it to the Trustee and to
account for any funds disbursed by such Paying Agent. Upon complying with this Section 2.06, the
Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the
money delivered to the Trustee. Upon any bankruptcy, reorganization or similar proceeding with
respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

     Section 2.07 . Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders
and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, or to the
extent otherwise required under the TIA, the Company shall furnish or cause the Registrar to
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 Holders and the Company
shall otherwise comply with TIA § 312(a).

     Section 2.08 . General Provisions Relating to Transfer and Exchange. The Securities are
issuable only in registered form. A Holder may transfer a Security only by written application to
the Registrar stating the name of the proposed transferee and otherwise complying with the terms of
this Indenture. No such transfer shall be effected until, and such transferee shall succeed to the
rights of a Holder only upon, final acceptance and registration of the transfer by the Registrar in
the Securities Register. Furthermore, any Holder of a Global Security shall, by acceptance of such
Global Security, agree that transfers of beneficial interests in such Global Security may be
effected only through a book-entry system maintained by the Holder of such Global Security (or its
agent) and that ownership of a beneficial interest in the Global Security shall be required to be
reflected in a book-entry.

     When Securities are presented to the Registrar with a request to register the transfer or to
exchange them for an equal aggregate principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested if its
requirements for such transactions are met (including that such Securities are duly endorsed or
accompanied by a written instrument of transfer duly executed by the Holder

21

 

thereof or by an attorney who is authorized in writing to act on behalf of the Holder).
Subject to Section 2.04, to permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Securities at the Registrar’s request. No service
charge shall be made for any registration of transfer or exchange or redemption of the Securities,
but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge required by law or permitted under the terms of this Indenture.

     Neither the Company nor the Registrar shall be required to exchange or register a transfer of
any Securities:

     (a) selected for redemption under Article 6 or, if a portion of any Security is selected for
redemption, the portion thereof selected for redemption;

     (b) surrendered for exchange or, if a portion of any Security is surrendered for exchange, the
portion thereof surrendered for exchange; or

     (c) in certificated form for a period of 15 days prior to mailing a notice of redemption under
Article 6.

     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 beneficial owners
of 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.

     Section 2.09 . Book-Entry Provisions for the Global Securities. (a) The Global Securities
initially shall:

     (i) be registered in the name of DTC (or a nominee thereof);

     (ii) be delivered to the Trustee as Securities Custodian;

     (iii) bear the Restricted Securities Legend set forth in Section 2.03(i); and

     (iv) bear the Global Security Legend set forth in Section 2.03(iv).

     Members of, or participants in, DTC (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Security held on their behalf by DTC, or the Trustee as its
custodian, or under such Global Security, and

22

 

DTC may be treated by the Company, the Guarantors, the Trustee and any agent of the Company,
the Guarantors or the Trustee as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the Company, the
Guarantors, the Trustee or any agent of the Company, the Guarantors or Trustee from giving effect
to any written certification, proxy or other authorization furnished by DTC or impair, as between
DTC and the Agent Members, the operation of customary practices governing the exercise of the
rights of a Holder of any Security.

     (b) The 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.

     (c) A Global Security may not be transferred, in whole or in part, to any Person other than
DTC (or a nominee thereof) or to a successor thereof (or such successor’s nominee), and no such
transfer to any such other Person may be registered. Beneficial interests in a Global Security may
be transferred in accordance with the rules and procedures of DTC and the provisions of Section
2.10.

     (d) If at any time:

     (i) DTC notifies the Company in writing that it is unwilling or unable to continue to
act as depositary for the Global Securities and a successor depositary for the Global
Securities is not appointed by the Company within 90 days of such notice;

     (ii) DTC ceases to be registered as a “clearing agency” under the Exchange Act and a
successor depositary for the Global Securities is not appointed by the Company within 90
days of such cessation;

     (iii) the Company, at its option, notifies the Trustee in writing that it elects to
cause the issuance of the Definitive Securities under this Indenture in exchange for all
or any part of the Securities represented by a Global Security or Global Securities,
subject to the procedures of DTC; or

     (iv) an Event of Default has occurred and is continuing and the Registrar has
received a request from DTC for the issuance of Definitive Securities in exchange for such
Global Security or Global Securities;

the Securities Custodian shall surrender such Global Security or Global Securities to the Trustee
for cancellation and the Company shall execute, and the Trustee, upon receipt of an Officers’
Certificate and Company Order for the authentication and delivery of Securities, shall authenticate
and deliver in exchange for such

23

 

Global Security or Global Securities, Definitive Securities in an aggregate principal amount equal
to the aggregate principal amount of such Global Security or Global Securities. Such Definitive
Securities shall be registered in such names as DTC (or any nominee thereof) shall identify in
writing as the beneficial owners of the Securities represented by such Global Security or Global
Securities.

     (e) Notwithstanding the foregoing, in connection with any transfer of beneficial interests in
a Global Security to the beneficial owners thereof pursuant to Section 2.09(d), the Registrar shall
reflect on its books and records the date and a decrease in the principal amount of such Global
Security in an amount equal to the principal amount of the beneficial interests in such Global
Security to be transferred.

     Section 2.10 . Special Transfer Provisions. Unless a Security is no longer a Restricted
Security, the following provisions shall apply to any sale, pledge or other transfer of such
Securities:

     (a) Transfer of Securities to a QIB. The following provisions shall apply with respect to the
registration of any proposed transfer of Securities to a QIB:

     (i) If the Securities to be transferred consist of a beneficial interest in the
Global Securities, the transfer of such interest may be effected only through the
book-entry systems maintained by DTC.

     (ii) If the Securities to be transferred consist of Definitive Securities, the
Registrar shall register the transfer if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of Security stating (or has
otherwise advised the Company and the Registrar in writing) that the sale has been made in
compliance with the provisions of Rule 144A to a transferee who has signed a certification
stating or has otherwise advised the Company and the Registrar in writing that:

     (A) it is purchasing the Securities for its own account or an account with
respect to which it exercises sole investment discretion;

     (B) it and any such account is a QIB within the meaning of Rule 144A;

     (C) it is aware that the sale to it is being made in reliance on Rule 144A;

24

 

     (D) it acknowledges that it has received such information regarding the
Company as it has requested pursuant to Rule 144A or has determined not to
request such information; and

     (E) it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

     (b) General. By its acceptance of any Security bearing the Restricted Securities Legend, each
Holder of such a Security acknowledges the restrictions on transfer of such Security set forth in
this Indenture and agrees that it will transfer such Security only as provided in this Indenture.
The Registrar shall not register a transfer of any Security unless such transfer complies with the
restrictions on transfer of such Security set forth in this Indenture. The Registrar shall be
entitled to receive and rely on written instructions from the Company verifying that such transfer
complies with such restrictions on transfer. In connection with any transfer of Securities, each
Holder agrees by its acceptance of the Securities to furnish the Registrar or the Company such
certifications, legal opinions or other information as either of them may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or a transaction not
subject to, the registration requirements of the Securities Act; provided that the Registrar shall
not be required to determine (but may rely on a determination made by the Company with respect to)
the sufficiency of any such certifications, legal opinions or other information.

     The Registrar shall retain copies of all certifications, letters, notices and other written
communications received pursuant to Section 2.09 hereof or this Section 2.10. The Company shall
have the right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written notice to the
Registrar.

     Section 2.11 . Mutilated, Destroyed, Lost or Wrongfully Taken Securities. If a mutilated
Security is surrendered to the Registrar or if the Holder of a Security claims that the 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 UCC are met, such
that the Holder (a) notifies the Company or the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking and the Registrar has not registered a
transfer prior to receiving such notification, (b) makes such request to the Company or Trustee
prior to the Security being acquired by a protected purchaser as defined in Section 8-303 of the
UCC and (c) satisfies any other reasonable requirements of the Trustee. Such Holder shall furnish
an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company,
the Guarantors, the Trustee, the Paying Agent and the Registrar from any loss which any of them may
suffer if a Security is replaced, and, in the

25

 

absence of notice to the Company or the Trustee that such Security has been acquired by a
protected purchaser, the Company shall execute and upon Company Order the Trustee shall
authenticate and make available for delivery, in exchange for any such mutilated Security or in
lieu of any such destroyed, lost or wrongfully taken Security, a new Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or wrongfully taken Security has become due and
payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

     Upon the issuance of any new Security under this Section 2.11, the Company may require the
payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)
in connection therewith.

     Every new Security issued pursuant to this Section 2.11 in lieu of any mutilated, destroyed,
lost or wrongfully taken Security shall constitute an original additional contractual obligation of
the Company and any other obligor upon the Securities, whether or not the mutilated, destroyed,
lost or wrongfully taken Security shall be at any time enforceable by anyone, and shall be entitled
to all benefits of this Indenture equally and ratably with any and all other Securities duly issued
hereunder.

     The provisions of this Section 2.11 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or wrongfully taken Securities.

     Section 2.12 . Outstanding Securities. Securities outstanding at any time are all Securities
authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section 2.12 as not outstanding. A Security does not
cease to be outstanding in the event the Company or an Affiliate of the Company holds the Security;
provided, however, that (i) for purposes of determining which Securities are outstanding for
consent or voting purposes hereunder, the provisions of Section 14.06 shall apply and (ii) in
determining whether the Trustee shall be protected in making a determination whether the Holders of
the requisite principal amount of outstanding Securities are present at a meeting of Holders of
Securities for quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification hereunder, or relying
upon any such quorum, consent or vote, only Securities which a Trust Officer of the Trustee
actually knows to be held by the Company or an Affiliate of the Company shall not be considered
outstanding.

26

 

     If a Security is replaced or paid pursuant to Section 2.11, it ceases to be outstanding unless
the Trustee and the Company receive proof satisfactory to them that the replaced Security is held
by a protected purchaser.

     If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or at Stated Maturity, 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, then on and after that date such Securities (or portions thereof) cease to be
outstanding and interest (including any Additional Interest) on them ceases to accrue.

     Section 2.13 . Temporary Securities. In the event that Definitive Securities are to be
issued under the terms of this Indenture, until such Definitive Securities are ready for delivery,
the Company may prepare and upon receipt of a Company Order 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 upon receipt of a Company Order the
Trustee shall authenticate Definitive Securities. After the preparation of Definitive Securities,
the temporary Securities shall be exchangeable for Definitive Securities upon surrender of the
temporary Securities at any office or agency maintained by the Company for that purpose and such
exchange shall be without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute, and the Trustee shall authenticate and make
available for delivery in exchange therefor, one or more Definitive Securities representing an
equal principal amount of Securities. Until so exchanged, the Holder of temporary Securities shall
in all respects be entitled to the same benefits under this Indenture as a Holder of Definitive
Securities.

     Section 2.14 . Cancellation. The Company at any time may deliver Securities to the Trustee
for cancellation. The Registrar, the Exchange Agent and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer, exchange, exchange or
payment. The Trustee and no one else shall cancel all Securities surrendered for registration of
transfer, exchange, exchange, payment or cancellation and dispose of such Securities in accordance
with its internal policies and customary procedures including delivery of a certificate describing
such Securities disposed of (subject to the record retention requirements of the Exchange Act).
The Company may not issue new Securities to replace Securities it has paid for or exchanged or
delivered to the Trustee for cancellation for any reason other than in connection with a transfer
or exchange.

     At such time as all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased,

27

 

exchanged or canceled, such Global Security shall be returned by the Securities Custodian 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 Definitive
Securities, transferred in exchange for an interest in another Global Security, redeemed,
repurchased, exchanged 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.

     Section 2.15 . Payment of Interest; Defaulted Interest. Interest (including any Additional
Interest) on any Security which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Security (or one or more
predecessor Securities) is registered at the close of business on the Regular Record Date for such
payment at the office or agency of the Company maintained for such purpose pursuant to Section
2.05.

     Any interest on any Security which is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days, shall forthwith cease to be payable
to the Holder on the Regular Record Date, and such interest and (to the extent lawful) interest on
such interest at the rate borne by the Securities (such interest and interest thereon herein
collectively called “Defaulted Interest”) shall be paid by the Company at its election, in each
case, as provided in clause (a) or (b) below:

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities (or their respective predecessor Securities) are registered at the close of
business on a Special Record Date (as defined below) for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the Trustee in writing of
the amount of Defaulted Interest proposed to be paid on each Security and the date (not less than
30 days after such notice) of the proposed payment (the “Special Interest Payment Date”), and at
the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Trustee shall fix a record date (the “Special
Record Date”) for the payment of such Defaulted Interest which shall be not more than 15 days and
not less than 10 days prior to the Special Interest Payment Date and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date, and in the name and at the expense of the Company,
shall cause notice of the proposed payment of such

28

 

Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor to
be given in the manner provided for in Section 14.02, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
and Special Interest Payment Date therefor having been so given, such Defaulted Interest shall be
paid on the Special Interest Payment Date to the Persons in whose names the Securities (or their
respective predecessor Securities) are registered at the close of business on such Special Record
Date and shall no longer be payable pursuant to the following clause (b).

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

     Subject to the foregoing provisions of this Section 2.15, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest (including any Additional Interest) accrued and unpaid, and to
accrue, which were carried by such other Security.

     Section 2.16 . Computation of Interest. Interest (including any Additional Interest) on the
Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

     Section 2.17 . CUSIP and ISIN Numbers. The Company in issuing the Securities may use “CUSIP”
and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” and “ISIN”
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 redemption and that reliance may be
placed only on the other identification numbers printed on the Securities, and any such redemption
shall not be affected by any defect in or omission of such CUSIP or ISIN numbers. The Company
shall promptly notify the Trustee in writing of any change in the CUSIP and ISIN numbers.

ARTICLE 3

Covenants

     Section 3.01 . Payment of Securities. The Company shall promptly pay the principal of, and
interest (including any Additional Interest) on, the Securities on the dates and in the manner
provided in the Securities and in this Indenture.

29

 

Principal and interest (including any Additional Interest) shall be considered paid on the
date due if by 11:00 a.m., New York City time, on such date the Trustee or the Paying Agent holds
in accordance with this Indenture immediately available funds sufficient to pay all principal and
interest (including any Additional Interest) then due.

     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.

     Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by
the United States of America from principal or interest (including any Additional Interest)
payments hereunder.

     Section 3.02 . Maintenance of Office or Agency. The Company will maintain an office or
agency where the Securities may be presented or surrendered for payment, where, if applicable, the
Securities may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee of any change in the location of any such
office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served to the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind any such designation. The Company will give prompt written notice to the Trustee of
any such designation or rescission and any change in the location of any such other office or
agency.

     Section 3.03 . Corporate Existence. Except as otherwise provided in Article 4 or Article 13,
each of the Company and the Guarantors will do or cause to be done all things necessary to preserve
and keep in full force and effect (i) its existence and (ii) the material rights (charter and
statutory), licenses and franchises of the Company and the Guarantors, except, in the case of
clause (ii), to the extent the Company otherwise reasonably determines it no longer desirable.

     Section 3.04 . Payment of Taxes and Other Claims. The Company will pay or discharge or cause
to be paid or discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon the Parent, the Company or any
Subsidiary or upon the income, profits or property of the Parent, the Company or any Subsidiary and
(ii) all

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lawful claims for labor, materials and supplies, which, if unpaid, might by law become a
material liability or lien upon the property of the Parent, the Company or any Subsidiary;
provided, however, that the Company and the Parent shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings and for which
appropriate reserves, if necessary (in the good faith judgment of management of the Company or the
Parent), are being maintained in accordance with GAAP or where the failure to effect such payment
will not be disadvantageous to the Holders.

     Section 3.05 . 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, one of the signers
of which shall be the principal executive officer, principal financial officer or principal
accounting officer of the Company, 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 or Event
of Default and whether or not the signers know of any Default or Event of Default that occurred
during such period. If they do, the certificate shall describe each Default or Event of Default,
its status and the action the Company is taking or proposes to take with respect thereto. The
Company also shall comply with TIA § 314(a)(4).

     Section 3.06 . Further Instruments and Acts. Upon request of the Trustee, the Company and
the Guarantors will 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.

     Section 3.07 . Statement by Officers as to Default. The Company shall deliver to the
Trustee, within 30 days after the Company becomes aware of the occurrence of any Event of Default
or Default, an Officers’ Certificate setting forth the details of such events which would
constitute an Event of Default or Default, its status and the action which the Company proposes to
take with respect thereto.

     Section 3.08 . Additional Interest. If Additional Interest is payable by the Company
pursuant to the Registration Rights Agreement or Section 7.03, the Company shall deliver to the
Trustee an Officers’ Certificate to that effect stating (i) the amount of such Additional Interest
that is payable and (ii) the date on which such Additional Interest is payable. Unless and until a
Trust Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry
that no Additional Interest is payable. If the Company has paid Additional Interest directly to
the persons entitled to it, the Company shall deliver to the Trustee an Officers’ Certificate
setting forth the particulars of such payment.

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     Section 3.09 . Additional Guarantees. If any of the Company’s Subsidiaries (including a
Foreign Subsidiary) that is not already a Guarantor, guarantees any indebtedness of the Parent, the
Company or a Domestic Subsidiary of the Company, then such Subsidiary will become a Guarantor and
execute and deliver to the Trustee a supplemental indenture in substantially the form attached
hereto as Exhibit C, a notation of Guarantee and an Officers’ Certificate and an Opinion of Counsel
in accordance with Section 10.06, within 10 Business Days of the date on which it guarantees such
indebtedness of the Company or a Domestic Subsidiary. The form of such notation of Guarantee is
attached as Exhibit B hereto.

ARTICLE 4

Successor Company

     Section 4.01 . Consolidation, Merger and Sale of Assets. Neither the Company nor the Parent
shall consolidate with or merge with or into, or convey, transfer or lease all or substantially all
its properties and assets to, another Person, unless:

     (a) the resulting, surviving or transferee Person (the “Successor Company”), if not the Parent
or the Company, shall expressly assume, by supplemental indenture, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the Parent or the Company, as
applicable, under the Securities, this Indenture and, to the extent then still operative, the
Registration Rights Agreement;

     (b) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing; and

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, stating that such consolidation, merger or transfer and such supplemental indenture, if
any, comply with this Indenture.

     For purposes of this Section 4.01, the conveyance, transfer or lease of all or substantially
all of the properties and assets of one or more Subsidiaries of the Parent or the Company, which
properties and assets, if held by the Parent or the Company instead of such Subsidiaries, would
constitute all or substantially all of the properties and assets of the Parent or the Company on a
consolidated basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Parent or the Company, as applicable.

     The Successor Company will succeed to, and be substituted for, and may exercise every right
and power of, the Parent or the Company, as applicable, under this Indenture, but, in the case of a
lease of all or substantially all its

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properties and assets, the Parent or the Company, as applicable, will not be released from the
obligation to pay the principal of, and interest (including any Additional Interest) on, the
Securities.

ARTICLE 5

Reporting Obligations

     Section 5.01 . Reporting Obligations. (a) The Parent shall deliver to the Trustee, within 15
days after filing with the SEC, copies of its annual reports and of information, documents and
other reports (or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which the Parent is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act.

     (b) In the event and for as long as the Parent is not subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act:

     (i) it shall continue to provide the Trustee with reports containing substantially
the same information as would have been required to be filed with the SEC had the Parent
continued to have been subject to such reporting requirements and also mail such documents
to each Holder at such Holder’s registered address, upon the request of any Holder or
beneficial holder of the Securities or the Common Stock issued upon exchange thereof. In
such event, such reports shall be provided at the times the Parent would have been
required to provide reports had it continued to have been subject to Section 13 or 15(d)
of the Exchange Act; and

     (ii) it shall make available, to each Holder or beneficial holder of Securities or
Common Stock in connection with any sale thereof and any prospective purchaser of
Securities or Common Stock designated by such Holder or beneficial holder, upon request,
the information required pursuant to Rule 144A(d)(4) under the Securities Act and it will
take such further action as any Holder or beneficial holder of such Securities or Common
Stock may reasonably request, all to the extent required from time to time to enable such
Holder or beneficial holder to sell its Securities or Common Stock without registration
under the Securities Act within the limitation of the exemption provided by Rule 144A, as
such Rule may be amended from time to time.

     (c) Delivery of reports, information and other documents under this Section 5.01 to the
Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including

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the Parent’s or the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

     Section 5.02 . Reporting in Compliance with TIA. The Company and the Guarantors also shall
comply with the other provisions of Section 314(a) of the Trust Indenture Act.

ARTICLE 6

Redemption of Securities

     Section 6.01 . Optional Redemption.

     (a) Prior to December 15, 2011, the Securities shall not be redeemable.

     (b) On or after December 15, 2011, subject to the terms and conditions of this Article 6, the
Company may, at its option, redeem at any time for cash all or a portion of the Securities, at a
price (the “Redemption Price”) equal to 100% of the principal amount of Securities to be redeemed,
plus accrued and unpaid interest (including any Additional Interest) to but excluding the
Redemption Date.

     (c) In the event that the Redemption Date occurs after a Regular Record Date for the payment
of interest and on or prior to the related Interest Payment Date, the Redemption Price for any such
Securities to be redeemed shall be 100% of the principal amount of such Securities, and accrued and
unpaid interest (including any Additional Interest) shall be paid to the Holder on such Regular
Record Date.

     Section 6.02 . Election to Redeem; Notice to Trustee. In case of any redemption at the
election of the Company, the Company shall, on or prior to the date that is 15 days prior to the
date on which notice is given to the Holders (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities to
be redeemed and shall deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Securities to be redeemed pursuant to Section 6.03. Any such notice may be
cancelled at any time prior to notice of such redemption being mailed to any Holder and shall
thereby be void and of no effect.

     Section 6.03 . Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities are to be redeemed at any time pursuant to this Article 6, the particular Securities to
be redeemed shall be selected by the Trustee, from the outstanding Securities not previously called
for redemption, by lot or on a pro rata basis among the Securities or by such other method as the
Trustee shall deem fair and appropriate, including any method required by DTC or any successor
depositary (and in such manner as is not prohibited by applicable legal

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requirements) and which may provide for the selection for redemption of portions of the
principal of the Securities; provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Security not redeemed to less than $1,000.

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

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

     If any Securities selected for partial redemption are thereafter surrendered for exchange in
part before termination of the exchange right with respect to the portion of the Securities so
selected, the exchanged portion of such Securities shall be deemed (so far as may be), solely for
purposes of determining the aggregate principal amount of Securities to be redeemed by the Company,
to be the portion selected for redemption. Securities which have been exchanged during a selection
of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such
selection. Nothing in this Section 6.03 shall affect the right of any Holder to exchange any
Securities pursuant to Article 12 before the termination of the exchange right with respect
thereto.

     Section 6.04 . Notice of Redemption. Notice of redemption shall be given in the manner
provided for in Section 14.02 not less than 30 Scheduled Trading Days nor more than 45 Scheduled
Trading Days prior to the Redemption Date, to the Trustee, the Paying Agent and each Holder of
Securities to be redeemed. The Trustee shall give notice of redemption in the Company’s name and
at the Company’s expense; provided, however, that the Company shall deliver to the Trustee an
Officers’ Certificate, at least 15 calendar days prior to the date on which notice is required to
be given to the Holders (unless shorter notice shall be satisfactory to the Trustee), requesting
that the Trustee give such notice at the Company’s expense and setting forth the information to be
stated in such notice as provided in the following items.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) the then current Exchange Rate and the related Observation Period for exchange of
Securities, and provide a statement that the Securities called for

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redemption may be exchanged at any time before the close of business on the third Scheduled Trading Day prior to the Redemption Date, and that Holders who wish to exchange Securities must comply with the procedures in Section 12.01(c);

     (d) if less than all outstanding Securities are to be redeemed, the identification of the particular Securities (or portion thereof) to be redeemed, as well as the aggregate principal amount of Securities to be redeemed and the aggregate principal amount of Securities to be outstanding after such partial redemption;

     (e) in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security, the Holder will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed;

     (f) that on the Redemption Date the Redemption Price will become due and payable upon each such Security, or the portion thereof, to be redeemed, and, unless the Company defaults in making the redemption payment, that interest (including any Additional Interest) on Securities called for redemption (or the portion thereof) will cease to accrue on and after said date;

     (g) the place or places where such Securities are to be surrendered for payment of the Redemption Price;

     (h) the name and address of the Paying Agent and the Exchange Agent;

     (i) that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; and

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

     Section 6.05. Deposit of Redemption Price. Prior to 11:00 a.m., New York City time, on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 2.06) an amount of money sufficient to pay the
Redemption Price of all the Securities which are to be redeemed on that date other
than Securities or portions of Securities called for redemption that are beneficially owned by the Company and have been delivered by the Company to the Trustee for cancellation.

     Section 6.06. Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,

36

 

on the Redemption Date, become due
and payable at the Redemption Price, and from and after such
date (unless the Company shall default in the payment of the
Redemption Price or accrued and unpaid interest (including any Additional Interest))
such Securities shall cease to bear interest or Additional Interest. Upon surrender
of any such Security for redemption in accordance with said notice, such Security
shall be paid by the Company at the Redemption Price.

     If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Securities.

     Section 6.07. Securities Redeemed in Part. Any Security which is to be redeemed only in part (pursuant to the provisions of this Article 6) shall be surrendered at the office or agency of the Company maintained for such purpose pursuant to Section 3.02 (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such
Security at the expense of the Company, a new Security or Securities, of
any authorized denomination as requested by such Holder, in an aggregate
principal amount equal to and in exchange for the unredeemed portion of
the principal of the Security so surrendered; provided that
each such new Security will be in a principal amount of $1,000 or multiple thereof.

ARTICLE 7

Defaults and Remedies

     Section 7.01. Events of Default. Each of the following is an “Event of Default”:

     (a) default in any payment of interest (including Additional Interest) on any Security when the same becomes due and payable, and such default continues for a period of 30 days;

     (b) default 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 of acceleration or otherwise;

     (c) failure by the Company to comply with its obligation to exchange the Securities in accordance with this Indenture, upon exercise of a Holder’s exchange right and such failure continues for a period of 10 days;

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     (d) failure by the Company to give a Company Notice of the occurrence of a Fundamental Change to Holders pursuant to Section 11.01 or notice of a specified corporate transaction (as described in Section 12.01(a)(iv)) or a notice of a Public Acquirer Change of Control (as described in Section 12.04(c)) to Holders, in each case when due;

     (e) failure by the Parent or the Company to comply with its obligations under Article 4;

     (f) failure by the Parent or the Company for a period of 60 days after written notice from the Trustee or Holders of at least 25% in principal amount of Securities then outstanding has been received to comply with any obligation, covenant or agreement in this Indenture or under the Securities (other than those referred to in Section 7.01(a) through (e) and Section 7.01(g) through (i));

     (g) default by the Parent or the Company or any other Subsidiary of the Parent in the payment of the principal or interest on any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $20,000,000 in the aggregate of the Parent, the Company and/or any such Subsidiary, whether such indebtedness now
exists or shall hereafter be created, resulting in such indebtedness becoming or being declared due and payable, and such acceleration shall not have been rescinded or annulled within 30 days after written notice of such acceleration has been received by the Parent, the Company or such Subsidiary from the Trustee (or to the Company and the Trustee from Holders of at least 25% in principal amount of outstanding Securities);

     (h) the Parent, the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

     (i) commences a voluntary case or proceeding;

     (ii) consents to the entry of judgment, decree or order for relief against it in an involuntary case or proceeding;

     (iii) consents to the appointment of a Custodian of it or for any substantial part of its property;

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

     (v) consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding against it;

     (vi) takes any corporate action to authorize or effect any of the foregoing; or

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     (vii) takes any comparable action under any foreign laws relating to insolvency;

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

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

     (ii) appoints a Custodian of the Company for all or substantially all of the Parent’s, the Company’s or any Significant Subsidiary’s property; or

     (iii) orders the winding up or liquidation of the Parent, the Company or Significant Subsidiary;

and, in each case, the order or decree or relief remains unstayed and in effect for 90 days; or

     (j) except as permitted by this Indenture, any Guarantee shall be held in any final judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, shall deny or disaffirm its obligations under its Guarantee.

     The foregoing will 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.

     Notwithstanding the foregoing, a Default under clause (f) or (g) of this Section 7.01 will not constitute an Event of Default until the Trustee notifies the Company (or the Holders of 25% or more in principal amount of the outstanding Securities notify the Company and the Trustee) of the Default in writing and the Company does not cure such Default within the time specified in clause (f) or (g) 
of this Section 7.01 after receipt of such notice.

     
Section 7.02. Acceleration. Subject to Section 7.03, if an Event of Default (other than an Event of Default specified in Section 7.01(h) or Section 7.01(i) above) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in outstanding principal amount of the outstanding Securities by notice to the Company and the Trustee, may, and the Trustee at the request of such Holders shall, declare the principal of and accrued and unpaid interest, if any, and Additional Interest, if any, on all the Securities to be due and payable. Upon such a declaration, such principal and accrued and unpaid interest

39

 

and Additional Interest, if any, shall be due and payable immediately. If an Event of Default
specified in Section 7.01(h) or Section 7.01(i) above occurs and is continuing, the principal of
and accrued and unpaid interest, if any, and Additional Interest, if any, on all the Securities
outstanding shall be immediately due and payable with no further action by the Trustee or the
Holders.

     Section 7.03 . Sole Remedy for Failure to Report. Notwithstanding any other provision of
this Indenture, the sole remedy for an Event of Default relating to the failure to comply with the
reporting obligations under Article 5 of this Indenture, and for any failure to comply with the
requirements of Section 314(a)(1) of the TIA, will for the 365 days after the occurrence of such an
Event of Default consist exclusively of the right to receive Additional Interest on the principal
amount of the Securities at a rate equal to 0.50% per annum. This Additional Interest will be in
addition to any Additional Interest that may accrue as a result of a registration default as
described in the Registration Rights Agreement and will be payable in the same manner and subject
to the same terms as other interest payable under this Indenture. The Additional Interest will
accrue on all outstanding Securities from and including the date on which an Event of Default
relating to a failure to comply with Article 5 or Section 314(a)(1) of the TIA first occurs to but
not excluding the 365th day thereafter (or such earlier date on which the Event of
Default relating to the reporting obligations under Article 5 or Section 314(a)(1) of the TIA shall
have been cured or waived). On such 365th day (or earlier, if the Event of Default
relating to such reporting obligations is cured or waived prior to such 365th day), such
Additional Interest will cease to accrue and the Securities will be subject to acceleration and
other remedies as provided in this Article 7 if the Event of Default is continuing. For the
avoidance of doubt, the provisions of this Section 7.02 will not affect the rights of Holders of
Securities in the event of the occurrence of any other Event of Default and will have no effect on
the rights of Holders of Securities under the Registration Rights Agreement.

     Section 7.04 . Other Remedies. If an Event of Default other than an Event of Default
specified in Section 7.01(f), occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal of, or interest (including any Additional Interest) on, the
Securities or to enforce the performance of any provision of the Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

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     Section 7.05 . Waiver of Past Defaults. The Holders of a majority in principal amount of the
outstanding Securities by notice to the Trustee may (a) waive, by their consent (including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities), an existing Default or Event of Default and its consequences except (i) a Default
or Event of Default resulting from the non-payment of the principal of, or interest (including any
Additional Interest) on, a Security, (ii) a Default or Event of Default resulting from the failure
to deliver, upon exchange, shares of Common Stock or the combination of cash and shares of Common
Stock, if any, upon the exchange of the Security or (iii) a Default or Event of Default in respect
of a provision that under Section 10.02 cannot be amended without the consent of each Holder
affected and (b) rescind any such acceleration with respect to the Securities and its consequences
if (i) rescission would not conflict with any judgment or decree of a court of competent
jurisdiction and (ii) all existing Events of Default, other than the nonpayment of the principal
of, or interest (including any Additional Interest) on, the Securities that have become due solely
by such declaration of acceleration, have been cured or waived. When a Default or Event of Default
is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any consequent right.

     Section 7.06 . Control by Majority. The Holders of a majority in principal amount of the
outstanding 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.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture
or, subject to Sections 8.01 and 8.02, that the Trustee determines is unduly prejudicial to the
rights of other Holders 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.

     Section 7.07 . Limitation on Suits. Subject to Section 7.08, a Holder may not pursue any
remedy with respect to this Indenture or the Securities unless:

     (a) such Holder has previously given to the Trustee written notice stating that an Event of
Default is continuing;

     (b) Holders of at least 25% in principal amount of the outstanding Securities have requested
that the Trustee pursue the remedy;

     (c) such Holders have offered to the Trustee security or indemnity reasonably satisfactory to
it against any loss, liability or expense to be incurred in compliance with such request;

     (d) the Trustee has not complied with such request within 60 days after receipt of the request
and the offer of security or indemnity; and

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     (e) the Holders of a majority in principal amount of the outstanding Securities have not given
the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such request
within such 60-day period.

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

     Section 7.08 . Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture (including, without limitation, Section 7.07), the right of any Holder to receive
payment of principal of, or interest (including any Additional Interest) on, the Securities held by
such Holder, on or after the respective due dates expressed in the 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 7.09 . Collection Suit by Trustee. If an Event of Default specified in clauses (a)
or (b) of Section 7.01 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 (including any Additional Interest) to the extent
lawful) and the amounts provided for in Section 8.07.

     Section 7.10 . 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 (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Company, the Guarantors or its or their respective creditors or properties and,
unless prohibited by law or applicable regulations, may be entitled and empowered to participate as
a member of any official committee of creditors appointed in such matter, and 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 for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and
any other amounts due to the Trustee under Section 8.07.

     Section 7.11 . Priorities. If the Trustee collects any money or property pursuant to this
Article 7, it shall pay out the money or property in the following order:

     FIRST: to the Trustee for amounts due under Section 8.07;

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     SECOND: to Holders for amounts due and unpaid on the Securities for principal or
interest (including any Additional 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 Holders pursuant to this
Section 7.11. At least 15 days before such record date, the Company shall mail to each Holder and
the Trustee a notice that states the record date, the payment date and amount to be paid.

     Section 7.12 . Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted a proceeding to enforce any right or remedy under this Indenture and the proceeding has
been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or
to the Holder, then, subject to any determination in the proceeding, the Company, the Trustee, the
Guarantors and the Holders will be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Company, the Trustee, the Guarantors and
the Holders will continue as though no such proceeding had been instituted.

     Section 7.13 . Undertaking of 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 and expenses, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 7.13 does not apply to a suit by the Trustee, a suit by the Company, a suit
by a Holder pursuant to Section 7.08 or a suit by Holders of more than 10% in outstanding principal
amount of the Securities.

ARTICLE 8

Trustee

     Section 8.01 . 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 its exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or
powers under this Indenture at the request or direction of any of the Holders

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unless such Holders have offered to the Trustee reasonable indemnity or security against loss,
liability or expense that might be incurred in compliance with such request or direction.

     (b) Except during the continuance of an Event of Default:

     (i) 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

     (ii) 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, opinions or orders furnished to the Trustee and conforming to the
requirements of this Indenture. However, in the case of any such certificates, opinions
or orders which by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall examine such certificates and opinions to determine whether or
not they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated therein).

     (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:

     (i) this paragraph does not limit the effect of paragraph (b) of this Section 8.01;

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

     (iii) 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 7.06.

     (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 8.01.

     (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.

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     (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 8.01 and to
the provisions of the TIA.

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

     Section 8.02 . Rights of Trustee. Subject to Section 8.01:

     (a) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) reasonably 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. The Trustee
shall receive and retain financial reports and statements of the Parent or the Company as provided
herein, but shall have no duty to review or analyze such reports or statements to determine
compliance under covenants or other obligations of the Parent or the Company.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
and/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 an Officers’ Certificate and an Opinion of Counsel.

     (c) The Trustee may act through its attorneys and 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, unless the Trustee’s conduct
constitutes willful misconduct or negligence.

     (e) The Trustee may consult with counsel of its selection, 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.

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     (f) The Trustee shall not be responsible or liable for special, indirect, or consequential
loss or damage of any kind whatsoever (including, but not limited to, loss of profit) resulting
from actions taken in good faith and which the Trustee believes to be authorized or within its
rights or powers, unless the Trustee’s conduct constitutes willful misconduct or negligence.

     (g) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, Securities
Custodian and other Person employed to act hereunder.

     (h) The Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of Officers authorized at such time to take specified actions pursuant to
this Indenture.

     (i) The Trustee shall not be deemed to have notice of any Default or Event of Default unless
an Officer of the Trustee has actual knowledge thereof or unless written notice of any event which
is in fact such a Default or Event of Default is received by an Officer of the Trustee from the
Company or the Holders of 25% in aggregate principal amount of the outstanding Securities, and such
notice references the specific Default or Event of Default, the Securities and this Indenture.

     (j) The Trustee shall not be required to give any bond or surety in respect of the performance
of its power and duties hereunder.

     (k) The Trustee shall have no duty to inquire as to the performance of the Company’s covenants
herein.

     Section 8.03 . 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 or
Registrar may do the same with like rights. However, the Trustee must comply with Sections 8.10
and 8.11. In addition, the Trustee shall be permitted to engage in transactions with the Company;
provided, however, that if, during the continuance of any Default, the Trustee acquires any
conflicting interest the Trustee must (i) eliminate such conflict within 90 days of acquiring such
conflicting interest, (ii) apply to the SEC for permission to continue acting as Trustee or (iii)
resign.

     Section 8.04 . 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, shall not be
accountable for the Company’s use of the proceeds from the Securities, shall not be responsible for
the use or application of any money received by any Paying Agent other than the Trustee and shall
not be

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responsible for any statement of the Company 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 8.05 . Notice of Defaults. If a Default or Event of Default occurs and is continuing
and if a Trust Officer of the Trustee has actual knowledge thereof, the Trustee shall mail by first
class mail to each Holder at the address set forth in the Securities Register notice of the Default
or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of
Default in payment of principal of, or interest (including any Additional Interest) on, any
Security (including payments pursuant to the optional redemption or required repurchase provisions
of such Security, if any), the Trustee may withhold the notice if and so long as it determines in
good faith that withholding the notice is in the interests of Holders.

     Section 8.06 . Reports by Trustee to Holders. Within 60 days after each June 15 beginning
with the June 15 following the date of this Indenture, the Trustee shall mail to each Holder a
brief report dated as of such June 15 that complies with TIA § 313(a), if required by such TIA §
313(a). The Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail
all reports required by TIA § 313(c).

     Section 8.07 . Compensation and Indemnity. The Company shall pay to the Trustee from time to
time such compensation for its acceptance of this Indenture and services hereunder as the Company
and the Trustee shall from time to time agree in writing. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. In addition to the
compensation the Company shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred or made by it. Such expenses shall include the reasonable compensation and
out-of-pocket expenses, disbursements and advances of the Trustee’s agents, counsel, accountants
and experts. The Company and the Guarantors, jointly and severally, shall indemnify the Trustee
against any and all loss, liability, damages, claims or expense (including reasonable attorneys’
fees and expenses) incurred by it without negligence or bad faith on its part in connection with
the administration of this trust and the performance of its duties hereunder, including the costs
and expenses of enforcing this Indenture (including this Section 8.07) and of defending itself
against any claims (whether asserted by any Holder, the Company, any Guarantor or otherwise). 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 not relieve the Company or any of the Guarantors of its
obligations hereunder. The Company and such Guarantor shall defend the claim and the Trustee shall
provide reasonable cooperation at the Company’s expense in the defense. The Trustee may have
separate counsel and the Company shall pay the fees and expenses of such counsel, provided that the
Company shall not be

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required to pay such fees and expenses if it assumes the Trustee’s defense, and, in the
reasonable judgment of outside counsel to the Trustee, there is no conflict of interest between the
Company or any Guarantor and the Trustee in connection with such defense. The Company and the
Guarantors 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.

     To secure the Company’s and the Guarantors’ payment obligations in this Section 8.07, 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, or interest (including any
Additional Interest) on, particular Securities. Such lien shall survive the satisfaction and
discharge of this Indenture. The Trustee’s right to receive payment of any amounts due under this
Section 8.07 shall not be subordinate to any other unsecured liability or debt of the Company or
any Guarantor.

     The Company’s and the Guarantors’ payment obligations pursuant to this Section 8.07 shall
survive the discharge of this Indenture. When the Trustee incurs expenses after the occurrence of
a Default specified in Section 7.01(h) or Section 7.01(i) with respect to the Company or any
Guarantor, the expenses are intended to constitute expenses of administration under any Bankruptcy
Law.

     Section 8.08 . Replacement of Trustee. The Trustee may resign at any time by so notifying
the Company. The Holders of a majority in 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:

     (a) the Trustee fails to comply with Section 8.10;

     (b) the Trustee is adjudged bankrupt or insolvent;

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

     (d) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns or is removed by the Company or by the Holders of a majority in
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 the 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

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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 Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 8.07.

     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 at least 10% in principal amount of the
Securities may petition, at the Company’s expense, any court of competent jurisdiction for the
appointment of a successor Trustee.

     If the Trustee fails to comply with Section 8.10, unless the Trustee’s duty to resign is
stayed as provided in TIA § 310(b), any Holder 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 8.08, the Company’s
obligations under Section 8.07 shall continue for the benefit of the retiring Trustee.

     Section 8.09 . Successor Trustee by Merger. If the Trustee consolidates with, merges or
exchanges 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, exchange 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 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; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Securities in the name of any predecessor
Trustee shall only apply to its successor or successors by merger, consolidation or exchange.

     Section 8.10 . Eligibility; Disqualification. The Trustee shall at all times satisfy the
requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least
$100 million as set forth in its most recent published annual report of condition. The Trustee
shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation
of TIA § 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,

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including
the indenture governing the Company’s 67/8% Senior Notes due 2014, if the requirements
for such exclusion set forth in TIA § 310(b)(1) are met.

     Section 8.11 . Preferential Collection of Claims Against Company. The Trustee shall comply
with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

ARTICLE 9

Discharge of Indenture

     Section 9.01 . Discharge of Liability on Securities. When (1) the Company shall deliver to
the Registrar for cancellation all Securities theretofore authenticated (other than any Securities
which have been mutilated, destroyed, lost or wrongfully taken and in lieu of or in substitution
for which other Securities shall have been authenticated and delivered) and not theretofore
canceled, or (2) all the Securities not theretofore canceled or delivered to the Registrar for
cancellation shall have (a) been deposited for exchange (after all related Observation Periods have
elapsed) and the Company shall deliver to the Holders shares of Common Stock or a combination of
cash and shares of Common Stock, as applicable, sufficient to pay all amounts owing in respect of
all Securities (other than any Securities which shall have been mutilated, destroyed, lost or
wrongfully taken and in lieu of or in substitution for which other Securities shall have been
authenticated and delivered) not theretofore canceled or delivered to the Registrar for
cancellation or (b) become due and payable on the Stated Maturity, Purchase Date, Fundamental
Change Purchase Date or Redemption Date, as applicable, and the Company shall deposit with the
Trustee cash and shares of Common Stock, as applicable, sufficient to pay all amounts owing in
respect of all Securities (other than any Securities which shall have been mutilated, destroyed,
lost or wrongfully taken and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) not theretofore canceled or delivered to the Registrar for
cancellation, including the principal amount and interest (including any Additional Interest)
accrued and unpaid to such Stated Maturity, Purchase Date, Fundamental Change Purchase Date or
Redemption Date, as the case may be, and if in either case (1) or (2) the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this Indenture with respect
to the Securities shall cease to be of further effect (except as to (i) remaining rights of
registration of transfer, substitution and exchange and exchange of Securities; (ii) rights
hereunder of Holders to receive from the Trustee payments of the amounts then due, including
interest (including any Additional Interest), with respect to the Securities and the other rights,
duties and obligations of Holders, as beneficiaries hereof solely with respect to the amounts, if
any, so deposited with the Trustee; and (iii) the rights,

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obligations and immunities of the Trustee, Authenticating Agent, Paying Agent, Exchange Agent
and Registrar under this Indenture with respect to the Securities), and the Trustee, on demand of
the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by
Section 9.03 and at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture with respect to the Securities;
however, the Company hereby agrees to reimburse the Trustee, Authenticating Agent, Paying Agent,
Exchange Agent and Registrar for any costs or expenses thereafter reasonably and properly incurred
by the Trustee, Authenticating Agent, Paying Agent, Exchange Agent and Registrar and to compensate
the Trustee, Authenticating Agent, Paying Agent, Exchange Agent and Registrar for any services
thereafter reasonably and properly rendered by the Trustee, Authenticating Agent, Paying Agent,
Exchange Agent and Registrar in connection with this Indenture with respect to the Securities.

     Section 9.02 . Reinstatement. If the Trustee or the Paying Agent is unable to apply any
money to the Holders entitled thereto by reason of any order or judgment of any court of
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture with respect to the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to Section 9.01 until such time as the
Trustee or the Paying Agent is permitted to apply all such money in accordance with this Indenture
and the Securities to the Holders entitled thereto; provided, however, that if the Company makes
any payment of principal amount of, or interest (including any Additional Interest) on, any
Security following 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 held by the Trustee
or Paying Agent.

     Section 9.03 . Officers’ Certificate; Opinion of Counsel. Upon any application or demand by
the Company to the Trustee to take any action under Section 9.01, the Company shall furnish to the
Trustee an Officers’ Certificate or Opinion of Counsel stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with.

ARTICLE 10

Amendments

     Section 10.01 . Without Consent of Holders. The Company, the Guarantors and the Trustee may
amend this Indenture, the Securities and the Guarantees without notice to or consent of any Holder:

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     (a) to cure any ambiguity, omission, defect or inconsistency in this Indenture in a manner
that does not individually or in the aggregate adversely affect the rights of any Holder of
Securities in any respect;

     (b) to comply with Article 4 or Section 13.04 in respect of the assumption by a Successor
Company of an obligation of the Parent or the Company under this Indenture or any successor
Subsidiary Guarantor under any Guarantee of a Subsidiary;

     (c) to add Guarantors with respect to the Securities or release Subsidiary Guarantors from
Guarantees as provided or permitted by the terms of this Indenture;

     (d) to secure the Securities;

     (e) to add to the covenants of the Parent or the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Parent or the Company;

     (f) to comply with any requirement of the SEC in connection with the qualification of this
Indenture under the TIA;

     (g) to provide for the acceptance of appointment by a successor Trustee or Paying Agent or
facilitate the administration of the trusts under this Indenture by more than one Trustee or Paying
Agent;

     (h) to add to any Events of Default for the benefit of Holders of Securities;

     (i) to make any change that does not materially adversely affect the rights of any Holder; or

     (j) to conform the text of this Indenture, any Guarantee or the Securities to the “Description
of Notes” section of the Offering Memorandum.

     After an amendment under this Section 10.01 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment. The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an amendment under this
Section 10.01.

     Section 10.02 . With Consent of Holders. The Company, the Guarantors and the Trustee may
amend this Indenture, the Guarantees and the Securities without notice to any Holder but with the
written or electronic consent of the Holders of at least a majority in principal amount of the
Securities then outstanding (including, without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities), and subject to the

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provisions of Section 7.05 past Defaults or compliance with the provisions of this Indenture
or the Securities issued hereunder or related Guarantees may be waived with the written consent of
the Holders of at least a majority in principal amount of the Securities then outstanding
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities). However, without the consent of each Holder affected, an
amendment or waiver may not:

     (a) reduce the percentage in aggregate principal amount of Securities whose Holders must
consent to an amendment or waive any past default;

     (b) reduce the rate of or extend the stated time for payment of interest, including Additional
Interest, on any Security;

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

     (d) otherwise impair the right of any Holder to receive payment of principal of, or interest
(including any Additional Interest) on, such Holder’s Securities on or after the due dates therefor
or to institute suit for the enforcement of any payment on or with respect to such Holder’s
Securities;

     (e) make any change that impairs or adversely affects the exchange rights of any Securities;

     (f) release any Guarantor from any of its obligations under its Guarantee or this Indenture,
except in accordance with this Indenture;

     (g) reduce the Redemption Price, the Fundamental Change Purchase Price or the Purchase Price
payable upon the redemption or repurchase or exchange of any Security or amend or modify in any
manner adverse to Holders of the Securities the Company’s obligation to make such payments;

     (h) make any Security payable in currency other than that stated in the Security (it being
understood that all references to cash in this Indenture and the Securities are to U.S. legal
tender); or

     (i) make any changes to the amendment provisions which require each Holder’s consent or to the
waiver provisions.

     It shall not be necessary for the consent of the Holders under this Section 10.02 to approve
the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent
approves the substance thereof. A consent to any amendment or waiver under this Indenture by any
Holder of the Securities

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given in connection with a tender or exchange of such Holder’s Securities will not be rendered
invalid by such tender or exchange.

     After an amendment under this Section 10.02 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment. The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an amendment under this
Section 10.02.

     Section 10.03 . Compliance with Trust Indenture Act. Every amendment or supplement to this
Indenture or the Securities shall comply with the TIA as then in effect.

     Section 10.04 . 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 or otherwise in accordance with any related solicitation
documents. After an amendment or waiver becomes effective, it shall bind every Holder. An
amendment or waiver shall become effective upon receipt by the Trustee of the requisite number of
written or electronic consents under Section 10.01 or 10.02, as applicable.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders 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 Holders 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 become valid or
effective more than 120 days after such record date.

     Section 10.05 . 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.

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     Section 10.06 . Trustee to Sign Amendments. The Trustee shall sign any amendment authorized
pursuant to this Article 10 if the 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 such amendment the Trustee shall be entitled to receive and (subject to Sections 8.01 and
8.02) 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.

ARTICLE 11

Purchase at the Option of Holders Upon a Fundamental

Change; Purchase at the Option of Holders

     Section 11.01 . Purchase at the Option of the Holder Upon a Fundamental Change. If a
Fundamental Change shall occur at any time, each Holder shall have the right, at such Holder’s
option, to require the Company to purchase any or all of such Holder’s Securities on a date
specified by the Company that is no later than the 35th calendar day after the date of
the Company Notice of the occurrence of such Fundamental Change (subject to extension to comply
with applicable law, as provided in Section 11.03(d)) (the “Fundamental Change Purchase Date”). The
Company shall purchase such Securities at a price (the “Fundamental Change Purchase Price”), which
shall be paid in cash, equal to 100% of the principal amount of the Securities to be purchased plus
accrued and unpaid interest, including any Additional Interest, to but excluding the Fundamental
Change Purchase Date, unless the Fundamental Change Purchase Date is between a Regular Record Date
and the Interest Payment Date to which it relates, in which case the Fundamental Change Purchase
Price shall equal 100% of the principal amount of Securities to be purchased and accrued and unpaid
interest, including Additional Interest, shall be paid to the Holder of record on the Regular
Record Date.

     (a) Notice of Fundamental Change. The Company, or at its request (which must be received by
the Paying Agent at least three Business Days (or such lesser period as agreed to by the Paying
Agent) prior to the date the Paying Agent is requested to give such notice as described below) the
Paying Agent, in the name of and at the expense of the Company, shall mail to all Holders and the
Trustee a Company Notice of the occurrence of a Fundamental Change and of the purchase right
arising as a result thereof, including the information required by Section 11.03(a) hereof, on or
before the 20th calendar day after the occurrence of such Fundamental Change. The
Company shall promptly furnish to the Paying Agent a copy of such Company Notice.

     (b) Exercise of Option. For a Security to be so purchased at the option of the Holder, such
Holder must deliver to the Paying Agent such Security duly

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endorsed for transfer, together with a written notice of purchase (a “Fundamental Change
Purchase Notice”) in the form entitled “Form of Fundamental Change Purchase Notice” attached to the
Security duly completed, on or before the Business Day immediately preceding the Fundamental Change
Purchase Date, subject to extension to comply with applicable law. The Fundamental Change Purchase
Notice shall state:

     (i) if certificated, the certificate numbers of the Securities which the Holder shall
deliver to be purchased, or if not certificated, such notice must comply with appropriate
DTC procedures;

     (ii) the portion of the principal amount of the Securities which the Holder shall
deliver to be purchased, which portion must be $1,000 in principal amount or a multiple
thereof; and

     (iii) that such Securities shall be purchased as of the Fundamental Change Purchase
Date pursuant to the terms and conditions specified in paragraph 4 of the Securities and
in this Indenture.

     (c) Procedures. The Company shall purchase from a Holder, pursuant to this Section 11.01,
Securities if the principal amount of such Securities is $1,000 or a multiple of $1,000 if so
requested by such Holder.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 11.01
shall be consummated by the delivery of the Fundamental Change Purchase Price to be received by the
Holder promptly following the later of the Fundamental Change Purchase Date or the time of
book-entry transfer or delivery of the Securities.

     Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Purchase Notice contemplated by this Section 11.01 shall have the right at any
time prior to the close of business on the Business Day prior to the Fundamental Change Purchase
Date to withdraw such Fundamental Change Purchase Notice (in whole or in part) by delivery of a
written notice of withdrawal to the Paying Agent in accordance with Section 11.03(b).

     The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Purchase Notice or written notice of withdrawal thereof.

     At or before 11:00 a.m. (New York City time) on the Fundamental Change Purchase Date, the
Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is
acting as the Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate
Fundamental

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Change Purchase Price of the Securities to be purchased pursuant to this Section 11.01.
Payment by the Paying Agent of the Fundamental Change Purchase Price for such Securities shall be
made promptly following the later of the Fundamental Change Purchase Date or the time of book-entry
transfer or delivery of such Securities. If the Paying Agent holds, in accordance with the terms
of this Indenture, cash sufficient to pay the Fundamental Change Purchase Price of such Securities
on the Fundamental Change Purchase Date, then, on and after such date, such Securities shall cease
to be outstanding and interest (including any Additional Interest), on such Securities shall cease
to accrue, whether or not book-entry transfer of such Securities is made or such Securities are
delivered to the Paying Agent, and all other rights of the Holder shall terminate (other than the
right to receive the Fundamental Change Purchase Price and previously accrued and unpaid interest
(including any Additional Interest), upon delivery or transfer of the Securities). Nothing herein
shall preclude any withholding tax required by law.

     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 Holders or the Trustee all cash held by the
Paying Agent for the payment of the Fundamental Change Purchase Price and shall notify the Trustee
of any default by the Company in making any such payment. If the Company or an Affiliate of the
Company acts as Paying Agent, it shall segregate the cash 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 deliver all cash held
by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the
Paying Agent shall have no further liability for the cash delivered to the Trustee.

     Section 11.02 . Purchase of Securities at the Option of the Holder.

     (a) A Holder shall have the option to require the Company to purchase any outstanding
Securities on each of December 15, 2011, December 15, 2016 and December 15, 2021 (each, a “Purchase
Date”), at a price (the “Purchase Price”) which shall be paid in cash, equal to 100% of the
principal amount of the Securities to be repurchased plus any accrued and unpaid interest,
including any Additional Interest, to but excluding the Purchase Date, upon:

     (i) delivery to the Paying Agent by the Holder of a written notice of purchase (a
“Purchase Notice”) at any time from the opening of business on the date that is 20
Business Days prior to the relevant Purchase Date until the close of business on the
second Business Day prior to such Purchase Date, stating:

     (A) if certificated, the certificate numbers of the Securities which the
Holder will deliver to be purchased, or, if not

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certificated, the Purchase Notice must comply with appropriate DTC
procedures;

     (B) the portion of the principal amount of the Securities which the Holder
will deliver to be purchased, which portion must be $1,000 in principal amount
or a multiple thereof;

     (C) that such Securities shall be purchased by the Company as of the
Purchase Date pursuant to the terms and conditions specified in paragraph 4 of
the Securities and in this Indenture; and

     (ii) delivery or book-entry transfer of such Securities to the Paying Agent (together
with all necessary endorsements) at the offices of the Paying Agent, such delivery or
transfer being a condition to receipt by the Holder of the Purchase Price therefor;
provided, however, that such Purchase Price shall be so paid pursuant to this Section
11.02 only if the Securities so delivered or transferred to the Paying Agent shall conform
in all respects to the description thereof in the related Purchase Notice.

     (b) The Company shall purchase from a Holder, pursuant to this Section 11.02, Securities if
the principal amount of such Securities is $1,000 or a multiple of $1,000 if so requested by such
Holder.

     (c) Any purchase by the Company contemplated pursuant to the provisions of this Section 11.02
shall be consummated by the delivery of the Purchase Price to be received by the Holder promptly
following the later of the Purchase Date or the time of book-entry transfer or delivery of the
Securities.

     (d) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent
the Purchase Notice contemplated by this Section 11.02 shall have the right at any time prior to
the close of business on the Business Day prior to the Purchase Date to withdraw such Purchase
Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying Agent in
accordance with Section 11.03(b).

     (e) The Paying Agent shall promptly notify the Company of the receipt by it of any Purchase
Notice or written notice of withdrawal thereof.

     (f) At or before 11:00 a.m. (New York City time) on the Purchase Date, the Company shall
deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the
Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate Purchase
Price of the Securities to be purchased pursuant to this Section 11.02. Payment by the Paying
Agent of the Purchase Price for such Securities shall be made promptly following the later of

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the Purchase Date or the time of book-entry transfer or delivery of such Securities. If the
Paying Agent holds, in accordance with the terms of this Indenture, cash sufficient to pay the
Purchase Price of such Securities on the Purchase Date, then, on and after such date, such
Securities shall cease to be outstanding and interest (including any Additional Interest) on such
Securities shall cease to accrue, whether or not book-entry transfer of such Securities is made or
such Securities are delivered to the Paying Agent, and all other rights of the Holder shall
terminate (other than the right to receive the Purchase Price and previously accrued interest
(including any Additional Interest) upon delivery or transfer of the Securities). Nothing herein
shall preclude any withholding tax required by law.

     (g) 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 Holders or the Trustee all cash held
by the Paying Agent for the payment of the Purchase Price and shall notify the Trustee of any
default by the Company in making any such payment. If the Company or an Affiliate of the Company
acts as Paying Agent, it shall segregate the cash 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 deliver all cash held by
it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the
Paying Agent shall have no further liability for the cash delivered to the Trustee.

     Section 11.03 . Further Conditions and Procedures for Purchase at the Option of the Holder
Upon a Fundamental Change and Purchase of Securities at the Option of the Holder.

     (a) Notice of Purchase Date or Fundamental Change. The Company shall send notices (each, a
“Company Notice”) to the Holders, the Trustee, the Paying Agent and beneficial owners as required
by applicable law, not less than 20 Business Days prior to each Purchase Date, or on or before the
20th calendar day after the occurrence of the Fundamental Change, as the case may be
(each such date of delivery, a “Company Notice Date”). Each Company Notice shall include a form of
Purchase Notice or Fundamental Change Purchase Notice, as the case may be, to be completed by a
Holder and shall state:

     (i) the applicable Purchase Price or Fundamental Change Purchase Price, as the case
may be;

     (ii) if exchange is permitted under Section 12.01(a)(iv), the Exchange Rate at the
time of such notice and any expected adjustments to the Exchange Rate;

     (iii) the applicable Purchase Date or Fundamental Change Purchase Date, as the case
may be, and the last date on which a Holder

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may exercise its repurchase rights under Section 11.01 or Section 11.02, as
applicable;

     (iv) the name and address of the Paying Agent and the Exchange Agent;

     (v) that Securities must be surrendered to the Paying Agent to collect payment of the
Purchase Price or the Fundamental Change Purchase Price, as the case may be;

     (vi) that Securities as to which a Purchase Notice or a Fundamental Change Purchase
Notice has been delivered may be surrendered for exchange only if the applicable Purchase
Notice or Fundamental Change Purchase Notice, as the case may be, has been withdrawn in
accordance with the terms of this Indenture;

     (vii) that the Purchase Price or the Fundamental Change Purchase Price for any
Securities as to which a Purchase Notice or a Fundamental Change Purchase Notice, as
applicable, has been given and not withdrawn shall be paid by the Paying Agent promptly
following the later of the Purchase Date or the Fundamental Change Purchase Date, as
applicable, or the time of book-entry transfer or delivery of such Securities;

     (viii) the procedures the Holder must follow under Sections 11.01 or 11.02, as
applicable, and Section 11.03;

     (ix) the exchange rights of the Securities;

     (x) that, unless the Company defaults in making payment of such Purchase Price or
Fundamental Change Purchase Price on Securities covered by any Purchase Notice or
Fundamental Change Purchase Notice, as applicable, interest (including any Additional
Interest) will cease to accrue on and after the Purchase Date or Fundamental Change
Purchase Date, as applicable;

     (xi) the CUSIP or ISIN number of the Securities;

     (xii) the procedures for withdrawing a Purchase Notice or a Fundamental Change
Purchase Notice, as the case may be; and

     (xiii) in the case of a Company Notice pursuant to Section 11.01, the events causing
a Fundamental Change and the effective date of the Fundamental Change.

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     Simultaneously with providing such Company Notice, the Company will publish a notice
containing the information in such Company Notice in a newspaper of general circulation in The City
of New York or publish such information on the Parent’s then existing website or through such other
public medium as it may use at the time.

     At the Company’s request, made at least five Business Days prior to the date upon which such
notice is to be mailed, and at the Company’s expense, the Paying Agent shall give the Company
Notice in the Company’s name; provided, however, that, in all cases, the text of the Company Notice
shall be prepared by the Company.

     (b) Adequacy and Effect of Purchase Notice or Fundamental Change Purchase Notice; Withdrawal;
Effect of Event of Default. The Company shall reasonably determine whether the Purchase Notice or
Fundamental Change Purchase Notice delivered by the relevant Holders satisfies the conditions set
out in Section 11.02(a), Section 11.01(b) and Section 11.03 for such notices. The Company’s
determination under this Section 11.03(b) will be binding and conclusive, absent manifest error.

     Upon receipt by the Company of the Purchase Notice or Fundamental Change Purchase Notice
specified in Section 11.02(a) or Section 11.01(b), as applicable, the Holder of the Securities in
respect of which such Purchase Notice or Fundamental Change Purchase Notice, as the case may be,
was given shall (unless such Purchase Notice or Fundamental Change Purchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive solely the Purchase
Price or Fundamental Change Purchase Price with respect to such Securities. Such Purchase Price or
Fundamental Change Purchase Price shall be paid by the Paying Agent to such Holder promptly
following the later of (x) the Purchase Date or the Fundamental Change Purchase Date, as the case
may be, with respect to such Securities (provided the conditions in this Article 11 have been
satisfied) and (y) the time of delivery or book-entry transfer of such Securities to the Paying
Agent by the Holder thereof in the manner required by Section 11.02 or Section 11.01, as
applicable. Securities in respect of which a Purchase Notice or Fundamental Change Purchase Notice,
as the case may be, has been given by the Holder thereof may not be exchanged on or after the date
of the delivery of such Purchase Notice or Fundamental Change Purchase Notice, as the case may be,
unless such Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has first
been validly withdrawn as specified in the following two paragraphs.

     A Purchase Notice or Fundamental Change Purchase Notice, as the case may be, may be withdrawn
by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time
prior to 5:00 p.m., New York City

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time, on the Business Day prior to the Purchase Date or the Fundamental Change Purchase Date,
as the case may be, to which it relates, specifying:

     (i) the principal amount of the Securities with respect to which such notice of
withdrawal is being submitted;

     (ii) if certificated, the certificate number of the Securities in respect of which
such notice of withdrawal is being submitted, or, if not certificated, the written notice
of withdrawal must comply with appropriate DTC procedures; and

     (iii) the principal amount, if any, of such Securities which remains subject to the
original Purchase Notice or Fundamental Change Purchase Notice, as the case may be, and
which has been or shall be delivered for purchase by the Company.

     There shall be no purchase of any Securities pursuant to Section 11.02 or Section 11.01 if an
Event of Default has occurred and is continuing (other than a default that is cured by the payment
of the Purchase Price or Fundamental Change Purchase Price, as the case may be). The Paying Agent
shall promptly return to the respective Holders thereof any Securities (x) with respect to which a
Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has been withdrawn in
compliance with this Indenture, or (y) held by it during the continuance of an Event of Default
(other than a default that is cured by the payment of the Purchase Price or Fundamental Change
Purchase Price, as the case may be) in which case, upon such return, the Purchase Notice or
Fundamental Change Purchase Notice with respect thereto shall be deemed to have been withdrawn.

     (c) Securities Purchased in Part. Any Securities that are to be purchased only in part shall
be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing)
and the Company shall execute and the Trustee or the Authenticating Agent shall authenticate and
deliver to the Holder of such Securities, without service charge, a new Security or Securities, of
any authorized denomination as requested by such Holder in aggregate principal amount equal to, and
in exchange for, the portion of the principal amount of the Securities so surrendered which is not
purchased.

     (d) Covenant to Comply with Securities Laws Upon Purchase of Securities. In connection with
any offer to purchase Securities under Section 11.02 or Section 11.01, the Company shall, to the
extent applicable, (a) comply with Rules 13e-4 and 14e-1 (and any successor provisions thereto)
under the

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Exchange Act, if applicable; (b) file the related Schedule TO (or any successor schedule, form
or report) under the Exchange Act, if applicable; and (c) otherwise comply with all applicable
federal and state securities laws so as to permit the rights and obligations under Section 11.02 or
Section 11.01 to be exercised in the time and in the manner specified in Section 11.02 or Section
11.01.

     (e) Repayment to the Company. Subject to applicable abandoned property laws, the Trustee and
the Paying Agent shall return to the Company any cash or property that remains unclaimed, as
provided in paragraph 8 of the Securities, together with interest that the Trustee or Paying Agent,
as the case may be, has expressly agreed in writing to pay, if any, that is held by them for the
payment of a Purchase Price or Fundamental Change Purchase Price, as the case may be; provided,
however, that to the extent that the aggregate amount of cash or property deposited by the Company
pursuant to Section 11.01(c) or Section 11.02(f), as applicable, exceeds the aggregate Purchase
Price or Fundamental Change Purchase Price, as the case may be, of the Securities or portions
thereof which the Company is obligated to purchase as of the Purchase Date or the Fundamental
Change Purchase Date, as the case may be, then promptly on and after the Business Day following the
Purchase Date or Fundamental Change Purchase Date, as the case may be, the Trustee and the Paying
Agent shall return any such excess to the Company together with interest that the Trustee or Paying
Agent, as the case may be, has expressly agreed in writing to pay, if any.

     (f) Officers’ Certificate. At least five Business Days before the Company Notice Date, the
Company shall deliver an Officers’ Certificate to the Trustee specifying whether the Company
desires the Trustee to give the Company Notice required by Section 11.03(a) herein.

ARTICLE 12

Exchange

     Section 12.01 . Exchange of Securities. (a) Right to Exchange. Subject to the procedures
for exchange set forth in this Article 12, a Holder may exchange its Securities on or prior to the
close of business on the Business Day immediately preceding Stated Maturity at the Exchange Rate
when one or more of the conditions specified below are met and during the related specified period.
Whenever the Securities shall become exchangeable upon one or more of the conditions stated in
clauses (i), (ii), (iv)(A), (iv)(B) or (iv)(C) below, the Company or, at the Company’s request, the
Trustee in the name and at the expense of the Company, shall notify the Holders of the event
triggering such exchangeability in the manner provided in Section 14.02 and, in the case of one or
more conditions stated in clauses (iv)(B) or (iv)(C), the Company shall also publish a notice in
accordance with Section 11.03(a). For the avoidance of doubt,

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the Trustee has no duty to determine if Securities have become exchangeable, and its only
obligation is to notify Holders of such at the Company’s request. Whenever the Securities shall
become exchangeable upon the condition stated in clause (iii), notice of the event triggering such
exchangeability shall be given in accordance with the provisions of Section 6.04. Any notice so
given shall be conclusively presumed to have been duly given, whether or not the Holder receives
such notice.

     (i) Exchange Upon Satisfaction of Sale Price Condition. A Holder may surrender all or
a portion of its Securities for exchange during any fiscal quarter (and only during such
fiscal quarter) commencing after March 31, 2007 if the Last Reported Sale Price for the
Common Stock for at least 20 Trading Days during the period of 30 consecutive Trading Days
ending on the last Trading Day of the immediately preceding fiscal quarter is greater than
or equal to 135% of the Exchange Price in effect on such last Trading Day.

     (ii) Exchange Upon Satisfaction of Trading Price Condition. Prior to December 15,
2011, a Holder may surrender its Securities for exchange during the five Business Day
period after any 10 consecutive Trading Day period (the “Measurement Period”) in which the
Trading Price per $1,000 principal amount of Securities, as determined following a request
by a Holder in accordance with the procedures set forth in this Section 12.01(a)(ii), for
each Trading Day of the Measurement Period was less than 95% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Exchange Rate for such Trading
Day. In connection with any exchange in accordance with this Section 12.01(a)(ii), the
Trustee shall have no obligation to determine the Trading Price of the Securities unless
requested by the Company; and the Company shall have no obligation to make such request
unless a Holder provides the Company with reasonable evidence that the Trading Price per
$1,000 principal amount of Securities would be less than 95% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Exchange Rate. Promptly after
receiving such evidence, the Company shall instruct the Trustee to determine the Trading
Price of the Securities beginning on the next Trading Day and on each successive Trading
Day until the Trading Price per $1,000 principal amount of Securities for any Trading Day
is greater than or equal to 95% of the product of the Last Reported Sale Price of the
Common Stock and the applicable Exchange Rate.

     (iii) Exchange Upon Notice of Redemption. If the Company calls any or all of the
Securities for Redemption, a Holder may surrender for exchange all or a portion of its
Securities called for redemption at any time prior to the close of business on the third
Scheduled Trading Day

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prior to the related Redemption Date, even if the Securities are not otherwise
exchangeable at such time, after which time a Holder’s right to exchange will expire
unless the Company defaults in the payment of the Redemption Price. For the avoidance of
doubt, if the Company gives two or more notices of redemption such that the Observation
Periods applicable to the relevant Redemption Dates overlap, the Observation Period based
on the first notice of redemption that is given shall be applicable to such Securities.

     (iv) Exchange Upon Specified Corporate Transactions.

     (A) If the Parent elects to (1) distribute to all holders of Common Stock
any rights or warrants entitling them to purchase, for a period expiring within
45 days after the Ex-Dividend Date of the distribution, shares of Common Stock
at a price per share less than the average of the Last Reported Sale Price of
Common Stock for the 10 consecutive Trading Day period ending on the Trading Day
immediately preceding the Ex-Dividend Date for such distribution, or (2)
distribute to all holders of Common Stock assets, debt securities or rights to
purchase securities of the Parent, which distribution has a per share Fair
Market Value, as determined by the Parent’s Board of Directors, exceeding 15% of
the Last Reported Sale Price of the Common Stock on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution, then, in each case, the
Company must notify the Holders of such distribution and of their rights under
this clause (A), in the manner provided in Section 14.02, at least 35 Scheduled
Trading Days prior to the Ex-Dividend Date for such distribution. Once the
Company has given such notice, Holders may surrender Securities for exchange at
any time until the earlier of 5:00 p.m., New York City time, on the Business Day
immediately prior to such Ex-Dividend Date or the announcement that such
distribution will not take place even if the Securities are not otherwise
exchangeable at such time. Notwithstanding the foregoing, Holders may not
surrender Securities for exchange if the Holders participate (as a result of
holding the Securities, and at the same time as holders of Common Stock
participate) in any of the transactions described in this Section 12.01(a)(iv)
as if such Holders of the Securities held a number of shares of Common Stock
equal to the applicable Exchange Rate, multiplied by the principal amount
(expressed in thousands) of Securities held by such Holder, without having to
exchange the Securities.

     (B) If the Parent is party to a transaction described in clause (2) of the
definition of Fundamental Change (after giving

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effect to the proviso set forth in the definition thereof relating to
Publicly Traded Securities) or a combination, merger, binding share exchange or
sale, lease or other transfer of all or substantially all of the Parent’s and
its Subsidiaries’ assets, taken as a whole, in each case pursuant to which the
Common Stock would be converted into cash, securities and/or other property that
does not also constitute a Fundamental Change, the Company must notify Holders
of such an event and of their rights under this clause (B), in the manner
provided in Section 14.02, at least 35 Scheduled Trading Days prior to the
anticipated effective date for such transaction. Once the Company has given such
notice, Holders may surrender Securities for exchange at any time until seven
Scheduled Trading Days after the actual effective date of such transaction or,
if later, the related Fundamental Change Purchase Date.

     (C) A Holder may surrender all or a portion of such Holder’s Securities for
exchange, if a Fundamental Change of the type described in clause (1) or (3) in
the definition thereof occurs. In such event, Holders may surrender Securities
for exchange at any time beginning on the actual Effective Date of such
Fundamental Change until and including the date which is seven Scheduled Trading
Days after the actual effective date of such transaction or, if later, until the
related Fundamental Change Purchase Date.

A Holder may exchange a portion of the principal amount of Securities if the portion is $1,000 or a
multiple of $1,000. The number of shares of Common Stock issuable or the combination of cash
payable and the number of shares of Common Stock issuable, if any, upon exchange of a Security
shall be determined as set forth in Section 12.01(d).

     (b) Exchange During Specified Period Immediately Prior to Stated Maturity. Notwithstanding
anything herein to the contrary, a Holder may surrender its Securities for exchange beginning on
September 15, 2026, until the close of business on the second Business Day immediately preceding
the Stated Maturity.

     (c) Exchange Procedures. The following procedures shall apply to the exchange of Securities:

     (i) In respect of a Definitive Security, a Holder must (A) complete and manually sign
the exchange notice on the back of the Security, or a facsimile of such exchange notice;
(B) deliver such exchange notice, which is irrevocable, and the Security to the Exchange

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Agent; (C) to the extent any shares of Common Stock issuable upon exchange are to be
issued in a name other than the Holder’s, furnish appropriate endorsements and transfer
documents as may be required by the Exchange Agent; (D) if required pursuant to Section
12.01(h), pay all transfer or similar taxes; and (E) if required pursuant to Section
2.01(d), pay funds equal to interest payable on the next Interest Payment Date to which
such Holder is not entitled.

     (ii) In respect of a beneficial interest in a Global Security, a Beneficial Owner
must comply with DTC’s procedures for exchanging a beneficial interest in a Global
Security and, if required pursuant to Section 2.01(d), pay funds equal to interest payable
on the next Interest Payment Date to which such Beneficial Owner is not entitled, and if
required, taxes or duties, if any.

     The date a Holder satisfies the foregoing requirements is the “Exchange Date” hereunder.

     If a Holder exchanges more than one Security at the same time, the number of shares of Common
Stock issuable or the combination of the cash payable and number of shares of Common Stock issuable
upon the exchange, if any, shall be based on the total principal amount of the Securities
exchanged.

     Upon surrender of a Security that is exchanged in part, the Company shall execute, and the
Trustee or the Authenticating Agent shall authenticate and deliver to the Holder, a new Security in
an authorized denomination equal in principal amount to the unexchanged portion of the Security
surrendered.

     Delivery of shares of Common Stock will be accomplished by delivery to the Exchange Agent of
certificates for the relevant number of shares of Common Stock, other than in the case of Holders
of Global Securities in book-entry form with DTC, in which case shares of Common Stock shall be
delivered in accordance with DTC customary practices. In addition, the Company will pay cash for
any fractional shares of Common Stock in accordance with Section 12.01(g).

     (d) Settlement Upon Exchange. In the event that the Company receives a Holder’s notice of
exchange upon satisfaction of one or more of the conditions to exchange described in this Section
12.01, the Company will notify the relevant Holders within two Scheduled Trading Days following the
Exchange Date whether the Company will satisfy its obligation to exchange the Securities through
delivery of (x) shares of Common Stock pursuant to clause (ii) below or (y) a combination of cash
and shares of Common Stock pursuant to clause (i) below; provided, however, the Company may not
elect to satisfy such obligation pursuant to clause (ii) below (A) on or after December 15, 2011,
(B) in

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connection with any exchanges made pursuant to Section 12.01(a)(iii) or (C) if the Company has
made the election to waive its right to do so pursuant to Section 12.01(e).

     (i) If the Company chooses or has to satisfy its obligation to exchange the
Securities (the ‘‘Exchange Obligation’’) by a combination of cash and shares of Common
Stock, upon exchange the Company will, except as provided in Section 12.01(f), deliver to
exchanging Holders, in respect of each $1,000 principal amount of Securities being
exchanged, a “Settlement Amount” equal to the sum of the Daily Settlement Amounts for each
of the 25 VWAP Trading Days during the Observation Period for such Security.

     “Daily Settlement Amount,” for each of the 25 VWAP Trading Days during the
Observation Period, shall consist of:

     (A) cash equal to the lesser of $40 and the Daily Exchange Value; and

     (B) to the extent the Daily Exchange Value exceeds $40, a number of shares
of the Common Stock equal to, (A) the difference between the Daily Exchange
Value and $40, divided by (B) the Daily VWAP for such VWAP Trading Day.

     “Daily Exchange Value” means, for each of the 25 consecutive VWAP Trading Days during
the Observation Period, 4% of the product of (1) the applicable Exchange Rate and (2) the
Daily VWAP of the Common Stock on such VWAP Trading Day.

     “Daily VWAP” means, for each of the 25 consecutive VWAP Trading Days during the
Observation Period, the per share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page “SPN UN <EQUITY> VAP <GO>”, or its
equivalent successor page, in respect of the period from 9:30 a.m. to 4:00 p.m., New York
City time, on such VWAP Trading Day, or if such volume-weighted average price is
unavailable or if such page or its equivalent is unavailable, the (a) price of each trade
in shares of Common Stock multiplied by the number of shares of Common Stock in each such
trade (b) divided by the total number of shares of Common Stock traded, in each case
during such VWAP Trading Day from 9:30 a.m. to 4:00 p.m., New York City time on the New
York Stock Exchange or, if the Common Stock is not traded on the New York Stock Exchange,
the principal U.S. national or regional securities exchange on which the Common Stock is
listed, by a nationally recognized independent investment banking firm

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(which may be one of the Initial Purchasers or its Affiliates) retained for this
purpose by the Company.

     The Settlement Amount in respect of any Security exchanged pursuant to this clause
(i) will be delivered to exchanging Holders as soon as practicable following the last day
of the Observation Period for the Exchange Date for such Security.

     (ii) If the Company elects to satisfy all of its Exchange Obligation in shares of
Common Stock pursuant to this Section 12.01(d), upon exchange the Company will, except as
provided in Section 12.01(f), deliver to any exchanging Holder a number of shares of
Common Stock equal to (i) the aggregate principal amount of Securities being exchanged by
such Holder divided by $1,000 multiplied by (ii) the applicable Exchange Rate.

The shares of Common Stock in respect of any Security exchanged (and cash in lieu of any
fractional shares) pursuant to this clause (ii) will be delivered through the Exchange
Agent or DTC as soon as practicable following the last day of the Observation Period for
the Exchange Date for such Security.

     (iii) With respect to a exchange of a Security pursuant hereto, at and after the
close of business on the last Trading Day (the “Relevant Date”) of the Observation Period
applicable to such exchange, the Person in whose name any certificate
representing any shares of Common Stock issuable upon such exchange is registered shall be treated as a
stockholder of record of the Company; provided, however, that if any such shares of Common
Stock constitute Additional Shares, then the Relevant Date with respect to such shares
that constitute Additional Shares shall instead be deemed to be the later of (i) the last
Trading Day of the Observation Period applicable to such exchange and (ii) the Effective
Date of the Fundamental Change resulting in the Additional Shares. On and after the
Exchange Date with respect to a exchange of a Security pursuant hereto, all rights of the
Holder of such Security shall terminate, other than the right to receive the consideration
deliverable upon exchange of such Security as provided herein. A Holder of a Security is
not entitled, as such, to any rights of a holder of Common Stock until, if such Holder
exchanges such Security and is entitled pursuant hereto to receive shares of Common Stock
in respect of such exchange, the close of business on the Relevant Date or respective
Relevant Dates, as the case may be, with respect to such exchange.

     (e) Exchange After Irrevocable Election to Waive Right to Settle Solely in Cash and Settle
Solely in Shares of Common Stock. At any time on or before

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the 28th Scheduled Trading Day prior to December 15, 2011, the Company may,
irrevocably waive, in its sole discretion, without the consent of the Holders, by notice to the
Trustee and the Holders, its right to satisfy the Exchange Obligation prior to December 15, 2011
solely in shares of Common Stock.

     (f) Surrender to a Financial Institution in Lieu of Exchange. When a Holder surrenders
Securities for exchange, the Company may direct the Exchange Agent to surrender such Securities to
a financial institution designated by the Company (the “Designated Institution”) for transfer in
lieu of exchange. In order to accept any Securities surrendered for exchange, the Designated
Institution must agree to deliver, in exchange for such Securities, shares of Common Stock based
upon the applicable Exchange Rate or a combination of cash and shares of Common Stock, if
applicable, equal to the consideration due upon exchange, as determined under Section 12.01(d). By
the close of business on the Scheduled Trading Day immediately preceding the start of the
Observation Period, the Company will notify the Holder surrendering Securities for exchange that
(i) it has directed the Designated Institution to accept the Securities in lieu of exchange and
(ii) whether the Designated Institution will deliver, upon exchange, shares of Common Stock based
upon the applicable Exchange Rate or a combination of cash and shares of Common Stock, if
applicable, equal to the consideration due upon exchange, as determined under Section 12.01(d). If
the Designated Institution accepts any such Securities, it will deliver the appropriate number of
shares of Common Stock or cash and shares of Common Stock, if applicable, as the case may be, to
the Exchange Agent and the Exchange Agent will deliver those shares of Common Stock or cash and
shares of Common Stock, if applicable, as the case may be, to the Holder. Any Securities accepted
by the Designated Institution in lieu of exchange will remain outstanding. If the Designated
Institution agrees to accept any Securities surrendered for exchange but does not timely deliver
the related consideration, or if such Designated Institution does not accept the Securities for
exchange, the Company will, as promptly as practical thereafter exchange the Securities into shares
of Common Stock or cash and shares of Common Stock, if applicable, in accordance with the election
made by the Company in the initial notice to the Holders surrendering the Securities and based on
the Observation Period as determined under Section 12.01(d). The Company’s designation of a
financial institution to which the Securities may be surrendered for exchange does not require the
institution to accept any Securities. The Company will not pay any consideration to, or otherwise
enter into any agreement with, the Designated Institution for or with respect to such designation.

     (g) Cash Payments in Lieu of Fractional Shares. The Company shall not deliver a fractional
share of Common Stock upon exchange of Securities. Instead the Company shall deliver cash for the
current market value of the fractional share. The current market value of a fractional share shall
be

70

 

determined to the nearest 1/10,000th of a share by multiplying the Daily VWAP of a full share
of Common Stock on the final Trading Day of the related Observation Period by the fractional amount
and rounding the product to the nearest whole cent.

     (h) Taxes on Exchange. If a Holder exchanges Securities, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon
the exchange. However, the Holder shall pay any such tax which is due because the Holder requests
the shares to be issued in a name other than the Holder’s name. The Exchange Agent may refuse to
deliver the certificates representing the Common Stock being issued in a name other than the
Holder’s name until the Exchange Agent receives a sum sufficient to pay any tax which shall be due
because the shares are to be issued in a name other than the Holder’s name, but the Exchange Agent
shall have no duty to determine if any such tax is due. Nothing herein shall preclude any
withholding of tax required by law.

     (i) Certain Covenants of the Parent.

     (i) The Parent shall, prior to issuance of any Securities hereunder, and from time to
time as may be necessary, reserve out of its authorized but unissued
Common Stock or shares of Common Stock held in treasury, a sufficient number of shares of Common Stock,
free of preemptive rights, to permit the exchange of the Securities, and shall make
available to the Company any shares of Common Stock required to be delivered by the
Company upon exchange of the Securities in accordance with this Article 12.

     (ii) All shares of Common Stock delivered upon exchange of the Securities shall be
newly issued shares or treasury shares, shall be duly and validly issued and fully paid
and nonassessable and shall be free from preemptive rights and free of any lien or adverse
claim. To the extent required, the Company shall pay to the Parent consideration for the
issuance of shares of Common Stock as shall be necessary to ensure that the foregoing
requirements are satisfied.

     (iii) The Parent shall endeavor promptly to comply with all federal and state
securities laws regulating the issuance and delivery of shares of Common Stock upon the
exchange of Securities, if any, and shall cause to have listed or quoted all such shares
of Common Stock on each U.S. national securities exchange or over-the-counter or other
domestic market on which the Common Stock is then listed or quoted.

     (iv) Before taking any action which would cause an adjustment increasing the Exchange
Rate to an amount that would cause the Exchange

71

 

Price to be reduced below the then par value per share of the Common Stock, if any,
of the shares of Common Stock issuable upon exchange of the Securities, the Parent will
take all corporate action which may, in the opinion of its counsel, be necessary in order
that the Parent may validly and legally issue shares of such Common Stock at such adjusted
Exchange Rate.

     Section 12.02. Adjustments to Exchange Rate. The applicable Exchange Rate shall be adjusted
by the Company as follows:

     (a) If the Parent issues shares of Common Stock as a dividend or distribution on shares of the
Common Stock, or effects a share split or share combination, the Exchange Rate will be adjusted
based on the following formula:

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to
the Ex-Dividend Date for such dividend or
distribution, or the effective date of such share
split or share combination, as the case may be;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately after
the Ex-Dividend Date for such dividend or
distribution, or the effective date of such share
split or share combination, as the case may be;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the Ex-Dividend Date for such
dividend or distribution, or the effective date of
such share split or share combination, as the case
may be; and
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding
immediately after such dividend or distribution,
or the effective date of such share split or share
combination, as the case may be.

Such adjustment shall become effective immediately after (i) the Ex-Dividend Date for such dividend
or distribution or (ii) the date on which such split or combination becomes effective, as
applicable. If any dividend or distribution of the type described in this Section 12.02(a) is
declared but not so paid or made, the new Exchange Rate shall again be adjusted to the Exchange
Rate that would then be in effect if such dividend or distribution had not been declared.

72

 

     (b) If the Parent distributes to all holders of its Common Stock any rights or warrants
entitling them to purchase, for a period of not more than 45 days after the Ex-Dividend Date for
the distribution, shares of Common Stock at a price per share less than the average of the Last
Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on the
Trading Day immediately preceding the Ex-Dividend Date for such distribution, the Exchange Rate
will be adjusted based on the following formula:

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately after
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the Ex-Dividend Date for such
distribution;
	 
	 	 	 	 
	X

	 	=
	 	the total number of shares of Common Stock
issuable pursuant to such rights or warrants; and
	 
	 	 	 	 
	Y

	 	=
	 	the number of shares of Common Stock equal to the
aggregate price payable to exercise such rights or
warrants divided by the average of the Last
Reported Sale Prices of the Common Stock over the
10 consecutive Trading Day period ending on the
Trading Day immediately preceding the Ex-Dividend
Date for such distribution.

For purposes of this Section 12.02(b), in determining whether any rights or warrants entitle the
Holders to subscribe for or purchase shares of Common Stock at less than the average of the
applicable Last Reported Sale Prices, and in determining the aggregate exercise or exchange price
payable for such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or exchange
thereof, with the value of such consideration, if other than cash, to be determined by the Parent’s
Board of Directors. If any right or warrant described in this Section 12.02(b) is not exercised or
exchanged prior to the expiration of the exercisability or exchangeability thereof, the new
Exchange Rate shall be readjusted to the Exchange Rate that would then be in effect if such right
or warrant had not been so issued. Any adjustment made pursuant to this Section

73

 

 12.02(b) shall
become effective immediately after the Ex-Dividend Date for the applicable distribution.

     (c) If the Parent distributes shares of Capital Stock, evidences of its indebtedness or other
assets or property of the Parent to all holders of the Common Stock, excluding:

     (i) dividends or distributions referred to in clause (a) or (b) above;

     (ii) dividends or distributions paid exclusively in cash; and

     (iii) Spin-Offs to which the provisions set forth below in this clause (c) shall
apply;

then the Exchange Rate will be adjusted based on the following formula:

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately after
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the average of the Last Reported Sale Prices of
the Common Stock over the 10 consecutive Trading
Day period ending on the Trading Day immediately
preceding the Ex-Dividend Date for such
distribution; and
	 
	 	 	 	 
	FMV

	 	=
	 	the average of the Fair Market Values (as
determined by the Board of Directors of the Parent
) of the shares of Capital Stock, evidences of
indebtedness, assets or property distributed with
respect to each outstanding share of Common Stock
over the 10 consecutive Trading-Day period ending
on the Trading Day immediately preceding the
Ex-Dividend Date for such distribution.

Such adjustment shall become effective immediately after the Ex-Dividend Date for the applicable
distribution.

With respect to an adjustment pursuant to this clause (c) where there has been a payment of a
dividend or other distribution on the Common Stock of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit of the
Parent (a “Spin-Off”), the Exchange Rate in effect immediately before 5:00 p.m., New York City
time, on the tenth Trading

74

 

Day immediately following, and including, the effective date of the
Spin-Off will be increased based on the following formula:

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to
the tenth Trading Day immediately following, and
including, the effective date of the Spin-Off;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately after
the tenth Trading Day immediately following, and
including, the effective date of the Spin-Off;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Last Reported Sale Prices of
the Capital Stock or similar equity interest
distributed to holders of Common Stock applicable
to one share of Common Stock over the first 10
consecutive Trading Day period immediately
following, and including, the effective date of
the Spin-Off; and
	 
	 	 	 	 
	MP0

	 	=
	 	the average of the Last Reported Sale Prices of
Common Stock over the first 10 consecutive
Trading Day period immediately following, and
including, the effective date of the Spin-Off.

Such adjustment shall occur immediately after the tenth Trading Day immediately following, and
including, the effective date of the Spin-Off provided that, for purposes of determining the
Exchange Rate, in respect of any exchange during the ten Trading Days following the effective date
of any Spin-Off, references within the portion of this clause (c) related to “Spin-Offs” to 10
Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed
between the effective date of such Spin-Off and the relevant Exchange Date.

If any such dividend or distribution described in this clause (c) is declared but not paid or made,
the new Exchange Rate shall be readjusted to be the Exchange Rate that would then be in effect if
such dividend or distribution had not been declared.

     (d) If any cash dividend or distribution is made to all holders of Common Stock, the Exchange
Rate will be adjusted based on the following formula:

75

 

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately after
the Ex-Dividend Date for such distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the Last Reported Sale Price of the Common Stock
on the Trading Day immediately preceding the
Ex-Dividend Date for such distribution; and
	 
	 	 	 	 
	C

	 	=
	 	the amount in cash per share of Common Stock
distributed to holders of Common Stock.

An adjustment to the Exchange Rate made pursuant to this clause (d) shall become effective
immediately after the Ex-Dividend Date for the applicable dividend or distribution. If any dividend
or distribution described in this clause (d) is declared but not so paid or made, the new Exchange
Rate shall be readjusted to the Exchange Rate that would then be in effect if such dividend or
distribution had not been declared.

     (e) If the Parent or any of its Subsidiaries makes a payment in respect of a tender or
exchange offer for Common Stock, to the extent that the cash and value of any other consideration
included in the payment per share of Common Stock exceeds the Last Reported Sale Price of the
Common Stock on the Trading Day next succeeding the last date on which tenders or exchanges may be
made pursuant to such tender or exchange offer, the Exchange Rate will be increased based on the
following formula:

     where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect at the close of
business on the last Trading Day of the 10
consecutive Trading Day period commencing on the
Trading Day next succeeding the date such tender
or exchange offer expires;
	 
	 	 	 	 
	ER’

	 	=
	 	the new Exchange Rate in effect immediately
following the last Trading Day of the 10
consecutive Trading Day period commencing on the
Trading Day next succeeding the date such tender
or exchange offer expires;
	 
	 	 	 	 
	AC

	 	=
	 	the aggregate value of all cash and any other
consideration (as determined by the Parent’s Board
of Directors) paid or payable for shares purchased
in such tender or exchange offer;

76

 

	 	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding
immediately prior to the expiration of such tender
or exchange offer;
	 
	 	 	 	 
	OS’

	 	=
	 	the number of shares of Common Stock outstanding
immediately after the expiration of such tender or
exchange offer (after giving effect to the
purchase or exchange of shares pursuant to such
tender or exchange offer); and
	 
	 	 	 	 
	SP’

	 	=
	 	the average of the Last Reported Sale Prices of
Common Stock over the 10 consecutive Trading Day
period commencing on the Trading Day next
succeeding the date such tender or exchange offer
expires.

The adjustment to the Exchange Rate under this clause (e) shall become effective immediately
following the tenth Trading Day next succeeding the date such tender or exchange offer expires;
provided that, for purposes of determining the Exchange Rate, in respect of any exchange during the
ten Trading Days following the date that any tender or exchange offer expires, references within
this clause (e) to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days
as have elapsed between the date such tender or exchange offer expires and the relevant Exchange
Date. If the Parent or one of its Subsidiaries is obligated to purchase Common Stock pursuant to
any such tender or exchange offer but are permanently prevented by applicable law from effecting
any such purchase or all such purchases are rescinded, the new Exchange Rate shall be readjusted to
be the Exchange Rate that would be in effect if such tender or exchange offer had not been made.

     (f) Without limiting the foregoing provisions of this Section 12.02, no adjustment will be
made thereunder, nor shall an adjustment be made to the ability of a Holder to exchange, for any
distribution described therein if the Holder will otherwise participate in the distribution without
exchange of such Holder’s securities as if such Holder held a number of shares of Common Stock
equal to the applicable Exchange Rate, multiplied by the principal amount
(expressed in thousands) of notes held by such holder, without having to exchange its
Securities. Further, if the application of the foregoing formulas in this Section 12.02 would
result in a decrease in the Exchange Rate, no adjustment to the Exchange Rate will be made (except
on account of share combinations).

     (g) No adjustment to the Exchange Rate will be made unless as specifically set forth in this
Section 12.02 and Section 12.03. Further, in the event of an adjustment to the Exchange Rate
pursuant to Section 12.02(d) or Section 12.02(e), in no event will the Exchange Rate exceed 40
shares of Common Stock per $1,000 principal amount of Securities, subject to adjustment pursuant to
clauses (a), (b) or (c) above. For the avoidance of doubt, this cap on the Exchange Rate will not
apply to an adjustment to the Exchange Rate pursuant to Section 12.02(a), Section 12.02(b) and
Section 12.02(c).

77

 

     (h) Without limiting the foregoing, no adjustment to the Exchange Rate need be made:

     (i) upon the issuance of any shares of Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on securities of the
Parent and the investment of additional optional amounts in shares of Common Stock under
any plan;

     (ii) upon the issuance of any shares of Common Stock or options or rights to purchase shares of Common Stock pursuant to any present or future employee, director or consultant
benefit plan or program or employee stock purchase plan of or assumed by the Parent or any
of its Subsidiaries;

     (iii) upon the issuance of any shares of Common Stock pursuant to any option,
warrant, right, or exercisable, convertible or exchangeable security not described in
clause (ii) above and outstanding as of the Issue Date;

     (iv) for a change in the par value of the Common Stock;

     (v) for accrued and unpaid Interest (including any Additional Interest); or

     (vi) upon the issuance of any shares of Common Stock pursuant to the warrants
contemplated by the Offering Memorandum.

     (i) No adjustment to the Exchange Rate will be required unless the adjustment would require an
increase or decrease of at least 1% of the Exchange Rate. If the adjustment is not made because the
adjustment does not change the Exchange Rate by at least 1%, then the adjustment that is not made
will be carried forward and taken into account in any future adjustment. All required calculations
will be made to the nearest cent or 1/1000th of a share, as the case may be. Notwithstanding the
foregoing, if the Securities are called for redemption, all adjustments not made on or prior to the
date 30 days prior to the applicable Redemption Date will be made effective as of such date 30 days
prior to such Redemption Date.

     (j) Whenever the Exchange Rate is adjusted as herein provided, the Company shall promptly file
with the Trustee and any Exchange Agent other than the Trustee an Officers’ Certificate setting
forth the Exchange Rate after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. Unless and until a Trust Officer of the Trustee shall have received
such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of
the Exchange Rate and may assume that the last Exchange Rate

78

 

of which it has knowledge is still in effect. Promptly after delivery of such certificate,
the Company shall prepare a notice of such adjustment of the Exchange Rate setting forth the
adjusted Exchange Rate and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Exchange Rate to the Holder of each Security at such Holder’s last
address appearing on the Securities Register provided for in Section 2.05 of this Indenture within
20 days after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of any such adjustment.

     (k) For purposes of this Section 12.02, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Parent but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
If the Parent pays any dividend or makes any distribution on, or issues any rights, options or
warrants in respect of, shares of Common Stock held in treasury by the Company, the Parent shall
not issue, transfer or convey such shares of Common Stock in a manner that would have the effect of
circumventing the provisions of this Section 12.02.

     (l) Whenever any provision of this Article 12 requires a calculation of an average of Last
Reported Sale Prices or Daily VWAP over a span of multiple days, the Company will make appropriate
adjustments (determined in good faith by the Parent’s Board of Directors) to account for any
adjustment to the Exchange Rate that becomes effective, or any event requiring an adjustment to the
Exchange Rate where the Ex-Dividend Date of the event occurs, at any time during the period from
which the average is to be calculated.

     Section 12.03 . Adjustment to Common Stock Delivered Upon Certain Fundamental Changes. (a) If
a Holder elects to exchange Securities pursuant to Section 12.01(a)(iv) above in connection with a
corporate transaction described therein and the transaction (1) has an effective date occurring on
or prior to December 15, 2011 and (2) constitutes a Fundamental Change, then, subject to Section
12.04 below, the Exchange Rate for such Securities shall be increased by an additional number of
shares of Common Stock (the “Additional Shares”) as described below. Any exchange will be deemed to
have occurred in connection with such Fundamental Change if such Securities are surrendered for
exchange at a time when the Securities would be exchangeable in light of the expected or actual
occurrence of a Fundamental Change and notwithstanding the fact that a Security may then be
exchangeable because another condition to exchange also has been satisfied.

     (b) The number of Additional Shares will be determined by reference to the table attached as
Schedule A hereto, based on the actual effective date on which the Fundamental Change occurs or
becomes effective (the “Effective Date”) and the Stock Price paid per share of Common Stock with
respect to such

79

 

Fundamental Change; provided that if the Stock Price is between two Stock Price amounts set
forth in such table or the Effective Date is between two Effective Dates in the table, the number
of Additional Shares will be determined by a straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Price amounts and the two dates, as
applicable, based on a 365-day year; provided further that if the Stock Price is greater than
$140.00 per share (subject to adjustment as set forth in clause (d) below) or less than $33.76 per
share (subject to adjustment as set forth in clause (d) below), then no Additional Shares will be
issued upon exchange. Notwithstanding the foregoing, the Exchange Rate shall not exceed 29.6209
per $1,000 principal amount of Securities on account of adjustments pursuant to this Section 12.03,
subject to adjustments set out in Section 12.02(a) through (e).

     (c) If a Holder elects to exchange the Security as described in this Section 12.03 prior to
the Effective Date of any Fundamental Change, and the Fundamental Change does not occur, the Holder
will not be entitled to Additional Shares in connection with such exchange.

     (d) The Stock Prices set forth in the first row of the table in Schedule A hereto will be
adjusted as of any date on which the Exchange Rate of the Securities is otherwise adjusted pursuant
to Section 12.02. The adjusted Stock Prices will equal the Stock Prices applicable immediately
prior to such adjustment, multiplied by a fraction, the numerator of which is the Exchange Rate
immediately prior to such adjustment and the denominator of which is the Exchange Rate as so
adjusted. The number of Additional Shares set forth in such table will be adjusted in the same
manner as the Exchange Rate as set forth in Section 12.02.

     (e) Settlement of Securities tendered for exchange upon a Fundamental Change, as to which the
Exchange Rate will be increased by Additional Shares pursuant to this Section 12.03 shall occur as
follows:

     (i) if the last day of the applicable Observation Period for such Securities is prior
to the third Scheduled Trading Day immediately preceding the Effective Date, the Company
shall deliver shares of Common Stock or the Settlement Amount (together, in each case,
with cash in lieu of fractional shares), determined in accordance with Section 12.01(d) by
delivering the number of shares of Common Stock or the amount of cash and shares of Common
Stock, as the case may be, based on the applicable Exchange Rate then in effect without
such Additional Shares, as promptly as practicable immediately following the last day of
the applicable Observation Period; provided that such Settlement Amount and related Daily
Exchange Values shall be based on the Exchange Rate without giving effect to the
Additional Shares to be added thereto as set forth in this subsection. As soon as
practicable following the Effective

80

 

Date, the Company shall calculate the increase in such amount of cash and Reference
Property deliverable in lieu of Common Stock, as if the applicable Exchange Rate had been
increased by such number of Additional Shares during the related Observation Period (and
based upon the same Daily VWAP for each Trading Day in such Observation Period). If such
increased amount results in an increase to the amount of cash to be paid to Holders, the
Company will pay such increase in cash, and if such increased Settlement Amount results in
an increase to the number of shares of Common Stock, the Company will deliver such
increase by delivering Reference Property based on such increased number of shares of
Common Stock. Any shares of Common Stock to be delivered following the Effective Date
shall be subject to Section 12.05 and shall be delivered in Reference Property.

     (ii) If the last day of the applicable Observation Period for such Securities is on
or after the third Scheduled Trading Day immediately preceding the Effective Date, the
Company shall deliver the shares of Common Stock or the Settlement Amount (together, in
each case, with cash in lieu of fractional shares) determined in accordance with Section
12.01(d) (such determination, for the avoidance of doubt, to include the number of
Additional Shares to be added to the Exchange Rate as set forth in this subsection) on the
later to occur of (x) the Effective Date and (y) as promptly as practicable following the
last day of the Observation Period. Any shares of Common Stock to be delivered on or
following the Effective Date shall be subject to Section 12.05 and shall be delivered in
Reference Property.

In no event shall the Company pay any such increase to the Exchange Rate or to the Settlement
Amount if the transaction causing the increase to the Exchange Rate pursuant to this subsection
never becomes effective.

     Section 12.04 . Exchange After a Public Acquirer Change of Control. (a) In the event of a
Public Acquirer Change of Control, the Company may, in lieu of increasing the Exchange Rate by
Additional Shares pursuant to Section 12.03 above and in lieu of application of Section 12.05,
elect to adjust the Exchange Rate and the related Exchange Obligation such that from and after the
Effective Date of such Public Acquirer Change of Control, Holders shall be entitled to exchange
their Securities, subject to the conditions in Section 12.01(a) or (b), into cash and/or a number
of shares of Public Acquirer Common Stock, if applicable, in accordance with procedures and
elections contemplated by Section 12.01. The adjusted Exchange Rate shall be the Exchange Rate in
effect immediately before the Public Acquirer Change of Control by multiplying it by a fraction:

     (i) the numerator of which will be the average of the Daily VWAP of the Common Stock
for the five consecutive VWAP Trading

81

 

Days prior to but excluding the Effective Date of such Public Acquirer Change of
Control, and

     (ii) the denominator of which will be the average of Daily VWAP of the Public
Acquirer Common Stock (determined in a manner consistent with the method used with respect
to the Common Stock) for the five consecutive VWAP Trading Days commencing on the VWAP
Trading Day next succeeding the Effective Date of such Public Acquirer Change of Control.

     (b) In order to make the election pursuant to this Section 12.04, the Parent, the Company and
the issuer of the Public Acquirer Common Stock shall execute with the Trustee a supplemental
indenture providing that each Security shall be exchangeable into Public Acquirer Common Stock and
execute an amendment to the Registration Rights Agreement (to the extent any Registrable Securities
(as defined therein) remain outstanding) to make the provisions thereof apply to the Public
Acquirer Common Stock. Such supplemental indenture shall provide for provisions and adjustments
which shall be as nearly equivalent as may be practicable to the provisions and adjustments
provided for in this Article 12 as determined in good faith by the Board of Directors of the Parent
or such issuer (which shall be conclusive).

     (c) At least 35 Scheduled Trading Days prior to the expected Effective Date of a Fundamental
Change that is also a Public Acquirer Change of Control, the Company will provide a notice to all
Holders, the Trustee and the Paying Agent stating whether the Company (i) elects to adjust the
Exchange Rate and the related Exchange Obligation as set forth in this Section 12.04 or (ii) does
not elect to so adjust the Exchange Rate and the related Exchange Obligation, in which case the
Holders will have the right to exchange Securities and, if applicable, receive Additional Shares as
set forth in Section 12.03. In addition, upon a Public Acquirer Change of Control, in lieu of
exchanging the Securities, the Holders can, subject to the conditions set forth therein, require
the Company to repurchase all or a portion of the Securities pursuant to Section 11.02.

     Section 12.05 . Effect of Recapitalizations, Reclassifications, and Changes of Common Stock.
(a) Except as otherwise provided in Section 12.04, if any of the following events occur: (i) any
recapitalization, reclassification or change of the outstanding shares of Common Stock (other than
a subdivision or combination to which Section 12.02(a) applies), (ii) any consolidation, merger,
binding share exchange or combination of the Parent with another Person, or (iii) any sale or
conveyance to another Person of all or substantially all of the property and assets of the Parent
and its Subsidiaries, in each case as a result of which Common Stock would be converted into, or
exchanged for, stock, other securities, other property or assets (including cash or any combination
thereof) (any such event or transaction, a “Reorganization Event”), then, following the effective
time of the

82

 

Reorganization Event, the right to receive shares of Common Stock upon exchange of Securities,
if any, will be changed into a right to receive the kind and amount of shares of stock, other
securities or other property or assets (including cash or any combination thereof) (the “Reference
Property”) that a Holder of a like number of shares of Common Stock immediately prior to such
Reorganization Event would have been entitled to receive upon such Reorganization Event. If the
Reorganization Event causes Common Stock to be exchanged into the right to receive more than a
single type of consideration (determined based in part upon any form of stockholder election), the
Reference Property will be deemed to be the weighted average of the types and amounts of
consideration received by the holders of Common Stock that affirmatively make such an election. The
Company will notify Holders of the weighted average as soon as practicable after such determination
is made. Upon such Reorganization Event, the Parent or any Successor Company will enter into a
supplemental indenture consistent with the foregoing. Such supplemental indenture shall provide
for provisions and adjustments which shall be as nearly equivalent as may be practicable to the
provisions and adjustments provided for in this Article 12, Article 10 and Article 11 and the
definition of Fundamental Change, as appropriate, as determined in good faith by the Company (which
determination shall be conclusive and binding), to make such provisions apply to such other Person
if different from the original issuer of the Securities.

     (b) Following the effective time of any such Reorganization Event, settlement of Securities
exchanged shall be in units of Reference Property or cash and units of Reference Property, if
applicable, determined in accordance with Section 12.01(d)(i) and Section 12.01(d)(ii) above based
on the Daily Exchange Value and Daily VWAP of such Reference Property. For the purposes of
determining such Daily Exchange Value and Daily VWAP, (i) if the Reference Property includes
securities for which the price can be determined in a manner contemplated by the definition of
Daily VWAP, then the value of such securities shall be determined in accordance with the principles
set forth in such definition, as determined in good faith by the Company (which determination shall
be conclusive and binding); (ii) if the Reference Property includes other property (other than
securities as to which clause (i) applies or cash), then the value of such property shall be the
Fair Market Value of such property as determined by the Parent’s Board of Directors in good faith;
and (iii) if the Reference Property includes cash, then the value of such cash shall be the amount
thereof.

     (c) Any issuer of securities included in the Reference Property shall execute an amendment to
the Registration Rights Agreement (to the extent any Registrable Securities (as defined therein)
remain outstanding) to make the provisions thereof applicable to such securities included in the
Applicable Consideration.

83

 

     (d) The Company shall cause notice of the execution of any supplemental indenture required by
this Section 12.05 to be mailed to each Holder, at its address appearing on the Securities Register
provided for in Section 2.05 of this Indenture, within 20 calendar days after execution thereof.
Failure to deliver such notice shall not affect the legality or validity of such supplemental
indenture.

     (e) The above provisions of this Section 12.05 shall similarly apply to successive
Reorganization Events.

     (f) If this Section 12.05 applies to any event or occurrence, Section 12.02 shall not apply in
respect of such event or occurrence.

     (g) The Parent shall not become a party to any Reorganization Event unless its terms are
consistent with the foregoing. None of the foregoing provisions shall affect the right of a Holder
of Securities to exchange the Securities as set forth in Section 12.01 prior to the effective time
of such Reorganization Event.

     Section 12.06 . Responsibility of Trustee. The Trustee and any other Exchange Agent shall
not at any time be under any duty or responsibility to the Company or any Holder of Securities to
determine when the Securities become exchangeable, the Exchange Rate, or whether any facts exist
which may require any adjustment of the Exchange Rate, or with respect to the nature or extent or
calculation of any such adjustment when made, or with respect to the method employed in making the
same. The Trustee and any other Exchange Agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the exchange of any Security; and the
Trustee and any other Exchange Agent make no representations with respect thereto. Neither the
Trustee nor any Exchange Agent shall be responsible for any failure of the Parent or the Company to
issue, transfer or deliver any cash or shares of Common Stock or stock certificates or other
securities or property upon the surrender of any Security for the purpose of exchange or to comply
with any of the duties, responsibilities or covenants of the Parent or the Company contained in
this Article 12. Without limiting the generality of the foregoing, neither the Trustee nor any
Exchange Agent shall be under any responsibility to determine the correctness of any provisions
contained in any supplemental indenture entered into pursuant to Section 12.05 relating either to
the kind or amount of shares of stock or securities or property (including cash) receivable by
Holders upon the exchange of their Securities after any Reorganization Event or to any adjustment
to be made with respect thereto, but, subject to the provisions of Section 8.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be protected in relying
upon, an Officers’ Certificate with respect thereto.

84

 

     Section 12.07 . Stockholder Rights Plan. To the extent that the Parent has a rights plan in
effect upon exchange of the Securities into Common Stock, the Holder will receive upon exchange of
the Securities in respect of which the Company has elected to deliver Common Stock, if applicable,
the rights under the rights plan, unless prior to any exchange, the rights have separated from the
Common Stock, in which case, and only in such case, the Exchange Rate will be adjusted at the time
of separation as if the Parent distributed to all holders of Common Stock shares of the Parent’s
Capital Stock, evidences of indebtedness or assets as described in Section 12.02(c) above, subject
to readjustment in the event of the expiration, termination or redemption of such rights. In lieu
of any such adjustment, the Parent may amend such applicable stockholder rights agreement to
provide that upon exchange of the Securities the Holders will receive, in addition to the Common
Stock issuable upon such exchange, the rights which would have attached to such Common Stock if the
rights had not become separated from the Common Stock under such applicable stockholder rights
agreement.

     Section 12.08 . No Stockholder Rights. For the avoidance of doubt, Holders of Securities
will not have any rights as holders of Common Stock (including voting rights and rights to receive
any dividends or other distributions on the Common Stock) if and until the Securities are exchanged
into shares of Common Stock.

     Section 12.09 . Withholding Taxes for Adjustments in Conversation Rate. If the Company pays
withholding taxes on behalf of a Holder as a result of an adjustment to the Exchange Rate, the
Company may, at its option, set off such payments against payments of cash and shares of Common
Stock on the Securities.

ARTICLE 13

Guarantees

     Section 13.01 . Guarantee. (a) Subject to this Article 13, each of the Guarantors hereby,
jointly and severally, unconditionally guarantees (a “Guarantee”) to each Holder of a Security
authenticated and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Securities or the
obligations of the Company hereunder or thereunder, that:

     (i) the principal of, and interest on, the Securities will be promptly paid in full
when due, whether at Stated Maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of, and interest on, the Securities, if any, if lawful,
and all other

85

 

obligations of the Company to the Holders or the Trustee hereunder or thereunder will
be promptly paid in full, all in accordance with the terms hereof and thereof; and

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

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

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Securities or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Securities
with respect to any provisions hereof or thereof; the recovery of any judgment against the Company,
any action to enforce the same or any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of a Guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Guarantee will not be discharged except by
complete performance of the obligations contained in the Securities and this Indenture.

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

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 7 hereof for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 7 hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the Guarantors for the
purpose of this Guarantee. The

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

     Section 13.02 . Limitation on Guarantor Liability. Each Guarantor, and by its acceptance of
Securities, each Holder, hereby confirms that it is the intention of all such parties that the
Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to any Guarantee. To effectuate the
foregoing intention, the Trustee, the Holders and the Subsidiary Guarantors hereby irrevocably
agree that the obligations of such Subsidiary Guarantor will be limited to the maximum amount that
will, after giving effect to such maximum amount and all other contingent and fixed liabilities of
such Subsidiary Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 13, result in
the obligations of such Subsidiary Guarantor under its Guarantee not constituting a fraudulent
transfer or conveyance.

     Section 13.03 . Execution and Delivery of Guarantee. To evidence its Guarantee set forth in
Section 13.01 hereof, each Guarantor hereby agrees that a notation of such Guarantee substantially
in the form attached as Exhibit B hereto will be endorsed by an Officer of such Guarantor on each
Security authenticated and delivered by the Trustee and that either this Indenture or a
supplemental indenture substantially in the form attached as Exhibit C will be executed on behalf
of such Guarantor by one of its Officers.

     Each Guarantor hereby agrees that its Guarantee set forth in Section 13.01 hereof will remain
in full force and effect notwithstanding any failure to endorse on each Security a notation of such
Guarantee.

     If an Officer whose signature is on this Indenture or on the Guarantee no longer holds that
office at the time the Trustee authenticates the Security on which a notation of Guarantee is
endorsed, the Guarantee will be valid nevertheless.

     The delivery of any Security by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors.

     In the event that any of the Company’s Subsidiaries (including a Foreign Subsidiary) that is
not already a Guarantor guarantees any indebtedness of the Parent, the Company or a Domestic
Subsidiary after the date of this Indenture, the

87

 

Company will cause such Subsidiary to comply with the provisions of Section 3.09 hereof and
this Article 13, to the extent applicable.

     Section 13.04 . Subsidiary Guarantors May Not Consolidate, etc., Except on Certain Terms. No
Subsidiary Guarantor may sell or otherwise dispose of all or substantially all of its assets to, or
consolidate with or merge with or into (whether or not such Subsidiary Guarantor is the surviving
Person) another Person, other than the Company or another Guarantor, unless (a) immediately after
giving effect to such transaction, no Default or Event of Default exists, (b) in the case of such
consolidation, merger, sale or disposition with or to the Company or the Parent, the conditions in
Section 4.01 are satisfied, and, unless such Subsidiary Guarantor’s Guarantee is subject to release
under Section 13.05, (c) the Person acquiring the assets in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger assumes all the obligations of that
Subsidiary Guarantor under this Indenture and its Guarantee pursuant to a supplemental indenture in
form and substance reasonably satisfactory to the Trustee, on the terms set forth herein or
therein.

     In case of any such consolidation, merger, sale or disposition and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the notation of Guarantee endorsed upon the Securities and the due and
punctual performance of all of the covenants and conditions of this Indenture to be performed by
the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the
same effect as if it had been named herein as a Guarantor. Such successor Person thereupon may
cause to be signed any or all of the notation of Guarantees to be endorsed upon all of the
Securities issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Guarantees so issued will in all respects have the same legal
rank and benefit under this Indenture as the Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Guarantees had been issued at the
date of the execution hereof.

     Section 13.05 . Releases. Each Subsidiary Guarantor shall be released from its obligations
under its Guarantee and this Indenture:

     (a) in connection with any sale or other disposition of all or substantially all of the assets
of that Subsidiary Guarantor (including by way of merger or consolidation) to a Person that is not
(either before or after giving effect to such transaction) the Parent, the Company or a Subsidiary
thereof, provided that any such release shall occur only to the extent that all obligations of such
Subsidiary Guarantor under all of its guarantees of, and under all of its pledges of assets or
other security interests which secure any indebtedness of the Company or the indebtedness of any of
the other Subsidiary Guarantors shall also terminate upon such release, sale or transfer;

88

 

     (b) in connection with any sale of all the Capital Stock of the relevant Subsidiary Guarantor,
in accordance with the provisions of this Indenture;

     (c) upon the release of its guarantee of all other indebtedness of the Parent, the Company or
any of its Domestic Subsidiaries; or

     (d) upon satisfaction and discharge of this Indenture in accordance with Section 9.01.

     At the Company’s request and expense, the Trustee shall promptly execute and deliver an
appropriate instrument evidencing such release upon receipt of a request by the Company accompanied
by an Officers’ Certificate certifying as to the compliance with this Section 13.05. Any
Subsidiary Guarantor not released from its obligations under its Guarantee as provided in this
Section 13.05 will remain liable for the full amount of principal of, and interest on, the
Securities and for the other obligations of any Guarantor under this Indenture as provided in this
Article 13.

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 provision required by the TIA shall control.

     Section 14.02 . Notices. Any notice or communication shall be in writing in the English
language (including telecopy or e-mail promptly confirmed in writing) and delivered in person or
mailed by first-class mail addressed as follows:

if to the Company, the Parent and/or any Subsidiary Guarantor:

SESI, L.L.C.

c/o Superior Energy Services, Inc.

1105 Peters Road

Harvey, Louisiana 70058

Attention: Chief Financial Officer

Fax: (504) 365-9624

89

 

if to the Trustee:

The Bank of New York Trust Company, N.A.

10161 Centurion Parkway

Jacksonville, Florida 32256

Attention: Corporate Trust Services

Fax.: (904) 645-1931

     The Company, the Parent, any Subsidiary Guarantor or the Trustee by notice to the other may
designate additional or different addresses (including e-mail addresses) for subsequent notices or
communications.

     Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the Securities Register and shall be sufficiently given if so
mailed within the time prescribed; provided that notices given to Holders holding Securities in
book-entry form may be given through facilities of DTC or any successor depositary.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

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

     (a) 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

     (b) 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:

90

 

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

     (b) 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;

     (c) 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

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

     In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

     Section 14.06 . When Securities Are 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 Parent or by any Affiliate of the Parent 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 a Trust
Officer of the Trustee actually 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, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

     Section 14.08 . Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other day on
which commercial banking institutions are authorized or required to be closed in New York, New
York. 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 or Additional Interest, if any, 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, THE SECURITIES AND THE GUARANTEES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

91

 

     Section 14.10 . No Recourse Against Others. An incorporator, director, officer, manager,
employee, member, partner or stockholder of the Company or a Guarantor, solely by reason of this
status, shall not have any liability for any obligations of the Company or any Guarantor under the
Securities, this Indenture, the Guarantees or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each Holder shall waive and release
all such liability; provided, however, the parties acknowledge that such waiver may not be
effective to waive liability under federal securities laws. 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 in this Indenture and the
Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors. All agreements of each Guarantor in this Indenture shall bind its successors,
except as otherwise provided in Section 13.05.

     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 . Qualification of Indenture. The Company shall qualify this Indenture under
the TIA in accordance with the terms and conditions of the Registration Rights Agreement and shall
pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Company, the
Trustee and the Holders) incurred in connection therewith, including, but not limited to, costs and
expenses of qualification of this Indenture and the Securities and the printing of this Indenture
and the Securities.

     Section 14.14 . 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.

     Section 14.15 . Severability Clause. In case any provision in this Indenture 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 and such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability.

     Section 14.16 . Calculations. Except as otherwise provided herein, the Company will be
responsible for making all calculations called for under this Indenture and the Securities. The
Company will make all such calculations in good faith and, absent manifest error, its calculations
will be final and binding on

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Holders. The Company upon request will provide a schedule of its calculations to each of the
Trustee and the Exchange Agent, and each of the Trustee and Exchange Agent is entitled to rely
conclusively upon the accuracy of the Company’s calculations without independent verification. The
Trustee will deliver a copy of such schedule to any Holder upon the request of such Holder.

[Remainder of the page intentionally left blank]

93

 

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

	 	 	 	 	 	 	 
	 	 	SESI, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Superior Energy Services, Inc.,	 
	 

	 	 	 	its Sole Member	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 
	 

	 	 	 	 	 
	 

	 	 	 	Name:
	Robert S. Taylor	 
	 

	 	 	 	Title:	Executive Vice President and

Chief Financial Officer	 
	 
	 	 	 	 	 	 
	 	 	SUPERIOR ENERGY SERVICES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 	 
	 

	 	 	 	Name:
	Robert S. Taylor	 
	 

	 	 	 	Title:	Executive Vice President and

Chief Financial Officer	 

 

 

	 	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	1105 PETERS ROAD, L.L.C.

BLOWOUT TOOLS, INC.

CONCENTRIC PIPE AND TOOL RENTALS, L.L.C.

CONNECTION TECHNOLOGY, L.L.C.

CSI TECHNOLOGIES, LLC

DRILLING LOGISTICS, L.L.C.

F. & F. WIRELINE SERVICE, L.L.C.

FASTORQ, L.L.C.

H.B. RENTALS, L.C.

INTERNATIONAL SNUBBING SERVICES, L.L.C.

J.R.B. CONSULTANTS, INC.

NON-MAGNETIC RENTAL TOOLS, L.L.C.

PROACTIVE COMPLIANCE, L.L.C.

PRODUCTION MANAGEMENT INDUSTRIES, L.L.C.

SEGEN LLC

SELIM LLC

SEMO, L.L.C.

SEMSE, L.L.C.

SPN RESOURCES, LLC

STABIL DRILL SPECIALTIES, L.L.C.

SUB-SURFACE TOOLS, L.L.C.

SUPERIOR CANADA HOLDING, INC.

SUPERIOR ENERGY SERVICES, L.L.C.

SUPERIOR INSPECTION SERVICES, INC.

UNIVERSAL FISHING AND RENTAL TOOLS, INC.

WILD WELL CONTROL, INC.

WORKSTRINGS, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Authorized Representative	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SE FINANCE LP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SEGEN, LLC,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Authorized Representative	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
      COMPANY, N.A., as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christie Leppert	 	 
	 

	 	 	 	 

Name: Christie Leppert
	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 

 

 

SCHEDULE A

     The following table sets forth the number of Additional Shares to be received per $1,000
principal amount of Securities pursuant to Section 12.03 of this Indenture:

Stock Price

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective Date
	 	$	33.76	 	 	$	40.00	 	 	$	45.00	 	 	$	50.00	 	 	$	55.00	 	 	$	60.00	 	 	$	70.00	 	 	$	80.00	 	 	$	90.00	 	 	$	100.00	 	 	$	110.00	 	 	$	120.00	 	 	$	130.00	 	 	$	140.00	 
	 
	December 12, 2006
	 	 	7.6795	 	 	 	5.3908	 	 	 	4.1618	 	 	 	3.2711	 	 	 	2.6104	 	 	 	2.1102	 	 	 	1.4238	 	 	 	0.9938	 	 	 	0.7117	 	 	 	0.5199	 	 	 	0.3867	 	 	 	0.2877	 	 	 	0.2161	 	 	 	0.1615	 
	December 15, 2007
	 	 	7.6795	 	 	 	5.3194	 	 	 	4.0237	 	 	 	3.0976	 	 	 	2.4214	 	 	 	1.9179	 	 	 	1.2443	 	 	 	0.8375	 	 	 	0.5803	 	 	 	0.4114	 	 	 	0.2984	 	 	 	0.2159	 	 	 	0.1582	 	 	 	0.1149	 
	December 15, 2008
	 	 	7.6795	 	 	 	5.1070	 	 	 	3.7477	 	 	 	2.7945	 	 	 	2.1135	 	 	 	1.6188	 	 	 	0.9825	 	 	 	0.6210	 	 	 	0.4067	 	 	 	0.2748	 	 	 	0.1924	 	 	 	0.1336	 	 	 	0.0947	 	 	 	0.0662	 
	December 15, 2009
	 	 	7.6795	 	 	 	4.7750	 	 	 	3.3425	 	 	 	2.3690	 	 	 	1.6959	 	 	 	1.2221	 	 	 	0.6321	 	 	 	0.2676	 	 	 	0.1915	 	 	 	0.1302	 	 	 	0.0921	 	 	 	0.0635	 	 	 	0.0444	 	 	 	0.0300	 
	December 15, 2010
	 	 	7.6795	 	 	 	4.1931	 	 	 	2.6460	 	 	 	1.6720	 	 	 	1.0619	 	 	 	0.6793	 	 	 	0.2811	 	 	 	0.0898	 	 	 	0.0576	 	 	 	0.0359	 	 	 	0.0242	 	 	 	0.0163	 	 	 	0.0108	 	 	 	0.0064	 
	December 15, 2011
	 	 	7.6795	 	 	 	3.0586	 	 	 	0.2808	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	 

Schedule A

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

[Restricted Securities Legend, if applicable]

[Global Security Legend, if applicable]

No. [___]                                                             Principal Amount $[   
    
             ], as revised by the Schedule of Increases and Decreases in
Global Security attached hereto.

CUSIP NO.: [    ]

ISIN: [    ]

1.50% Senior Exchangeable Notes due 2026

       SESI, L.L.C., a Delaware limited liability company, 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 December 15, 2026.

	 	 	 	 	 	 	 
	 

	 	Interest Payment Dates:
	 	June 15 and December 15,	 	 
	 

	 	 	 	     commencing June 15, 2007
	 	 
	 

	 	Regular Record Dates:
	 	June 1 and December 1	 	 

       Additional provisions of this Security are set forth on the attached “Terms of Securities.”

       Dated: [                    ]

	 	 	 	 	 
	 	SESI, L.L.C.

 	 
	 	By:  	Superior Energy Services, Inc.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF 

    AUTHENTICATION	 	 
	 
	 	 	 	 
	THE BANK OF NEW YORK TRUST COMPANY,
N.A.	 	 
	as Trustee, certifies that this is
one of the
Securities referred to in
the Indenture.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-1 

 

TERMS OF SECURITIES

1.50% Senior Exchangeable Notes due 2026

     The Company issued this Security under an Indenture dated as of December 12, 2006 (as it may
be amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company, the guarantors party thereto and the Trustee, to which reference
is hereby made for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders. Additional Securities may be
issued under the Indenture in an unlimited aggregate principal amount subject to certain conditions
specified in the Indenture.

     1. Interest

     SESI, L.L.C., a Delaware limited liability company (together with its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay
interest on the principal amount of this Security at the rate of 1.5% per annum until (but
excluding) December 15, 2011, reducing to a rate of 1.25% per annum beginning on such date and
thereafter.

     The Company will pay interest semiannually in arrears on June 15 and December 15 of each year
(each, an “Interest Payment Date”), commencing June 15, 2007, to Holders of record as of the
relevant Regular Record Date. Interest on the Securities will accrue from the most recent date to
which interest has been paid on the Securities or, if no interest has been paid, from December 12,
2006. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     2. Method of Payment

     By no later than 11:00 a.m. (New York City time) on the date on which any principal of, or
interest (including any Additional Interest) on, any Security is due and payable, the Company shall
deposit with the Paying Agent money sufficient to pay such amount. The Company will pay principal
and interest in money of the United States that at the time of payment is legal tender for payment
of public and private debts. Payments in respect of Securities represented by a Global Security
(including principal and interest (including any Additional Interest)) will be made by wire
transfer of immediately available funds to the accounts specified by The Depository Trust Company.
The Company will pay principal of Definitive Securities at the office or agency designated by the
Company for such purpose. Interest (including any Additional Interest), on Definitive Securities
will be payable (i) to Holders having an aggregate principal amount of $5,000,000 or less, by check
mailed to the Holders of these Securities

A-2 

 

and (ii) to Holders having an aggregate principal amount
of more than $5,000,000, either by check mailed to each Holder or, upon application by a Holder to
the Registrar not later than the relevant record date, by wire transfer in immediately available
funds to that Holder’s account within the United States, which application shall remain in effect until the Holder notifies, in writing, the Registrar
to the contrary.

     3. Redemption

     No sinking fund is provided for the Securities. Subject to certain conditions specified in
the Indenture, the Securities will be redeemable, at the option of the Company, in whole or in part
at any time and from time to time, on or after December 15, 2011, at a Redemption Price specified
in the Indenture.

     In the event that the Redemption Date occurs after a Regular Record Date for the payment of
interest and on or prior to the related Interest Payment Date, the Redemption Price for any such
Securities to be redeemed shall be 100% of the principal amount of such Securities, and accrued and
unpaid interest (including any Additional Interest) shall be paid to the Holder on such Regular
Record Date.

	 	4.	 	Purchase by the Company at the Option of the Holder; Purchase at the
Option of the Holder Upon a Fundamental Change

     (a) Subject to the terms and conditions of the Indenture, a Holder shall have the option to
require the Company to purchase all or a portion of its Securities held by such Holder on each of
December 15, 2011, December 15, 2016 and December 15, 2021 at a Purchase Price specified in the
Indenture.

     (b) If a Fundamental Change shall occur at any time, each Holder shall have the right, at such
Holder’s option and subject to the terms and conditions of the Indenture, to require the Company to
purchase all or a portion of its Securities at a Fundamental Change Purchase Price specified in the
Indenture.

     5. Exchange

     Subject to the conditions and procedures set forth in the Indenture, and during the periods
specified in the Indenture, a Holder may exchange Securities, on or prior to the close of business
on the second Business Day immediately preceding Stated Maturity.

     The initial Exchange Rate is 21.9414 shares of Common Stock per $1,000 principal amount of
Securities, subject to adjustment in certain events described in the Indenture. Upon exchange, the
Company will either (i) deliver shares of Common Stock based on the Exchange Rate or (ii) pay cash
and shares of Common Stock, if any, based on a Daily Exchange Value calculated on a

A-3 

 

proportionate basis for each day of the 25-day Observation Period, as set forth in the Indenture. The Company
shall deliver cash in lieu of any fractional share of Common Stock.

     A Holder may exchange a portion of the Securities only if the principal amount of such portion
is $1,000 or a multiple of $1,000. No payment or adjustment shall be made for dividends on the
Common Stock except as provided in the Indenture.

     6. Denominations; Transfer; Exchange

     The Securities are in registered form without coupons in denominations of principal amount of
$1,000 and multiples of $1,000. A Holder may transfer or exchange Securities in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register the transfer of or exchange of Securities (i) so
selected for redemption or, if a portion of any Security is selected for redemption, the portion
thereof selected for redemption; (ii) surrendered for exchange or, if a portion of any Security is
surrendered for exchange, the portion thereof surrendered for exchange; or (iii) in certificated
form for a period of 15 days prior to mailing a notice of redemption under Article 6 of the
Indenture.

     7. Persons Deemed Owners

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

     8. Unclaimed Money

     If money for the payment of principal or interest (including any Additional Interest) remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company,
subject to applicable abandoned property laws. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment.

     9. Amendment, Waiver

     Subject to certain exceptions, the Indenture contains provisions permitting an amendment of
the Indenture, the Guarantees or the Securities with the written consent of the Holders of at least
a majority in principal amount of the then outstanding Securities and the waiver of any Event of
Default (other than with respect to nonpayment or in respect of a provision that cannot be amended
without the written consent of each Holder affected) or noncompliance with any

A-4 

 

provision with the
written consent of the Holders of a majority in principal amount of the then outstanding
Securities.

     In addition, the Indenture permits an amendment of the Indenture, the Guarantees or the
Securities without the consent of any Holder under certain circumstances specified in the
Indenture.

     10. Defaults and Remedies

     Subject to the following paragraph, if an Event of Default specified in the Indenture occurs
and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities
may declare all the Securities by notice to the Company to be due and payable immediately. In
addition, certain specified Events of Default will cause the Securities to become immediately due and payable without
further action by the Holders.

     The sole remedy for an Event of Default relating to the Parent’s failure to comply with the
reporting obligations under Article 5 of the Indenture, and for any failure to comply with the
requirements of Section 314(a)(1) of the TIA, will for the 365 days after the occurrence of such an
Event of Default consist exclusively of the right to receive Additional Interest on the principal
amount of the Securities at a rate equal to 0.50% per annum.

     Holders 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 or security. 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. The Trustee may
withhold from Holders notice of any continuing Default or Event of Default (except a Default or
Event of Default in payment of principal or interest (including any Additional Interest)) if it
determines that withholding notice is in their interest.

     11. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, 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.

     12. No Recourse Against Others

     An incorporator, director, officer, manager, employee, member, partner, organizer or
stockholder of the Company or a Guarantor, solely by reason of this status, shall not have any
liability for any obligations of the Company or any

A-5 

 

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

     13. Authentication

     This Security shall not be valid until an authorized signatory of the Trustee manually
authenticates this Security.

     14. Abbreviations

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entirety), 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).

     15. 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 Holders. 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.

     16. Governing Law

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

     The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture which has in it the text of this Security. Requests may be made to:

SESI, L.L.C.

c/o Superior Energy Services, Inc.

1105 Peters Road

Harvey, Louisiana 77058

Attention: Chief Financial Officer

Fax: (504) 365-9624

A-6 

 

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 S.E.C. Rule 17Ad-15.

In connection with any transfer or exchange of any of the Securities evidenced by this certificate
occurring prior to 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:

CHECK ONE BOX BELOW:

	 	 	 
	o 1

	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 
	o 2

	 	transferred to the Company; or
	 
	 	 
	o 3

	 	transferred pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”); or
	 
	 	 
	o 4

	 	transferred pursuant to and in compliance with Rule 144A under the
Securities Act; or
	 
	 	 
	o 5

	 	transferred pursuant to another available exemption from the
registration requirements of the Securities Act.

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

A-8 

 

registered Holder thereof;
provided, however, that if box (5) is checked, the Trustee or the Company may require, prior to
registering any such transfer of the Securities, in their sole discretion, such legal opinions,
certifications and other information as the Trustee or the Company may reasonably request 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, such as the exemption provided by Rule 144
under such Act.

	 	 	 
	 

	 	 
	 

	 	Signature:

Signature Guarantee:

	 	 	 
	 

	 	 
	(Signature must be guaranteed)

	 	Signature:

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 S.E.C. Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (4) 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, as amended, 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:

	 	 

A-9 

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been made:

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

A-10 

 

FORM OF EXCHANGE NOTICE

To: SESI, L.L.C.

     The undersigned registered Holder of this Security hereby exercises the option to exchange
this Security, or portion hereof (which is $1,000 principal amount or a multiple thereof)
designated below in accordance with the terms of the Indenture referred to in this Security, and
directs that cash, and the shares of Common Stock of Superior Energy Services, Inc., if any,
issuable and deliverable upon such exchange, and any Securities representing any unexchanged
principal amount hereof, be issued and delivered to the registered Holder hereof unless a different
name has been indicated below. If cash, shares or any portion of this Security not exchanged are to
be issued in the name of a Person other than the undersigned, the undersigned shall pay all
transfer taxes payable with respect thereto.

     This notice shall be deemed to be an irrevocable exercise of the option to exchange this
Security.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 

	 	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
S.E.C. Rule 17Ad-15.
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee
	 
	 	 
	Fill in for registration of
shares if to be delivered, and
Securities if to be issued
other than to and in the name
of registered holder:
	 	 
	 
	 	 
	 

	 	 
	(Name)

	 	Principal amount to be exchanged (if less
than all):
 $                    ,000
	 
	 	 
	 

	 	 
	(Street Address)
	 	 
	 
	 	 
	 

	 	 
	(City state and zip code)

	 	Social Security or Other Taxpayer Number
	Please print name and address
	 	 

A-11 

 

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

To: SESI, L.L.C.

     The undersigned registered Holder of this Security hereby acknowledges receipt of a notice
from SESI, L.L.C. (the “Company”) as to the occurrence of a Fundamental Change and requests and
instructs the Company to repurchase this Security, or the portion hereof (which is $1,000 principal
amount or a multiple thereof) designated below, in accordance with the terms of the Indenture
referred to in this Security and directs that the check in payment for this Security or the portion
thereof and any Securities representing any unrepurchased principal amount hereof, be issued and
delivered to the registered Holder hereof unless a different name has been indicated below. If any
portion of this Security not repurchased is to be issued in the name of a Person other than the
undersigned, the undersigned shall pay all transfer taxes payable with respect thereto.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 

	 	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 S.E.C. Rule 17Ad-15.
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee
	 
	 	 

Fill in if a check is to be issued, or Securities are to be issued, other than
to and in the name of registered Holder:

	 	 	 
	 

(Name)

	 	 Principal
amount to be purchased
	 

	 	(if less than all): $                    ,000
	 
	 	 
	 

(Street Address)

	 	 
	 
	 	 
	 

	 	 
	(City state and zip code)

	 	Social Security or Other Taxpayer Number
	Please print name and address
	 	 

A-12 

 

FORM OF PURCHASE NOTICE

To: SESI, L.L.C.

     The undersigned registered Holder of this Security hereby acknowledges receipt of a notice
from SESI, L.L.C. (the “Company”) as to the Holder’s option to require the Company to repurchase
this Security and requests and instructs the Company to repurchase this Security, or the portion
hereof (which is $1,000 principal amount or a multiple thereof) designated below, in accordance
with the terms of the Indenture referred to in this Security and directs that the check in payment
for this Security or the portion thereof and any Securities representing any unrepurchased
principal amount hereof, be issued and delivered to the registered Holder hereof unless a different
name has been indicated below. If any portion of this Security not repurchased is to be issued in
the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes
payable with respect thereto.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 

	 	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 S.E.C. Rule 17Ad-15.
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee

Fill in if a check is to be issued, or Securities are to be issued, other than
to and in the name of registered Holder:

	 	 	 
	 

(Name)

	 	 Principal
amount to be purchased
	 

	 	(if less than all): $                    ,000
	 
	 	 
	 

(Street Address)

	 	 
	 
	 	 
	 

	 	 
	(City state and zip code)

	 	Social Security or Other Taxpayer Number
	Please print name and address
	 	 

A-13 

 

EXHIBIT B

FORM OF NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth and
subject to the provisions in the Indenture (the “Indenture”), dated as of December 12, 2006, among
SESI, L.L.C. (the “Company”), the guarantors party thereto and The Bank of New York Trust Company,
N.A., as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, and
interest (including Additional Interest, if any) on, the Securities, whether at Stated Maturity, by
acceleration, redemption or otherwise, and the due and punctual payment of interest on overdue
principal of, and interest (including Additional Interest) on, the Securities, if any, if lawful,
and (b) in case of any extension of time of payment or renewal of any Securities or any of such
other obligations, that the same will be promptly paid in full when due, whether at Stated
Maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of
Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth
in Article 13 of the Indenture and reference is hereby made to the Indenture for the precise terms
of the Guarantee. Each Holder of a Security, by accepting the same, (a) agrees to and shall be
bound by such provisions and (b) appoints the Trustee attorney-in-fact of such Holder for such
purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

[Signature Page Follows]

B-1 

 

	 	 	 	 	 
	 	[NAME OF GUARANTOR(S)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-2 

 

	 	 	 	 	 

EXHIBIT C

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of       , 200 ,
among            (the “Guaranteeing Subsidiary”), a subsidiary of SESI, L.L.C. (or its
permitted successor), a Delaware limited liability company (the “Company”), the Company, the other
Guarantors (as defined in the Indenture referred to herein) and The Bank of New York Trust Company,
N.A., as trustee under the Indenture referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated
as of December 12, 2006 (the “Indenture”), providing for the issuance of 1.50% Senior Exchangeable
Notes due 2026 (the “Securities”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Securities and the Indenture on the terms and conditions set forth herein (the “Guarantee”); and

     WHEREAS, pursuant to Section 3.09 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Guarantee and
in the Indenture including but not limited to Article 13 thereof.

     3. No Recourse Against Others. No past, present or future director, officer, manager,
employee, incorporator, member, partner, organizer, stockholder

C-1 

 

or agent of the Guaranteeing Subsidiary (other than the Company or a Guarantor in its capacity
as a stockholder of a Subsidiary), as such, shall have any liability for any obligations of the
Company or any Guaranteeing Subsidiary under the Securities, any Guarantees, the Indenture or this
Supplemental Indenture or for any claim based on, in respect of or by reason of, such obligations
or their creation. Each Holder of the Securities by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for issuance of the Notes.
Such waiver may not be effective to waive liabilities under the federal securities laws and it is
the view of the SEC that such a waiver is against public policy.

     4. New York Law to Govern. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE 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
affect the construction hereof.

     7. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and
the Company.

C-2 

 

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

     Dated:            , 20

	 	 	 	 	 
	 	[GUARANTEEING SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SESI, L.L.C.

 	 
	 	By:  	Superior Energy Services Inc.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[EXISTING GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., 
      as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

C-3

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