Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

     
 

AGREEMENT AND PLAN OF MERGER

by and among

BERKSHIRE HATHAWAY INC.

OHIO MERGER SUB, INC.

and

THE LUBRIZOL CORPORATION

dated as of

March 13, 2011

     
 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I THE MERGER
	 	 	1	 
	 
	Section 1.1 The Merger
	 	 	1	 
	Section 1.2 Closing
	 	 	1	 
	Section 1.3 Effective Time
	 	 	1	 
	Section 1.4 Effect of the Merger
	 	 	2	 
	Section 1.5 Articles of Incorporation and Code of Regulations of the Surviving Corporation
	 	 	2	 
	Section 1.6 Directors and Officers of the Surviving Corporation
	 	 	2	 
	Section 1.7 Subsequent Actions
	 	 	2	 
	 
	ARTICLE II EFFECT OF THE MERGER ON CAPITAL STOCK
	 	 	2	 
	 
	Section 2.1 Conversion of Securities
	 	 	2	 
	Section 2.2 Payment; Surrender of Shares; Stock Transfer Books
	 	 	3	 
	Section 2.3 Treatment of Stock Plans
	 	 	5	 
	Section 2.4 Dissenting Shares
	 	 	6	 
	Section 2.5 Adjustments
	 	 	7	 
	Section 2.6 Lost Certificates
	 	 	7	 
	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	7	 
	 
	Section 3.1 Organization
	 	 	8	 
	Section 3.2 Authorization; Validity of Agreement; Company Action
	 	 	8	 
	Section 3.3 Consents and Approvals; No Violations
	 	 	9	 
	Section 3.4 Capitalization
	 	 	10	 
	Section 3.5 SEC Reports and Financial Statements
	 	 	11	 
	Section 3.6 Absence of Certain Changes
	 	 	12	 
	Section 3.7 No Undisclosed Material Liabilities
	 	 	13	 
	Section 3.8 Compliance with Laws and Court Orders
	 	 	13	 
	Section 3.9 Material Contracts
	 	 	14	 
	Section 3.10 Information in Proxy Statement
	 	 	14	 
	Section 3.11 Litigation
	 	 	15	 
	Section 3.12 Employee Compensation and Benefit Plans; ERISA
	 	 	15	 
	Section 3.13 Properties
	 	 	16	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.14 Intellectual Property
	 	 	17	 
	Section 3.15 Environmental Laws
	 	 	17	 
	Section 3.16 Taxes
	 	 	18	 
	Section 3.17 Opinions of Financial Advisors
	 	 	18	 
	Section 3.18 Brokers or Finders
	 	 	19	 
	Section 3.19 State Takeover Statutes
	 	 	19	 
	Section 3.20 Transactions with Affiliates
	 	 	19	 
	Section 3.21 No Other Representations or Warranties
	 	 	19	 
	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	 	 	19	 
	 
	Section 4.1 Organization
	 	 	19	 
	Section 4.2 Authorization; Validity of Agreement; Necessary Action
	 	 	19	 
	Section 4.3 Consents and Approvals; No Violations
	 	 	20	 
	Section 4.4 Ownership of Common Stock
	 	 	21	 
	Section 4.5 Information in Proxy Statement
	 	 	21	 
	Section 4.6 Financing
	 	 	21	 
	Section 4.7 No Prior Activities
	 	 	21	 
	Section 4.8 Litigation
	 	 	21	 
	Section 4.9 Disclaimer of Warranties
	 	 	21	 
	 
	ARTICLE V COVENANTS
	 	 	22	 
	 
	Section 5.1 Interim Operations of the Company
	 	 	22	 
	Section 5.2 No Solicitation by the Company
	 	 	24	 
	 
	ARTICLE VI ADDITIONAL AGREEMENTS
	 	 	26	 
	 
	Section 6.1 Preparation of Proxy Statement
	 	 	26	 
	Section 6.2 Shareholders Meeting
	 	 	26	 
	Section 6.3 Reasonable Best Efforts
	 	 	27	 
	Section 6.4 Notification of Certain Matters
	 	 	29	 
	Section 6.5 Access; Confidentiality
	 	 	29	 
	Section 6.6 Publicity
	 	 	29	 
	Section 6.7 Indemnification
	 	 	30	 
	Section 6.8
Merger Sub Compliance
	 	 	31	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 6.9 Employee Matters
	 	 	31	 
	 
	ARTICLE VII CONDITIONS
	 	 	32	 
	 
	Section 7.1 Conditions to Each Party’s Obligation to Effect the Merger
	 	 	32	 
	Section 7.2 Conditions to Obligations of Parent and Merger Sub
	 	 	33	 
	Section 7.3 Conditions to Obligations of the Company
	 	 	34	 
	Section 7.4 Frustration of Closing Conditions
	 	 	34	 
	 
	ARTICLE VIII TERMINATION
	 	 	34	 
	 
	Section 8.1 Termination
	 	 	34	 
	Section 8.2 Effect of Termination
	 	 	36	 
	 
	ARTICLE IX MISCELLANEOUS
	 	 	37	 
	 
	Section 9.1 Amendment and Waivers
	 	 	37	 
	Section 9.2 Non-survival of Representations and Warranties
	 	 	37	 
	Section 9.3 Expenses
	 	 	37	 
	Section 9.4 Notices
	 	 	37	 
	Section 9.5 Counterparts
	 	 	38	 
	Section 9.6 Entire Agreement; No Third Party Beneficiaries
	 	 	38	 
	Section 9.7 Severability
	 	 	39	 
	Section 9.8 Governing Law
	 	 	39	 
	Section 9.9 Assignment
	 	 	39	 
	Section 9.10 Consent to Jurisdiction
	 	 	39	 
	Section 9.11 Specific Enforcement
	 	 	39	 
	Section 9.12 WAIVER OF JURY TRIAL
	 	 	40	 
	 
	ARTICLE X DEFINITIONS; INTERPRETATION
	 	 	40	 
	 
	Section 10.1 Cross References
	 	 	40	 
	Section 10.2 Certain Terms Defined
	 	 	41	 
	Section 10.3 Other Definitional and Interpretative Provisions
	 	 	45	 

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AGREEMENT AND PLAN OF MERGER

     AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of March 13, 2011, by and among
Berkshire Hathaway Inc., a Delaware corporation (“Parent”), Ohio Merger Sub, Inc., an Ohio
corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and The Lubrizol Corporation,
an Ohio corporation (the “Company”).

RECITALS

     WHEREAS, the respective Boards of Directors of Parent, Merger Sub and the Company each have
approved, and in the case of the Company and Merger Sub deem it advisable and in the best interests
of their respective shareholders to consummate, the acquisition of the Company by Parent by means
of a merger of Merger Sub with and into the Company upon the terms and subject to the conditions
set forth in this Agreement, whereby each issued and outstanding share of the Company’s Common
Stock (such issued and outstanding shares of the Company’s Common Stock, collectively, the
“Shares”), other than Dissenting Shares, Shares owned by Parent or any wholly-owned Subsidiaries of
Parent, and any shares of Common Stock held in the treasury of the Company, will be converted into
the right to receive the Merger Consideration.

     NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements set forth in this Agreement, the receipt and sufficiency of which are
hereby acknowledged, upon the terms and subject to the conditions of this Agreement, the parties to
this Agreement agree as follows:

ARTICLE I

THE MERGER

     Section 1.1 The Merger. Upon the terms and subject to the conditions of this
Agreement and in accordance with Ohio Law, at the Effective Time, Merger Sub will be merged with
and into the Company (the “Merger”), the separate corporate existence of Merger Sub will cease, and
the Company will continue as the surviving corporation. The Company as the surviving corporation
after the Merger is referred to in this Agreement as the “Surviving Corporation.”

     Section 1.2 Closing. The closing of the Merger (the “Closing”) shall take place at
10:00 a.m. on the second Business Day after the satisfaction or waiver of all of the conditions
(other than any condition that by its nature cannot be satisfied until the Closing, but subject to
satisfaction of any such condition) set forth in Article VII (the “Closing Date”), at the
offices of Jones Day, North Point, 901 Lakeside Avenue, Cleveland, Ohio 44114, unless another date
or place is agreed to in writing by the parties to this Agreement.

     Section 1.3 Effective Time. The parties to this Agreement shall cause the Merger to
be consummated by filing a certificate of merger (the “Certificate of Merger”) on the Closing Date
(or on such other date as Parent and the Company may agree in writing) with the Secretary of State
of the State of Ohio, in such form as required by, and executed in accordance with, the

 

 

relevant provisions of Ohio Law (the date and time of the filing of the Certificate of Merger with the
Secretary of State of the State of Ohio, or such later time as is specified in the Certificate of
Merger and as is agreed to by Parent and the Company in writing, being the “Effective Time”).

     Section 1.4 Effect of the Merger. The Merger shall have the effects set forth in the
applicable provisions of Ohio Law. Without limiting the generality of the foregoing and subject
thereto, at the Effective Time, all the property, rights, privileges, immunities, powers,
franchises and authority of the Company and Merger Sub shall vest in the Surviving Corporation and
all debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities
and duties of the Surviving Corporation.

     Section 1.5 Articles of Incorporation and Code of Regulations of the Surviving
Corporation. At the Effective Time, the articles of incorporation and code of regulations of
the Company, as in effect immediately prior to the Effective Time, shall be amended and restated as
of the Effective Time to be in the form of (except with respect to the name of the Company) the
articles of incorporation and code of regulations of Merger Sub, and as so amended shall be the
articles of incorporation and code of regulations of the Surviving Corporation until thereafter
amended as provided therein or by applicable Law (and subject to Section 6.7 hereof).

     Section 1.6 Directors and Officers of the Surviving Corporation. The directors of
Merger Sub immediately before the Effective Time will be the initial directors of the Surviving
Corporation and the officers of the Company immediately before the Effective Time will be the
initial officers of the Surviving Corporation, in each case until their successors are duly elected
or appointed and qualified or until their earlier death, resignation or removal in accordance with
the articles of incorporation and the code of regulations of the Surviving Corporation.

     Section 1.7 Subsequent Actions. If, at any time after the Effective Time, the
Surviving Corporation shall consider or be advised that any deeds, bills of sale, assignments,
assurances or any other actions or things are necessary or desirable to vest, perfect or confirm of
record or otherwise in the Surviving Corporation, its right, title or interest in, to or under any
of the rights, properties or assets of either of the Company or Merger Sub vested in or to be
vested in the Surviving Corporation as a result of, or in connection with, the Merger or otherwise
to carry out this Agreement, the officers and directors of the Surviving Corporation shall be
authorized to execute and deliver, in the name and on behalf of either the Company or Merger Sub,
all such deeds, bills of sale, assignments and assurances and to take and do, in the name and on
behalf of each of such corporations or otherwise, all such other actions and things as may be
necessary or desirable to vest, perfect or confirm any and all right, title and interest in, to and
under such rights, properties or assets in the Surviving Corporation or otherwise to carry out
this Agreement.

ARTICLE II

EFFECT OF THE MERGER ON CAPITAL STOCK

     Section 2.1 Conversion of Securities. At the Effective Time, by virtue of the Merger
and without any action on the part of Parent, Merger Sub, the Company or the holders of Shares or
securities of Parent or Merger Sub:

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          (a) Each Share issued and outstanding immediately before the Effective Time (other than any
Shares to be cancelled pursuant to Section 2.1(b) and any Dissenting Shares) will be
cancelled and extinguished and be converted into the right to receive $135.00 in cash payable to
the holder of such Share, without interest (the “Merger Consideration”), upon surrender of either
certificates formerly representing such Shares (“Certificates”) or any book-entry Shares
(“Book-Entry Shares”) in the manner provided in Section 2.2. All such Shares, when so
converted, will no longer be outstanding and will be automatically cancelled, retired and cease to
exist. Each holder of Certificates or Book-Entry Shares will cease to have any rights with respect
to such Shares, except the right to receive the Merger Consideration for such Shares upon the
surrender of such Certificate or Book-Entry Share in accordance with Section 2.2, without
interest.

          (b) Each share held in the treasury of the Company and each Share owned by Parent or any
direct or indirect wholly-owned Subsidiary of Parent immediately before the Effective Time will be
cancelled and extinguished, and no payment or other consideration will be made with respect to such
shares.

          (c) Each share of common stock, par value $0.01 per share, of Merger Sub issued and
outstanding immediately before the Effective Time will thereafter represent one validly issued,
fully paid and nonassessable share of common stock, par value $0.01 per share, of the Surviving
Corporation.

     Section 2.2 Payment; Surrender of Shares; Stock Transfer Books.

          (a) Before the Effective Time, Merger Sub shall designate the Company’s transfer agent or
another bank or trust company reasonably acceptable to the Company to act as agent for the holders
of Shares in connection with the Merger (the “Paying Agent”) to receive the funds necessary to make
the payments contemplated by Section 2.1(a). When and as needed, Parent or Merger Sub
shall deposit, or cause to be deposited, in trust with the Paying Agent in a separate account for
the benefit of holders of Shares (the “Payment Fund”) the aggregate Merger Consideration to which
such holders shall be entitled at the Effective Time pursuant to Section 2.1(a). If for
any reason the cash in the Payment Fund shall be insufficient to fully satisfy all of
the payment obligations to be made in cash by the Paying Agent hereunder, Parent shall
promptly deposit cash into the Payment Fund in an amount which is equal to the deficiency in the
amount of cash required to fully satisfy such cash payment obligations.

          (b) As soon as reasonably practicable after the Effective Time and in any event not later than
three Business Days following the Effective Time, Parent shall cause the Paying Agent to mail to
each holder of record of Certificates or Book-Entry Shares whose Shares were converted into the
right to receive the Merger Consideration pursuant to Section 2.1(a) (i) a letter of
transmittal (which must specify that delivery will be effected, and risk of loss and title to the
Certificates or Book-Entry Shares will pass, only upon delivery of the Certificates to the Paying
Agent or, in the case of Book-Entry Shares, upon adherence to the procedures set forth in the
letter of transmittal, and will be in such form and have such other provisions as the Company and
Merger Sub may reasonably specify) and (ii) instructions for surrendering Certificates or
Book-Entry Shares in exchange for the Merger Consideration. Each holder of Certificates or
Book-Entry Shares may thereafter until the first anniversary of the Effective Time surrender such

- 3 -

 

Certificates or Book-Entry Shares to the Paying Agent under cover of the letter of transmittal, as
agent for such holder. Upon delivery of a valid letter of transmittal and the surrender of
Certificates or Book-Entry Shares on or before the first anniversary of the Effective Time, Merger
Sub shall cause the Paying Agent to pay the holder of such Certificates or Book-Entry Shares, in
exchange for the Certificates or Book-Entry Shares, cash in an amount equal to the Merger
Consideration multiplied by the number of Shares represented by such Certificates or Book-Entry
Shares. Until so surrendered, Certificates (other than Certificates representing Dissenting
Shares, Shares held by Parent or any direct or indirect wholly-owned Subsidiary of Parent, and
shares held in the treasury of the Company) or Book-Entry Shares will represent solely the right to
receive the aggregate Merger Consideration relating to the Shares represented by such Certificates
or Book-Entry Shares.

          (c) If payment of the Merger Consideration in respect of cancelled Shares is to be made to a
Person other than the Person in whose name surrendered Certificates are registered, it will be a
condition to such payment that the Certificates so surrendered will be properly endorsed or
otherwise be in proper form for transfer and that the Person requesting such payment shall have
paid any transfer and other Taxes required by reason of such payment in a name other than that of
the registered holder of the Certificates surrendered or shall have established to the satisfaction
of the Paying Agent that such Tax is not applicable. The Merger Consideration paid upon the
surrender for exchange of Certificates in accordance with the terms of this Article II will
be deemed to have been paid in full satisfaction of all rights pertaining to the Shares theretofore
represented by such Certificates, subject, however, to the Surviving Corporation’s obligation to
pay any dividends or make any other distributions, in each case with a record date (i) prior to the
Effective Time that may have been declared or made by the Company on such Shares in accordance with
the terms of this Agreement or (ii) prior to the date of this Agreement, and in each case which
remain unpaid at the Effective Time.

          (d) At the Effective Time, the stock transfer books of the Company will be closed and there
will not be any further registration of transfers of any shares of the Company’s capital stock
thereafter on the records of the Company. From and after the Effective Time, the
holders of Certificates and Book-Entry Shares will cease to have any rights with respect to
any Shares, except as otherwise provided for in this Agreement or by applicable Law. If, after the
Effective Time, Certificates (other than Certificates representing Dissenting Shares, Shares held
by Parent or any direct or indirect wholly-owned Subsidiary of Parent, and shares held in the
treasury of the Company) or Book-Entry Shares are presented to the Surviving Corporation, they will
be cancelled and exchanged for Merger Consideration as provided in this Article II. No
interest will accrue or be paid on any cash payable upon the surrender of Certificates or
Book-Entry Shares which immediately before the Effective Time represented the Shares.

          (e) Promptly following the date which is one year after the Effective Time, the Surviving
Corporation will be entitled to require the Paying Agent to deliver to it any cash, including any
interest received with respect to such cash, and any Certificates or other documents, in its
possession relating to the transactions contemplated by this Agreement (the “Transactions”), which
had been made available to the Paying Agent and which have not been disbursed to holders of
Certificates or Book-Entry Shares or previously delivered to the Surviving Corporation, and
thereafter such holders will be entitled to look to the Surviving Corporation (subject to abandoned
property, escheat or similar Laws) only as general creditors of

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the Surviving Corporation with respect to the Merger Consideration payable upon due surrender of their Certificates or Book-Entry
Shares, without any interest on such Merger Consideration. Notwithstanding the foregoing, none of
Parent, the Surviving Corporation or the Paying Agent will be liable to any holder of Certificates
or Book-Entry Shares for Merger Consideration delivered to a Governmental Entity pursuant to any
applicable abandoned property, escheat or similar Law.

          (f) Notwithstanding any provision in this Agreement to the contrary, Parent, the Surviving
Corporation and the Paying Agent shall be entitled to deduct and withhold from the consideration
otherwise payable under this Agreement to any holder of Shares, and from amounts payable pursuant
to Section 2.3, such amounts as are required to be withheld or deducted under the Code, the
rules and regulations promulgated thereunder, or any provision of U.S. state or local Tax Law with
respect to the making of such payment. To the extent that amounts are so withheld or deducted and
paid over to the applicable Governmental Entity, such withheld or deducted amounts shall be treated
for all purposes of this Agreement as having been paid to the holder of the Shares or other
securities in respect of which such deduction and withholding were made.

     Section 2.3 Treatment of Stock Plans.

          (a) Each option to purchase shares granted under the Company Stock Plans (an “Option”) that is
outstanding and unexercised as of the Effective Time (whether vested or unvested) shall be adjusted
by the applicable Company Stock Plan committee and converted into the right of the holder to
receive from the Surviving Corporation an amount in cash equal to the product of (A) the total
number of shares of Common Stock previously subject to such Option and (B) the excess, if any, of
the Merger Consideration over the exercise price per share set forth in such Option, less any
required withholding Taxes (the “Option Cash Payment”), and as of the Effective Time
each holder of an Option shall cease to have any rights with respect thereto, except the right
to receive the Option Cash Payment. The Option Cash Payment shall be made promptly (and in any
event within 15 Business Days) following the Effective Time.

          (b) Each award granted pursuant to a Company Plan that is maintained primarily for
international employees of the Company and its Subsidiaries (collectively, the “International
Equity Plans”) entitling the holder thereof to shares of Common Stock or cash equal to or based on
the value of shares of Common Stock (an “International
Award”) that is outstanding and, to the
extent applicable, unexercised as of the Effective Time (whether vested or unvested) will be
settled at the Effective Time in accordance with the terms and conditions of the applicable
International Equity Plan but solely in cash (such cash payment, the “Settlement Payment”). As of
the Effective Time, each holder of an International Award shall cease to have any rights with
respect thereto, except the right to receive the Settlement Payment. All Settlement Payments shall
be made promptly (and in any case within 15 Business Days) following the Effective Time;
provided, however, in the event that such payment would cause any additional Taxes
to be payable pursuant to Section 409A of the Code or other applicable Law with respect to an
International Award, the payment shall instead be made at the time specified in the applicable
International Equity Plan and related award agreement.

- 5 -

 

          (c) Each award of a right under any Company Plan (other than awards of Options, International
Awards and Deferred Compensation Plans, the treatment of which is specified in Section
2.3(a), Section 2.3(b) and Section 2.3(d), respectively) entitling the holder
thereof to shares of Common Stock or cash equal to or based on the value of shares of Common Stock
(a “Share Unit”) that is outstanding or payable as of the Effective Time shall be adjusted by the
applicable Company Plan committee and converted into the right of the holder to receive from the
Surviving Corporation an amount in cash equal to the product of (A) (i) in the case of Share Units
subject to performance-based vesting conditions, the number of shares of Common Stock determined
based on performance as of the Effective Time (calculated in accordance with the terms of the
applicable Company Plans) and (ii) in the case of Share Units subject to time-based vesting
conditions, the total number of shares of Common Stock underlying such Share Units, and (B) the
Merger Consideration, less any required withholding Taxes (the “Share Unit Payment”),
provided, however, that the Share Unit Payment shall in no case be less than if it
had been determined in accordance with the terms of the applicable Company Plans. As of the
Effective Time each holder of a Share Unit shall cease to have any rights with respect thereto,
except the right to receive the applicable Share Unit Payment. All Share Unit Payments shall be
made promptly (and in any case within 15 Business Days) following the Effective Time;
provided, however, in the event that such payment would cause any additional Taxes
to be payable pursuant to Section 409A of the Code with respect to a Share Unit, the payment shall
instead be made at the time specified in the applicable Company Plan and related award document.
“Company Plan” for purposes of this Section 2.3 and Section 3.4, shall mean a
Company Plan without regard to materiality.

          (d) All account balances (whether or not vested) under any Company Plan that provides for the
deferral of compensation and represents amounts notionally invested in a number of shares of Common
Stock or otherwise provides for distributions or benefits that are calculated based on the value of
a share of Common Stock (collectively, the “Deferred Compensation Plans”), shall be adjusted by the
applicable Company Plan committee as of the Effective Time, and shall be converted into a right of
the holder to receive an amount in cash equal to the product of (A) the number of shares of Common
Stock previously deemed invested under or otherwise referenced by such account and (B) the Merger
Consideration, less any required withholding Taxes (the “Deferred Payment”), and shall cease to
represent a right to receive a number of shares or cash equal to or based on the value of a number
of shares of Common Stock. The Deferred Payment shall be made at the time specified in the
applicable Company Plan and related deferral documents.

          (e) Prior to the Effective Time, the Company shall take all such lawful action as may be
necessary (which includes satisfying the requirements of Rule 16b-3(e) promulgated under the
Exchange Act), without incurring any liability in connection therewith, to provide for and give
effect to the transactions contemplated by this Section 2.3.

     Section 2.4 Dissenting Shares.

          (a) Notwithstanding any provision of this Agreement to the contrary, any Shares held by a
holder who has demanded and perfected his, her or its demand for appraisal of his, her or its
Shares in accordance with Ohio Law (including but not limited to Section 1701.85 of Ohio Law) and
as of the Effective Time has neither effectively withdrawn nor lost his, her or

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its right to such appraisal (“Dissenting Shares”), will not be
converted into or represent a right to receive cash pursuant to Section 2.1(a), but the
holder of the Dissenting Shares will be entitled to only such rights as are granted to holders of
Dissenting Shares by Ohio Law.

          (b) Notwithstanding the provisions of Section 2.4(a), if any holder of Shares who
demands appraisal of his, her or its Shares under Ohio Law effectively withdraws or loses (through
failure to perfect or otherwise) his, her or its right to appraisal, then as of the Effective Time
or the occurrence of such event, whichever later occurs, such holder’s Shares will automatically be
converted into and represent only the right to receive the Merger Consideration as provided in
Section 2.1(a), without interest thereon, upon surrender of Certificates or Book-Entry
Shares representing such Shares pursuant to Section 2.2.

          (c) The Company shall give Merger Sub prompt notice of any written demands for appraisal or
payment of the fair value of any Shares, withdrawals of such demands, and any other instruments
served pursuant to Ohio Law received by the Company. The Company shall not voluntarily make any
payment with respect to any demands for appraisal and shall not, except with the prior written
consent of Merger Sub, settle or offer to settle any such demands.

     Section 2.5 Adjustments. If, during the period between the date hereof and the
Effective Time, any change in the Shares shall occur, by reason of any reclassification,
recapitalization, stock split or combination, exchange or readjustment of shares, or any stock
dividend thereon with a record date during such period, but excluding any change that results from
any exercise of Options, the Merger Consideration, and any other amounts payable pursuant to this
Agreement, shall be appropriately adjusted.

     Section 2.6 Lost Certificates. If any Certificates shall have been lost, stolen or
destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificates to
be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such
Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity
against any claim that may be made against it with respect to such Certificates, the Paying Agent
will pay, in exchange for such lost, stolen or destroyed Certificates, the Merger Consideration to
be paid in respect of the Shares represented by such Certificates, as contemplated by this
Article II.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to Parent and Merger Sub, subject to the exceptions with
respect to particular representations and warranties disclosed in the letter from the Company,
dated the date hereof, addressed to Parent and Merger Sub (the “Company Disclosure Letter”), and
except as set forth in the Company SEC Documents filed and publicly available prior to the date of
this Agreement, as follows:

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     Section 3.1 Organization.

          (a) Each of the Company and its Subsidiaries is a corporation, partnership or other entity
duly organized, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization and has all requisite corporate or other power and authority and all
necessary governmental approvals to own, lease and operate its properties and to carry on its
business as now being conducted, except (other than with respect to the Company’s due organization,
valid existence and good standing) where the failure to be so organized, existing and in good
standing or to have such power, authority and governmental approvals would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. For purposes of
analyzing whether any state of facts, change, development, effect, occurrence or condition has
resulted in a Material Adverse Effect under this Agreement, Parent and Merger Sub will not be
deemed to have knowledge of any state of facts, change, development, effect, occurrence or
condition relating to the Company or its Subsidiaries unless it is disclosed in the Company SEC
Documents or the Company Disclosure Letter.

          (b) The Company and each of its Subsidiaries is duly qualified or licensed to do business, and
is in good standing, in each jurisdiction in which the property owned, leased or operated by it or
the nature of the business conducted by it makes such qualification or licensing necessary, except
where the failure to be so duly qualified or licensed and in good standing would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. Except as set forth
in Section 3.1(b) of the Company Disclosure Letter, the Company does not own any equity
interests in any corporation or other entity, except for its Subsidiaries.

     Section 3.2 Authorization; Validity of Agreement; Company Action.

          (a) The Company has full corporate power and authority to execute and deliver this Agreement
and to consummate the Transactions. The execution, delivery and performance by the Company of this
Agreement, and the consummation by it of the Transactions, have been duly and validly authorized by
the Board of Directors of the Company (the “Company Board”), and no other corporate action on the
part of the Company is necessary to authorize the execution and delivery by the Company of this
Agreement and the consummation by it of the Transactions, except that the consummation of the
Merger requires the Shareholder Approval. This Agreement has been duly executed and delivered by
the Company and, assuming due and valid authorization, execution and delivery of this Agreement by
Parent and Merger Sub, is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except that (i) such enforcement may be subject to applicable
bankruptcy, reorganization, insolvency, moratorium or other similar Laws, now or hereafter in
effect, affecting creditors’ rights generally and (ii) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought.

          (b) Assuming the accuracy of the representation and warranty in Section 4.4, the
affirmative vote of the holders of a majority of the outstanding Shares to adopt this Agreement
(the “Shareholder Approval”) is the only vote or consent of the holders of any class or series of
the Company’s capital stock, or any of them, that is necessary in connection with the consummation
of the Merger.

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          (c) At a meeting duly called and held, the Company Board (i) determined that this Agreement
and the Transactions are fair to and in the best interests of the Company’s shareholders and
declared this Agreement advisable, (ii) approved this Agreement and the Transactions, (iii)
directed that the adoption of this Agreement be submitted to a vote at a meeting of the Company’s
shareholders and (iv) resolved (subject to Section 5.2) to recommend to the Company’s
shareholders that they adopt this Agreement (such recommendation, the “Company Recommendation”).

          (d) The copies of the Company’s Second Amended and Restated Articles of Incorporation and
Second Amended and Restated Regulations, in the forms most recently filed in the Company SEC
Documents, are true, complete and correct copies of such documents as in effect as of the date of
this Agreement.

     Section 3.3 Consents and Approvals; No Violations.

          (a) Except for (i) the filing with the SEC of the preliminary proxy statement and the Proxy
Statement, (ii) the filing of the Certificate of Merger with the Secretary of State of the State of
Ohio pursuant to Ohio Law, (iii) the Shareholder Approval and (iv) filings, permits,
authorizations, consents and approvals as may be required under, and other applicable requirements
of, (A) the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (B) the Securities
Act (as defined below), (C) the rules and regulations of the New York Stock Exchange, and (D) the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and any foreign
antitrust or competition Laws, no consents or approvals of, or filings, declarations or
registrations with, any national, supranational, federal, state or local court, administrative or
regulatory agency or commission or other governmental authority or instrumentality, domestic or
foreign (each a “Governmental Entity”), are necessary for the consummation by the Company of the
Transactions, other than such other consents, approvals, filings, declarations or registrations
that, if not obtained, made or given, would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

          (b) Except as set forth in Section 3.3(b) of the Company Disclosure Letter, neither
the execution and delivery of this Agreement by the Company nor the consummation by the Company of
the Transactions, nor compliance by the Company with any of the terms or provisions hereof, will
(i) conflict with or violate any provision of the Company’s Second Amended and Restated Articles of
Incorporation or its Second Amended and Restated Regulations or any of the similar organizational
documents of any of its Subsidiaries or (ii) assuming that the authorizations, consents and
approvals referred to in Section 3.3(a) are duly obtained, (x) violate any Order or Law
applicable to the Company or any of its Subsidiaries or any of their respective properties or
assets, or (y) violate, conflict with, result in the loss of any material benefit under, constitute
a default (or an event which, with notice or lapse of time, or both, would constitute a default)
under, result in the termination of or a right to termination or cancellation under, accelerate the
performance required by, or result in the creation of any Encumbrance upon any of the respective
properties or assets of the Company or any of its Subsidiaries under, any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which the Company or any of its Subsidiaries is a party, or by
which they or any of their respective properties or assets may be bound or affected, except, in the
case of clause (ii) above, for such

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violations, conflicts, breaches, defaults, losses, terminations of rights thereof,
accelerations or Encumbrance creations which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

     Section 3.4 Capitalization.

          (a) The authorized capital stock of the Company consists of 2,000,000 shares of serial
preferred stock without par value designated serial preferred stock (the “Serial Preferred Stock”),
25,000,000 shares of serial preferred stock without par value designated serial preference shares
(the “Serial Preference Shares”), and 120,000,000 shares of common stock without par value (the
“Common Stock”). As of March 11, 2011, (i) no shares of Serial Preferred Stock are issued and
outstanding, (ii) no shares of Serial Preference Shares are issued and outstanding, (iii)
64,202,753 Shares of Common Stock are issued and outstanding, (iv) 21,993,141 shares of Common
Stock are issued and held in the treasury of the Company, (v) 2,750,623 shares of Common Stock are
reserved for issuance under the Company Stock Plans in respect of future awards, (vi) 1,530,046
shares of Common Stock are issuable upon the exercise of outstanding Options, (vii) 935,954 shares
of Common Stock are issuable upon the vesting of Share Units subject to performance-based vesting
conditions, assuming achievement of performance goals at the maximum level of performance at the
end of the applicable performance period, and (viii) 7,577 shares of Common Stock are issuable upon
the vesting of Share Units subject to time-based vesting conditions. All of the outstanding Shares
of Common Stock are, and all shares of Common Stock which may be issued pursuant to the exercise of
outstanding Options will be, when issued in accordance with the terms of the Options, duly
authorized, validly issued, fully paid and non-assessable. Except as set forth in this Section
3.4(a) and in Sections 3.4(a) and (b) of the Company Disclosure Letter,
and for changes resulting from the exercise of the Options outstanding as of the date hereof, there
are no (i) shares of capital stock or other equity interests or voting securities of the Company or
any Subsidiary authorized, issued or outstanding, (ii) existing securities, options, warrants,
calls, preemptive rights, subscription or other rights, agreements, arrangements, commitments,
derivative contracts, forward sale contracts or undertakings of any character, to which the Company
or any of its Subsidiaries is a party, or by which the Company or any of its Subsidiaries is bound,
obligating the Company or any of its Subsidiaries to (1) issue, transfer or sell or cause to be
issued, transferred or sold any shares of capital stock or other equity interest or voting security
in the Company or any of its Subsidiaries or securities convertible into or exchangeable for such
shares of capital stock or other equity interests or voting securities, (2) issue, grant, extend
or enter into any such security, option, warrant, call, preemptive right, subscription or other
right, agreement, arrangement, commitment, derivative contract, forward sale contract, or
undertaking, or (3) make any payment based on or resulting from the value or price of the Shares or
of any such security, option, warrant, call, preemptive right, subscription or other right,
agreement, arrangement, commitment, derivative contract, forward sale contract or undertaking,
(iii) outstanding contractual obligations of the Company or any of its Subsidiaries to provide
funds to make any investment (in the form of a loan, capital contribution or otherwise) in any
Subsidiary of the Company or any other entity or (iv) issued or outstanding performance awards,
units, rights to receive shares of Company’s Common Stock on a deferred basis, or rights to
purchase or receive Company’s Common Stock or other equity interest or voting securities issued or
granted by the Company to any current or former director, officer, employee or consultant of the
Company (the items referred to in clauses (i) through (iv) of or with respect

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to any Person, collectively, “Rights”). Except for acquisitions, or deemed acquisitions, of
Common Stock or other equity securities of the Company in connection with (1) the payment of the
exercise price of Options with Common Stock (including in connection with “net” exercises), (2)
required tax withholding in connection with the exercise of Options and vesting of Share Units and
(3) forfeitures of Options and Share Units, there are no outstanding contractual obligations of the
Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any shares of capital
stock of the Company or any of its Subsidiaries, other than pursuant to the applicable Company
Plans. No Subsidiary of the Company owns any Shares.

          (b) All of the outstanding shares of capital stock and other Rights of each of the Company’s
Subsidiaries are owned beneficially and of record by the Company or a wholly owned Subsidiary of
the Company, and all such shares and Rights have been validly issued and are fully paid and
nonassessable and are owned by either the Company or a wholly owned Subsidiary of the Company free
and clear of any Encumbrances. Section 3.4 of the Company Disclosure Letter lists each
Subsidiary of the Company and its jurisdiction of organization.

          (c) There are no voting trusts or other agreements or understandings to which the Company or
any of its Subsidiaries is a party, or of which the Company has Knowledge, with respect to the
voting of the capital stock and other Rights of the Company or any of its Subsidiaries.

     Section 3.5 SEC Reports and Financial Statements.

          (a) The Company has filed with or furnished to the SEC, and has made available to Parent, true
and complete copies of all forms, reports, schedules, statements and other documents required to be
filed or furnished by it since January 1, 2010, under the Exchange Act or the Securities Act of
1933, as amended (the “Securities Act”) (collectively, the “Company SEC Documents”). As of its
respective date (and if amended, as of the date of the last such amendment), each Company SEC
Document, including any financial statements, schedules and exhibits included therein or attached
thereto, complied in all material respects with the requirements of the Securities Act or the
Exchange Act, as the case may be, and the rules and regulations of the SEC promulgated thereunder
applicable to such SEC Documents, and, without limitation of the foregoing, (i) did not contain any
untrue statement of a material fact or omit to state a material fact required to be stated in such
Company SEC Document or necessary in order to make the statements in such Company SEC Document, in
light of the circumstances under which they were made, not misleading and (ii) complied in all
material respects with the applicable requirements of the Exchange Act, the Securities Act and the
Sarbanes-Oxley Act of 2002 (“SOX”), as the case may be, and the applicable rules and regulations of
the SEC under the Exchange Act, the Securities Act and SOX, as the case may be. None of the
Company’s Subsidiaries is, or at any time since January 1, 2010, has been, required to file, or has
voluntarily filed, any forms, reports or other documents with the SEC. Each of the consolidated
financial statements included in the Company SEC Documents (the “Financial Statements”) (w) has
been prepared from, and is in accordance with, the books and records of the Company and its
consolidated Subsidiaries, (x) complies in all material respects with the applicable accounting
requirements and with the published rules and regulations of the SEC with respect to such
requirements, (y) has been prepared in accordance with the United States generally accepted
accounting principles (“GAAP”) applied on a consistent basis during the periods involved

- 11 -

 

(except as may be indicated in the Financial Statements or in the notes to the Financial
Statements and subject, in the case of unaudited statements, to normal year-end audit adjustments
and the absence of footnote disclosure), and (z) fairly presents, in all material respects, the
consolidated financial position and the consolidated results of operations and cash flows (and
changes in financial position, if any) of the Company and its consolidated Subsidiaries as of the
date and for the periods referred to in the Financial Statements. If at any time from the date
hereof and until the Effective Time, the Company shall obtain knowledge of any material facts that
would require supplementing or amending any of the foregoing documents in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
or to comply with applicable Laws, such amendment or supplement shall be promptly filed with the
SEC and, as required by law, disseminated to the shareholders of the Company.

          (b) Neither the Company nor any of the Company Subsidiaries is a party to, or has any
commitment to become a party to, any joint venture, off-balance sheet partnership or any similar
contract or arrangement (including any contract relating to any transaction or relationship between
or among the Company and any of its Subsidiaries, on the one hand, and any unconsolidated
Affiliate, including any structured finance, special purpose or limited purpose entity or person,
on the other hand or any “off-balance sheet arrangements” (as defined in Item 303(a) of Regulation
S K of the SEC)), where the result, purpose or effect of such arrangement is to avoid disclosure of
any material transaction involving, or material liabilities of, the Company or any of its
Subsidiaries in the Company’s or such Subsidiary’s audited financial statements or other Company
SEC Documents.

          (c) To the Knowledge of the Company, as of the date hereof, (i) the earnings guidance included
in the Company’s February 2, 2011 press release (the “Company Earnings Guidance”) continues to be
reasonable, based on and subject to the assumptions stated in such release, and (ii) no event,
circumstance, change, occurrence, state of facts or effect has occurred which would cause the
Company to change such earnings guidance.

          (d) Each of the principal executive officers of the Company and the principal financial
officer of the Company has made all certifications required by Rule 13a 14 or 15d 14 under the
Exchange Act and Sections 302 and 906 of SOX with respect to the Company SEC Documents, and the
statements contained in such certifications are accurate in all material respects as of the date of
this Agreement. For purposes of this Agreement, “principal executive officer” and “principal
financial officer” shall have the meanings given to such terms in SOX.

     Section 3.6 Absence of Certain Changes. Since December 31, 2010, (a) the Company and
its Subsidiaries have conducted their respective businesses only in the ordinary course of business
consistent with past practice and (b) there has not been any event, circumstance, change,
occurrence, state of facts or effect (including the incurrence of any liabilities of any nature,
whether or not accrued, contingent or otherwise) that would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. Except as set forth in Section
3.6 of the Company Disclosure Letter or in the Company SEC Documents, since December 31, 2010
through the date of this Agreement, neither the Company nor any of its Subsidiaries has taken any
action that would have constituted a breach of Section 5.1 hereof, had the covenants
therein applied since December 31, 2010.

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     Section 3.7 No Undisclosed Material Liabilities. There are no liabilities or
obligations of the Company or any of its Subsidiaries, whether accrued, absolute, determined or
contingent, except for (i) liabilities or obligations disclosed and provided for in the balance
sheets included in the Financial Statements (or in the notes thereto) filed and publicly available
prior to the date of this Agreement, (ii) liabilities or obligations incurred in connection with
the Transactions, (iii) liabilities or obligations incurred in the ordinary course of business
consistent in the past practice since December 31, 2010, and (iv) liabilities or obligations that
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

     Section 3.8 Compliance with Laws and Court Orders.

          (a) The Company and each of its Subsidiaries is and, since January 1, 2008, has been in
compliance with, and, to the Knowledge of the Company, is not under investigation with respect to
and has not been threatened to be charged with or given notice of any violation of, any applicable
Law or Order, except for failures to comply or violations that would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect. The Company and its
Subsidiaries hold all governmental licenses, authorizations, permits, consents, approvals,
variances, exemptions and orders necessary for the operation of the businesses of the Company and
its Subsidiaries, taken as a whole (the “Company Permits”), except where such failure would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The
Company and each of its Subsidiaries are in compliance with the terms of the Company Permits,
except for failures to comply or violations that would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

          (b) Without limitation of Section 3.8(a), to the Knowledge of the Company, (i) neither
the Company and its Subsidiaries and controlled Affiliates (which, for all purposes of this
Section 3.8(b), shall be deemed to include the entities identified in numbers (1) through
(3) on Section 3.8(b) of the Company Disclosure Letter), nor any of its or their directors
or officers is listed on the Specially Designated Nationals and Blocked Person list or other
similar lists maintained by the Office of Foreign Assets Control, by the United States Department
of the Treasury or pursuant to executive orders, and (ii) neither the Company and its Subsidiaries
and controlled Affiliates, nor any of its or their directors, officers, employees, agents or other
Persons acting on the Company’s or any Company Subsidiary’s behalf (A) has taken, or caused to be
taken, directly or indirectly, any action that would cause the Company or any of its Subsidiaries
to be in violation of any Anti-Corruption Law, or (B) has corruptly made, promised, offered or
authorized, or has caused or authorized any consultants, joint venture partners or representatives
corruptly to make, promise or offer, any payment or transfer of anything of value, directly or
indirectly, to any official, employee or agent of any Governmental Entity for the purpose of (1)
influencing such Person to take any action or decision or to omit to take any action, in his or her
official capacity, (2) inducing such Person to use his or her influence with a Governmental Entity
to affect any act or decision of a Governmental Entity, or (3) securing any improper advantage; and
each of it and each of its controlled Affiliates complies with and implements internal compliance
policies with respect to applicable Anti-Corruption Laws. As used in this Section 3.8(b),
the term “Anti-Corruption Laws” means each Law, regulation, treaty or convention relating to
anti-money laundering, anti-terrorism financing, anti-bribery, anti-corruption or similar matters,
including the Foreign Corrupt Practices Act of 1977, as amended.

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     Section 3.9 Material Contracts.

          (a) Except as set forth in Section 3.9(a) of the Company Disclosure Letter, as of the
date hereof, neither of the Company nor any of its Subsidiaries is a party to or bound by any: (i)
contract (other than this Agreement or a Company Plan) that would be required to be filed by the
Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC; (ii)
indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other
evidence of Indebtedness or agreement providing for Indebtedness in excess of $10,000,000; (iii)
written contract (other than this Agreement) for the sale of any of its assets after the date
hereof (other than sales of product in the ordinary course of business); (iv) collective bargaining
agreement; (v) written contract that contains a put, call, right of first refusal or similar right
pursuant to which the Company or any of its Subsidiaries would be required to purchase or sell, as
applicable, any equity interests of any Person; (vi) settlement agreement or similar agreement with
a Governmental Entity or Order to which the Company or any of its Subsidiaries is a party involving
future performance by the Company or any of its Subsidiaries which is material; (vii) contract
providing for indemnification (including any obligations to advance funds for expenses) of the
current or former directors or officers of the Company or any of its Subsidiaries; or (viii) other
contract (other than this Agreement, purchase orders for the purchase of inventory or agreements
between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly
owned Subsidiaries) under which the Company and its Subsidiaries are obligated to make or receive
payments in the future in excess of $10,000,000 per annum or $20,000,000 during the life of the
contract. Each such contract described in clauses (i)-(viii) is referred to herein as a “Material
Contract.”

          (b) Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the
Knowledge of the Company, no other party is) in default under any Material Contract, (ii) each of
the Material Contracts is in full force and effect, and is the valid, binding and enforceable
obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other
parties thereto, except that (x) such enforcement may be subject to applicable bankruptcy,
reorganization, insolvency, moratorium or other similar Laws, now or hereafter in effect, affecting
creditors’ rights generally and (y) the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought, (iii) the Company and its Subsidiaries have
performed all respective material obligations required to be performed by them to date under the
Material Contracts, are not and no circumstance exists, which (with or without the lapse of time or
the giving of notice, or both) would cause them to be, in breach thereunder and (iv) neither the
Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to
the Knowledge of the Company, no party has threatened to terminate, any Material Contract.

     Section 3.10 Information in Proxy Statement. The proxy statement relating to the
Special Meeting (such proxy statement, as amended or supplemented from time to time, the “Proxy
Statement”) will not, at the date it is first mailed to the Company’s shareholders and at the time
of the Special Meeting, contain any untrue statement of a material fact or omit to state any
material fact required to be stated in the Proxy Statement or necessary in order to make the
statements in the Proxy Statement, in light of the circumstances under which they are made, not

- 14 -

 

misleading. The Proxy Statement will comply as to form in all material respects with the
requirements of the Exchange Act and the rules and regulations thereunder. Notwithstanding
anything to the contrary in this Section 3.10, no representation or warranty is made by the
Company with respect to information contained or incorporated by reference in the Proxy Statement
supplied by or on behalf of Parent or Merger Sub specifically for inclusion or incorporation by
reference in the Proxy Statement.

     Section 3.11 Litigation. There are no Actions pending or, to the Knowledge of the
Company, threatened against the Company or any of its Subsidiaries or any officer, director or
employee of the Company in such capacity, which would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is
a party or subject to, or in default under, any Order which would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

     Section 3.12 Employee Compensation and Benefit Plans; ERISA.

          (a) As used herein, the term “Company Plan” shall mean (except as set forth in the last
sentence of Section 2.3(c)) each material “employee benefit plan” (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) and each
other material equity incentive, compensation, severance, employment, change-in-control, retention,
fringe benefit, collective bargaining, bonus, incentive, savings, retirement, deferred
compensation, or other benefit plan, agreement, program, policy or arrangement, whether or not
subject to ERISA (including any related funding mechanism), in each case other than a
“multiemployer plan,” as defined in Section 3(37) of ERISA (“Multiemployer Plan”), under which (i)
any current or former employee, officer, director, contractor or consultant of the Company or any
of its Subsidiaries (“Covered Employees”) has any present or future right to benefits and which are
entered into, contributed to, sponsored by or maintained by the Company or any of its Subsidiaries,
or (ii) the Company or any of its Subsidiaries has any present or future liability.

          (b) Except as would not, individually or in the aggregate, have a Material Adverse Effect:

          (i) Each Company Plan is in compliance with all applicable Laws, including ERISA and
the Code.

          (ii) Each Company Plan that is intended to be a qualified plan under Section 401(a) of
the Code has received a favorable determination letter to that effect from the IRS and, to
the Knowledge of the Company, no event has occurred since the date of such determination
that would reasonably be expected to adversely affect such determination.

          (iii) No condition exists that is reasonably likely to subject the Company or any of
its ERISA Affiliates to any direct or indirect liability under Title IV of ERISA or to a
civil penalty under Section 502(j) of ERISA or liability under Section 4069 of ERISA or
Section 4975, 4976, or 4980B of the Code or other liability with respect to the Company
Plans.

- 15 -

 

          (iv) No material Actions are pending or, to the Knowledge of the Company, threatened
with respect to any Company Plan.

          (v) (A) Each Company Plan that is maintained primarily for the benefit of Covered Employees
based outside of the United States (a “Non-U.S. Plan”) has been operated in accordance, and is in
compliance, in all respects, with all applicable Laws and has been operated in accordance, and is
in compliance, with its terms; (B) each Non-U.S. Plan that is required to be funded is funded to
the extent required by applicable Law, and with respect to all other Non-U.S. Plans, adequate
provision has been made therefor on the accounting statements of the applicable Company or
Subsidiary entity; and (C) no liability or obligation of the Company or any of its Subsidiaries
exists with respect to such Non-U.S. Plans that has not been disclosed on Section
3.12(b)(v) of the Company Disclosure Letter.

          (vi) There is no (A) unfair labor practice, labor dispute or labor arbitration
proceeding pending or, to the Knowledge of the Company, threatened against or affecting the
Company or any of its Subsidiaries, or (B) lockout, strike, slowdown, work stoppage or, to
the Knowledge of the Company, threat thereof by or with respect to any employees of the
Company or any of its Subsidiaries.

          (c) Except as set forth in Section 3.12(c) of the Company Disclosure Letter, the
consummation of the Transactions will not, either alone or in combination with another event, (i)
entitle any current or former employee or officer of the Company or any of its Subsidiaries to any
material severance pay, unemployment compensation or any other payment, except as expressly
provided in this Agreement, or (ii) accelerate the time of payment or vesting, or materially
increase the amount of compensation due any such employee or officer.

     Section 3.13 Properties.

          (a) Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, the Company or one of its Subsidiaries has good fee simple title to all
Owned Real Property and valid leasehold estates in all Leased Real Property free and clear of all
Encumbrances, except Permitted Encumbrances. Except as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, the Company or one of its Subsidiaries
has exclusive possession of each Leased Real Property and Owned Real Property, other than any use
and occupancy rights granted to third-party owners, tenants or licensees pursuant to agreements
with respect to such real property entered in the ordinary course of business.

          (b) Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, (i) each lease for the Leased Real Property is in full force and effect
and is valid, binding and enforceable in accordance with its terms, except that (x) such
enforcement may be subject to applicable bankruptcy, reorganization, insolvency, moratorium or
other similar Laws, now or hereafter in effect, affecting creditors’ rights generally and (y) the
remedy of specific performance and injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any proceeding therefor may be
brought, and (ii) there is no default under any lease for the Leased Real Property either by the
Company or its Subsidiaries or, to the Knowledge of the Company, by any other party thereto,

- 16 -

 

and no event has occurred that, with the lapse of time or the giving of notice or both, would
constitute a default by the Company or its Subsidiaries thereunder.

          (c) Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, (i) there are no pending or, to the Knowledge of the Company, threatened
condemnation or eminent domain proceedings that affect any Owned Real Property or Leased Real
Property, and (ii) the Company has not received any written notice of the intention of any
Governmental Entity or other Person to take any Owned Real Property or Leased Real Property.

     Section 3.14 Intellectual Property. Except as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, (i) the Company or one of its
Subsidiaries owns all right, title, and interest in, or has the right to use, pursuant to a license
or otherwise, in each case, free and clear of all Encumbrances except Permitted Encumbrances, all
Intellectual Property Rights that are required to operate the Company’s business as presently
conducted, and (ii) (x) there is no pending, and the Company has not received any written notice of
any actual or threatened, Actions alleging a violation, misappropriation or infringement of the
Intellectual Property Rights of any other Person by Company or its Subsidiaries except for any of
the foregoing that have since been fully and finally resolved, (y) to the Knowledge of the Company,
the operation of the business of the Company as currently conducted does not violate,
misappropriate or infringe the Intellectual Property Rights of any other Person, and (z) to the
Knowledge of the Company, no other Person has violated, misappropriated or infringed any
Intellectual Property Rights owned by the Company or any of its Subsidiaries.

     Section 3.15 Environmental Laws.

          (a) Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, (i) the Company and its Subsidiaries comply and have in the past five
years complied with all applicable Environmental Laws, and possess and comply, and have complied,
with all applicable Environmental Permits required under such Laws to operate the businesses of the
Company and its Subsidiaries as currently operated; (ii) there are no, and there have not been any,
Materials of Environmental Concern at any property currently or, to the Knowledge of the Company,
formerly owned or operated by the Company or its Subsidiaries, under circumstances that have
resulted in or are reasonably likely to result in liability of the Company or its Subsidiaries
under any applicable Environmental Laws; (iii) none of the Company or any of its Subsidiaries has
received any written notification alleging that it is liable, or request for information, pursuant
to any applicable Environmental Law, concerning any release, threatened release of, or exposure to,
any Materials of Environmental Concern at any location except, with respect to any such
notification or request for information concerning any such release or threatened release, to the
extent such matter has been fully resolved with the appropriate Governmental Entity or Person, and
(iv) none of the Company or any of its Subsidiaries has received any written notice regarding any
actual or alleged violation of any Environmental Laws or Environmental Permits, including a notice
of violation, a notice of non-compliance, or notice of requirements. There are no Actions arising
under Environmental Laws pending or, to the Knowledge of the Company, threatened against the
Company or any of its Subsidiaries which would reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

- 17 -

 

          (b) Notwithstanding any other representations and warranties in this Agreement, the
representations and warranties in this Section 3.15 are the only representations and
warranties in this Agreement with respect to Environmental Laws, Environmental Permits or Materials
of Environmental Concern.

     Section 3.16 Taxes.

          (a) The Company and each of its Subsidiaries has timely filed all material Tax Returns that it
was required to file and has timely paid all Taxes shown thereon as due and owing and all other
Taxes required to be paid by it. All such Tax Returns were correct and complete in all material
respects.

          (b) No audit or other proceeding with respect to any material Taxes due from the Company or
any of its Subsidiaries, or any material Tax Return of the Company or any of its Subsidiaries, is
pending or threatened in writing by any Governmental Entity. Each assessed deficiency resulting
from any audit or examination relating to Taxes by any Governmental Entity has been timely paid and
there is no assessed deficiency, refund litigation, proposed adjustment or matter in controversy
with respect to any Taxes due and owing by the Company or any of its Subsidiaries.

          (c) Neither the Company nor any of its Subsidiaries has agreed to any extension or waiver of
the statute of limitations applicable to any material Tax Return, or agreed to any extension of
time with respect to a material Tax assessment or deficiency, which period (after giving effect to
such extension or waiver) has not yet expired.

          (d) Neither the Company nor any of its Subsidiaries is a party to any material Tax allocation
or sharing agreement.

          (e) The Company and each of its Subsidiaries has withheld and remitted all material Taxes
required to have been withheld and remitted under applicable Law in connection with any amounts
paid or owing to any employee, independent contractor, creditor, shareholder, member or other
party.

          (f) There are no Encumbrances for unpaid Taxes on the assets of the Company or any of its
Subsidiaries, except Encumbrances for current Taxes not yet due and payable.

          (g) Neither the Company nor any of its Subsidiaries (i) has been a member of an affiliated
group of corporations within the meaning of Section 1504 of the Code (other than a group the common
parent of which is the Company) or (ii) has any liability for Taxes of any Person (other than the
Company and its Subsidiaries) under Treasury Regulation Section 1.1502-6 (or any similar provision
of state, local or foreign Law), as a transferee or successor, by contract or otherwise.

     Section 3.17 Opinions of Financial Advisors. The Company Board has received the
opinions of each of Evercore Group L.L.C. and Citigroup Global Markets Inc. (the “Financial
Advisors”), to the effect that, as of the date of such opinions, the Merger Consideration to be

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received by holders of the Company’s Common Stock is fair, from a financial point of view, to
such holders.

     Section 3.18 Brokers or Finders. Except for the Financial Advisors, no agent, broker,
investment banker, financial advisor or other firm or Person is or will be entitled to any broker’s
or finder’s fee or any other commission or similar fee or payment from the Company or any of its
Subsidiaries in connection with any of the Transactions.

     Section 3.19 State Takeover Statutes. The Company Board has taken all necessary
action so that the “moratorium,” “fair price,” “control share acquisition” and other similar
anti-takeover provisions of Ohio Law or the similar Laws of any jurisdiction (each, a “Takeover
Statute”) and any anti-takeover or similar provisions contained in the governing documents of the
Company or any of its Subsidiaries are not applicable to the Transactions.

     Section 3.20 Transactions with Affiliates. Since the date the Company’s last proxy
statement was filed with the SEC and through the date of this Agreement, no event has occurred that
would be required to be reported by the Company pursuant to Item 404 of Regulation S-K promulgated
by the SEC.

     Section 3.21 No Other Representations or Warranties. Except for the representations
and warranties contained in this Article III, neither the Company nor any other Person
makes any other express or implied representation or warranty on behalf of the Company or any of
its Affiliates, and for the avoidance of doubt, neither the Company nor any of its Affiliates makes
any express or implied representation or warranty with respect to “Information” as defined in the
Confidentiality Agreement, dated March 7, 2011, between the Company and Parent (the
“Confidentiality Agreement”).

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB

     Parent and Merger Sub, jointly and severally, represent and warrant to the Company as follows:

     Section 4.1 Organization. Each of Parent and Merger Sub is a corporation duly
organized, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization and has all requisite corporate or other power and authority and all
necessary governmental approvals to own, lease and operate its properties and to carry on its
business as now being conducted, except (other than with respect to Parent’s or Merger Sub’s due
organization, valid existence and good standing) where the failure to be so organized, existing and
in good standing or to have such power, authority and governmental approvals would not reasonably
be expected to have a material adverse effect on the ability of Parent and Merger Sub to consummate
the Merger and the other Transactions. Parent owns all of the issued and outstanding capital stock
of the Merger Sub.

     Section 4.2 Authorization; Validity of Agreement; Necessary Action. Each of Parent
and Merger Sub has full corporate power and authority to execute and deliver this Agreement and to
consummate the Transactions. The execution, delivery and performance by Parent and

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Merger Sub of this Agreement, and the consummation by it of the Transactions have been duly
and validly authorized by the respective boards of directors of Parent and Merger Sub and by Parent
as the sole shareholder of Merger Sub, and no other corporate action on the part of Parent or
Merger Sub is necessary to authorize the execution, delivery and performance by Parent and Merger
Sub of this Agreement and the consummation of the Transactions. This Agreement has been duly
executed and delivered by Parent and Merger Sub and, assuming due and valid authorization,
execution and delivery of this Agreement by the Company, is a valid and binding obligation of each
of Parent and Merger Sub enforceable against each of them in accordance with its terms, except that
(a) such enforcement may be subject to applicable bankruptcy, reorganization, insolvency,
moratorium or other similar Laws, now or hereafter in effect, affecting creditors’ rights generally
and (b) the remedy of specific performance and injunctive and other forms of equitable relief may
be subject to equitable defenses and to the discretion of the court before which any proceeding
therefor may be brought.

     Section 4.3 Consents and Approvals; No Violations.

          (a) Except for filings, permits, authorizations, consents and approvals as may be required
under, and other applicable requirements of, (A) the Exchange Act, (B) the Securities Act, (C) the
rules and regulations of the New York Stock Exchange, and (D) the HSR Act, and any foreign
antitrust or competition laws, no consents or approvals of, or filings, declarations or
registrations with, any Governmental Entity are necessary for the consummation by Parent and Merger
Sub of the Transactions, other than such other consents, approvals, filings, declarations or
registrations that, if not obtained, made or given, would not reasonably be expected to have a
material adverse effect on the ability of Parent and Merger Sub to consummate the Merger and the
other Transactions.

          (b) Neither the execution and delivery of this Agreement by Parent or Merger Sub nor the
consummation by Parent or Merger Sub of the Transactions, nor compliance by Parent or Merger Sub
with any of the terms or provisions hereof, will (i) conflict with or violate any provision of the
organizational documents of Parent or Merger Sub or of any of their respective Subsidiaries or (ii)
assuming that any required authorizations, consents and approvals are duly obtained, (x) violate
any Order or Law applicable to Parent or Merger Sub or any of their respective Subsidiaries or any
of their respective properties or assets, or (y) violate, conflict with, result in the loss of any
material benefit under, constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, result in the termination of or a right to termination or
cancellation under, accelerate the performance required by, or result in the creation of any
Encumbrance upon any of the respective properties or assets of either Parent or Merger Sub or any
of their respective Subsidiaries under, any of the terms, conditions or provisions of any note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which either Parent or Merger Sub or any of their respective Subsidiaries is a party,
or by which they or any of their respective properties or assets may be bound or affected, except,
in the case of clause (ii) above, for such violations, conflicts, breaches, defaults, losses,
terminations of rights thereof, accelerations or Encumbrance creations which would not reasonably
be expected to have a material adverse effect on the ability of Parent and Merger Sub to consummate
the Merger and the other Transactions.

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     Section 4.4 Ownership of Common Stock. Neither Parent nor any of its Subsidiaries
(including Merger Sub) is, and at no time during the last three years has Parent or any of its
Subsidiaries (including Merger Sub) been, an “interested shareholder” of the Company as defined in
Section 1704.01 of Ohio Law. Except for any Shares of Common Stock that may be owned by any of
Parent’s Subsidiaries’ pension funds that are not managed by Parent (which Shares of Common Stock,
if any, are less than 1% of the Company’s outstanding shares of Common Stock), neither Parent nor
any of its Subsidiaries (including Merger Sub) owns (directly or indirectly, beneficially or of
record), or is a party to any agreement, arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of, any shares of capital stock of the Company (other than as
contemplated by this Agreement).

     Section 4.5 Information in Proxy Statement. None of the information supplied or to be
supplied by or on behalf of Parent or Merger Sub specifically for inclusion or incorporation by
reference in the Proxy Statement will, at the date it is first mailed to the Company’s shareholders
and at the time of the Special Meeting contain any untrue statement of a material fact or omit to
state any material fact required to be stated in the Proxy Statement or necessary in order to make
the statements in the Proxy Statement, in light of the circumstances under which they are made, not
misleading.

     Section 4.6 Financing. Parent and Merger Sub have, and at all times through the
Closing shall have, sufficient funds available to finance and consummate the Transactions.

     Section 4.7 No Prior Activities. Except for obligations or liabilities incurred in
connection with its incorporation or organization or the negotiation and consummation of this
Agreement and the Transactions, Merger Sub has not incurred any obligations or liabilities, and has
not engaged in any business or activities of any type or kind whatsoever or entered into any
agreements or arrangements with any Person or entity.

     Section 4.8 Litigation. As of the date of this Agreement, there are no Actions
pending or, to the Knowledge of Parent, threatened against Parent or Merger Sub or, to the
Knowledge of Parent, any officer, director or employee of Parent or Merger Sub in such capacity,
which would, individually or in the aggregate, prevent or materially delay Parent or Merger Sub
from performing its obligations under this Agreement. Neither Parent nor Merger Sub is a party or
subject to or in default under any Order which would prevent or materially delay Parent or Merger
Sub from performing its obligations under this Agreement

     Section 4.9 Disclaimer of Warranties. Parent and Merger Sub acknowledge that neither
the Company nor any Person has made any express or implied representations or warranty on behalf of
the Company or any of its Affiliates as to the accuracy or completeness of any information
regarding the Company provided to Parent and Merger Sub, including the “Information,” as defined
in the Confidentiality Agreement, except as expressly set forth in Article III and Parent
and Merger Sub further agree that, except for the matters expressly set forth in Article
III, neither the Company nor any Person shall have or be subject to any liability to Parent,
Merger Sub or any other Person resulting from the distribution to Parent and Merger Sub, or
Parent’s or Merger Sub’s use of, any such information. In connection with any investigation by
Parent and Merger Sub of the Company and its Subsidiaries, Parent and Merger Sub have received from
the Company and/or its Affiliates and/or other Persons on behalf of the

- 21 -

 

Company certain projections. Parent and Merger Sub acknowledge that there are uncertainties
inherent in attempting to make such projections, that Parent and Merger Sub are familiar with such
uncertainties, that Parent and Merger Sub are taking full responsibility for making their own
evaluation of the adequacy and accuracy of all projections so furnished to them, and that, except
as provided in this Agreement with respect to the Company Earnings Guidance referred to in
Section 3.5(c), Parent and Merger Sub shall have no claim against the Company or any other
Person with respect thereto. Accordingly, except as set forth in Section 3.5(c), Parent
and Merger Sub acknowledge that neither the Company nor any other Person on behalf of the Company
makes any representation or warranty with respect to such projections.

ARTICLE V

COVENANTS

     Section 5.1 Interim Operations of the Company. Except (A) as expressly contemplated
by this Agreement, (B) as set forth on Section 5.1 of the Company Disclosure Letter, (C) as
required by applicable Law, or (D) as consented to in writing by Parent after the date of this
Agreement and prior to the Effective Time, which consent, solely in the case of clauses (v), (vi)
and (vii) below, shall not be unreasonably withheld or delayed, the Company agrees that:

          (i) the Company and its Subsidiaries will conduct business only in the ordinary course
of business consistent with past practice;

          (ii) the Company will not amend its Second Amended and Restated Articles of
Incorporation or Second Amended and Restated Regulations and the Company’s Subsidiaries will
not amend their certificate of incorporation, bylaws or other comparable charter or
organizational documents;

          (iii) neither the Company nor any of its Subsidiaries will (A) declare, set aside or
pay any dividend or other distribution (including any constructive or deemed distribution),
whether payable in cash, stock or other property, with respect to its capital stock, or
otherwise make any payments to its shareholders in their capacity as such, other than the
Company’s ordinary course quarterly dividends to holders of Shares in a per Share amount no
greater than the Company’s most recently declared dividend, with record and payment dates in
accordance with the Company’s customary dividend schedule; (B) issue, sell, grant, transfer,
pledge, dispose of or encumber or authorize or propose to issue, sell, grant, transfer,
pledge, dispose of or encumber any additional shares of capital stock or other Rights of the
Company or any of its Subsidiaries (including treasury stock), other than in respect of the
 shares of the Company’s capital stock reserved for issuance on the date of this Agreement
and issued pursuant to the exercise of Options outstanding on the date of this Agreement,
(C) split, combine, subdivide or reclassify the Shares or any other outstanding capital
stock of the Company or any of the Subsidiaries of the Company or issue or authorize the
issuance of any other securities in respect of, in lieu of or in substitution for any shares
of capital stock or other Rights of the Company or any of its Subsidiaries or (D) redeem,
purchase or otherwise

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acquire, directly or indirectly, any capital stock or other Rights of the Company or
any of its Subsidiaries;

          (iv) except as required by applicable Law or under the terms of any Company Plan in
effect as of the date of this Agreement, the Company will not and will not permit its
Subsidiaries to increase the compensation payable or to become payable to any of its
officers, directors, employees, agents, consultants or Affiliates, or enter into, establish,
amend or terminate any Company Plans, except increases in salaries, wages and benefits of
employees who are not directors or officers of the Company or its Subsidiaries made in the
ordinary course of business consistent with past practice;

          (v) neither the Company nor any of its Subsidiaries will (A) incur or assume any long-term
Indebtedness, or except in the ordinary course of business, incur or assume any short-term
Indebtedness in amounts not consistent with past practice, (B) assume, guarantee, endorse or
otherwise become liable or responsible (whether directly, contingently or otherwise) for the
obligations of any other Person, except in the ordinary course of business and consistent with past
practice or (C) make any loans, advances or capital contributions to, or investments in, any other
Person except in the ordinary course of business and consistent with past practice;

          (vi) make any acquisition or investment in a business either by purchase of stock or
securities, merger or consolidation, contributions to capital, loans, advances, property
transfers, or purchases of any property or assets of any other Person other than a direct or
indirect wholly owned Subsidiary of the Company, or otherwise make or authorize any capital
expenditure, other than capital expenditures contemplated by the Company’s existing capital
budget, a copy of which has been furnished to Parent;

          (vii) neither the Company nor any of its Subsidiaries will (A) pay, discharge, waive,
settle or satisfy any rights, claims, liabilities or obligations (absolute, accrued,
asserted or unasserted, contingent or otherwise), other than the payment, discharge, waiver,
settlement or satisfaction, (x) in the ordinary course of business consistent with past
practice, of claims, liabilities or obligations reflected or reserved against in, or
contemplated by, the Financial Statements (or the notes to the Financial Statements) or of
claims, liabilities or obligations incurred since the date of the Financial Statements in
the ordinary course of business consistent with past practice or (y) for amounts,
individually or in the aggregate, not to exceed $5,000,000 (in excess of third party
insurance) or (B) waive any claims of substantial value;

          (viii) neither the Company nor any of its Subsidiaries will change any of the accounting
methods, principles or practices used by it unless required by a change in GAAP or Law;

          (ix) neither the Company nor any of its Subsidiaries will (A) adopt a plan of complete
or partial liquidation, dissolution, merger, consolidation, business combination,
restructuring, recapitalization or other reorganization (other than this Agreement), (B)
acquire by merging or consolidating with, or by purchasing a substantial equity interest in
or portion of the assets of, or by any other manner, any business or any corporation,
partnership, joint venture, association or other business organization or

- 23 -

 

division thereof or (C) acquire, transfer, lease, license, sell, mortgage, pledge,
dispose of or encumber any material assets, other than, in the case of this clause (C),
acquisitions of raw materials and inventory and sales of inventory, in each case in the
ordinary course of business consistent with past practice; and

          (x) neither the Company nor any of its Subsidiaries will enter into an agreement, contract,
commitment or arrangement to do any of the foregoing, or to authorize, recommend, propose or
announce an intention to do any of the foregoing.

     Section 5.2 No Solicitation by the Company.

          (a) The Company shall immediately cease any discussions or negotiations with any parties that
may be ongoing with respect to a Takeover Proposal (as hereinafter defined) and shall seek to have
returned to the Company any confidential information that has been provided in any such discussions
or negotiations. From the date hereof, the Company shall not, nor shall it permit any of its
Subsidiaries to, nor shall it authorize or permit any of its officers, directors or employees or
any Affiliate, investment banker, financial advisor, attorney, accountant or other representative
retained by it or any of its Subsidiaries to, directly or indirectly, (i) solicit, initiate or
knowingly encourage (including by way of furnishing information which has not been previously
publicly disseminated), or take any other action designed to facilitate, any inquiries or the
making of any proposal which constitutes, or may reasonably be expected to lead to, any Takeover
Proposal or (ii) participate in any discussions or negotiations regarding any Takeover Proposal;
provided, however, that if, following the receipt of a Superior Proposal (as
hereinafter defined) or a proposal which is reasonably expected to lead to a Superior Proposal that
in either case was unsolicited and made after the date hereof in circumstances not otherwise
involving a breach of this Agreement, the Company Board determines in good faith, after considering
applicable provisions of state law and after consultation with outside counsel, that a failure to
do so would be inconsistent with its fiduciary duties under applicable law, the Company may, in
response to such Takeover Proposal and subject to compliance with Section 5.2(c), (A)
request information from the party making such Takeover Proposal for the sole purpose of the
Company Board informing itself about the Takeover Proposal that has been made and the party that
made it, (B) furnish information with respect to the Company to the party making such Takeover
Proposal pursuant to a customary confidentiality agreement, provided that (1) such
confidentiality agreement may not include any provision calling for an exclusive right to negotiate
with the Company and (2) the Company advises Parent of all such nonpublic information delivered to
such person concurrently with its delivery to the requesting party, and (C) participate in
negotiations with such party regarding such Takeover Proposal. It is agreed that any violation of
the restrictions set forth in the preceding sentence by any executive officer, director or
investment banker, attorney or other advisor or representative of the Company or any of its
Subsidiaries shall be deemed to be a breach of this Section 5.2(a) by the Company. The
Company agrees not to waive or fail to enforce any provision of any confidentiality or standstill
agreement to which it is a party relating to a potential or actual Takeover Proposal.

          (b) Except as expressly permitted in this Section 5.2(b), neither the Company Board
nor any committee thereof shall (i) withdraw or modify, or propose publicly to withdraw or modify,
in a manner adverse to Parent, the approval, determination of advisability, or

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recommendation by the Company Board or such committee of this Agreement, the Merger, and the
other Transactions, (ii) approve, determine to be advisable, or recommend, or propose publicly to
approve, determine to be advisable, or recommend, any Takeover Proposal or (iii) cause the Company
to enter into any letter of intent, agreement in principle, acquisition agreement or other similar
agreement (each, an “Acquisition Agreement”) related to any Takeover Proposal (other than a
customary confidentiality agreement referred to in clause (B) of the proviso to Section
5.2(a)). Notwithstanding the foregoing, in the event that the Company Board determines in good
faith, in response to a Superior Proposal that was unsolicited and made after the date hereof in
circumstances not otherwise involving a breach of this Agreement, after considering applicable
provisions of state law and after consultation with outside counsel, that the failure to do so
would be inconsistent with its fiduciary duties under applicable law, the Company Board may
(subject to compliance with this sentence and to compliance with Sections 5.2(a) and
5.2(c)) (x) withdraw or modify its approval, determination of advisability, or
recommendation of this Agreement, the Merger, and the other Transactions or (y) approve, determine
to be advisable, or recommend a Superior Proposal, or (z) cause the Company to enter into an
Acquisition Agreement, provided, however, that any actions described in clause (x),
(y) or (z) may be taken only at a time that is after the second business day following Parent’s
receipt of written notice from the Company advising Parent that the Company Board has received a
Superior Proposal, specifying the material terms and conditions of such Superior Proposal,
identifying the person making such Superior Proposal and providing notice of the determination of
the Company Board of what actions described in clause (x), (y) or (z) the Company Board has
determined to take, and further provided, that the action described in clause (z)
may be taken only upon compliance by the Company with Section 8.1(c) and Section
8.2(b). In addition, and notwithstanding anything in this Agreement to the contrary, the
Company Board may at any time (other than in connection with a Takeover Proposal) withdraw or
modify its approval, determination of advisability, or recommendation of this Agreement, the
Merger, and the other Transactions in the event it determines in good faith, after considering
applicable provisions of state law and after consultation with outside counsel, that any such
withdrawal or modification of its approval, determination of advisability or recommendation is
required in order for the Company Board to comply with its fiduciary duties under applicable law,
provided that the Company has provided to Parent five (5) Business Days’ prior written
notice advising Parent that it intends to take such action and specifying, in reasonable detail,
the reasons for such action.

          (c) In addition to the obligations of the Company set forth in Section 5.2(a) and
5.2(b), the Company shall promptly advise Parent orally and in writing of any request for
confidential information in connection with a Takeover Proposal or of any Takeover Proposal, the
material terms and conditions of such request or the Takeover Proposal and the identity of the
person making such request or Takeover Proposal and shall keep Parent promptly advised of all
significant developments which could reasonably be expected to culminate in the Company Board
withdrawing, modifying or amending its recommendation of this Agreement, the Merger and the other
Transactions, or in exercising any of its other rights under Section 5.2(a) or (b).

          (d) Nothing contained in this Section 5.2 or Section 6.6 shall prohibit the
Company or the Company Board from taking and disclosing to its shareholders a position contemplated
by Rule 14e-2(a) or Rule 14d-9 promulgated under the Exchange Act or from making any other
disclosure to the Company’s shareholders if, in the Company Board’s determination in good faith
after consultation with outside counsel, the failure so to disclose

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would be inconsistent with its obligations under applicable Law; provided,
however, neither the Company nor the Company Board nor any committee thereof shall, except
as in accordance with Section 5.2(b), withdraw or modify, or propose publicly to withdraw
or modify, its approval, determination of advisability or recommendation of this Agreement, the
Merger and the other Transactions or approve, determine to be advisable, or recommend, or propose
publicly to approve, determine to be advisable, or recommend, a Takeover Proposal.

ARTICLE VI

ADDITIONAL AGREEMENTS

     Section 6.1 Preparation of Proxy Statement.

          (a) As soon as reasonably practicable after the date of this Agreement, the Company shall file
with the SEC the Proxy Statement. The Company will use reasonable efforts to cause the Proxy
Statement to be disseminated to the holders of the Shares, as and to the extent required by
applicable federal securities Laws. Subject to Section 5.2, the Proxy Statement will
contain the Company Recommendation and the Company shall use reasonable best efforts to obtain the
Shareholder Approval.

          (b) Parent and Merger Sub will provide for inclusion or incorporation by reference in the
Proxy Statement of all required information relating to Parent or its Affiliates. Parent and its
counsel shall be given the opportunity to review and comment on the Proxy Statement before it is
filed with the SEC. In addition, the Company will provide Parent and its counsel, in writing, any
comments or other communications, whether written or oral, that the Company or its counsel may
receive from time to time from the SEC or its staff with respect to the Proxy Statement promptly
after the receipt of such comments or other communications, and the provide Parent and its counsel
with the opportunity to review and comment on the Company’s proposed response thereto. The Company
will respond promptly to any such comments from the SEC or its staff.

          (c) Each of the Company, Parent and Merger Sub agrees to promptly (i) correct any information
provided by it specifically for use in the Proxy Statement if and to the extent that such
information shall have become false or misleading in any material respect and (ii) supplement the
information provided by it specifically for use in the Proxy Statement to include any information
that shall become necessary in order to make the statements in the Proxy Statement, in light of the
circumstances under which they were made, not misleading. The Company further agrees to cause the
Proxy Statement as so corrected or supplemented promptly to be filed with the SEC and to be
disseminated to the holders of the Shares, in each case as and to the extent required by applicable
federal securities Laws.

     Section 6.2 Shareholders Meeting.

          (a) The Company shall take all actions in accordance with applicable Law, its constituent
documents and the rules of the New York Stock Exchange to duly call, give notice of, convene and
hold a special meeting of the Company’s shareholders (including any adjournment or postponement
thereof, the “Special Meeting”) for the purpose of considering and

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taking action upon the adoption of this Agreement as soon as practicable following the date
hereof. The Company shall include in the Proxy Statement the recommendation of the Company Board
that the Company shareholders vote in favor of the approval of the Merger and the adoption of this
Agreement, unless such recommendation has been withdrawn, or as such recommendation has been
modified or amended, in each case in accordance with Section 5.2. Notwithstanding anything
to the contrary contained in this Agreement, (x) the Company in its sole discretion may adjourn or
postpone the Special Meeting after consultation with Parent, to the extent necessary to ensure that
any required supplement or amendment to the Proxy Statement is provided to the shareholders of the
Company within a reasonable amount of time in advance of the Special Meeting, and (y) the Company
shall adjourn or postpone the Special Meeting if, as of the time for which the Special Meeting is
originally scheduled (as set forth in the Proxy Statement), there are insufficient Shares of Common
Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the
business of the Special Meeting.

          (b) Parent shall vote, or cause to be voted, all of the Shares then owned by it, Merger Sub or
any of its other Subsidiaries and Affiliates in favor of the approval of the Merger and the
adoption of this Agreement.

     Section 6.3 Reasonable Best Efforts. Subject to Section 6.3(e):

          (a) Prior to the Closing, Parent, Merger Sub and the Company shall use their respective
reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done,
all things necessary, proper or advisable under any applicable Laws to consummate and make
effective in the most expeditious manner possible the Transactions including (i) the preparation
and filing of all forms, registrations and notices required to be filed to consummate the
Transactions, (ii) the satisfaction of the other parties’ conditions to consummating the
Transactions, (iii) taking all reasonable actions necessary to obtain (and cooperation with each
other in obtaining) any consent, authorization, Order or approval of, or any exemption by, any
third party, including any Governmental Entity (which actions shall include furnishing all
information required under the HSR Act and in connection with approvals of or filings with any
other Governmental Entity) required to be obtained or made by Parent, Merger Sub, the Company or
any of their respective Subsidiaries in connection with the Transactions or the taking of any
action contemplated by the Transactions or by this Agreement, (iv) the execution and delivery of
any additional instruments necessary to consummate the Transactions and to fully carry out the
purposes of this Agreement. Additionally, each of Parent and the Company shall use all reasonable
best efforts to fulfill all conditions precedent to the Merger and shall not take any action after
the date of this Agreement that would reasonably be expected to materially delay the obtaining of,
or result in not obtaining, any permission, approval or consent from any Governmental Entity
necessary to be obtained prior to Closing.

          (b) Prior to the Closing, each party shall promptly consult with the other parties to this
Agreement with respect to, provide any necessary information with respect to (and, in the case of
correspondence, provide the other parties (or their counsel) copies of), all filings made by such
party with any Governmental Entity or any other information supplied by such party to, or
correspondence with, a Governmental Entity in connection with this Agreement and the Transactions.
Each party to this Agreement shall promptly inform the other parties to this

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Agreement of any communication from any Governmental Entity regarding any of the Transactions.
If any party to this Agreement or any Affiliate of such parties receives a request for additional
information or documentary material from any Governmental Entity with respect to the Transactions,
then such party will use reasonable best efforts to make, or cause to be made, promptly and after
consultation with the other parties to this Agreement, an appropriate response in compliance with
such request. To the extent that transfers of any permits issued by any Governmental Entity are
required as a result of the execution of this Agreement or the consummation of the Transactions,
the parties hereto shall use reasonable best efforts to effect such transfers.

          (c) The Company and Parent shall use reasonable best efforts to file, as promptly as
practicable, but in any event no later than fifteen Business Days after the date of this Agreement,
notifications under the HSR Act, and the Company and Parent shall use reasonable best efforts to
file, as promptly as practicable, any other filings and/or notifications under applicable Antitrust
Laws, and shall use reasonable best efforts to respond, as promptly as practicable, to any
inquiries received from the Federal Trade Commission and the Antitrust Division of the Department
of Justice for additional information or documentation and to respond, as promptly as practicable,
to all inquiries and information requests received from any state Attorney General or other
Governmental Entity in connection with antitrust matters.

          (d) Each of Parent and the Company shall use all reasonable best efforts to resolve such
objections, if any, as may be asserted by any Governmental Entity with respect to the Transactions
under the HSR Act, the Sherman Act, as amended, the Clayton Act, as amended, the Federal Trade
Commission Act, as amended, and any other United States federal or state or foreign Laws that are
designed to prohibit, restrict or regulate actions having the purpose or effect of monopolization
or restraint of trade (collectively, “Antitrust Laws”). In connection therewith, if any Action is
instituted (or threatened to be instituted) challenging any of the Transactions as violative of any
Antitrust Laws, each of Parent and the Company shall cooperate and use all reasonable best efforts
to vigorously contest and resist any such Action, and to have vacated, lifted, reversed, or
overturned any decree, judgment, injunction or other order whether temporary, preliminary or
permanent, that is in effect and that prohibits, prevents, or restricts consummation of the Merger
or any other Transactions, including by vigorously pursuing all available avenues of administrative
and judicial appeal unless, by mutual agreement, Parent and the Company decide that litigation is
not in their respective best interests. Notwithstanding the foregoing or any other provision of
this Agreement, nothing in this Section 6.3(d) shall limit the right of any party hereto to
terminate this Agreement pursuant to Section 8.1, so long as such party hereto has, up to
the time of termination, complied in all material respects with its obligations under this
Section 6.3(d). Each of Parent and the Company shall use all reasonable best efforts to
take such action as may be required to cause the expiration of the notice periods under the HSR Act
or other Antitrust Laws with respect to the Transactions as promptly as possible after the
execution of this Agreement.

          (e) Notwithstanding Section 6.3(a) through (d) or any other provision of this
Agreement to the contrary, in no event shall Parent or its Subsidiaries (including Merger Sub) or
Affiliates be required to agree to (i) any prohibition of or limitation on its or their ownership
(or any limitation that would materially affect its or their operation) of any portion of their
respective businesses or assets, including after giving effect to the Merger, (ii) divest, hold

- 28 -

 

separate or otherwise dispose of any portion of its or their respective businesses or assets,
including after giving effect to the Merger, (iii) any limitation on its or their ability to effect
the Merger, or the ability of the Company (or Merger Sub) or its or their respective Subsidiaries
to acquire or hold or exercise full rights of ownership of any capital stock of any Subsidiary of
the Company, or (iv) any other limitation on its or their ability to effectively control their
respective businesses or any limitation that would materially affect its or their ability to
control their respective operations, including after giving effect to the Merger (any such action
or limitation described in clauses (i) through (iv) of this Section 6.3(e), a
“Restriction”), other than Restrictions, individually or in the aggregate with all other
Restrictions, for which the aggregate fair value of all businesses or assets (including stock)
affected, prior to giving effect to the Merger, (x) would not exceed $50,000,000 in the case of the
Company and its Subsidiaries and Affiliates, taken as a whole, and (y) would not exceed $50,000,000
in the case of Parent and its Subsidiaries and Affiliates, taken as a whole.

     Section 6.4 Notification of Certain Matters. Subject to applicable Law, the Company
shall give prompt notice to Merger Sub and Parent, and Merger Sub and Parent shall give prompt
notice to the Company of (a) the occurrence or non-occurrence of any event whose occurrence or
non-occurrence would be reasonably likely to cause either (i) any representation or warranty
contained in this Agreement to be untrue or inaccurate in any material respect at any time from the
date of this Agreement to the Effective Time or (ii) any condition to the Merger to be unsatisfied
in any material respect at the Effective Time and (b) any material failure of the Company, Merger
Sub or Parent, as the case may be, or any officer, director, employee, agent or representative of
the Company, Merger Sub or Parent as applicable, to comply with or satisfy any covenant or
agreement to be complied with or satisfied by it under this Agreement; provided,
however, that the delivery of any notice pursuant to this Section 6.4 shall not
limit or otherwise affect the remedies available under this Agreement to the party receiving such
notice.

     Section 6.5 Access; Confidentiality. Subject to the Confidentiality Agreement and
applicable Law relating to the sharing of information, the Company agrees to provide, and shall
cause its Subsidiaries to provide, Parent and its representatives, from time to time prior to the
earlier of the Effective Time or the termination of this Agreement, reasonable access during normal
business hours to (i) the Company’s and its Subsidiaries’ respective properties, books, contracts,
commitments, personnel and records, (ii) such other information as Parent shall reasonably request
with respect to the Company and its Subsidiaries and their respective businesses, financial
condition and operations. Parent shall and shall cause Parent’s Affiliates and representatives to
keep confidential any non-public information received from the Company, its Affiliates or
representatives, directly or indirectly, pursuant to this Section 6.5 in accordance with
the Confidentiality Agreement.

     Section 6.6 Publicity. Neither the Company, Parent nor any of their respective
Affiliates shall issue or cause the publication of any press release or other announcement with
respect to this Agreement or the Transactions without the prior consultation of the other party and
giving the other party the opportunity to review and comment on such press release or other
announcement, if practicable, except as such party reasonably believes, after receiving the advice
of outside counsel and after informing all other parties to this Agreement, is required by Law or
by any listing agreement with or rules of any applicable national securities exchange, trading
market or listing authority and except as may be requested by a Governmental Entity.

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     Section 6.7 Indemnification.

          (a) From and after the Effective Time, Parent shall, and shall cause the Surviving Corporation
to, indemnify, defend and hold harmless each person who is now, or has been at any time prior to
the date of this Agreement or who becomes such prior to the Effective Time, an officer or director
of the Company or any of its Subsidiaries (the “Indemnified Parties”) against (i) any and all
losses, claims, damages, costs, expenses, fines, liabilities or judgments or amounts that are paid
in settlement with the approval of the indemnifying party of or in connection with any claim,
action, suit, proceeding or investigation based in whole or in part on or arising in whole or in
part out of the fact that such person is or was a director or officer of the Company or any of its
Subsidiaries whether pertaining to any action or omission existing or occurring at or prior to the
Effective Time and whether asserted or claimed prior to, or at or after, the Effective Time
(“Indemnified Liabilities”), and (ii) all Indemnified Liabilities based in whole or in part on, or
arising in whole or in part out of, or pertaining to this Agreement or the Transactions;
provided, however, that, in the case of the Surviving Corporation, such
indemnification shall only be to the fullest extent a corporation is permitted under Ohio Law to
indemnify its own directors and officers, and in the case of indemnification by Parent, Parent’s
indemnification shall not be limited by Ohio Law, but Parent shall not be required to indemnify
Indemnified Parties if a final, non-appealable judgment or adjudication in an action against
Indemnified Parties by a claimant (not including an action brought by Parent, Surviving
Corporation, or any insurer of either) establishes: (A) that the acts or omissions of Indemnified
Parties were the result of deliberate criminal or fraudulent acts by the Indemnified Party seeking
indemnification; or (B) that the claim against Indemnified Party arises out of, is based upon, or
is attributable to the gaining in fact of any financial profit or other advantage to which the
Indemnified Party was not legally entitled. Parent, Merger Sub, and the Surviving Corporation, as
the case may be, will pay all expenses of each Indemnified Party in advance of the final
disposition of any such action or proceeding, but in the case of Merger Sub and the Surviving
Corporation only to the fullest extent permitted by law upon receipt of an undertaking of the kind
described in Section 1701.13(E)(5) of Ohio Law and in the form provided for in the indemnification
agreements with Company directors and officers in effect as of the date of this Agreement. Without
limiting the foregoing, in the event any such claim, action, suit, proceeding or investigation is
brought against any Indemnified Party (whether arising before or after the Effective Time), (i) the
Indemnified Parties may retain counsel satisfactory to them and reasonably satisfactory to Parent,
(ii) Parent shall, or shall cause the Surviving Corporation to, pay all reasonable fees and
expenses of such counsel for the Indemnified Parties promptly as statements therefor are received,
and (iii) Parent shall, and shall cause the Surviving Corporation to, use all reasonable efforts to
assist in the vigorous defense of any such matter, provided that none of Parent, Merger Sub
or the Surviving Corporation shall be liable for any settlement of any claim effected without its
written consent, which consent, however, shall not be unreasonably withheld or delayed. Any
Indemnified Party wishing to claim indemnification under this Section 6.7, upon learning of
any such claim, action, suit, proceeding or investigation, shall notify Parent, Merger Sub or the
Surviving Corporation (but the failure so to notify an indemnifying party shall not relieve it from
any liability which it may have under this Section 6.7 except to the extent such failure
materially prejudices such party), and shall deliver to the Surviving Corporation (but not Parent)
an undertaking of the kind described in Section 1701.13(E)(5) of
Ohio Law and in the form provided for in the indemnification agreements with Company directors
and officers in effect as of the date of this Agreement.

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          (b) The articles of incorporation and regulations of the Surviving Corporation shall contain
the provisions with respect to indemnification set forth in the Second Amended and Restated
Articles of Incorporation and Second Amended and Restated Regulations of the Company, which
provisions shall not be amended, modified or otherwise repealed for a period of six years from the
Effective Time in any manner that would adversely affect the rights thereunder as of the Effective
Time of any individual who at the Effective Time is an Indemnified Party, unless such modification
is required after the Effective Time by Law and then only to the minimum extent required by such
Law.

          (c) The rights of each Indemnified Party under this Section 6.7 shall be in addition
to any rights such individual may have under the Second Amended and Restated Articles of
Incorporation and Second Amended and Restated Regulations (or other governing documents) of the
Company and any of its Subsidiaries, under Ohio Law or any other applicable Laws or under any
agreement of any Indemnified Party with the Company or any of its Subsidiaries. These rights shall
survive consummation of the Merger and are intended to benefit, and shall be enforceable by, each
Indemnified Party.

          (d) In the event that the Parent or Surviving Corporation or any of their respective
successors or assigns (i) consolidates with or merges into any other Person and is not the
continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or
conveys all or substantially all of its properties and assets to any Person, then, and in each such
case, proper provision will be made so that the successors and assigns of the Surviving Corporation
assume the obligations set forth in this Section 6.7.

     Section 6.8 Merger
Sub Compliance. Parent shall cause Merger Sub to comply with all of its
obligations under or related to this Agreement.

     Section 6.9 Employee Matters.

          (a) For a period of two years from the Closing Date, Parent or the Surviving Corporation shall
provide, or cause to be provided, compensation and benefits to the employees and former employees
of the Company and its Subsidiaries (the “Company Employees”) that are no less favorable, in the
aggregate, than the compensation and benefits that are provided to the Company Employees
immediately prior to the Effective Time; provided, that the foregoing obligation shall not
restrict Parent and the Surviving Corporation from making changes that (i) are consistent with
changes currently planned or contemplated by the Company, (ii) are in response to business
conditions which may exist at the time of such changes or (iii) are collectively bargained for.
Parent shall, and shall cause the Surviving Corporation to, honor in accordance with their terms
all Company Plans; provided, however, that Parent or the Surviving Corporation may
amend, modify or terminate any individual Company Plan in accordance with its terms and applicable
Law (including obtaining the consent of the other parties to and beneficiaries of such Company Plan
to the extent required thereunder). Notwithstanding the foregoing or anything else in this
Agreement to the contrary, the Surviving Corporation and its Subsidiaries shall not, after the
Effective Time, provide any form of equity-based compensation, including, without limitation,
options to purchase shares of capital stock in the Surviving Corporation or any of its
Subsidiaries; provided that any equity-
based compensation provided by the Company and its Subsidiaries pursuant to the Company Plans
immediately prior to the

- 31 -

 

Effective Time (including but not limited to long term incentive compensation grants or awards)
shall be taken into account in determining whether the compensation and benefits provided by Parent
and the Surviving Corporation are less favorable than those provided by the Company for purposes of
the first sentence of this Section 6.9(a).

          (b) For purposes of all employee benefit plans (as defined in Section 3(3) of ERISA) and other
employment agreements, arrangements and policies of the Surviving Corporation under which an
employee’s benefits depends, in whole or in part, on length of service, credit will be given to
current employees of the Company and its Subsidiaries for service with the Company or any of its
Subsidiaries or predecessors prior to the Effective Time, provided that such crediting of service
does not result in duplication of benefits.

          (c) The provisions of this Section 6.9 are solely for the benefit of the respective
parties to this Agreement and nothing in this Section 6.9, express or implied, shall confer
upon any Company Employee, or legal representative or beneficiary thereof, any rights or remedies,
including any right to employment or continued employment for any specified period, or compensation
or benefits of any nature or kind whatsoever under this Agreement.

ARTICLE VII

CONDITIONS

     Section 7.1 Conditions to Each Party’s Obligation to Effect the Merger. The
respective obligation of each party to effect the Merger shall be subject to the satisfaction on or
prior to the Closing Date of each of the following conditions, any and all of which may be waived
in whole or in part by the Company, Parent and Merger Sub to the extent permitted by applicable
Law:

          (a) Shareholder Approval. The Shareholder Approval shall have been obtained.

          (b) Governmental Approvals. (i) The waiting period (including any extension thereof)
applicable to the consummation of the Merger under the HSR Act shall have expired or been
terminated, and (ii) with respect to non-U.S. jurisdictions where any merger control consents or
approvals are deemed necessary in the reasonable opinion of both the Company and Parent, all
notifications and filings have been made, all appropriate waiting periods (including extensions
thereof) have expired or been terminated and all clearances and approvals have been granted (or
been deemed in accordance with the relevant Law to have been granted) by the relevant Governmental
Entity on terms consistent with Section 6.3(e).

          (c) No Injunctions or Restraints. No Order or Law, entered, enacted, promulgated,
enforced or issued by any court of competent jurisdiction, or any other Governmental Entity, or
other legal restraint or prohibition (collectively, “Restraints”) shall be in effect preventing the
consummation of the Merger; provided, however, that, subject to Section
6.3(e), each of the parties to this Agreement shall have used its reasonable best efforts to
prevent the entry of any such Restraints and to appeal as
promptly as possible any such Restraints that may be entered to the extent required by and
subject to Section 6.3.

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     Section 7.2 Conditions to Obligations of Parent and Merger Sub. The obligation of
Parent and Merger Sub to effect the Merger is further subject to the satisfaction, or waiver by
Parent and Merger Sub, on or prior to the Closing Date of the following conditions:

          (a) Representations and Warranties.

          (i) The representations and warranties of the Company contained in this Agreement shall
be true and correct at and as of the date of this Agreement and at and as of the Closing
(without regard to any qualifications therein as to materiality or Material Adverse Effect),
as though made at and as of such time (or, if made as of a specific date, at and as of such
date), except, in each case, for such failures to be true and correct as would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

          (ii) The representations and warranties of the Company contained in Sections
3.4(a) and 3.18 of this Agreement shall be true and correct in all respects
(except, in the case of Section 3.4(a), for de minimis inaccuracies therein) at and
as of the date of this Agreement and at and as of the Closing (without regard to any
qualifications therein as to materiality or Material Adverse Effect), as though made at and
as of such time (or, if made as of a specific date, at and as of such date).

          (b) Performance of Obligations of the Company. The Company shall have performed or
complied with in all material respects (or with respect to any covenant or agreement qualified by
materiality or Material Adverse Effect, in all respects) the covenants and agreements contained in
this Agreement to be performed or complied with by it prior to or on the Closing Date.

          (c) No Orders or Laws. No Order or Law shall have been promulgated, entered,
enforced, enacted, issued or applicable to the Merger by any Governmental Entity which would impose
or require any Restriction, and no action or proceeding by any Governmental Entity shall be pending
which seeks any Restriction, other than Restrictions, individually or in the aggregate with all
other Restrictions, for which the aggregate fair value of all businesses or assets (including
stock) affected, prior to giving effect to the Merger, (x) would not exceed $50,000,000 in the case
of the Company and its Subsidiaries and Affiliates, taken as a whole, and (y) would not exceed
$50,000,000 in the case of Parent and its Subsidiaries and Affiliates, taken as a whole.
Notwithstanding the foregoing, any action or proceeding by a Governmental Entity that seeks any
Restriction which action or proceeding is pending as of the date immediately preceding the Outside
Date shall not be taken into account when determining whether the conditions set forth in this
paragraph have been satisfied as of such date.

          (d) Officer’s Certificate. The Company shall have furnished Parent with a certificate
dated the Closing Date signed on its behalf by its chief executive officer and chief financial
officer to the effect that the conditions set forth in Section 7.2(a) and Section
7.2(b) have been satisfied.

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     Section 7.3 Conditions to Obligations of the Company. The obligation of the Company
to effect the Merger is further subject to the satisfaction, or waiver by the Company, on or prior
to the Closing Date of the following conditions:

          (a) Representations and Warranties. The representations and warranties of Parent and
Merger Sub contained in this Agreement shall be true and correct at and as of the date of this
Agreement and at and as of the Closing (without regard to any qualifications therein as to
materiality or material adverse effect), as though made at and as of such time (or, if made as of a
specific date, at and as of such date), except, in each case, for such failures to be true and
correct as would not reasonably be expected to prevent or otherwise have a material adverse effect
on the ability of Parent to consummate the Merger.

          (b) Performance of Obligations of Parent and Merger Sub. Each of Parent and Merger
Sub shall have performed or complied with in all material respects (or with respect to any covenant
or agreement qualified by materiality or material adverse effect, in all respects) the covenants
and agreements contained in this Agreement to be performed or complied with by it prior to or on
the Closing Date.

          (c) Officer’s Certificate. Each of Parent and Merger Sub shall have furnished the
Company with a certificate dated the Closing Date signed on its behalf by its chief executive
officer (or chief legal officer in the case of Parent) and chief financial officer to the effect
that the conditions set forth in Section 7.3(a) and Section 7.3(b) have been
satisfied.

     Section 7.4 Frustration of Closing Conditions. Neither Parent or Merger Sub nor the
Company may rely on the failure of any condition set forth in Section 7.1, Section
7.2 or Section 7.3, as the case may be, to be satisfied to excuse it from its
obligation to effect the Merger if such failure was caused by such party’s failure to comply with
its obligations to consummate the Merger and the other Transactions to the extent required by and
subject to Section 6.3.

ARTICLE VIII

TERMINATION

     Section 8.1 Termination. Anything herein or elsewhere to the contrary
notwithstanding, this Agreement may be terminated and the Merger may be abandoned at any time prior
to the Effective Time (notwithstanding any Shareholder Approval):

          (a) by mutual written consent of Parent, Merger Sub and the Company;

          (b) by either Parent or the Company if:

          (i) the Merger has not been consummated on or before September 15, 2011 (the “Outside
Date”); provided, however, that the right to terminate this Agreement
pursuant to this Section 8.1(b)(i) shall not be available to any party whose breach
of any provision of this Agreement results in the failure of the Merger to be consummated by
such time; provided further, however, that,
if, on the Outside Date, any of the conditions to the Closing set forth in Section
7.1(b) shall not have been fulfilled but all other

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conditions to the Closing either have been fulfilled or are then capable of being fulfilled,
then the Outside Date shall, without any action on the part of the parties hereto, be
extended day-by-day for each day during which any of the conditions set forth in Section
7.1(b) remain unfulfilled; provided further, however, that the Outside
Date shall not be extended past October 14, 2011;

          (ii) a permanent injunction or other Order which is final and nonappealable shall have
been issued or taken restraining or otherwise prohibiting consummation of the Merger or any
of the other Transactions (any such injunction or Order, a “Final Order”); provided,
however, that the party seeking to terminate this Agreement pursuant to this
Section 8.1(b)(ii) shall have used all reasonable best efforts to prevent the entry
of such permanent injunction or other Order to the extent required by and subject to
Section 6.3; or

          (iii) if the Special Meeting (including any adjournments and postponements thereof)
shall have concluded without the Shareholder Approval having been obtained by reason of the
failure to obtain the required vote of the holders of Shares, provided,
however, that the Company’s right to terminate this Agreement pursuant to this
Section 8.1(b)(iii) is subject to the Company’s compliance with clause (y) of the
third sentence of Section 6.2(a);

          (c) by the Company prior to the receipt of the Shareholder Approval, if the Company
concurrently enters into a definitive agreement with respect to a Superior Proposal;
provided that the Company shall have complied with all provisions of Section 5.2
and shall have previously paid or shall concurrently with such termination pay the fees due under
Section 8.2(b);

          (d) by Parent, if the Company Board or any committee thereof shall have withdrawn or modified,
or proposed publicly to withdraw or modify, in a manner adverse to Parent, the approval,
determination of advisability or recommendation of this Agreement, the Merger and the other
Transactions, or approved, determined to be advisable or recommended, or proposed publicly to
approve, determine to be advisable or recommend, any Takeover Proposal, or the Company Board or any
committee thereof shall have resolved to take any of the foregoing actions;

          (e) by Parent, if the Company breaches or fails to perform or comply with any of its
representations, warranties, agreements or covenants contained in this Agreement, which breach or
failure to perform or comply (i) would give rise to the failure of a condition set forth in
Section 7.2(a) or Section 7.2(b) and (ii) cannot be cured by the Outside Date
(provided that Parent is not then in material breach of any representation, warranty, agreement or
covenant contained in this Agreement); or

          (f) by the Company, if Parent or Merger Sub breaches or fails to perform or comply with any of
its representations, warranties, agreements or covenants contained in this Agreement, which breach
or failure to perform or comply (i) would give rise to the failure of a condition set forth in
Section 7.3(a) or Section 7.3(b) and (ii) cannot be cured by the Outside

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Date (provided that the Company is not then in material breach of any representation,
warranty, agreement or covenant contained in this Agreement).

          (g) A terminating party shall provide written notice of termination to the other parties
specifying with particularity the reason for such termination. If more than one provision of this
Section 8.1 is available to a terminating party in connection with a termination, a
terminating party may rely on any and all available provisions in this Section 8.1 for any
such termination.

     Section 8.2 Effect of Termination.

          (a) If this Agreement is terminated pursuant to Section 8.1, this Agreement shall
become void and of no effect with no liability on the part of any party (or any shareholder,
director, officer, employee, agent, consultant or representative of such party) to the other party
hereto; provided, however, that if such termination shall result from the (i)
failure of either party to fulfill a condition to the performance of the obligations of the other
party or (ii) failure of either party to perform an agreement or covenant hereof, such party shall
not be relieved of any liability to the other party as a result of such failure or breach;
provided further, however, that the provisions of Section 6.6, this
Section 8.2, Article IX and Article X hereof and the provisions of the
Confidentiality Agreement shall survive such termination.

          (b) If this Agreement is terminated (i) by either Parent or the Company pursuant to the
provisions of Section 8.1(b)(i), Section 8.1(b)(iii) or Section 8.1(b)(ii),
but in the case of a termination pursuant to Section 8.1(b)(ii), only if the applicable
Final Order is based on the existence of a Takeover Proposal (whether or not modified after it is
first made), and, in the case of any termination under this clause (i), (A) prior to such
termination a Takeover Proposal shall have been made known to the Company or its shareholders or
any Person shall have publicly announced an intention (whether or not conditional) to make a
Takeover Proposal and (B) at any time on or prior to the 12-month anniversary of such termination
the Company or any of its Subsidiaries enters into a definitive agreement with respect to any
Takeover Proposal or the transactions contemplated by any Takeover Proposal are consummated
(provided that solely for purposes of this Section 8.2(b)(i)(B), the term “Takeover
Proposal” shall have the meaning set forth in the definition of Takeover Proposal except that all
references to 10% shall be deemed references to 30%), or (ii) by Parent pursuant to the provisions
of Section 8.1(d), or by the Company pursuant to the provisions of Section 8.1(c),
the Company shall pay Parent the Termination Fee by wire transfer (to an account designated by
Parent) in immediately available funds (x) in the case of clause (i) of this Section
8.2(b), upon the earlier of entering into such definitive agreement with respect to a Takeover
Proposal or consummation of the transactions contemplated by a Takeover Proposal, and (y) in the
case of clause (ii) of this Section 8.2(b), prior to or concurrently with such termination.
“Termination Fee” shall mean a cash amount equal to $200,000,000.

          (c) The Company acknowledges that the agreements contained in Section 8.2(b) are an
integral part of the Transactions, and that, without these agreements, Parent and Merger Sub would
not enter into this Agreement; accordingly, if the Company fails to pay in a timely manner any
amount due pursuant to Section 8.2(b) and, in order to obtain such payment, Parent or
Merger Sub commences a claim, action, suit or other proceeding that results in a

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judgment against the Company, the Company shall pay to Parent interest on such amount from and
including the date payment of such amount was due to but excluding the date of actual payment at
the prime rate set forth in the Wall Street Journal in effect on the date such payment was required
to be made plus 1%, together with reasonable legal fees and expenses incurred in connection with
such claim, suit, proceeding or other action.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Amendment and Waivers. Subject to applicable Law, and in accordance with
the immediately following sentence, this Agreement may be amended by the parties hereto by action
taken or authorized by or on behalf of their respective boards of directors, at any time prior to
the Closing Date, whether before or after adoption of this Agreement by the shareholders of the
Company and Merger Sub. This Agreement may not be amended except by an instrument in writing
signed by the parties hereto. At any time prior to the Effective Time, any party hereto may (i)
extend the time for the performance of any of the obligations or other acts of the other parties
hereto, (ii) waive any inaccuracies in the representations and warranties by the other party
contained herein or in any document delivered pursuant hereto, and (iii) subject to the
requirements of applicable Law, waive compliance by the other party with any of the agreements or
conditions contained herein. Any such extension or waiver shall be valid only if set forth in an
instrument in writing signed by the party or parties to be bound thereby. The failure of any party
to this Agreement to assert any of its rights under this Agreement or otherwise shall not
constitute a waiver of such rights.

     Section 9.2 Non-survival of Representations and Warranties. None of the
representations and warranties in this Agreement or in any schedule, instrument or other document
delivered pursuant to this Agreement shall survive after the Effective Time.

     Section 9.3 Expenses. All fees, costs and expenses (including all legal, accounting,
broker, finder or investment banker fees) incurred in connection with this Agreement and the
Transactions are to be paid by the party incurring such fees, costs and expenses.

     Section 9.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and sent by facsimile, by
nationally recognized overnight courier service or by registered mail and shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this Section 9.4
prior to 5:00 p.m. (New York City time) on a Business Day and a copy is sent on such Business Day
by nationally recognized overnight courier service, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Section 9.4 later than 5:00 p.m. (New York time) on any date and
earlier than 12 midnight (New York City time) on the following date and a copy is sent no later
than such date by nationally recognized overnight courier service, (iii) when received, if sent by
nationally recognized overnight courier service (other than in the cases of clauses (i) and (ii)
above), or (iv) upon actual receipt by the party to whom such notice is required to be given if
sent by registered mail. The address for such notices and communications shall be as follows:

- 37 -

 

	 	(a)	 	if to Parent or Merger Sub, to:
	 
	 	 	 	Berkshire Hathaway Inc.

3555 Farnam Street

Omaha, Nebraska 68131

Telephone No.: (402) 346-1400

Facsimile No.: (402) 346-3375

Attention: Warren E. Buffett
	 
	 	 	 	with a copy to:
	 
	 	 	 	Munger, Tolles & Olson, LLP

355 South Grand Avenue, Suite 3500

Los Angeles, California 90071

Telephone No.: (213) 683-9100

Facsimile No.: (213) 687-3702

Attention: Robert E. Denham, Esq.

    
     
     
Mary Ann Todd, Esq.
	 
	 	(b)	 	If to the Company, to
	 
	 	 	 	The Lubrizol Corporation

29400 Lakeland Boulevard

Wickliffe, Ohio 44092-2298

Telephone No.: (440) 347-5073

Facsimile No.: (440) 347-5510

Attention: Suzanne F. Day
	 
	 	 	 	with a copy to:
	 
	 	 	 	Jones Day

North Point

901 Lakeside Avenue

Cleveland, Ohio 44114

Telephone No.: (216) 586-3939

Facsimile No.: (216) 579-0212

Attention: Lyle G. Ganske, Esq.

     
     
    
James P. Dougherty, Esq.

     Section 9.5 Counterparts. This Agreement may be executed in two or more counterparts,
each of which will be deemed an original but all of which will constitute one instrument.

     Section 9.6 Entire Agreement; No Third Party Beneficiaries. This Agreement (including
the schedules and annexes to this Agreement, including the Company Disclosure Letter) and the
Confidentiality Agreement (a) constitute the entire agreement and supersede all

- 38 -

 

prior agreements and understandings, both written and oral, among the parties with respect to
the subject matter of this Agreement, and (b) except for the provisions in Section 6.7,
solely to the extent stated therein, is not intended to and shall not confer upon any Person other
than the parties to this Agreement and their permitted assigns any rights, benefits or remedies of
any nature whatsoever, other than (i) the right of the holders of Shares of the Company to receive
the Merger Consideration after the Closing (a claim with respect to which may not be made unless
and until the Effective Time shall have occurred) and (ii) the right of a party to this Agreement
on behalf of its security holders to pursue damages in the event of the other party’s willful and
material breach of this Agreement. For the avoidance of doubt, the rights granted pursuant to the
foregoing clause (ii) shall be enforceable only by the Company in its sole and absolute discretion,
on behalf of the holders of Shares of the Company.

     Section 9.7 Severability. If any term or provision of this Agreement is held by a
court of competent jurisdiction or other Governmental Entity to be invalid, void, unenforceable or
against its regulatory policy, the remainder of the terms and provisions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, so long
as the economic and legal substance of the Transactions, taken as a whole, are not affected in a
manner materially adverse to any party hereto.

     Section 9.8 Governing Law. This Agreement shall be governed by and construed in
accordance with the Laws of the State of Ohio without giving effect to the principles of conflicts
of law of the Laws of the State of Ohio.

     Section 9.9 Assignment. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement shall be assigned by any of the parties to this Agreement (whether
by operation of Law or otherwise) without the prior written consent of the other parties, except
that Merger Sub may assign, in its sole discretion, any or all of its rights, interests and
obligations hereunder to any entity that is wholly owned, directly or indirectly, by Parent. Any
attempted assignment in violation of this Section 9.9 shall be void. Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable
by the parties and their respective successors and assigns.

     Section 9.10 Consent to Jurisdiction. Each of the parties hereto (i) consents to
submit itself to the personal jurisdiction of the state and federal courts of the State of Ohio in
the event that any dispute arises out of this Agreement or any of the Transactions, (ii) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion or other request
for leave from any such court and (iii) agrees that it will not bring any action relating to this
Agreement or any of the Transactions in any other court. Each of the parties hereto irrevocably
and unconditionally waives (and agrees not to plead or claim) any objection to the laying of venue
of any dispute arising out of this Agreement or any of the Transactions in the state and federal
courts of the State of Ohio, or that any such dispute brought in any such court has been brought in
an inconvenient forum.

     Section 9.11 Specific Enforcement. The parties agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. The parties accordingly agree that the
parties will be entitled to an injunction or injunctions to prevent breaches of this Agreement and

- 39 -

 

to enforce specifically the terms and provisions of this Agreement in any federal court
located in the State of Ohio or a Ohio state court, this being in addition to any other remedy to
which they are entitled at law or in equity.

     Section 9.12 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO
THIS AGREEMENT OR THE TRANSACTIONS.

ARTICLE X

DEFINITIONS; INTERPRETATION

     Section 10.1 Cross References. Each of the following terms is defined in the section
set forth opposite such term.

	 	 	 	 	 
	Defined Term	 	Section
	Acquisition Agreement
	 	 	5.2	(b)
	Agreement
	 	Preamble
	Anti-Corruption Laws
	 	 	3.8	(b)
	Antitrust Laws
	 	 	6.3	(d)
	Book-Entry Shares
	 	 	2.1	(a)
	Certificate of Merger
	 	 	1.3
	Certificates
	 	 	2.1	(a)
	Closing Date
	 	 	1.2
	Common Stock
	 	 	3.4	(a)
	Company
	 	Preamble
	Company Board
	 	 	3.2	(a)
	Company Disclosure Letter
	 	Article III
	Company Earnings Guidance
	 	 	3.5	(c)
	Company Employees
	 	 	6.8	(a)
	Company Permits
	 	 	3.8	(a)
	Company Plan
	 	 	3.12	(a)
	Company Recommendation
	 	 	3.2	(c)
	Company SEC Documents
	 	 	3.5	(a)
	Confidentiality Agreement
	 	 	3.21
	Covered Employees
	 	 	3.12	(a)
	Deferred Compensation Plans
	 	 	2.3	(d)
	Deferred Payment
	 	 	2.3	(d)
	Dissenting Shares
	 	 	2.4	(a)
	Effective Time
	 	 	1.3
	ERISA
	 	 	3.12	(a)
	Exchange Act
	 	 	3.3	(a)
	Final Order
	 	8.1(b)(ii)
	Financial Advisors
	 	 	3.17
	Financial Statements
	 	 	3.5	(a)

- 40 -

 

	 	 	 	 	 
	Defined Term	 	Section
	GAAP
	 	 	3.5	(a)
	Governmental Entity
	 	 	3.3	(a)
	HSR Act
	 	 	3.3	(a)
	Indemnified Liabilities
	 	 	6.7	(a)
	Indemnified Parties
	 	 	6.7	(a)
	International Award
	 	 	2.3	(b)
	International Equity Plans
	 	 	2.3	(b)
	Material Contract
	 	 	3.9	(a)
	Merger
	 	 	1.1
	Merger Consideration
	 	 	2.1	(a)
	Merger Sub
	Preamble
	Multiemployer Plan
	 	 	3.12	(a)
	Non-U.S. Plan
	 	 	3.12	(c)
	Option
	 	 	2.3	(a)
	Option Cash Payment
	 	 	2.3	(a)
	Outside Date
	 	 	8.1(b)	(i)
	Parent
	 	Preamble
	Paying Agent
	 	 	2.2	(a)
	Payment Fund
	 	 	2.2	(a)
	Proxy Statement
	 	 	3.10
	Restraints
	 	 	7.1	(c)
	Restriction
	 	 	6.3	(e)
	Rights
	 	 	3.4	(a)
	Securities Act
	 	 	3.5	(a)
	Serial Preference Shares
	 	 	3.4	(a)
	Serial Preferred Stock
	 	 	3.4	(a)
	Settlement Payment
	 	 	2.3	(b)
	Share Unit
	 	 	2.3	(c)
	Share Unit Payment
	 	 	2.3	(c)
	Shareholder Approval
	 	 	3.2	(b)
	Shares
	 	Recitals
	SOX
	 	 	3.5	(a)
	Special Meeting
	 	 	6.2	(a)
	Surviving Corporation
	 	 	1.1
	Takeover Statute
	 	 	3.19
	Termination Fee
	 	 	8.2	(b)
	Transactions
	 	 	2.2	(e)

     Section 10.2 Certain Terms Defined. The following terms shall have the meanings set
forth below for purposes of this Agreement:

     “Action” means any claim, action, suit, proceeding or investigation by or before any
Governmental Entity.

     “Affiliates” has the meaning set forth in Rule 12b-2 of the Exchange Act.

- 41 -

 

     “Business Day” means any day other than a Saturday, Sunday or a day on which banks in New
York, New York are authorized or obligated by Law or Order to close.

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

     “Company Stock Plans” means the Company’s 2010 Stock Incentive Plan (as amended November 9,
2010), the Company’s 2005 Stock Incentive Plan (as amended and restated February 22, 2010), and the
Company’s 1991 Stock Incentive Plan (as amended November 15, 2004).

     “Encumbrance” means any security interest, pledge, mortgage, lien, charge, hypothecation,
option to purchase or lease or otherwise acquire any interest, conditional sales agreement, adverse
claim of ownership or use, title defect, easement, right of way, or other encumbrance of any kind.

     “Environmental Laws” means all Laws relating to the protection of the environment, including
the ambient air, soil, surface water or groundwater, or relating to the protection of human health
from exposure to Materials of Environmental Concern.

     “Environmental Permits” means all permits, licenses, registrations, and other authorizations
required under applicable Environmental Laws.

     “ERISA Affiliate” means, with respect to any Person, any trade or business, whether or not
incorporated, that together with such Person would be deemed a “single employer” within the meaning
of Section 414 of the Code.

     “Indebtedness” of any Person means (a) all indebtedness for borrowed money, (b) any other
indebtedness which is evidenced by a note, bond, debenture or similar instrument and (c) all
obligations under financing leases.

     “Intellectual Property Rights” means United States or foreign intellectual property, including
(i) patents and patent applications, together with all reissues, continuations,
continuations-in-part, divisionals, provisionals, extensions and reexaminations thereof, (ii)
trademarks, service marks, logos, trade names, corporate names, trade dress, including all goodwill
associated therewith, and all applications, registrations and renewals in connection therewith,
(iii) copyrights and copyrightable works and all applications and registrations in connection with
any of the foregoing, (iv) inventions and discoveries (whether patentable or not), industrial
designs, trade secrets, confidential information and know-how, (v) computer software (including
databases and related documentation), (vi) uniform resource locators, web site addresses and
Internet domain names, and registrations therefor, (vii) moral and economic rights of authors and
inventors and (vii) all other proprietary rights whether now known or hereafter recognized in any
jurisdiction.

     “IRS” means the Internal Revenue Service.

     “Knowledge” means (i) with respect to Parent, the actual knowledge (without independent
inquiry or investigation) of the Chief Executive Officer, Chief Financial Officer and General
Counsel of Parent and (ii) with respect to the Company, the actual knowledge (without

- 42 -

 

independent inquiry or investigation) of the following executive officers of the Company:
Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and General Counsel.

     “Law” means any law, statute, code, ordinance, regulation or rule of any Governmental Entity.

     “Leased Real Property” means all material real property leased or subleased (whether as a
tenant or subtenant) by the Company or any Subsidiary of the Company.

     “Material Adverse Effect” means, with respect to the Company, a material adverse effect on (i)
the ability of the Company to consummate the Merger, or (ii) the business, results of operations or
financial condition of the Company and its Subsidiaries, taken as a whole, except to the extent
such material adverse effect under this clause (ii) results from (A) any changes in general United
States or global economic conditions, (B) any changes in conditions generally affecting any of the
industries in which the Company and its Subsidiaries operate, except to the extent such changes in
conditions have a disproportionate effect on the Company and its Subsidiaries, taken as a whole,
relative to others in such industries, (C) any decline in the market price of the Common Stock, (D)
regulatory, legislative or political conditions or securities, credit, financial or other capital
markets conditions, in each case in the United States or any foreign jurisdiction, except to the
extent such conditions have a disproportionate effect on the Company and its Subsidiaries, taken as
a whole, relative to others in the industries in which the Company and any of its Subsidiaries
operate, (E) any failure, in and of itself, by the Company to meet any internal or published
projections, forecasts, estimates or predictions in respect of revenues, earnings or other
financial or operating metrics for any period (it being understood that the facts or occurrences
giving rise to or contributing to such failure may be deemed to constitute, or be taken into
account in determining whether there has been or will be a Material Adverse Effect), (F) the
execution and delivery of this Agreement or the public announcement or pendency of the Merger or
any of the other Transactions, including the impact thereof on the relationships, contractual or
otherwise, of the Company or any of its Subsidiaries with employees, labor unions, customers,
suppliers or partners, (G) any change in applicable Law, regulation or GAAP (or authoritative
interpretations thereof), (H) geopolitical conditions, the outbreak or escalation of hostilities,
any acts of war, sabotage or terrorism, or any escalation or worsening of any such acts of war,
sabotage or terrorism threatened or underway as of the date of this Agreement, except to the extent
such conditions or event have a disproportionate effect on the Company and its Subsidiaries, taken
as a whole, relative to others in the industries in which the Company and any of its Subsidiaries
operate, or (I) any hurricane, tornado, flood, earthquake or other natural disaster, except to the
extent such events have a disproportionate effect on the Company and its Subsidiaries, taken as a
whole, relative to others in the industries in which the Company and any of its Subsidiaries
operate.

     “Materials of Environmental Concern” means any hazardous, acutely hazardous, or toxic
substance or waste defined or regulated as such under Environmental Laws, including the federal
Comprehensive Environmental Response, Compensation and Liability Act and the federal Resource
Conservation and Recovery Act.

     “Ohio Law” means the Ohio General Corporation Law.

- 43 -

 

     “Order” means any order, judgment, ruling, injunction, assessment, award, decree or writ of
any Governmental Entity.

     “Owned Real Property” means all material real property reflected in the latest audited balance
sheet included in the Company SEC Documents as owned by the Company or any Subsidiary of the
Company or acquired after the date thereof (except for properties sold or otherwise disposed of
since the date thereof in the ordinary course of business).

     “Permitted Encumbrances” means: (i) Encumbrances that relate to Taxes, assessments and
governmental charges or levies imposed upon the Company or any of its Subsidiaries that are not yet
due and payable or that are being contested in good faith by appropriate proceedings or for which
reserves have been established on the most recent financial statements included in the Company SEC
Documents, (ii) Encumbrances imposed by Law that relate to obligations that are not yet due and
have arisen in the ordinary course of business, (iii) pledges or deposits to secure obligations
under workers’ compensation Laws or similar legislation or to secure public or statutory
obligations, (iv) mechanics’, carriers’, workers’, repairers’ and similar Encumbrances imposed upon
the Company or any of its Subsidiaries arising or incurred in the ordinary course of business, (v)
Encumbrances that relate to zoning, entitlement and other land use and environmental Laws, (vi)
other imperfections or irregularities in title, charges, easements, survey exceptions, leases,
subleases, license agreements and other occupancy agreements, reciprocal easement agreements,
restrictions and other customary encumbrances on title to or use of real property, (vii) utility
easements for electricity, gas, water, sanitary sewer, surface water drainage or other general
easements granted to Governmental Entities in the ordinary course of developing or operating any
Site, (viii) any Laws affecting any Site, (ix) any utility company rights, easements or franchises
for electricity, water, steam, gas, telephone or other service or the right to use and maintain
poles, lines, wires, cables, pipes, boxes and other fixtures and facilities in, over, under and
upon any of the Sites, (x) any encroachments of stoops, areas, cellar steps, trim and cornices, if
any, upon any street or highway; provided, however, that in the case of clauses (v)
through (x), none of the foregoing, individually or in the aggregate, materially adversely affect
the continued use of the property to which they relate in the conduct of the business currently
conducted thereon, and (xi) as to any Leased Real Property, any Encumbrance affecting the interest
of the lessor thereof.

     “Person” means a natural person, sole proprietorship, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated society or
association, joint venture, Governmental Entity or other legal entity or organization.

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

     “Site” means each location where the Company or any Subsidiary of the Company conducts
business, including each Owned Real Property and Leased Real Property.

     “Subsidiary” means, with respect to any party, any foreign or domestic corporation or other
entity, whether incorporated or unincorporated, of which (a) such party or any other Subsidiary of
such party is a general partner (excluding such partnerships where such party or any Subsidiary of
such party does not have a majority of the voting interest in such partnership) or (b) at least a
majority of the securities or other equity interests having by their terms ordinary

- 44 -

 

voting power to elect a majority of the directors or others performing similar functions with
respect to such corporation or other entity is directly or indirectly owned or controlled by such
party or by any one or more of such party’s Subsidiaries, or by such party and one or more of its
Subsidiaries.

     “Superior Proposal” means a bona fide written offer from any Person (other than Parent and its
Subsidiaries, Affiliates and representatives) for a direct or indirect acquisition or purchase of
50% or more of the consolidated assets (including equity interests in subsidiaries) of the Company
and its Subsidiaries, taken as a whole, or 50% or more of any class of equity securities of the
Company, any tender offer or exchange offer that if consummated would result in any person
beneficially owning 50% or more of any class of equity securities of the Company, or any merger,
consolidation, share exchange, business combination, recapitalization, liquidation, dissolution or
similar transaction involving the Company or any of its Subsidiaries (other than the Transactions)
(A) which, considering all relevant factors, is more favorable to the Company and its shareholders
than the Merger, and (B) for which the third party has demonstrated that the financing for such
offer is fully committed or is reasonably likely to be obtained, in each case as determined by the
Company Board in its good faith judgment (after consulting with financial advisors and receiving
the advice of outside counsel).

     “Takeover Proposal” means any inquiry, proposal or offer from any Person (other than Parent
and its Subsidiaries, Affiliates and representatives) relating to any direct or indirect
acquisition or purchase of 10% or more of the consolidated assets (including equity interests in
subsidiaries) of the Company and its Subsidiaries, taken as a whole, or 10% or more of any class of
equity securities of the Company, any tender offer or exchange offer that if consummated would
result in any Person beneficially owning 10% or more of any class of equity securities of the
Company, or any merger, consolidation, share exchange, business combination, recapitalization,
liquidation, dissolution or similar transaction involving the Company or any of its Subsidiaries,
other than the Transactions.

     “Tax” or “Taxes” means all taxes of any kind, including those on or measured by or referred to
as income, gross receipts, sales, use, ad valorem, franchise, profits, license, value added,
property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any
kind whatsoever, together with any interest and any penalties, additions to tax or additional
amounts imposed by any governmental authority, domestic or foreign.

     “Tax Return” or “Tax Returns” means all federal, state, local and foreign tax returns,
declarations, statements, reports, schedules, forms and information returns and any amended tax
return related to Taxes.

     Section 10.3 Other Definitional and Interpretative Provisions. The words “hereof,”
“herein” and “hereunder” and words of like import used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. Terms defined in the
singular in this Agreement shall also include the plural and vice versa. The captions and headings
herein are included for convenience of reference only and shall be ignored in the construction or
interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles,
Sections, Exhibits and Schedules of this Agreement unless otherwise specified. Whenever the words
“include,” “includes” or “including” are used in this Agreement, they shall

- 45 -

 

be deemed to be followed by the words “without limitation,” whether or not they are in fact
followed by those words or words of like import. The phrases “the date of this Agreement,” “the
date hereof” and phrases of similar import, unless the context otherwise requires, shall be deemed
to refer to the date set forth in the Preamble. The word “extent” in the phrase “to the extent”
shall mean the degree to which a subject or other thing extends, and such phrase shall not mean
simply “if”. The word “will” shall be construed to have the same meaning as the word “shall”. The
term “or” is not exclusive. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. If any ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement.

[Signatures on Following Page.]

- 46 -

 

IN WITNESS WHEREOF, Parent, Merger Sub and the Company have caused this Agreement and Plan of
Merger to be signed by their respective officers thereunto duly authorized as of the date first
written above.

	 	 	 	 	 
	 	BERKSHIRE HATHAWAY INC.

 	 
	 	By:  	/s/ Warren E. Buffett
 	 
	 	 	Name:  	Warren E. Buffett 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	OHIO MERGER SUB, INC.

 	 
	 	By:  	/s/ Warren E. Buffett
 	 
	 	 	Name:  	Warren E. Buffett 	 
	 	 	Title:  	President 	 
	 
	 	THE LUBRIZOL CORPORATION

 	 
	 	By:  	/s/ James L. Hambrick
 	 
	 	 	Name:  	James L. Hambrick 	 
	 	 	Title:  	Chairman, President and
Chief Executive Officer 	 
	 

- 47 -exv4w1

Exhibit 4.1

COMSTOCK RESOURCES, INC.,

THE SUBSIDIARY GUARANTORS NAMED HEREIN

and

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

as Trustee

 

THIRD SUPPLEMENTAL INDENTURE

dated as of March 14, 2011

to

INDENTURE

dated as of October 9, 2009

 

73/4% Senior Notes due 2019

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	ARTICLE I. APPLICATION OF SUPPLEMENTAL INDENTURE	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Application of this Supplemental Indenture	 	 	2	 
	Section 1.2
	 	Effect of Supplemental Indenture	 	 	2	 
	Section 1.3
	 	General References	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	4	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Definitions	 	 	4	 
	Section 2.2
	 	Other Definitions	 	 	28	 
	Section 2.3
	 	Incorporation by Reference of Trust Indenture Act	 	 	28	 
	Section 2.4
	 	Rules of Construction	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE III. THE NOTES	 	 	29	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Title and Terms	 	 	29	 
	Section 3.2
	 	Form and Dating	 	 	31	 
	Section 3.3
	 	Authentication	 	 	31	 
	Section 3.4
	 	Registrar and Paying Agent	 	 	32	 
	Section 3.5
	 	Paying Agent To Hold Money in Trust	 	 	32	 
	Section 3.6
	 	Holder Lists	 	 	33	 
	Section 3.7
	 	Replacement Securities	 	 	33	 
	Section 3.8
	 	Outstanding Securities	 	 	33	 
	Section 3.9
	 	Temporary Notes	 	 	33	 
	Section 3.10
	 	Cancellation	 	 	34	 
	Section 3.11
	 	Defaulted Interest	 	 	34	 
	Section 3.12
	 	CUSIP Numbers	 	 	34	 
	Section 3.13
	 	Transfer and Exchange	 	 	34	 
	Section 3.14
	 	Certificated Notes	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE IV. SATISFACTION AND DISCHARGE	 	 	38	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Satisfaction and Discharge of Indenture	 	 	38	 
	Section 4.2
	 	Application of Trust Money	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE V. DEFAULTS AND REMEDIES	 	 	39	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Events of Default	 	 	39	 
	Section 5.2
	 	Acceleration of Maturity; Rescission and Annulment	 	 	41	 
	Section 5.3
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	43	 
	Section 5.4
	 	Trustee May File Proofs of Claim	 	 	43	 
	Section 5.5
	 	Trustee May Enforce Claims Without Possession of Notes	 	 	44	 
	Section 5.6
	 	Application of Money Collected	 	 	44	 

i 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	Section 5.7
	 	Limitation on Suits	 	 	45	 
	Section 5.8
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	45	 
	Section 5.9
	 	Restoration of Rights and Remedies	 	 	45	 
	Section 5.10
	 	Rights and Remedies Cumulative	 	 	46	 
	Section 5.11
	 	Delay or Omission Not Waiver	 	 	46	 
	Section 5.12
	 	Control by Holders	 	 	46	 
	Section 5.13
	 	Waiver of Past Defaults	 	 	46	 
	Section 5.14
	 	Waiver of Stay, Extension or Usury Laws	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE VI. THE TRUSTEE	 	 	47	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Duties of Trustee	 	 	47	 
	Section 6.2
	 	Certain Rights of Trustee	 	 	48	 
	Section 6.3
	 	Trustee Not Responsible for Recitals or Issuance of Notes	 	 	50	 
	Section 6.4
	 	May Hold Notes	 	 	50	 
	Section 6.5
	 	Money Held in Trust	 	 	50	 
	Section 6.6
	 	Compensation and Reimbursement	 	 	50	 
	Section 6.7
	 	Corporate Trustee Required; Eligibility	 	 	51	 
	Section 6.8
	 	Conflicting Interests	 	 	51	 
	Section 6.9
	 	Resignation and Removal; Appointment of Successor	 	 	51	 
	Section 6.10
	 	Acceptance of Appointment by Successor	 	 	52	 
	Section 6.11
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	53	 
	Section 6.12
	 	Preferential Collection of Claims Against Company	 	 	53	 
	Section 6.13
	 	Notice of Defaults	 	 	53	 
	Section 6.14
	 	Reports by Trustee	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE VII. CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	54	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Company May Consolidate, etc., Only on Certain Terms	 	 	54	 
	Section 7.2
	 	Successor Substituted	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE VIII. SUPPLEMENTAL INDENTURES	 	 	56	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Supplemental Indentures Without Consent of Holders	 	 	56	 
	Section 8.2
	 	Supplemental Indentures With Consent of Holders	 	 	57	 
	Section 8.3
	 	Execution of Supplemental Indentures	 	 	58	 
	Section 8.4
	 	Effects of Supplemental Indentures	 	 	58	 
	Section 8.5
	 	Conformity with Trust Indenture Act	 	 	58	 
	Section 8.6
	 	References in Notes to Supplemental Indentures	 	 	58	 
	Section 8.7
	 	Notice of Supplemental Indentures	 	 	58	 
	 
	 	 	 	 	 	 
	ARTICLE IX. COVENANTS	 	 	58	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Payment of Principal, Premium, if any, and Interest	 	 	58	 
	Section 9.2
	 	Maintenance of Office or Agency	 	 	59	 
	Section 9.3
	 	Money for Security Payments to Be Held in Trust	 	 	59	 
	Section 9.4
	 	Corporate Existence	 	 	60	 

ii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	Section 9.5
	 	Statement by Officers as to Default	 	 	60	 
	Section 9.6
	 	[Reserved.]	 	 	61	 
	Section 9.7
	 	[Reserved.]	 	 	61	 
	Section 9.8
	 	Payment of Taxes; Maintenance of Properties; Insurance	 	 	61	 
	Section 9.9
	 	Reports	 	 	62	 
	Section 9.10
	 	Limitation on Restricted Payments	 	 	63	 
	Section 9.11
	 	[Reserved.]	 	 	66	 
	Section 9.12
	 	Limitation on Indebtedness and Disqualified Capital Stock	 	 	66	 
	Section 9.13
	 	Additional Subsidiary Guarantors	 	 	69	 
	Section 9.14
	 	Limitation on Issuances and Sales of Preferred Stock of Restricted Subsidiaries	 	 	69	 
	Section 9.15
	 	Limitation on Liens	 	 	69	 
	Section 9.16
	 	Purchase of Notes Upon Change of Control	 	 	70	 
	Section 9.17
	 	Limitation on Asset Sales	 	 	72	 
	Section 9.18
	 	Limitation on Transactions with Affiliates	 	 	74	 
	Section 9.19
	 	
Limitation on Dividends and Other Payment Restrictions Affecting
Restricted Subsidiaries	 	 	75	 
	Section 9.20
	 	Limitation on Sale and Leaseback Transactions	 	 	76	 
	Section 9.21
	 	Covenant Suspension	 	 	76	 
	 
	 	 	 	 	 	 
	ARTICLE X. REDEMPTION OF NOTES	 	 	77	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	Notice to Trustee	 	 	77	 
	Section 10.2
	 	Selection by Trustee of Notes to Be Redeemed	 	 	77	 
	Section 10.3
	 	Notice of Redemption	 	 	78	 
	Section 10.4
	 	Deposit of Redemption Price	 	 	78	 
	Section 10.5
	 	Notes Payable on Redemption Date	 	 	78	 
	Section 10.6
	 	Notes Redeemed in Part	 	 	79	 
	 
	 	 	 	 	 	 
	ARTICLE XI. DEFEASANCE AND COVENANT DEFEASANCE	 	 	79	 
	 
	 	 	 	 	 	 
	Section 11.1
	 	Company’s Option to Effect Defeasance or Covenant Defeasance	 	 	79	 
	Section 11.2
	 	Defeasance and Discharge	 	 	79	 
	Section 11.3
	 	Covenant Defeasance	 	 	80	 
	Section 11.4
	 	Conditions to Defeasance or Covenant Defeasance	 	 	80	 
	Section 11.5
	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Other	 	 	 	 
	 
	 	Miscellaneous Provisions	 	 	82	 
	Section 11.6
	 	Reinstatement	 	 	82	 
	 
	 	 	 	 	 	 
	ARTICLE XII. SUBSIDIARY GUARANTEES	 	 	83	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Unconditional Guarantee	 	 	83	 
	Section 12.2
	 	Subsidiary Guarantors May Consolidate, etc., on Certain Terms	 	 	84	 
	Section 12.3
	 	Release of Subsidiary Guarantors	 	 	85	 
	Section 12.4
	 	Limitation of Subsidiary Guarantors’ Liability	 	 	85	 
	Section 12.5
	 	Contribution	 	 	86	 
	Section 12.6
	 	Severability	 	 	86	 

iii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	ARTICLE XIII. MISCELLANEOUS	 	 	86	 
	 
	 	 	 	 	 	 
	Section 13.1
	 	Compliance Certificates and Opinions	 	 	86	 
	Section 13.2
	 	Form of Documents Delivered to Trustee	 	 	87	 
	Section 13.3
	 	Acts of Holders	 	 	87	 
	Section 13.4
	 	Notices, etc. to Trustee, Company and Subsidiary Guarantors	 	 	88	 
	Section 13.5
	 	Notice to Holders; Waiver	 	 	89	 
	Section 13.6
	 	Effect of Headings and Table of Contents	 	 	89	 
	Section 13.7
	 	Successors and Assigns	 	 	89	 
	Section 13.8
	 	Severability	 	 	90	 
	Section 13.9
	 	Benefits of Supplemental Indenture	 	 	90	 
	Section 13.10
	 	Governing Law; Trust Indenture Act Controls	 	 	90	 
	Section 13.11
	 	Legal Holidays	 	 	90	 
	Section 13.12
	 	No Personal Liability of Directors, Officers, Employees and Stockholders	 	 	91	 
	Section 13.13
	 	Holder Communications	 	 	91	 
	Section 13.14
	 	Duplicate Originals	 	 	91	 
	Section 13.15
	 	No Adverse Interpretation of Other Agreements	 	 	91	 
	Section 13.16
	 	Force Majeure	 	 	91	 
	Section 13.17
	 	Waiver of Jury Trial	 	 	91	 
	 
	 	 	 	 	 	 
	Appendix A — Form of Note	 	 	 	 

iv 

 

     THIS THIRD SUPPLEMENTAL INDENTURE dated as of March 14, 2011 (this “Supplemental
Indenture”), is among COMSTOCK RESOURCES, INC., a Nevada corporation (hereinafter called the
“Company”), the SUBSIDIARY GUARANTORS (as defined hereinafter) and THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Trustee (hereinafter called the “Trustee”) under the Indenture, dated as of
October 9, 2009, among the Company, the Subsidiary Guarantors named therein and the Trustee (the
“Original Indenture” and, as amended and supplemented by this Supplemental Indenture, in respect of
the Notes, the “Indenture”).

RECITALS

     WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have duly authorized, executed
and delivered the Original Indenture to provide for the issuance from time to time of the Company’s
unsecured senior or subordinated debentures, notes or other evidences of indebtedness, to be
issued, from time to time, in one or more series (herein called “Securities”), which Securities may
be guaranteed by each of the Subsidiary Guarantors, as the Original Indenture provides;

     WHEREAS, under the Original Indenture, a new series of Securities may at any time be
established by the Board of Directors of the Company, in accordance with the provisions of the
Original Indenture, and the terms of such series may be established in an indenture supplemental to
the Original Indenture;

     WHEREAS, the Company desires to execute this Supplemental Indenture to establish the form and
terms, and to provide for the issuance, of a second series of senior notes designated as
73/4% Senior Notes due 2019 in an aggregate principal amount of $300,000,000
(the “Initial Notes”);

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

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

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

     WHEREAS, the Company has duly authorized the execution and delivery of this Supplemental
Indenture to provide for the issuance of the Notes, and the Subsidiary Guarantors named herein have
duly authorized the execution and delivery of this Supplemental Indenture to

 

 

provide for the guarantee of the Notes by the Subsidiary Guarantors as provided in this
Supplemental Indenture; and

     WHEREAS, all things necessary have been done to make the Notes, when executed by the Company
and authenticated and delivered hereunder, the valid obligations of the Company and to make the
Original Indenture, as supplemented by this Supplemental Indenture, when executed by the Company
and each Subsidiary Guarantor named herein, a valid agreement of the Company and each such
Subsidiary Guarantor, in each case in accordance with their respective terms.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Notes:

ARTICLE I.

APPLICATION OF SUPPLEMENTAL INDENTURE

     Section 1.1 Application of this Supplemental Indenture. Notwithstanding any other provision of
this Supplemental Indenture, the provisions of this Supplemental Indenture, including as provided
in Section 1.2 below, are expressly and solely for the benefit of the Holders of the Notes and the
Guarantees and shall not apply to any other series of Securities that have been issued or that may
be issued hereafter under the Original Indenture. The Notes constitute a series of Securities as
provided in the Original Indenture. Unless otherwise expressly specified, references in this
Supplemental Indenture to specific Article numbers or Section numbers refer to Articles and
Sections contained in this Supplemental Indenture, and not the Original Indenture or any other
document.

     Section 1.2 Effect of Supplemental Indenture. With respect to the Notes only, the Original Indenture
shall be supplemented and amended pursuant to Section 8.1 thereof to establish the form and terms
of the Notes as set forth in this Supplemental Indenture, including as follows:

     (a) Definitions and Other Provisions of General Application. Article I of the Original
Indenture is deleted and replaced in its entirety by the provisions of Article II of this
Supplemental Indenture;

     (b) The Notes. Article II of the Original Indenture is deleted and replaced in its
entirety by the provisions of Article III of this Supplemental Indenture;

     (c) Satisfaction and Discharge. The provisions of Article III of the Original Indenture
are deleted and replaced in their entirety by the provisions of Article IV of this Supplemental
Indenture;

     (d) Defaults and Remedies. The provisions of Article IV of the Original Indenture are
deleted and replaced in their entirety by the provisions of Article V of this Supplemental
Indenture;

2

 

     (e) The Trustee. The provisions of Article V of the Original Indenture are deleted and
replaced in their entirety by the provisions of Article VI of this Supplemental Indenture;

     (f) Holders’ Lists and Reports by Trustee and Company. The provisions of Article VI of
the Original Indenture are deleted in their entirety;

     (g) Consolidation, Merger, Conveyance, Transfer or Lease. The provisions of Article VII
of the Original Indenture are deleted and replaced in their entirety by the provisions of Article
VII of this Supplemental Indenture;

     (h) Supplemental Indentures. The provisions of Article VIII of the Original Indenture
are deleted and replaced in their entirety by the provisions of Article VIII of this Supplemental
Indenture;

     (i) Covenants. The provisions of Article IX of the Original Indenture are deleted and
replaced in their entirety by the provisions of Article IX of this Supplemental Indenture;

     (j) Redemption of Notes. The provisions of Article X of the Original Indenture are
deleted and replaced in their entirety by the provisions of Article X of this Supplemental
Indenture;

     (k) Defeasance and Covenant Defeasance. The provisions of Article XI of the Original
Indenture are deleted and replaced in their entirety by the provisions of Article IX and Article
XII of this Supplemental Indenture;

     (l) Subsidiary Guarantees. The provisions of Article XII of the Original Indenture are
deleted and replaced in their entirety by the provisions of Article XII of this Supplemental
Indenture;

     (m) Miscellaneous. The provisions of Article XIII of the Original Indenture are
deleted and replaced in their entirety by the provisions of Article XIII of this Supplemental
Indenture; and

     (n) Subordination of the Securities. The provisions of Article XIV of the Original
Indenture are deleted in their entirety.

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

     Section 1.3 General References. Unless otherwise specified or unless the context otherwise requires, (i) all references in this
First Supplemental Indenture to Articles and Sections refer to the corresponding Articles and
Sections of this First Supplemental Indenture and (ii) the terms “herein”, “hereof”, “hereunder”,
“hereto” and any other word of similar import refers to this First Supplemental Indenture.

3

 

ARTICLE II.

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 2.1 Definitions.

     “Acquired Indebtedness” means Indebtedness of a Person (1) existing at the time such Person
becomes a Restricted Subsidiary or (2) assumed in connection with acquisitions of Properties from
such Person (other than any Indebtedness incurred in connection with, or in contemplation of, such
Person becoming a Restricted Subsidiary or such acquisition). Acquired Indebtedness shall be
deemed to be incurred on the date the acquired Person becomes a Restricted Subsidiary or the date
of the related acquisition of Properties from such Person.

     “Act,” when used with respect to any Holder, has the meaning specified in Section 13.3.

     “Additional Assets” means:

     (i) any Property (other than cash, Cash Equivalents or securities) used in the Oil and Gas
Business or any business ancillary thereto;

     (ii) Investments in any other Person engaged in the Oil and Gas Business or any business
ancillary thereto (including the acquisition from third parties of Capital Stock of such Person) as
a result of which such other Person becomes a Restricted Subsidiary;

     (iii) the acquisition from third parties of Capital Stock of a Restricted Subsidiary; or

     (iv) capital expenditures by the Company or a Restricted Subsidiary in the Oil and Gas
Business.

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

     (i) the sum of:

     (a) discounted future net revenues from proved oil and gas reserves of the Company and
its Restricted Subsidiaries calculated in accordance with Commission guidelines before any
state, Federal or foreign income taxes, as estimated by the Company and confirmed by a
nationally recognized firm of independent petroleum engineers in a reserve report prepared
as of the end of the Company’s most recently completed fiscal year for which audited
financial statements are available, as increased by, as of the date of determination, the
estimated discounted future net revenues from:

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

     (2) estimated oil and gas reserves attributable to upward revisions of
estimates of proved oil and gas reserves since such year-end due to exploration,
development or exploitation activities, in each case calculated in accordance with

4

 

Commission guidelines (utilizing the prices utilized in such year-end reserve
report),

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

     (3) estimated proved oil and gas reserves produced or disposed of since such
year-end, and

     (4) estimated oil and gas reserves attributable to downward revisions of
estimates of proved oil and gas reserves since such year-end due to changes in
geological conditions or other factors which would, in accordance with standard
industry practice, cause such revisions, in each case calculated in accordance with
Commission guidelines (utilizing the prices utilized in such year-end reserve
report);

provided that, in the case of each of the determinations made pursuant to clauses (1)
through (4), such increases and decreases shall be as estimated by the Company’s petroleum
engineers, unless there is a Material Change as a result of such acquisitions, dispositions
or revisions, in which event the discounted future net revenues utilized for purposes of
this clause (i)(a) shall be confirmed in writing by a nationally recognized firm of
independent petroleum engineers;

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

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

     (d) the greater of (1) the net book value on a date no earlier than the date of the
Company’s latest annual or quarterly financial statements and (2) the appraised value, as
estimated by independent appraisers, of other tangible assets (including, without
duplication, Investments in unconsolidated Restricted Subsidiaries) of the Company and its
Restricted Subsidiaries, as of a date no earlier than the date of the Company’s latest
audited financial statements; minus

     (ii) the sum of:

     (a) Minority Interests;

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

     (c) to the extent included in (i)(a) above, the discounted future net revenues,
calculated in accordance with Commission guidelines (utilizing the prices utilized in the
Company’s year-end reserve report), attributable to reserves which are required to be

5

 

delivered to third parties to fully satisfy the obligations of the Company and its
Restricted Subsidiaries with respect to Volumetric Production Payments (determined, if
applicable, using the schedules specified with respect thereto); and

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

     “Adjusted Net Assets” of a Subsidiary Guarantor at any date shall mean the amount by which the
fair value of the properties and assets of such Subsidiary Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after giving effect to all
other fixed and contingent liabilities incurred or assumed on such date), but excluding liabilities
under its Subsidiary Guarantee, of such Subsidiary Guarantor at such date.

     “Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such
specified Person. For the purposes of this definition, “control,” when used with respect to any
Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing. For purposes of
this definition, beneficial ownership of 10% or more of the voting common equity (on a fully
diluted basis) or options or warrants to purchase such equity (but only if exercisable at the date
of determination or within 60 days thereof) of a Person shall be deemed to constitute control of
such Person.

     “Asset Sale” means any sale, issuance, conveyance, transfer, lease or other disposition to any
Person other than the Company or any of its Restricted Subsidiaries (including, without limitation,
by means of a merger or consolidation) (collectively, for purposes of this definition, a
“transfer”), directly or indirectly, in one or a series of related transactions, of (i) any Capital
Stock of any Restricted Subsidiary, (ii) all or substantially all of the Properties of any division
or line of business of the Company or any of its Restricted Subsidiaries or (iii) any other
Properties of the Company or any of its Restricted Subsidiaries other than (a) a transfer of cash,
Cash Equivalents, hydrocarbons or other mineral products in the ordinary course of business or (b)
any lease, abandonment, disposition, relinquishment or farm-out of any oil and gas Properties in
the ordinary course of business. For the purposes of this definition, the term “Asset Sale” also
shall not include (a) any transfer of Properties (including Capital Stock) that is governed by, and
made in accordance with, the provisions of Article VII hereof; (b) any transfer of Properties to an
Unrestricted Subsidiary, if permitted under Section 9.10 hereof; or (c) any transfer (in a single
transaction or a series of related transactions) of Properties (including Capital Stock) having a
Fair Market Value of less than $25,000,000.

     “Attributable Indebtedness” means, with respect to any particular lease under which any Person
is at the time liable and at any date as of which the amount thereof is to be determined, the
present value of the total net amount of rent required to be paid by such Person under the

6

 

lease
during the primary term thereof, without giving effect to any renewals at the option of the lessee,
discounted from the respective due dates thereof to such date at the rate of interest per annum
implicit in the terms of the lease. As used in the preceding sentence, the net amount of rent
under any lease for any such period shall mean the sum of rental and other payments required to be
paid with respect to such period by the lessee thereunder excluding any amounts required to be paid
by such lessee on account of maintenance and repairs, insurance, taxes, assessments, water rates or
similar charges. In the case of any lease which is terminable by the lessee upon payment of a
penalty, such net amount of rent shall also include the amount of such penalty, but no rent shall
be considered as required to be paid under such lease subsequent to the first date upon which it
may be so terminated.

     “Average Life” means, with respect to any Indebtedness, as at any date of determination, the
quotient obtained by dividing (i) the sum of the products of (a) the number of years (and any
portion thereof) from the date of determination to the date or dates of each successive scheduled
principal payment (including, without limitation, any sinking fund or mandatory redemption payment
requirements) of such Indebtedness multiplied by (b) the amount of each such principal payment by
(ii) the sum of all such principal payments.

     “Bank Credit Agreement” means that certain Third Amended and Restated Credit Agreement dated
as of November 30, 2010 among the Company, as Borrower, the lenders party thereto from time to
time, Bank of Montreal, as Administrative Agent and Issuing Bank, Bank of America, N.A., as
Syndication Agent, and Comerica Bank, JP Morgan Chase Bank, N.A. and Union Bank of California,
N.A., as Co-Documentation Agents, and together with all related documents executed or delivered
pursuant thereto at any time (including, without limitation, all mortgages, deeds of trust,
guarantees, security agreements and all other collateral and security documents), in each case as
such agreements may be amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time, including any agreement or agreements extending the maturity
of, refinancing, replacing or otherwise restructuring (including into two or more separate credit
facilities, and including increasing the amount of available borrowings thereunder provided that
such increase in borrowings is within the definition of “Permitted Indebtedness” or is otherwise
permitted under Section 9.12) or adding Subsidiaries as additional borrowers or guarantors
thereunder and all or any portion of the Indebtedness and other Obligations under such agreement or
agreements or any successor or replacement agreement or agreements, and whether by the same or any
other agent(s), lender(s) or group(s) of lenders.

     “Board of Directors” means, with respect to the Company, either the board of directors of the
Company or any duly authorized committee of such board of directors, and, with respect to any
Subsidiary, either the board of directors of such Subsidiary or any duly authorized committee of
that board or, in the case of a Subsidiary not having a board of directors, the manager or other
person performing a function comparable to a board of directors of a corporation.

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

7

 

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

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in the cities of New York, New York or Dallas, Texas are authorized
or obligated by law or executive order to close.

     “Borrowing Base” means, as of any date, the aggregate amount of borrowing availability as of
such date under the Bank Credit Agreement that determines availability on the basis of a borrowing
base or other asset-based calculation.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations, rights or other equivalents in the equity interests (however designated) in such
Person, and any rights (other than debt securities convertible into an equity interest), warrants
or options exercisable for, exchangeable for or convertible into such an equity interest in such
Person.

     “Capitalized Lease Obligation” means any obligation to pay rent or other amounts under a lease
of (or other agreement conveying the right to use) any Property that is required to be classified
and accounted for as a capital lease obligation under GAAP, and, for the purpose of the Indenture,
the amount of such obligation at any date shall be the capitalized amount thereof at such date,
determined in accordance with GAAP.

     “Cash Equivalents” means:

     (i) any evidence of Indebtedness with a maturity of 180 days or less issued or directly and
fully guaranteed or insured by the United States of America or any agency or instrumentality
thereof (provided that the full faith and credit of the United States of America is pledged in
support thereof);

     (ii) demand and time deposits and certificates of deposit or acceptances with a maturity of
180 days or less of any financial institution that is a member of the Federal Reserve System having
combined capital and surplus and undivided profits of not less than $500,000,000;

     (iii) commercial paper with a maturity of 180 days or less issued by a corporation that is not
an Affiliate of the Company and is organized under the laws of any state of the United States or
the District of Columbia and rated at least A-l by S&P or at least P-l by Moody’s;

     (iv) repurchase obligations with a term of not more than seven days for underlying securities
of the types described in clause (i) above entered into with any commercial bank meeting the
specifications of clause (ii) above;

     (v) overnight bank deposits and bankers’ acceptances at any commercial bank meeting the
qualifications specified in clause (ii) above;

     (vi) deposits available for withdrawal on demand with any commercial bank not meeting the
qualifications specified in clause (ii) above but which is a lending bank under the

8

 

Bank Credit
Agreement, provided all such deposits do not exceed $5,000,000 in the aggregate at any one time;

     (vii) demand and time deposits and certificates of deposit with any commercial bank organized
in the United States not meeting the qualifications specified in clause (ii) above, provided that
such deposits and certificates support bond, letter of credit and other similar types of
obligations incurred in the ordinary course of business; and

     (viii) investments in money market or other mutual funds substantially all of whose assets
comprise securities of the types described in clauses (i) through (v) above.

     “Change of Control” means the occurrence of any event or series of events by which:

     (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of more than 50% of the total Voting Stock of the Company;

     (ii) the Company consolidates with or merges into another Person or any Person consolidates
with, or merges into, the Company, in any such event pursuant to a transaction in which the
outstanding Voting Stock of the Company is changed into or exchanged for cash, securities or other
Property, other than any such transaction where (a) the outstanding Voting Stock of the Company is
changed into or exchanged for Voting Stock of the surviving or resulting Person that is Qualified
Capital Stock and (b) the holders of the Voting Stock of the Company immediately prior to such
transaction own, directly or indirectly, not less than a majority of the Voting Stock of the
surviving or resulting Person immediately after such transaction;

     (iii) the Company, either individually or in conjunction with one or more Restricted
Subsidiaries, sells, assigns, conveys, transfers, leases or otherwise disposes of, or the
Restricted Subsidiaries sell, assign, convey, transfer, lease or otherwise dispose of, all or
substantially all of the Properties of the Company and such Restricted Subsidiaries, taken as a
whole (either in one transaction or a series of related transactions), including Capital Stock of
the Restricted Subsidiaries, to any Person (other than the Company or a Wholly Owned Restricted
Subsidiary);

     (iv) during any consecutive two-year period, individuals who at the beginning of such period
constituted the Board of Directors of the Company (together with any new directors whose election
by such Board of Directors or whose nomination for election by the stockholders of the Company was
approved by a vote of 66 2/3% of the directors then still in office who were
either directors at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the Board of Directors of
the Company then in office; or

     (v) Comstock is liquidated or dissolved.

     “Code” means the Internal Revenue Code of 1986, as amended, as now or hereafter in effect,
together with all regulations thereunder issued by the Internal Revenue Service.

9

 

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

     “Common Stock” of any Person means Capital Stock of such Person that does not rank prior, as
to the payment of dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares of Capital Stock of any other
class of such Person.

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

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

     “Consolidated Exploration Expenses” means, for any period, exploration expenses of the Company
and its Restricted Subsidiaries for such period as determined on a consolidated basis in accordance
with GAAP.

     “Consolidated Fixed Charge Coverage Ratio” means, for any period, the ratio on a pro forma
basis of (1) the sum of Consolidated Net Income, Consolidated Interest Expense, Consolidated Income
Tax Expense and Consolidated Non-cash Charges each to the extent deducted in computing Consolidated
Net Income, in each case, for such period, of the Company and its Restricted Subsidiaries on a
consolidated basis, all determined in accordance with GAAP, decreased (to the extent included in
determining Consolidated Net Income) by the sum of (a) the amount of deferred revenues that are
amortized during such period and are attributable to reserves that are subject to Volumetric
Production Payments and (b) amounts recorded in accordance with GAAP as repayments of principal and
interest pursuant to Dollar-Denominated Production Payments, to (2) Consolidated Interest Expense
for such period; provided, however, that (i) the Consolidated Fixed Charge Coverage Ratio shall be
calculated on a pro forma basis on the assumptions that (A) the Indebtedness to be incurred (and
all other Indebtedness incurred after the first day of such period of four full fiscal quarters
referred to in Section 9.12(a) hereof through and including the date of determination), and (if
applicable) the application of the net proceeds therefrom (and from any other such Indebtedness),
including to refinance other Indebtedness, had been incurred on the first day of such four-quarter
period and, in the case of Acquired Indebtedness, on the assumption that the related transaction
(whether by means of purchase, merger or otherwise) also had occurred on such date with the
appropriate adjustments with respect to such acquisition being included in such pro forma
calculation and (B) any acquisition or disposition by the Company or any Restricted Subsidiary of
any Properties outside the ordinary course of business, or any repayment of any principal amount of
any Indebtedness of the Company or any Restricted Subsidiary prior to the Stated Maturity thereof,
in either case since the first day of such period of four full fiscal quarters through and including the date
of determination, had been consummated on such first day of such four-quarter period, (ii) in
making such computation, the Consolidated Interest Expense attributable to interest on any

10

 

Indebtedness required to be computed on a pro forma basis in accordance with Section 9.12(a) hereof
and (A) bearing a floating interest rate shall be computed as if the rate in effect on the date of
computation had been the applicable rate for the entire period and (B) which was not outstanding
during the period for which the computation is being made but which bears, at the option of the
Company, a fixed or floating rate of interest, shall be computed by applying, at the option of the
Company, either the fixed or floating rate, (iii) in making such computation, the Consolidated
Interest Expense attributable to interest on any Indebtedness under a revolving credit facility
required to be computed on a pro forma basis in accordance with Section 9.12(a) hereof shall be
computed based upon the average daily balance of such Indebtedness during the applicable period,
provided that such average daily balance shall be reduced by the amount of any repayment of
Indebtedness under a revolving credit facility during the applicable period, which repayment
permanently reduced the commitments or amounts available to be reborrowed under such facility, (iv)
notwithstanding clauses (ii) and (iii) of this provision, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements relating to Interest Rate
Protection Obligations, shall be deemed to have accrued at the rate per annum resulting after
giving effect to the operation of such agreements, (v) in making such calculation, Consolidated
Interest Expense shall exclude interest attributable to Dollar-Denominated Production Payments, and
(vi) if after the first day of the period referred to in clause (1) of this definition the Company
has permanently retired any Indebtedness out of the Net Cash Proceeds of the issuance and sale of
shares of Qualified Capital Stock of the Company within 30 days of such issuance and sale,
Consolidated Interest Expense shall be calculated on a pro forma basis as if such Indebtedness had
been retired on the first day of such period.

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

     “Consolidated Interest Expense” means, for any period, without duplication, the sum of (1) the
interest expense of the Company and its Restricted Subsidiaries for such period as determined on a
consolidated basis in accordance with GAAP, including, without limitation, (a) any amortization of
debt discount, (b) the net cost under Interest Rate Protection Obligations (including any
amortization of discounts), (c) the interest portion of any deferred payment obligation
constituting Indebtedness, (d) all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and (e) all accrued interest, in
each case to the extent attributable to such period, (2) to the extent any Indebtedness of any
Person (other than the Company or a Restricted Subsidiary) is guaranteed by the Company or any
Restricted Subsidiary, the aggregate amount of interest paid (to the extent not accrued in a prior
period) or accrued by such other Person during such period attributable to any such Indebtedness,
in each case to the extent attributable to that period, (3) the aggregate amount of the interest
component of Capitalized Lease Obligations paid (to the extent not accrued in a prior period),
accrued or scheduled to be paid or accrued by the Company and its Restricted Subsidiaries during
such period as determined on a consolidated basis in accordance with GAAP and (4) the aggregate
amount of dividends paid (to the extent such dividends are not accrued in a
prior period and excluding dividends paid in Qualified Capital Stock) or accrued on
Disqualified Capital Stock of the Company and its Restricted Subsidiaries, to the extent such
Disqualified Capital Stock is owned by Persons other than the Company or its Restricted
Subsidiaries, less, to

11

 

the extent included in any of clauses (1) through (4), amortization of
capitalized debt issuance costs of the Company and its Restricted Subsidiaries during such period.

     “Consolidated Net Income” means, for any period, the consolidated net income (or loss) of the
Company and its Restricted Subsidiaries for such period as determined in accordance with GAAP,
adjusted by excluding:

     (1) net after-tax extraordinary gains or losses (less all fees and expenses relating thereto);

     (2) net after-tax gains or losses (less all fees and expenses relating thereto) attributable
to Asset Sales;

     (3) the net income (or net loss) of any Person (other than the Company or any of its
Restricted Subsidiaries), in which the Company or any of its Restricted Subsidiaries has an
ownership interest, except to the extent of the amount of dividends or other distributions actually
paid to the Company or any of its Restricted Subsidiaries in cash by such other Person during such
period (regardless of whether such cash dividends or distributions are attributable to net income
(or net loss) of such Person during such period or during any prior period);

     (4) the net income of any Restricted Subsidiary to the extent that the declaration or payment
of dividends or similar distributions by that Restricted Subsidiary is not at the date of
determination permitted, directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable
to that Restricted Subsidiary or its stockholders;

     (5) dividends paid in Qualified Capital Stock;

     (6) income resulting from transfers of assets received by the Company or any Restricted
Subsidiary from an Unrestricted Subsidiary;

     (7) Consolidated Exploration Expenses and any write-downs or impairments of non-current
assets; and

     (8) the cumulative effect of a change in accounting principles.

     “Consolidated Net Worth” means, at any date, the consolidated stockholders’ equity of the
Company and its Restricted Subsidiaries less the amount of such stockholders’ equity attributable
to Disqualified Capital Stock or treasury stock of the Company and its Restricted Subsidiaries, as
determined in accordance with GAAP.

     “Consolidated Non-cash Charges” means, for any period, the aggregate depreciation, depletion,
amortization and exploration expense and other non-cash expenses of the Company and its Restricted
Subsidiaries reducing Consolidated Net Income for such period, determined on
a consolidated basis in accordance with GAAP (excluding any such non-cash charge for which an
accrual of or reserve for cash charges for any future period is required).

     “Consolidated Total Indebtedness” means, with respect to the Company and its Restricted
Subsidiaries as of any date of determination, the aggregate of all Indebtedness of the Company

12

 

and
its Restricted Subsidiaries as of such date of determination, on a consolidated basis, determined
in accordance with GAAP.

     “Corporate Trust Office” means, for purposes of presenting Securities, The Bank of New York
Mellon located at 101 Barclay Street, 7 East, New York, New York 10286 and, for all other purposes
the office of the Trustee at which any time its corporate trust business shall be administered,
which at the date hereof is located at 601 Travis Street, 16th floor, Houston, Texas 77002,
Attention: Corporate Trust Services, re: Comstock Resources, Inc., or such other address as the
Trustee may designate from time to time by notice to the Holders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as such successor Trustee
may designate from time to time by notice to the Holders and the Company).

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

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

     “Disinterested Director” means, with respect to any transaction or series of transactions in
respect of which the Board of Directors of the Company is required to deliver a Board Resolution
hereunder, a member of the Board of Directors of the Company who does not have any material direct
or indirect financial interest (other than an interest arising solely from the beneficial ownership
of Capital Stock of the Company) in or with respect to such transaction or series of transactions.

     “Disqualified Capital Stock” means any Capital Stock that, either by its terms, by the terms
of any security into which it is convertible or exchangeable or by contract or otherwise, is, or
upon the happening of an event or passage of time would be, required to be redeemed or repurchased
prior to the final Stated Maturity of the Notes or is redeemable at the option of the holder
thereof at any time prior to such final Stated Maturity, or is convertible into or exchangeable for
debt securities at any time prior to such final Stated Maturity. For purposes of Section 9.12(a)
hereof, Disqualified Capital Stock shall be valued at the greater of its voluntary or involuntary
maximum fixed redemption or repurchase price plus accrued and unpaid dividends. For such purposes,
the “maximum fixed redemption or repurchase price” of any Disqualified Capital Stock which does not
have a fixed redemption or repurchase price shall be calculated in accordance with the terms of
such Disqualified Capital Stock as if such Disqualified Capital Stock were redeemed or repurchased
on the date of determination, and if such price is based upon, or measured by, the fair market
value of such Disqualified Capital Stock, such fair market value shall be determined in good faith
by the board of directors of the issuer of such Disqualified Capital Stock; provided, however, that
if such Disqualified Capital Stock is not at the date of determination permitted or required to be
redeemed or repurchased, the “maximum fixed redemption or repurchase price” shall be the book value
of such Disqualified Capital Stock.

     “Dollar-Denominated Production Payments” means production payment obligations of the Company
or a Restricted Subsidiary recorded as liabilities in accordance with GAAP, together with all
undertakings and obligations in connection therewith.

13

 

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

     “Event of Default” has the meaning specified in Section 5.1 hereof.

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

     “Exchanged Properties” means properties or assets used or useful in the Oil and Gas Business
received by the Company or a Restricted Subsidiary in trade or as a portion of the total
consideration for other such properties or assets.

     “Existing Notes Issue Date” means February 25, 2004.

     “Fair Market Value” means with respect to any Property, the sale value that would be obtained
in an arm’s-length free market transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair Market Value
of a Property equal to or in excess of $10.0 million shall be determined by the Board of Directors
of the Company acting in good faith, whose determination shall be conclusive and evidenced by a
Board Resolution, and any lesser Fair Market Value may be determined by an officer of the Company
acting in good faith.

     “Federal Bankruptcy Code” means the United States Bankruptcy Code of Title 11 of the United
States Code, as amended from time to time.

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

     The uncapitalized term “guarantee” means, as applied to any obligation, (1) a guarantee (other
than by endorsement of negotiable instruments or documents for collection in the ordinary course of
business), direct or indirect, in any manner, of any part or all of such obligation and (2) an
agreement, direct or indirect, contingent or otherwise, the practical effect of which is to assure
in any way the payment or performance (or payment of damages in the event of non-performance) of
all or any part of such obligation, including, without limiting the foregoing, the payment of
amounts drawn down under letters of credit. When used as a verb, “guarantee” has a corresponding
meaning.

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

     “Indebtedness” means, with respect to any Person, without duplication:

     (1) all liabilities of such Person, contingent or otherwise, for borrowed money or for the
deferred purchase price of Property or services (excluding any trade accounts payable and
other accrued current liabilities incurred and reserves established in the ordinary course of
business) and all liabilities of such Person incurred in connection with any agreement to purchase,
redeem, exchange, convert or otherwise acquire for value any Capital Stock of such

14

 

Person, or any warrants, rights or options to acquire such Capital Stock outstanding on the Issue Date or
thereafter, if, and to the extent, any of the foregoing would appear as a liability upon a balance
sheet of such Person prepared in accordance with GAAP;

     (2) all obligations of such Person evidenced by bonds, notes, debentures or other similar
instruments, if, and to the extent, any of the foregoing would appear as a liability upon a balance
sheet of such Person prepared in accordance with GAAP;

     (3) all obligations of such Person with respect to letters of credit;

     (4) all indebtedness of such Person created or arising under any conditional sale or other
title retention agreement with respect to Property acquired by such Person (even if the rights and
remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such Property), but excluding trade accounts payable arising and reserves
established in the ordinary course of business;

     (5) all Capitalized Lease Obligations of such Person;

     (6) the Attributable Indebtedness (in excess of any related Capitalized Lease Obligations)
related to any Sale/Leaseback Transaction of such Person;

     (7) all Indebtedness referred to in the preceding clauses of other Persons and all dividends
of other Persons, the payment of which is secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien upon Property
(including, without limitation, accounts and contract rights) owned by such Person, even though
such Person has not assumed or become liable for the payment of such Indebtedness (the amount of
such obligation being deemed to be the lesser of the value of such Property or the amount of the
obligation so secured);

     (8) all guarantees by such Person of Indebtedness referred to in this definition (including,
with respect to any Production Payment, any warranties or guaranties of production or payment by
such Person with respect to such Production Payment but excluding other contractual obligations of
such Person with respect to such Production Payment); and

     (9) all obligations of such Person under or in respect of currency exchange contracts, oil and
natural gas price hedging arrangements and Interest Rate Protection Obligations.

     Subject to clause (8) of the first sentence of this definition, neither Dollar-Denominated
Production Payments nor Volumetric Production Payments shall be deemed to be Indebtedness. In
addition, Disqualified Capital Stock shall not be deemed to be Indebtedness.

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

     “Insolvency or Liquidation Proceeding” means, with respect to any Person, (a) an insolvency or
bankruptcy case or proceeding, or any receivership, liquidation, reorganization or
similar case or proceeding in connection therewith, relative to such Person or its creditors,
as such, or its assets or (b) any liquidation, dissolution or other winding-up proceeding of such
Person, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy

15

 

or (c) any assignment for the benefit of creditors or
any other marshaling of assets and liabilities of such Person.

     “Interest Payment Date” means the Stated Maturity of an installment of interest on the Notes.

     “Interest Rate Protection Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person whereby, directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a floating or a fixed
rate of interest on a stated notional amount in exchange for periodic payments made by such Person
calculated by applying a fixed or a floating rate of interest on the same notional amount and shall
include, without limitation, interest rate swaps, caps, floors, collars and similar agreements or
arrangements designed to protect against or manage such Person’s and any of its Subsidiaries’
exposure to fluctuations in interest rates.

     “Investment” means, with respect to any Person, any direct or indirect advance, loan,
guarantee of Indebtedness or other extension of credit or capital contribution by such Person to
(by means of any transfer of cash or other Property to others or any payment for Property or
services for the account or use of others), or any purchase or acquisition by such Person of any
Capital Stock, bonds, notes, debentures or other securities (including derivatives) or evidences of
Indebtedness issued by, any other Person. In addition, the Fair Market Value of the net assets of
any Restricted Subsidiary at the time that such Restricted Subsidiary is designated an Unrestricted
Subsidiary shall be deemed to be an “Investment” made by the Company in such Unrestricted
Subsidiary at such time. “Investments” shall exclude (1) extensions of trade credit or other
advances to customers on commercially reasonable terms in accordance with normal trade practices or
otherwise in the ordinary course of business, (2) Interest Rate Protection Obligations entered into
in the ordinary course of business or as required by any Permitted Indebtedness or any Indebtedness
incurred in compliance with Section 9.12 hereof, but only to the extent that the stated aggregate
notional amounts of such Interest Rate Protection Obligations do not exceed 105% of the aggregate
principal amount of such Indebtedness to which such Interest Rate Protection Obligations relate and
(3) endorsements of negotiable instruments and documents in the ordinary course of business. If
the Company or any Restricted Subsidiary sells or otherwise disposes of any Capital Stock of any
direct or indirect Restricted Subsidiary of the Company such that, after giving effect to such sale
or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company will
be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair
Market Value of the Company’s Investments in such Restricted Subsidiary that were not sold or
disposed of.

     “Issue Date” means March 14, 2011.

     “Lien” means any mortgage, charge, pledge, lien (statutory or other), security interest,
hypothecation, assignment for security, claim or similar type of encumbrance (including, without
limitation, any agreement to give or grant any lease, conditional sale or other title retention
agreement having substantially the same economic effect as any of the foregoing) upon or with
respect to any Property of any kind. A Person shall be deemed to own subject to a Lien any
Property which such Person has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, capital lease or other title retention agreement.

16

 

     “Liquid Securities” means securities (1) of an issuer that is not an Affiliate of the Company,
(2) that are publicly traded on the New York Stock Exchange, the American Stock Exchange or the
Nasdaq Stock Market and (3) as to which the Company is not subject to any restrictions on sale or
transfer (including any volume restrictions under Rule 144 under the Securities Act or any other
restrictions imposed by the Securities Act) or as to which a registration statement under the
Securities Act covering the resale thereof is in effect for as long as the securities are held;
provided that securities meeting the requirements of clauses (1), (2) and (3) above shall be
treated as Liquid Securities from the date of receipt thereof until and only until the earlier of
(a) the date on which such securities are sold or exchanged for cash or Cash Equivalents and (b)
150 days following the date of receipt of such securities. If such securities are not sold or
exchanged for cash or Cash Equivalents within 120 days of receipt thereof, for purposes of
determining whether the transaction pursuant to which the Company or a Restricted Subsidiary
received the securities was in compliance with Section 9.17 hereof, such securities shall be deemed
not to have been Liquid Securities at any time.

     “Material Change” means an increase or decrease (except to the extent resulting from changes
in prices) of more than 30% during a fiscal quarter in the estimated discounted future net revenues
from proved oil and gas reserves of the Company and its Restricted Subsidiaries, calculated in
accordance with clause (i)(a) of the definition of Adjusted Consolidated Net Tangible Assets;
provided, however, that the following will be excluded from the calculation of Material Change: (i)
any acquisitions during the quarter of oil and gas reserves with respect to which the Company’s
estimate of the discounted future net revenues from proved oil and gas reserves has been confirmed
by independent petroleum engineers and (ii) any dispositions of Properties during such quarter that
were disposed of in compliance with Section 9.17.

     “Maturity” means, with respect to any Note, the date on which any principal of such Note
becomes due and payable as therein or in the Indenture provided, whether at the Stated Maturity
with respect to such principal or by declaration of acceleration, call for redemption or purchase
or otherwise.

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

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

     “Net Available Cash” from an Asset Sale or Sale/Leaseback Transaction means cash proceeds
received therefrom (including (1) any cash proceeds received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise, but only as and when received,
and (2) the Fair Market Value of Liquid Securities and Cash Equivalents, and excluding (a) any
other consideration received in the form of assumption by the acquiring Person of Indebtedness or
other obligations relating to the Property that is the subject of such Asset Sale or Sale/Leaseback
Transaction and (b) except to the extent subsequently converted to cash, Cash Equivalents or Liquid
Securities within 240 days after such Asset Sale or Sale/Leaseback Transaction, consideration
constituting Exchanged Properties or consideration other than as
identified in the immediately preceding clauses (1) and (2)), in each case net of (i) all
legal, title and recording expenses, commissions and other fees and expenses incurred, and all
federal, state, foreign and local taxes required to be paid or accrued as a liability under GAAP as
a

17

 

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

     “Net Cash Proceeds” with respect to any issuance or sale of Qualified Capital Stock or other
securities, means the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’
fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant
and other fees and expenses actually incurred in connection with such issuance or sale and net of
taxes paid or payable as a result thereof.

     “Net Working Capital” means (1) all current assets of the Company and its Restricted
Subsidiaries, less (2) all current liabilities of the Company and its Restricted Subsidiaries,
except current liabilities included in Indebtedness, in each case as set forth in consolidated
financial statements of the Company prepared in accordance with GAAP.

     “Non-Recourse Indebtedness” means Indebtedness or that portion of Indebtedness of the Company
or any Restricted Subsidiary incurred in connection with the acquisition by the Company or such
Restricted Subsidiary of any Property and as to which (i) the holders of such Indebtedness agree
that they will look solely to the Property so acquired and securing such Indebtedness for payment
on or in respect of such Indebtedness, and neither the Company nor any Subsidiary (other than an
Unrestricted Subsidiary) (a) provides credit support, including any undertaking, agreement or
instrument which would constitute Indebtedness, or (b) is directly or indirectly liable for such
Indebtedness, and (ii) no default with respect to such Indebtedness would permit (after notice or
passage of time or both), according to the terms thereof, any holder of any Indebtedness of the
Company or a Restricted Subsidiary to declare a default on such Indebtedness or cause the payment
thereof to be accelerated or payable prior to its Stated Maturity.

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

18

 

     “Note Register” means the register maintained by or for the Company in which the Company shall
provide for the registration of the Notes and the transfer of the Notes.

     “Notes” has the meaning specified in the recitals to this Supplemental Indenture, and includes
Additional Notes.

     “Obligations” means all obligations for principal, premium, interest, penalties, fees,
indemnifications, payments with respect to any letters of credit, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

     “Officers” means, with respect to any Person, the Chief Executive Officer, the President, any
Vice President, the Chief Financial Officer and the Treasurer of such Person.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary of the Company, and delivered to the Trustee.

     “Oil and Gas Business” means (i) the acquisition, exploration, development, operation and
disposition of interests in oil, gas and other hydrocarbon Properties, (ii) the gathering,
marketing, treating, processing, storage, refining, selling and transporting of any production from
such interests or Properties, (iii) any business relating to or arising from exploration for or
development, production, treatment, processing, storage, refining, transportation or marketing of
oil, gas and other minerals and products produced in association therewith and (iv) any activity
necessary, appropriate or incidental to the activities described in the foregoing clauses (i)
through (iii) of this definition.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company
(or any Subsidiary Guarantor), including an employee of the Company (or any Subsidiary Guarantor),
and who shall be reasonably acceptable to the Trustee.

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

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

     (i) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

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

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     (iii) Notes, except to the extent provided in Sections 11.2 and 11.3 hereof, with respect to
which the Company has effected legal defeasance or covenant defeasance as provided in Article XI
hereof; and

     (iv) Notes which have been replaced pursuant to Section 3.7 hereof or in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to this Indenture, other
than any such Notes in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Notes are held by a protected purchaser in whose hands the Notes are
valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of
Outstanding Notes have given any request, demand, authorization, direction, consent, notice or
waiver hereunder, and for the purpose of making the calculations required by TIA Section 313, Notes
owned by the Company, any Subsidiary Guarantor or any other obligor upon the Notes or any Affiliate
of the Company, any Subsidiary Guarantor or such other obligor shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Trustee shall be protected in making
such calculation or in relying upon any such request, demand, authorization, direction, consent,
notice or waiver, only Notes which the Trustee knows to be so owned shall be so disregarded. Notes
so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company, any Subsidiary Guarantor or any other obligor upon
the Notes or any Affiliate of the Company, any Subsidiary Guarantor or such other obligor.

     “Permitted Investments” means any of the following:

     (1) Investments in Cash Equivalents;

     (2) Investments in property, plant and equipment used in the ordinary course of business;

     (3) Investments in the Company or any of its Restricted Subsidiaries;

     (4) Investments by the Company or any of its Restricted Subsidiaries in another Person, if (a)
as a result of such Investment (i) such other Person becomes a Restricted Subsidiary or (ii) such
other Person is merged or consolidated with or into, or transfers or conveys all or substantially
all of its Properties to, the Company or a Restricted Subsidiary and (b) such other Person is
primarily engaged in the Oil and Gas Business;

     (5) entry into operating agreements, joint ventures, partnership agreements, working
interests, royalty interests, mineral leases, processing agreements, farm-out agreements, contracts
for the sale, transportation or exchange of oil and natural gas, unitization agreements, pooling
arrangements, area of mutual interest agreements or other similar or customary agreements,
transactions, Properties, interests or arrangements, and Investments and expenditures in connection
therewith or pursuant thereto, in each case made or entered into in the ordinary course of the Oil
and Gas Business;

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     (6) entry into any hedging arrangements in the ordinary course of business for the purpose of
protecting the Company’s or any Restricted Subsidiary’s production, purchases and resales against
fluctuations in oil or natural gas prices;

     (7) entry into any currency exchange contract in the ordinary course of business;

     (8) Investments in stock, obligations or securities received in settlement of debts owing to
the Company or any Restricted Subsidiary as a result of bankruptcy or insolvency proceedings or
upon the foreclosure, perfection or enforcement of any Lien in favor of the Company or any
Restricted Subsidiary, in each case as to debt owing to the Company or any Restricted Subsidiary
that arose in the ordinary course of business of the Company or any such Restricted Subsidiary;

     (9) guarantees of Indebtedness permitted under Section 9.12; and

     (10) other Investments, in an aggregate amount not to exceed at any one time outstanding the
greater of (a) $25,000,000 and (b) 5% of Adjusted Consolidated Net Tangible Assets.

     “Permitted Liens” means the following types of Liens:

     (1) Liens securing Indebtedness of the Company or any Restricted Subsidiary that constitutes
Priority Credit Facility Debt permitted pursuant to clause (1) of the definition of “Permitted
Indebtedness”;

     (2) Liens existing as of the Issue Date (excluding Liens securing Indebtedness of the Company
under the Bank Credit Agreement);

     (3) Liens securing the Notes or the Subsidiary Guarantees;

     (4) Liens in favor of the Company or any Restricted Subsidiary;

     (5) Liens for taxes, assessments and governmental charges or claims either (a) not delinquent
or (b) contested in good faith by appropriate proceedings and as to which the Company or its
Restricted Subsidiaries shall have set aside on its books such reserves as may be required pursuant
to GAAP;

     (6) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen, repairmen and other Liens imposed by law incurred in the ordinary course of business
for sums not delinquent or being contested in good faith, if such reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made in respect thereof;

     (7) Liens incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security, or to secure the
payment or performance of tenders, statutory or regulatory obligations, surety and appeal bonds,
bids, government contracts and leases, performance and return of money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money but including lessee or
operator obligations under statutes, governmental regulations or instruments

21

 

related to the ownership, exploration and production of oil, gas and minerals on state,
federal or foreign lands or waters);

     (8) judgment and attachment Liens not giving rise to an Event of Default so long as any
appropriate legal proceedings which may have been duly initiated for the review of such judgment
shall not have been finally terminated or the period within which such proceeding may be initiated
shall not have expired;

     (9) easements, rights-of-way, restrictions and other similar charges or encumbrances not
interfering in any material respect with the ordinary conduct of the business of the Company or any
of its Restricted Subsidiaries;

     (10) any interest or title of a lessor under any capital lease or operating lease;

     (11) purchase money Liens; provided, however, that (a) the related purchase money Indebtedness
shall not be secured by any Property of the Company or any Restricted Subsidiary other than the
Property so acquired (including, without limitation, those acquired indirectly through the
acquisition of stock or other ownership interests) and any proceeds therefrom, (b) the aggregate
principal amount of Indebtedness secured by such Liens it otherwise permitted to be incurred under
the Indenture and does not exceed the cost of the property or assets so acquired and (c) the Liens
securing such Indebtedness shall be created within 90 days of such acquisition;

     (12) Liens securing obligations under hedging agreements that the Company or any Restricted
Subsidiary enters into in the ordinary course of business for the purpose of protecting its
production, purchases and resales against fluctuations in oil or natural gas prices;

     (13) Liens upon specific items of inventory or other goods of any Person securing such
Person’s obligations in respect of bankers’ acceptances issued or created for the account of such
Person to facilitate the purchase, shipment or storage of such inventory or other goods;

     (14) Liens securing reimbursement obligations with respect to commercial letters of credit
which encumber documents and other Property relating to such letters of credit and products and
proceeds thereof;

     (15) Liens encumbering Property under construction arising from progress or partial payments
by a customer of the Company or its Restricted Subsidiaries relating to such Property;

     (16) Liens encumbering deposits made to secure obligations arising from statutory, regulatory,
contractual or warranty requirements of the Company or any of its Restricted Subsidiaries,
including rights of offset and set-off;

     (17) Liens securing Interest Rate Protection Obligations which Interest Rate Protection
Obligations relate to Indebtedness that is secured by Liens otherwise permitted under this
Indenture;

     (18) Liens (other than Liens securing Indebtedness) on, or related to, Properties to secure
all or part of the costs incurred in the ordinary course of business for the exploration, drilling,
development or operation thereof;

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     (19) Liens on pipeline or pipeline facilities which arise by operation of law;

     (20) Liens arising under operating agreements, joint venture agreements, partnership
agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale,
transportation or exchange of oil and natural gas, unitization and pooling declarations and
agreements, area of mutual interest agreements and other agreements which are customary in the Oil
and Gas Business;

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

     (22) Liens constituting survey exceptions, encumbrances, easements or reservations of, or
rights to others for, rights-of-way, zoning or other restrictions as to the use of real properties,
and minor defects of title which, in the case of any of the foregoing, were not incurred or created
to secure the payment of borrowed money or the deferred purchase price of Property or services, and
in the aggregate do not materially adversely affect the value of the Properties of the Company and
the Restricted Subsidiaries, taken as a whole, or materially impair the use of such Properties for
the purposes for which such Properties are held by the Company or any Restricted Subsidiaries;

     (23) Liens securing Non-Recourse Indebtedness; provided, however, that the related
Non-Recourse Indebtedness shall not be secured by any Property of the Company or any Restricted
Subsidiary other than the Property acquired (including, without limitation, those acquired
indirectly through the acquisition of stock or other ownership interests) by the Company or any
Restricted Subsidiary with the proceeds of such Non-Recourse Indebtedness;

     (24) Liens on property existing at the time of acquisition thereof by the Company or any
Subsidiary of the Company and Liens on Property of a Subsidiary existing at the time it became a
Subsidiary, provided that such Liens were in existence prior to the contemplation of the
acquisition and do not extend to any assets other than the acquired Property;

     (25) Liens resulting from the deposit of funds or evidences of Indebtedness in trust for the
purpose of defeasing Indebtedness of the Company or any of its Restricted Subsidiaries so long as
such deposit and such defeasance are permitted under Section 9.10; and

     (26) additional Liens incurred in the ordinary course of business of the Company or any
Restricted Subsidiary of the Company with respect to obligations that do not exceed at any one time
outstanding the greater of (a) $75,000,000 or (b) 5% of Adjusted Consolidated Net Tangible Assets.

Notwithstanding anything in clauses (1) through (26) of this definition, the term “Permitted Liens”
shall not include any Liens resulting from the creation, incurrence, issuance, assumption or
guarantee of any Production Payments other than Production Payments that are created, incurred,
issued, assumed or guaranteed in connection with the financing of, and within 30 days after, the
acquisition of the Properties that are subject thereto.

     “Permitted Refinancing Indebtedness” means Indebtedness of the Company or a Restricted
Subsidiary, the net proceeds of which are used to renew, extend, refinance, refund or

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repurchase (including, without limitation, pursuant to a Change of Control Offer or Prepayment
Offer) outstanding Indebtedness of the Company or any Restricted Subsidiary, provided that (1) if
the Indebtedness (including the Notes) being renewed, extended, refinanced, refunded or repurchased
is pari passu with or subordinated in right of payment to either the Notes or the Subsidiary
Guarantees, then such Indebtedness is pari passu with or subordinated in right of payment to the
Notes or the Subsidiary Guarantees, as the case may be, at least to the same extent as the
Indebtedness being renewed, extended, refinanced, refunded or repurchased, (2) such Indebtedness
has a Stated Maturity for its final scheduled principal payment that is no earlier than the Stated
Maturity for the final scheduled principal payment of the Indebtedness being renewed, extended,
refinanced, refunded or repurchased and (3) such Indebtedness has an Average Life at the time such
Indebtedness is incurred that is equal to or greater than the Average Life of the Indebtedness
being renewed, extended, refinanced, refunded or repurchased; provided, further, that such
Indebtedness is in an aggregate principal amount (or, if such Indebtedness is issued at a price
less than the principal amount thereof, the aggregate amount of gross proceeds therefrom is) not in
excess of the aggregate principal amount then outstanding of the Indebtedness being renewed,
extended, refinanced, refunded or repurchased (or if the Indebtedness being renewed, extended,
refinanced, refunded or repurchased was issued at a price less than the principal amount thereof,
then not in excess of the amount of liability in respect thereof determined in accordance with
GAAP) plus the amount of any premium required to be paid in connection with such renewal,
extension, refinancing, refunding or repurchase pursuant to the terms of the Indebtedness being
renewed, extended, refinanced, refunded or repurchased or the amount of any premium reasonably
determined by the Company as necessary to accomplish such renewal, extension, refinancing,
refunding or repurchase, plus the amount of reasonable fees and expenses incurred by the Company or
such Restricted Subsidiary in connection therewith.

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

     “Preferred Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of such Person’s preferred or preference
stock, whether now outstanding or issued after the Issue Date, including, without limitation, all
classes and series of preferred or preference stock of such Person.

     “Priority Credit Facility Debt” means, collectively, (1) Indebtedness of the Company or any
Restricted Subsidiary (including, without limitation, Indebtedness under the Bank Credit Agreement)
secured by Liens not otherwise permitted under any of clauses (2) through (25), inclusive, of the
definition of “Permitted Liens,” and (2) other Indebtedness or Disqualified Capital Stock of any
Restricted Subsidiary that is not a Subsidiary Guarantor. For purposes of clause (1) of the
definition of “Permitted Indebtedness,” Priority Credit Facility Debt shall be calculated, at any
time of determination, (a) in the case of Indebtedness under the Bank Credit Agreement or
Indebtedness under any other instrument or agreement, with reference to the aggregate principal
amount outstanding thereunder at such time, excluding all interest, fees and other Obligations
under such facility, instrument or agreement, and (b) in the case of Disqualified Capital Stock, in
the manner specified in the definition of “Disqualified Capital Stock.”

24

 

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

     “Property” means, with respect to any Person, any interest of such Person in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible, including, without
limitation, Capital Stock in any other Person.

     “Public Equity Offering” means an offer and sale of Common Stock (other than Disqualified
Stock) of the Company for cash pursuant to a registration statement that has been declared
effective by the Commission pursuant to the Securities Act (other than a registration statement on
Form S-8 or otherwise relating to equity securities issuable under any employee benefit plan of the
Company).

     “Qualified Capital Stock” of any Person means any and all Capital Stock of such Person other
than Disqualified Capital Stock.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date means the March 15
or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date.

     “Responsible Officer,” when used with respect to the Trustee, means any officer in the
Corporate Trust Office having direct responsibility for the administration of this Indenture, and
also means, with respect to a particular corporate trust matter, any other officer of the Trustee
to whom such matter is referred because of his knowledge of and familiarity with the particular
subject.

     “Restricted Investment” means (without duplication) (i) the designation of a Subsidiary as an
Unrestricted Subsidiary in the manner described in the definition of “Unrestricted Subsidiary” and
(ii) any Investment other than a Permitted Investment.

     “Restricted Subsidiary” means any Subsidiary of the Company, whether existing on or after the
Issue Date, unless such Subsidiary of the Company is an Unrestricted Subsidiary or is designated as
an Unrestricted Subsidiary pursuant to the terms of the Indenture.

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

     “Sale/Leaseback Transaction” means, with respect to the Company or any of its Restricted
Subsidiaries, any arrangement with any Person providing for the leasing by the Company or any of
its Restricted Subsidiaries of any principal property, whereby such property has been or is to be
sold or transferred by the Company or any of its Restricted Subsidiaries to such Person.

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

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor act thereto.

     “Senior Indebtedness” means any Indebtedness of the Company or a Restricted Subsidiary
(whether outstanding on the date hereof or hereinafter incurred), unless such Indebtedness is
Subordinated Indebtedness.

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

     “Subordinated Indebtedness” means Indebtedness of the Company or a Subsidiary Guarantor which
is expressly subordinated in right of payment to the Notes or the Subsidiary Guarantees, as the
case may be.

     “Subsidiary” means, with respect to any Person, (1) a corporation a majority of whose Voting
Stock is at the time owned, directly or indirectly, by such Person, by one or more Subsidiaries of
such Person or by such Person and one or more Subsidiaries of such Person, or (2) any other Person
(other than a corporation), including, without limitation, a joint venture, in which such Person,
one or more Subsidiaries of such Person or such Person and one or more Subsidiaries of such Person
have, directly or indirectly, at the date of determination thereof, at least majority ownership
interest entitled to vote in the election of directors, managers or trustees thereof (or other
Person performing similar functions).

     “Subsidiary Guarantee” has the meaning specified in Section 12.1 hereof.

     “Subsidiary Guarantor” means (1) Comstock Oil & Gas, LP, (2) Comstock Oil & Gas Louisiana,
LLC, (3) Comstock Oil & Gas GP, LLC, (4) Comstock Oil & Gas Investments, LLC, (5) Comstock Oil &
Gas Holdings, Inc., (6) each of the Company’s other Restricted Subsidiaries, if any, executing a
supplemental indenture in compliance with the provisions of Section 9.13(a) hereof and (7) any
Person that becomes a successor guarantor of the Notes in compliance with the provisions of
Sections 9.11 and 9.13 hereof.

     “2009 Notes Issue Date” means October 9, 2009.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended and in force
at the date at which this Supplemental Indenture was executed, except as provided in Section 8.5
hereof.

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

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     “Unrestricted Subsidiary” means (1) any Subsidiary of the Company that at the time of
determination will be designated an Unrestricted Subsidiary by the Board of Directors of the
Company as provided below and (2) any Subsidiary of an Unrestricted Subsidiary. The Board of
Directors of the Company may designate any Subsidiary of the Company as an Unrestricted Subsidiary
so long as (a) neither the Company nor any Restricted Subsidiary is directly or indirectly liable
pursuant to the terms of any Indebtedness of such Subsidiary; (b) no default with respect to any
Indebtedness of such Subsidiary would permit (upon notice, lapse of time or otherwise) any holder
of any other Indebtedness of the Company or any Restricted Subsidiary to declare a default on such
other Indebtedness or cause the payment thereof to be accelerated or payable prior to its Stated
Maturity; (c) such designation as an Unrestricted Subsidiary would be permitted under Section 9.10
hereof; and (d) such designation shall not result in the creation or imposition of any Lien on any
of the Properties of the Company or any Restricted Subsidiary (other than any Permitted Lien or any
Lien the creation or imposition of which shall have been in compliance with Section 9.15 hereof);
provided, however, that with respect to clause (a), the Company or a Restricted Subsidiary may be
liable for Indebtedness of an Unrestricted Subsidiary if (i) such liability constituted a Permitted
Investment or a Restricted Payment permitted by Section 9.10 hereof, in each case at the time of
incurrence, or (ii) the liability would be a Permitted Investment at the time of designation of
such Subsidiary as an Unrestricted Subsidiary. Any such designation by the Board of Directors of
the Company shall be evidenced to the Trustee by filing a Board Resolution with the Trustee giving
effect to such designation. If at any time any Unrestricted Subsidiary would fail to meet the
foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of the Indenture and any Indebtedness of such Subsidiary shall
be deemed to be Incurred as of such date. The Board of Directors of the Company may designate any
Unrestricted Subsidiary as a Restricted Subsidiary if, immediately after giving effect to such
designation, on a pro forma basis, (i) no Default or Event of Default shall have occurred and be
continuing, (ii) the Company could incur $1.00 of additional Indebtedness under Section 9.12(a)
hereof and (iii) if any of the Properties of the Company or any of its Restricted Subsidiaries
would upon such designation become subject to any Lien (other than a Permitted Lien), the creation
or imposition of such Lien shall have been in compliance with Section 9.15 hereof.

     “Volumetric Production Payments” means production payment obligations of the Company or a
Restricted Subsidiary recorded as deferred revenue in accordance with GAAP, together with all
undertakings and obligations in connection therewith.

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

     “Voting Stock” means any class or classes of Capital Stock pursuant to which the holders
thereof have the general voting power under ordinary circumstances to elect at least a majority of
the board of directors, managers or trustees of any Person (irrespective of whether or not, at the
time, stock of any other class or classes shall have, or might have, voting power by reason of the
happening of any contingency).

     “Wholly Owned Restricted Subsidiary” means any Restricted Subsidiary of the Company to the
extent (1) all of the Capital Stock or other ownership interests in such Restricted Subsidiary,
other than directors’ qualifying shares mandated by applicable law, is owned directly

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x

or indirectly by the Company or (2) such Restricted Subsidiary does substantially all of its
business in one or more foreign jurisdictions and is required by the applicable laws and
regulations of any such foreign jurisdiction to be partially owned by the government of such
foreign jurisdiction or individual or corporate citizens of such foreign jurisdiction in order for
such Restricted Subsidiary to transact business in such foreign jurisdiction, provided that the
Company, directly or indirectly, owns the remaining Capital Stock or ownership interest in such
Restricted Subsidiary and, by contract or otherwise, controls the management and business of such
Restricted Subsidiary and derives the economic benefits of ownership of such Restricted Subsidiary
to substantially the same extent as if such Restricted Subsidiary were a wholly owned subsidiary.

     Section 2.2 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in	 
	 	 	 	 	 
	“Affiliate Transaction”
	 	 	9.18	(a)
	“Agent Members”
	 	 	3.2	(b)
	“Change of Control Notice”
	 	 	9.16	(c)
	“Change of Control Offer”
	 	 	9.16	(a)
	“Change of Control Purchase Date”
	 	 	9.16	(c)
	“Change of Control Purchase Price”
	 	 	9.16	(a)
	“Excess Proceeds”
	 	 	9.17	(b)
	“Funding Guarantor”
	 	 	12.5
	“Global Note”
	 	 	3.2	(a)
	“Investment Grade Ratings”
	 	 	9.21
	“Offer Amount”
	 	 	9.17	(c)
	“Offer Period”
	 	 	9.17	(c)
	“Paying Agent”
	 	 	3.4
	“Payment Restriction”
	 	 	9.19
	“Permitted Consideration”
	 	 	9.17	(a)
	“Permitted Indebtedness”
	 	 	9.12	(b)
	“Prepayment Offer”
	 	 	9.17	(b)
	“Prepayment Offer Notice
	 	 	9.17	(c)
	“Purchase Date”
	 	 	9.17	(c)
	“Register”
	 	 	3.4
	“Registrar”
	 	 	3.4
	“Restricted Payment”
	 	 	9.10	(a)
	“Reversion Date”
	 	 	9.21
	“Surviving Entity”
	 	 	7.1	(1)
	“Suspended Covenants”
	 	 	9.21
	“Suspension Date”
	 	 	9.21
	“Suspension Period
	 	 	9.21

     Section 2.3 Incorporation by Reference of Trust Indenture Act. Whenever the Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of the
Indenture.

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

     “indenture securities” means the Notes,

     “indenture security holder” means a Holder,

     “indenture to be qualified” means this Indenture,

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

     “obligor” on the Notes means the Company or any Subsidiary Guarantor and any successor
obligor upon the Notes.

     All other TIA terms used in this Supplemental Indenture that are defined by the TIA, defined
by TIA reference to another statute or defined by Commission rule and not otherwise defined herein
have the meanings assigned to them therein.

     Section 2.4 Rules of Construction. For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

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

     (b) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP and all accounting calculations will be determined in accordance with GAAP;

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

     (d) the masculine gender includes the feminine and the neuter;

     (e) a “day” means a calendar day;

     (f) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

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

     (h) references to agreements and other instruments include subsequent amendments and waivers
but only to the extent not prohibited by this Supplemental Indenture.

ARTICLE III.

THE NOTES

     Section 3.1 Title and Terms.

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     The Notes shall be titled the “73/4% Senior Notes due 2019.” Provisions
relating to the Notes are set forth in Appendix A, which is hereby incorporated in and expressly
made a part of this Supplemental Indenture. The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Appendix A which is hereby incorporated in and
expressly made a part of this Supplemental Indenture. The Notes may have notations, legends or
endorsements required by law, stock exchange rule, agreements to which the Company is subject, if
any, or usage, provided that any such notation, legend or endorsement is in a form reasonably
acceptable to the Company. Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Appendix A are part of the terms of this Supplemental Indenture.

     Subject to compliance with Section 9.12, the Company may issue an unlimited amount of
Additional Notes from time to time after the Issue Date which shall have identical terms as the
Notes issued on the Issue Date, other than with respect to the issue price and the date of
issuance. The Notes issued on the Issue Date and any Additional Notes shall be part of the same
series of Securities for all purposes of the Original Indenture.

     With respect to any Additional Notes, there shall be established in or pursuant to a
resolution of the Board of Directors and, subject to Section 3.3, set forth or determined in the
manner provided in an Officers’ Certificate, or established in one or more indentures supplemental
to the Indenture, prior to the issuance of such Additional Notes:

     (1) the aggregate principal amount of such Additional Notes to be authenticated and delivered;

     (2) the issue price and issuance date of such Additional Notes, including the date from which
interest on such Additional Notes shall accrue; and

     (3) if applicable, that such Additional Notes shall be issuable in whole or in part in the
form of one or more Global Notes and, in such case, the respective depositories for such Global
Notes, the form of any legend or legends which shall be borne by any such Global Note in addition
to or in lieu of that set forth in Appendix A and any circumstances in addition to or in lieu of
those set forth in Section 3.4 in which any such Global Note may be exchanged in whole or in part
for Notes registered, and any transfer of such Global Note in whole or in part may be registered,
in the name or names of Persons other than the depository for such Global Note or a nominee
thereof.

     If any of the terms of any Additional Notes are established by action taken pursuant to a
resolution of the Board of Directors, a copy of an appropriate record of such action shall be
certified by the Secretary or any Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Officers’ Certificate or the indenture supplemental hereto
setting forth the terms of such issuance.

     The Trustee shall have the right to decline to authenticate and deliver any Additional Notes
under this Section if the Trustee determines that such action may not lawfully be taken by the
Company or if the Trustee in good faith by its board of directors or board of trustee, executive
committee, or a trust committee of directors or trustees or Trust Officers shall determine that
such action would expose the Trustee to personal liability to existing Notes Holders.

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     Section 3.2 Form and Dating.

     (a) Notes shall be issued initially in the form of one or more permanent global Notes in
definitive, fully registered form without interest coupons with the global securities legend set
forth in Appendix A hereto (each, a “Global Note”), which shall be deposited on behalf of the
purchasers of the Notes represented thereby with the Note Custodian, and registered in the name of
the Depository or a nominee of the Depository, duly executed by the Company and authenticated by
the Trustee as provided in the Indenture. The aggregate principal amount of the Global Notes may
from time to time be increased or decreased by adjustments made on the records of the Trustee and
the Depository or its nominee as hereinafter provided.

     (b) Book-Entry Provisions. This Section 3.2(b) shall apply only to a Global Note deposited
with or on behalf of the Depository.

     The Company shall execute and the Trustee shall, in accordance with this Section 3.2(b) and
pursuant to an order of the Company, authenticate and deliver initially one or more Global Notes
that (a) shall be registered in the name of the Depository for such Global Note or Global Notes or
the nominee of such Depository and (b) shall be delivered by the Trustee to such Depository or
pursuant to such Depository’s instructions or held by the Trustee as Note Custodian.

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

     (c) Except as provided in Sections 3.13 or 3.14, owners of beneficial interests in Global
Notes will not be entitled to receive physical delivery of certificated Notes.

     Section 3.3 Authentication.

     The Trustee shall authenticate and deliver: (1) Notes for original issue in an aggregate
principal amount of $300,000,000 and (2) Additional Notes in an unlimited amount (subject only to
the Company’s compliance with Section 9.12), if and when issued, upon a written order of the
Company signed by two Officers of the Company. Such order shall specify the amount of the Notes to
be authenticated and the date on which the original issue of such Notes is to be authenticated.
Except as set forth in Section 9.12, the aggregate principal amount of Notes that may be
outstanding at any time is unlimited.

     Two Officers of the Company shall sign the Notes for the Company by manual or facsimile
signature. The Company’s seal may be impressed, affixed, imprinted or reproduced on the Notes and
may be in facsimile form.

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

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

     The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Notes. Unless limited by the terms of such appointment, an authenticating agent
may authenticate Notes whenever the Trustee may do so. Each reference in this Supplemental
Indenture to authentication by the Trustee includes authentication by such agent. An authenticating
agent has the same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

     Section 3.4 Registrar and Paying Agent.

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

     The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. The
agreement shall implement the provisions of this Indenture that relate to such agent. The Company
shall notify the Trustee of the name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 6.6. The Company may act as Paying Agent,
Registrar, co-registrar or transfer agent.

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

     Section 3.5 Paying Agent To Hold Money in Trust.

     Not later than 10:00 a.m., New York City time, on each due date of the principal and interest
on the Notes, the Company shall deposit with the Paying Agent a sum sufficient to pay such
principal and interest when so becoming due. The Company shall require each Paying Agent (other
than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of principal of or
interest on the Notes and shall notify the Trustee of any default by the Company in making any such
payment. If the Company acts as Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee and to account for any funds disbursed by the Paying Agent.
Upon complying with this Section, the Paying Agent shall have no further liability for the money
delivered to the Trustee.

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     Section 3.6 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. If the Trustee is not the Registrar,
the Company shall furnish to the Trustee, in writing at least five Business Days before each
Interest Payment Date and at such other times as the Trustee may request in writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and addresses of
Holders.

     Section 3.7 Replacement Securities.

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

     Every replacement Note is an additional obligation of the Company.

     Section 3.8 Outstanding Securities.

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

     If a Security is replaced pursuant to Section 3.7, it ceases to be Outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Note 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 maturity date money sufficient to pay all principal and interest payable on that
date with respect to the Notes (or portions thereof) to be redeemed or maturing, as the case may
be, and the Paying Agent is not prohibited from paying such money to the Holders on that date
pursuant to the terms of this Indenture, then on and after that date such Notes (or portions
thereof) cease to be outstanding and interest on them ceases to accrue.

     Section 3.9 Temporary Notes.

     Until definitive Notes are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive
Notes but may have variations that the Company considers appropriate for temporary Notes. Without
unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Notes
and deliver them in exchange for temporary Notes.

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     Section 3.10 Cancellation.

     The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
the Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall, in accordance with its then
customary procedures, cancel and destroy (subject to the record retention requirements of the
Exchange Act) all Notes surrendered for registration of transfer, exchange, payment or cancellation
and shall, upon written request, deliver a certificate of such destruction to the Company. The
Company may not issue new Notes to replace Notes it has redeemed, paid or delivered to the Trustee
for cancellation.

     Section 3.11 Defaulted Interest.

     If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 9.1 hereof. The Company shall fix or cause to be fixed
any such special record date and payment date to the reasonable satisfaction of the Trustee and
shall promptly mail to each Holder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

     Section 3.12 CUSIP Numbers.

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

     Section 3.13 Transfer and Exchange.

     (a) Transfer and Exchange of Certificated Notes. When certificated Notes are presented to the
Registrar or a co-registrar with a request:

     (1) to register the transfer of such certificated Notes; or

     (2) to exchange such certificated Notes for an equal principal amount of certificated
Notes of other authorized denominations,

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

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

     (2) are being transferred or exchanged pursuant to an effective registration statement
under the Securities Act, pursuant to Section 3.13(b) or pursuant to clause (a) or (b)
below, and are accompanied by the following additional information and documents, as
applicable:

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

     (b) if such certificated Notes are being transferred to the Company, a
certification to that effect.

     (b) Restrictions on Transfer of a Certificated Note for a Beneficial Interest in a Global
Note. A certificated Note may not be exchanged for a beneficial interest in a Global Note except
upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a
certificated Note, duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar or co-registrar, together with written
instructions directing the Trustee to make, or to direct the Note Custodian to make, an adjustment
on its books and records with respect to such Global Note to reflect an increase in the aggregate
principal amount of the Notes represented by the Global Note, such instructions to contain
information regarding the Depository account to be credited with such increase, then the Trustee
shall cancel such certificated Note and cause, or direct the Note Custodian to cause, in accordance
with the standing instructions and procedures existing between the Depository and the Note
Custodian, the aggregate principal amount of Notes represented by the Global Note to be increased
by the aggregate principal amount of the certificated Note to be exchanged and shall credit or
cause to be credited to the account of the Person specified in such instructions a beneficial
interest in the Global Note equal to the principal amount of the certificated Note so canceled. If
no Global Notes are then outstanding and the Global Note has not been previously exchanged pursuant
to Section 3.14, the Company shall issue and the Trustee shall authenticate, upon written order of
the Company in the form of an Officers’ Certificate, a new Global Note in the appropriate principal
amount.

     (c) Transfer and Exchange of Global Notes.

     (1) The transfer and exchange of Global Notes or beneficial interests therein shall be
effected through the Depository, in accordance with the Indenture (including applicable
restrictions on transfer set forth herein, if any) and the procedures of the Depository
therefor. A transferor of a beneficial interest in a Global Note shall deliver a written
order given in accordance with the Depository’s procedures containing information regarding
the participant account of the Depository to be credited with a beneficial interest in the
Global Note and such account shall be credited in accordance with such instructions with a
beneficial interest in the Global Note and the account of the Person making the transfer
shall be debited by an amount equal to the beneficial interest in the Global Note being
transferred.

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

     (3) Notwithstanding any other provisions of this Indenture (other than the provisions
set forth in Section 3.14 of this Indenture), a Global Note may not be transferred as a
whole except by the Depository to a nominee of the Depository or by a nominee of the
Depository to the Depository or another nominee of the Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such successor Depository.

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

     (e) Obligations with Respect to Transfers and Exchanges of Notes.

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

     (2) No service charge shall be made for any registration of transfer or exchange, but
the Company and the Trustee may require payment of a sum sufficient to cover any transfer
tax, assessments, or similar governmental charge payable in connection therewith (other than
any such transfer taxes, assessments or similar governmental charge payable upon exchange or
transfer pursuant to Section 8.6, 9.16, 9.17 and 10.6 of the Indenture).

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

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

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Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall be
affected by notice to the contrary.

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

     (f) No Obligation of the Trustee.

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

     (2) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under the Indenture or under applicable
law with respect to any transfer of any interest in any Note (including any transfers
between or among Depository participants, members or beneficial owners in any Global Note)
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 the
Indenture, and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

     Section 3.14 Certificated Notes.

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

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

     (c) Any Global Note that is transferable to the beneficial owners thereof pursuant to this
Section 3.14 shall be surrendered by the Depository to the Trustee, to be so transferred, in whole
or from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon
such transfer of each portion of such Global Note, an equal aggregate principal amount of
certificated Notes of authorized denominations. Any portion of a Global Note transferred pursuant
to this Section shall be executed, authenticated and delivered only in denominations of $2,000 and
any integral multiple of $1,000 in excess thereof and registered in such names as the Depository
shall direct.

     (d) Subject to the provisions of Section 3.14(c), the registered Holder of a Global Note 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 the
Indenture or the Notes.

     (e) In the event of the occurrence of any of the events specified in Section 3.14(a), the
Company will promptly make available to the Trustee a reasonable supply of certificated Notes in
definitive, fully registered form without interest coupons.

ARTICLE IV.

SATISFACTION AND DISCHARGE

     Section 4.1 Satisfaction and Discharge of Indenture.

     The Indenture shall upon Company Request cease to be of further effect (except as to surviving
rights of registration of transfer or exchange of Notes, as expressly provided for in the
Indenture) as to all Outstanding Notes, and the Trustee, at the expense of the Company, shall, upon
payment of all amounts due the Trustee under Section 6.6 hereof, execute proper instruments
acknowledging satisfaction and discharge of this Indenture when

     (a) either

     (1) all Notes theretofore authenticated and delivered (other than (i) Notes which have
been replaced as provided in Section 3.7 hereof and (ii) Notes for whose payment money or
United States governmental obligations of the type described in clause (1) of the definition
of Cash Equivalents have theretofore been deposited in trust with the Trustee or any Paying
Agent or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 9.3 hereof) have been delivered to the
Trustee for cancellation, or

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

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     (i) have become due and payable, or

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

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

and the Company, in the case of clause (2)(i), (2)(ii) or (2)(iii) above, has irrevocably
deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay
and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee
for cancellation, for principal (and premium, if any) and interest to the date of such
deposit (in the case of Notes which have become due and payable) or to the Stated Maturity
or Redemption Date, as the case may be, together with instructions from the Company
irrevocably directing the Trustee to apply such funds to the payment thereof at maturity or
redemption, as the case may be;

     (b) the Company has paid or caused to be paid all other sums then due and payable hereunder by
the Company; and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, which, taken together, state that all conditions precedent herein relating to the
satisfaction and discharge of this Indenture with respect to the Notes have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.6 hereof and, if money shall have been deposited with the
Trustee pursuant to this Section, the obligations of the Trustee under Section 4.2 hereof and the
last paragraph of Section 9.3 hereof shall survive.

     Section 4.2 Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 9.3 hereof, all money deposited
with the Trustee pursuant to Section 4.1 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for
whose payment such money has been deposited with the Trustee.

ARTICLE V.

DEFAULTS AND REMEDIES

     Section 5.1 Events of Default.

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

     (a) default in the payment of the principal of or premium, if any, on any of the Notes when
the same becomes due and payable, whether such payment is due at Stated Maturity, upon redemption,
upon repurchase pursuant to a Change of Control Offer or a Prepayment Offer, upon acceleration or
otherwise; or

     (b) default in the payment of any installment of interest on any of the Notes, when it becomes
due and payable, and the continuance of such default for a period of 30 days; or

     (c) default in the performance or breach of the provisions of Article VII hereof, the failure
to make or consummate a Change of Control Offer in accordance with the provisions of Section 9.16
or the failure to make or consummate a Prepayment Offer in accordance with the provisions of
Section 9.17; or

     (d) the Company or any Subsidiary Guarantor shall fail to comply with the provisions of
Section 9.9 for a period of 90 days after written notice of such failure stating that it is a
“notice of default” hereunder shall have been given (x) to the Company by the Trustee or (y) to the
Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes
then Outstanding); or

     (e) the Company or any Subsidiary Guarantor shall fail to perform or observe any other term,
covenant or agreement contained in the Notes, any Subsidiary Guarantee or the Indenture (other than
a default specified in subparagraph (a), (b), (c) or (d) above) for a period of 60 days after
written notice of such failure stating that it is a “notice of default” hereunder shall have been
given (x) to the Company by the Trustee or (y) to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Notes then Outstanding; or

     (f) the occurrence and continuation beyond any applicable grace period of any default in the
payment of the principal of (or premium, if any, on) or interest on any Indebtedness of the Company
(other than the Notes) or any Subsidiary Guarantor or any other Restricted Subsidiary for money
borrowed when due, or any other default resulting in acceleration of any Indebtedness of the
Company or any Subsidiary Guarantor or any other Restricted Subsidiary for money borrowed, provided
that the aggregate principal amount of such Indebtedness, together with the aggregate principal
amount of any other such Indebtedness under which there has been a payment default or the maturity
of which has been so accelerated, shall exceed $50,000,000; or

     (g) any Subsidiary Guarantee shall for any reason cease to be, or be asserted by the Company
or any Subsidiary Guarantor, as applicable, not to be, in full force and effect (except pursuant to
the release of any such Subsidiary Guarantee in accordance with this Indenture); or

     (h) failure by the Company or any Subsidiary Guarantor or any other Restricted Subsidiary to
pay final judgments or orders rendered against the Company or any Subsidiary Guarantor or any other
Restricted Subsidiary aggregating in excess of $50,000,000 (net of any

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amounts covered by insurance with a reputable and creditworthy insurance company that has not
disclaimed liability) and either (a) commencement by any creditor of an enforcement proceeding upon
such judgment (other than a judgment that is stayed by reason of pending appeal or otherwise) or
(b) the occurrence of a 60-day period during which a stay of such judgment or order, by reason of
pending appeal or otherwise, was not in effect; or

     (i) the entry of a decree or order by a court having jurisdiction in the premises (a) for
relief in respect of the Company or any Subsidiary Guarantor or any other Restricted Subsidiary in
an involuntary case or proceeding under the Federal Bankruptcy Code or any other applicable federal
or state bankruptcy, insolvency, reorganization or other similar law or (b) adjudging the Company
or any Subsidiary Guarantor or any other Restricted Subsidiary bankrupt or insolvent, or approving
a petition seeking reorganization, arrangement, adjustment or composition of the Company or any
Subsidiary Guarantor or any other Restricted Subsidiary under the Federal Bankruptcy Code or any
applicable federal or state law, or appointing under any such law a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any
Subsidiary Guarantor or any other Restricted Subsidiary or of a substantial part of its
consolidated assets, or ordering the winding up or liquidation of its affairs, and the continuance
of any such decree or order for relief or any such other decree or order unstayed and in effect for
a period of 60 consecutive days; or

     (j) the commencement by the Company or any Subsidiary Guarantor or any other Restricted
Subsidiary of a voluntary case or proceeding under the Federal Bankruptcy Code or any other
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or any
other case or proceeding to be adjudicated bankrupt or insolvent, or the consent by the Company or
any Subsidiary Guarantor or any other Restricted Subsidiary to the entry of a decree or order for
relief in respect thereof in an involuntary case or proceeding under the Federal Bankruptcy Code or
any other applicable federal or state bankruptcy, insolvency, reorganization or other similar law
or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing
by the Company or any Subsidiary Guarantor or any other Restricted Subsidiary of a petition or
consent seeking reorganization or relief under any applicable federal or state law, or the consent
by it under any such law to the filing of any such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or other
similar official) of the Company or any Subsidiary Guarantor or any other Restricted Subsidiary or
of any substantial part of its consolidated assets, or the making by it of an assignment for the
benefit of creditors under any such law, or the admission by it in writing of its inability to pay
its debts generally as they become due or taking of corporate action by the Company or any
Subsidiary Guarantor or any other Restricted Subsidiary in furtherance of any such action.

     Section 5.2 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 5.1(i) or (j)
hereof) occurs and is continuing, the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Notes then Outstanding, by written notice to the Company (and to the
Trustee if such notice is given by the Holders), may, and the Trustee upon the request of the
Holders of not less than 25% in aggregate principal amount of the Outstanding Notes shall, by
written notice to the Company, declare all unpaid principal of, premium, if any, and accrued and
unpaid interest on all the Notes to be due and payable immediately, upon which declaration all

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amounts payable in respect of the Notes shall be immediately due and payable. If an Event of
Default specified in Section 5.1(i) or (j) hereof occurs and is continuing, the amounts described
above shall become and be immediately due and payable without any declaration, notice or other act
on the part of the Trustee or any Holder.

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

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

     (1) all overdue interest on all Outstanding Notes,

     (2) all unpaid principal of (and premium, if any, on) any Outstanding Notes which have
become due otherwise than by such declaration of acceleration, including any Notes required
to have been purchased on a Change of Control Date or a Purchase Date pursuant to a Change
of Control Offer or a Prepayment Offer, as applicable, and interest on such unpaid principal
at the rate borne by the Notes,

     (3) to the extent that payment of such interest is lawful, interest on overdue interest
and overdue principal at the rate borne by the Notes (without duplication of any amount paid
or deposited pursuant to clauses (1) and (2) above), and

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

     (b) the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction as certified to the Trustee by the Company; and

     (c) all Events of Default, other than the non-payment of amounts of principal of (or premium,
if any, on) or interest on Notes which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 5.13 hereof.

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

     Notwithstanding the foregoing, if an Event of Default specified in Section 5.1(e) hereof shall
have occurred and be continuing, such Event of Default and any consequential acceleration shall be
automatically rescinded if the Indebtedness that is the subject of such Event of Default has been
repaid, or if the default relating to such Indebtedness is waived or cured and if such Indebtedness
has been accelerated, then the holders thereof have rescinded their declaration of acceleration in
respect of such Indebtedness (provided, in each case, that such repayment, waiver, cure or
rescission is effected within a period of 10 days from the continuation of such default beyond the
applicable grace period or the occurrence of such acceleration), and written

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notice of such repayment, or cure or waiver and rescission, as the case may be, shall have
been given to the Trustee by the Company and countersigned by the holders of such Indebtedness or a
trustee, fiduciary or agent for such holders or other evidence satisfactory to the Trustee of such
events is provided to the Trustee, within 30 days after any such acceleration in respect of the
Notes, and so long as such rescission of any such acceleration of the Notes does not conflict with
any judgment or decree as certified to the Trustee by the Company.

     Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

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

     (b) default is made in the payment of the principal of (or premium, if any, on) any Note at
the Maturity thereof or with respect to any Note required to have been purchased by the Company on
the Change of Control Purchase Date or the Purchase Date pursuant to a Change of Control Offer or
Prepayment Offer, as applicable, then the Company will, upon demand of the Trustee, pay to the
Trustee for the benefit of the Holders of such Notes, the whole amount then due and payable on such
Notes for principal (and premium, if any) and interest, and interest on any overdue principal (and
premium, if any) and, to the extent that payment of such interest shall be legally enforceable,
upon any overdue installment of interest, at the rate borne by the Notes, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name as trustee of an express trust, may institute a judicial proceeding for the collection of the
sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce
the same against the Company or any other obligor upon the Notes and collect the money adjudged or
decreed to be payable in the manner provided by law out of the Property of the Company or any other
obligor upon the Notes, wherever situated.

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

     Section 5.4 Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company, any Subsidiary Guarantor or any other obligor upon the Notes, their creditors or the
Property of the Company, of any Subsidiary Guarantor or of any such other obligor, the Trustee
(irrespective of whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made
any demand on the Company, the Subsidiary Guarantors or such other obligor for the payment of

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overdue principal, premium, if any, or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

     (a) to file and prove a claim for the whole amount of principal (and premium, if any) and
interest owing and unpaid in respect of the Notes and to file such other papers or documents and
take any other actions including participation as a full member of any creditor or other committee
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 of the Holders allowed in such judicial proceeding, and

     (b) to collect and receive any money or other Property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.6 hereof.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the Subsidiary Guarantees or the rights of any Holder thereof,
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 5.5 Trustee May Enforce Claims Without Possession of Notes.

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

     Section 5.6 Application of Money Collected.

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

     FIRST: to the payment of all amounts due the Trustee under Section 6.6 hereof;

     SECOND: to the payment of the amounts then due and unpaid for principal of (and premium, if
any, on) and interest on the Notes in respect of which or for the benefit of which

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such money has been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Notes for principal (and premium, if any) and interest,
respectively; and

     THIRD: the balance, if any, to the Company, or to whomsoever may be lawfully entitled to
receive the same, or as a court of competent jurisdiction may direct.

     Section 5.7 Limitation on Suits.

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

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

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

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

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

     (e) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority or more in aggregate principal amount of the
Outstanding Notes;

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

     Section 5.8 Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in the Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment, as provided herein (including, if
applicable, Article XI hereof) and in such Note of the principal of (and premium if any, on) and
(subject to Section 3.11 hereof) interest on, such Note on the respective Stated Maturities
expressed in such Note (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such rights shall not be impaired without the
consent of such Holder.

     Section 5.9 Restoration of Rights and Remedies.

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

     Section 5.10 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 3.7 hereof, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

     Section 5.11 Delay or Omission Not Waiver.

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

     Section 5.12 Control by Holders.

     The Holders of not less than a majority in aggregate principal amount of the Outstanding Notes
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
provided that

     (a) such direction shall not be in conflict with any rule of law or with the Indenture,

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

     (c) the Trustee need not take any action which might involve it in personal liability, and

     (d) the Trustee may decline to take any action that would benefit some Holders to the
detriment of other Holders.

Prior to taking any such action under this Section, the Trustee shall be entitled to such
reasonable security or indemnity as it may require against the costs, expenses and liabilities that
may be incurred by it in taking or declining to take any such action hereunder.

     Section 5.13 Waiver of Past Defaults.

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     Subject to Section 5.2(a)(4), the Holders of not less than a majority in aggregate principal
amount of the Outstanding Notes may, on behalf of the Holders of all the Notes, waive any existing
Default or Event of Default hereunder and its consequences, except a Default or Event of Default

     (a) in respect of the payment of the principal of (or premium, if any, on) or interest on any
Note, or

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

     Upon any such waiver, such Default or Event of Default shall cease to exist for every purpose
under the Indenture, but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any right consequent thereon.

     Section 5.14 Waiver of Stay, Extension or Usury Laws.

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

ARTICLE VI.

THE TRUSTEE

     Section 6.1 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs.

     (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

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     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, and
shall be fully protected in so relying, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; provided, however, that,
in the case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the requirements of
this Indenture, but the Trustee has no obligation to determine the accuracy or completeness
(other than as to conformity with the requirements of this Indenture) of the statements made
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 shall not limit the effect of Section 6.1(b);

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

     (ii) 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 5.12.

     Section 6.2 Certain Rights of Trustee.

     Subject to the provisions of Section 6.1 hereof:

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

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

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

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

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

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may reasonably see fit;

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

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

     (i) the Trustee shall not be deemed to have notice or knowledge of any matter unless a
Responsible Officer has actual knowledge thereof or unless written notice thereof is received by
the Trustee at its Corporate Trust Office and such notice references the Notes generally, the
Company or this Indenture;

     (j) the Trustee shall not be required to advance, expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk or liability is not reasonably assured to it;

     (k) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture;

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

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

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     (n) the permissive rights of the Trustee enumerated herein shall not be construed as duties.

     Section 6.3 Trustee Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except for the Trustee’s certificates of
authentication, shall be taken as the statements of the Company or the Subsidiary Guarantors, as
the case may be, and the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity or sufficiency of this Indenture, the Subsidiary Guarantees
or the Notes. The Trustee shall not be accountable for the use or application by the Company of any
Notes or the proceeds thereof.

     Section 6.4 May Hold Notes.

     The Trustee, any Paying Agent, any Registrar or any other agent of the Company, the Subsidiary
Guarantors or of the Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and, subject to TIA Sections 310(b) and 311 in the case of the Trustee, may
otherwise deal with the Company and the Subsidiary Guarantors with the same rights it would have if
it were not the Trustee, Paying Agent, Registrar or such other agent.

     Section 6.5 Money Held in Trust.

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

     Section 6.6 Compensation and Reimbursement.

     The Company agrees:

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

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

     (c) to indemnify the Trustee for, and to hold it harmless against, any loss, liability, claim,
damage or expense incurred without willful misconduct or negligence on its part, (i) arising out of
or in connection with the acceptance or administration of this trust, including the costs and
expenses of defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder or (ii) in connection with enforcing this
indemnification provision.

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     The obligations of the Company under this Section 6.6 to compensate the Trustee, to pay or
reimburse the Trustee for expenses, disbursements and advances and to indemnify and hold harmless
the Trustee shall constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture, the resignation or removal of the Trustee, or any other
termination under any Insolvency or Liquidation Proceeding. As security for the performance of such
obligations of the Company, the Trustee shall have a claim and lien prior to the Notes upon all
property and funds held or collected by the Trustee as such, except funds held in trust for payment
of principal of (and premium, if any, on) or interest on Notes. Such lien shall survive the
satisfaction and discharge of this Indenture or any other termination under any Insolvency or
Liquidation Proceeding.

     When the Trustee incurs expenses or renders services after the occurrence of an Event of
Default specified in paragraph (f) or (g) of Section 5.1 of this Indenture, such expenses and the
compensation for such services are intended to constitute expenses of administration under any
Insolvency or Liquidation Proceeding.

     Section 6.7 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be eligible to act as Trustee
under TIA Section 310(a)(1) and shall have a combined capital and surplus of at least $50,000,000.
If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 6.7, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

     Section 6.8 Conflicting Interests.

     The Trustee shall comply with the provisions of Section 310(b) of the Trust Indenture Act;
provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities or certificates of interest or participation
in other securities of the Company are outstanding if the requirements for such exclusion set forth
in TIA Section 310(b)(1) are met.

     Section 6.9 Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.10 hereof.

     (b) The Trustee may resign at any time by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.10 hereof shall not have been
delivered to the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may, at the expense of the Company, petition any court of competent jurisdiction
for the appointment of a successor Trustee.

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     (c) The Trustee may be removed at any time by Act of the Holders of not less than a majority
in aggregate principal amount of the Outstanding Notes, delivered to the Trustee and to the
Company.

     (d) If at any time:

     (1) the Trustee shall fail to comply with the provisions of TIA Section 310(b) after
written request therefor by the Company or by any Holder who has been a bona fide Holder for
at least six months, or

     (2) the Trustee shall cease to be eligible under Section 6.7 hereof and shall fail to
resign after written request therefor by the Company or by any Holder who has been a bona
fide Holder for at least six months, or

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

     then, in any such case, (i) the Company, by a Board Resolution, may remove the Trustee, or
(ii) subject to TIA Section 315(e), any Holder who has been a bona fide Holder for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of
the Holders of a majority in aggregate principal amount of the Outstanding Notes delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed by the Company or
the Holders and accepted appointment in the manner hereinafter provided, the retiring Trustee or
any Holder who has been a bona fide Holder for at least six months may, on behalf of himself and
all others similarly situated, at the expense of the Company, petition any court of competent
jurisdiction for the appointment of a successor Trustee. The evidence of such successorship may,
but need not be, evidenced by a supplemental indenture.

     (f) The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to the Holders in the manner provided for in Section 13.5
hereof. Each notice shall include the name of the successor Trustee and the address of its
Corporate Trust Office.

     (f) Notwithstanding the replacement of the Trustee pursuant to this Section 6.9, the Company’s
obligations under Section 6.6 shall continue for the benefit of the retiring Trustee.

     Section 6.10 Acceptance of Appointment by Successor.

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     Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of all amounts due it under Section 6.6 hereof, execute
and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts
of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
money and other Property held by such retiring Trustee hereunder. Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers and trusts.

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

     Section 6.11 Merger, Conversion, Consolidation or Succession to Business.

     Any corporation or banking association into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation or banking association resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or
banking association succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such corporation or banking
association shall be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case any Notes
shall have been authenticated, but not delivered, by the Trustee then in office, any successor by
merger, conversion or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes; and in case at that time any of the Notes shall not have been
authenticated, any successor Trustee may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in this Indenture
provided; provided, however, that the right to adopt the certificate of authentication of any
predecessor Trustee or to authenticate Notes in the name of any predecessor Trustee shall apply
only to its successor or successors by merger, conversion or consolidation.

     Section 6.12 Preferential Collection of Claims Against Company.

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

     Section 6.13 Notice of Defaults.

     Within 60 days after the occurrence of any Default hereunder, the Trustee shall transmit in
the manner and to the extent provided in TIA Section 313(c), notice of such Default hereunder known
to the Trustee, unless such Default shall have been cured or waived; provided, however, that,
except in the case of a Default in the payment of the principal of (or premium, if any, on) or

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interest on any Note, the Trustee shall be protected in withholding such notice if and so long
as the board of directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determines that the withholding of such notice is
in the interest of the Holders. The Trustee shall not be deemed to have notice of any Default,
other than a Default under Section 5.1(a) or 5.1(b), unless the Trustee shall have been advised in
writing that a Default has occurred. No duty imposed upon the Trustee in this Indenture shall be
applicable with respect to any Default of which the Trustee is not deemed to have notice.

     Section 6.14 Reports by Trustee.

     Within 60 days after May 15 of each year commencing with May 15, 2012, the Trustee shall
transmit by mail to the Holders, as their names and addresses appear in the Note Register, a brief
report dated as of such May 15 in accordance with and to the extent required under TIA Section
313(a). The Trustee shall also comply with TIA Sections 313(b) and 313(c).

     The Company shall promptly notify the Trustee in writing if the Notes become listed on any
stock exchange or automatic quotation system

     A copy of each Trustee’s report, at the time of its mailing to Holders of Notes, shall be
mailed to the Company and filed with the Commission and each stock exchange, if any, on which the
Notes are listed.

ARTICLE VII.

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     Section 7.1 Company May Consolidate, etc., Only on Certain Terms.

     The Company shall not, in any single transaction or a series of related transactions, merge or
consolidate with or into any other Person, or sell, assign, convey, transfer, lease or otherwise
dispose of all or substantially all the Properties of the Company and its Restricted Subsidiaries
on a consolidated basis to any Person or group of Affiliated Persons, and the Company shall not
permit any of its Restricted Subsidiaries to enter into any such transaction or series of related
transactions if such transaction or series of transactions, in the aggregate, would result in a
sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of
the Properties of the Company and its Restricted Subsidiaries on a consolidated basis to any other
Person or group of Affiliated Persons, unless at the time and after giving effect thereto:

     (a) either (i) if the transaction is a merger or consolidation, the Company shall be the
surviving Person of such merger or consolidation, or (ii) the Person (if other than the Company)
formed by such consolidation or into which the Company is merged or to which the Properties of the
Company or its Restricted Subsidiaries, as the case may be, are sold, assigned, conveyed,
transferred, leased or otherwise disposed of (any such surviving Person or transferee Person being
called the “Surviving Entity”) shall be a corporation organized and existing under the laws of the
United States of America, any state thereof or the District of Columbia and shall, in either case,
expressly assume by an indenture supplemental to the Indenture executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Notes
and the Indenture, and, in each case, the Indenture shall remain in full force and effect;

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     (b) immediately after giving effect to such transaction or series of related transactions on a
pro forma basis (and treating any Indebtedness not previously an obligation of the Company or any
of its Restricted Subsidiaries which becomes the obligation of the Company or any of its Restricted
Subsidiaries in connection with or as a result of such transaction or transactions as having been
incurred at the time of such transaction or transactions), no Default or Event of Default shall
have occurred and be continuing;

     (c) except in the case of the consolidation or merger of the Company with or into a Restricted
Subsidiary or any Restricted Subsidiary with or into the Company or another Restricted Subsidiary,
either

     (i) immediately before and immediately after giving effect to such transaction or
transactions on a pro forma basis (assuming that the transaction or transactions occurred on
the first day of the period of four full fiscal quarters ending immediately prior to the
consummation of such transaction or transactions, with the appropriate adjustments with
respect to the transaction or transactions being included in such pro forma calculation),
the Company (or the Surviving Entity if the Company is not the continuing obligor under the
Indenture) could incur $1.00 of additional Indebtedness under Section 9.12(a) hereof; or

     (ii) immediately after giving effect to such transaction or transactions on a pro forma
basis (assuming that the transaction or transactions occurred on the first day of the period
of four fiscal quarters ending immediately prior to the consummation of such transaction or
transactions, with the appropriate adjustments with respect to the transaction or
transactions being included in such pro forma calculation), the Fixed Charge Coverage Ratio
of the Company (or the Surviving Entity if Comstock is not the continuing obligor under the
Indenture) will be equal to or greater than the Fixed Charge Coverage Ratio of the Company
immediately before such transaction or transactions;

     (d) if the Company is not the continuing obligor under the Indenture, then each Subsidiary
Guarantor, unless it is the Surviving Entity, shall have by supplemental indenture confirmed that
its Subsidiary Guarantee of the Notes shall apply to the Surviving Entity’s obligations under the
Indenture and the Notes;

     (e) if any of the Properties of the Company or any of its Restricted Subsidiaries would upon
such transaction or series of related transactions become subject to any Lien (other than a
Permitted Lien), the creation or imposition of such Lien shall have been in compliance with Section
9.15 hereof; and

     (f) the Company (or the Surviving Entity if the Company is not the continuing obligor under
the Indenture) shall have delivered to the Trustee, in form and substance reasonably satisfactory
to the Trustee, (i) an Officers’ Certificate stating that such consolidation, merger, conveyance,
transfer, lease or other disposition and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture, comply with the Indenture and (ii) an Opinion
of Counsel stating that the requirements of Section 7.1(a) hereof have been satisfied.

     Section 7.2 Successor Substituted.

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     Upon any consolidation of the Company with or merger of the Company into any other
corporation or any sale, assignment, lease, conveyance, transfer or other disposition of all or
substantially all of the Properties of the Company and its Restricted Subsidiaries on a
consolidated basis in accordance with Section 7.1 hereof, the Surviving Entity shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under the Indenture
with the same effect as if such Surviving Entity had been named as the Company herein, and in the
event of any such sale, assignment, lease, conveyance, transfer or other disposition, the Company
(which term shall for this purpose mean the Person named as the “Company” in the first paragraph of
this Indenture or any successor Person which shall theretofore become such in the manner described
in Section 7.1 hereof), except in the case of a lease, shall be discharged from all obligations and
covenants under the Indenture and the Notes, and the Company may be dissolved and liquidated and
such dissolution and liquidation shall not cause a Change of Control under clause (e) of the
definition thereof to occur unless the sale, assignment, lease, conveyance, transfer or other
disposition of all or substantially all of the Properties of the Company and its Restricted
Subsidiaries on a consolidated basis to any Person otherwise results in a Change of Control.

ARTICLE VIII.

SUPPLEMENTAL INDENTURES

     Section 8.1 Supplemental Indentures Without Consent of Holders.

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

     (a) to evidence the succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company contained in the Indenture and in the Notes; or

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

     (c) to comply with any requirement of the SEC in connection with qualifying the Indenture
under the TIA or maintaining such qualification thereafter; or

     (d) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions with
respect to matters or questions arising under the Indenture, provided that such action shall not
adversely affect the interests of any Holder; or

     (e) to secure the Notes or the Subsidiary Guarantees pursuant to the requirements of Section
9.15 hereof or otherwise; or

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     (f) to add any Restricted Subsidiary as an additional Subsidiary Guarantor as provided in
Sections 9.11 and 9.13(a) hereof or to evidence the succession of another Person to any Subsidiary
Guarantor pursuant to Section 12.2(b) hereof and the assumption by any such successor of the
covenants and agreements of such Subsidiary Guarantor contained herein, in the Notes and in the
Subsidiary Guarantee of such Subsidiary Guarantor; or

     (g) to release a Subsidiary Guarantor from its Subsidiary Guarantee pursuant to Section 12.3
hereof; or

     (h) to provide for uncertificated Notes in addition to or in place of certificated Notes.

     Section 8.2 Supplemental Indentures With Consent of Holders.

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

     (a) change the Stated Maturity of the principal of, or any installment of interest on, any
Note, or reduce the principal amount thereof or the rate of interest thereon or any premium
thereon, or change the coin or currency in which principal of any Note or any premium or the
interest on any Note is payable, or impair the right to institute suit for the enforcement of any
such payment after the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date); or

     (b) reduce the percentage of aggregate principal amount of the Outstanding Notes, the consent
of whose Holders is required for any such supplemental indenture, or the consent of whose Holders
is required for any waiver of compliance with certain provisions of the Indenture or certain
defaults hereunder or the consequences of a default provided for in the Indenture; or

     (c) modify any of the provisions of this Section 8.2 or Sections 5.13 or 9.6 hereof, except to
increase any percentage of Holders referred to therein or to provide that certain other provisions
of this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Note affected thereby; or

     (d) modify any provisions of the Indenture relating to the Subsidiary Guarantees in a manner
adverse to the Holders; or

     (e) amend, change or modify the obligation of the Company to make and consummate a Change of
Control Offer in the event of a Change of Control, or to make and consummate a Prepayment Offer
with respect to any Asset Sale, or modify any of the provisions or definitions with respect
thereto.

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

     Section 8.3 Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by the Indenture, the
Trustee shall be entitled to receive, and shall be fully protected in relying upon, in addition to
the documents required by Section 13.1, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by the Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties or immunities under the Indenture or otherwise.

     Section 8.4 Effects of Supplemental Indentures.

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

     Section 8.5 Conformity with Trust Indenture Act.

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

     Section 8.6 References in Notes to Supplemental Indentures.

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

     Section 8.7 Notice of Supplemental Indentures.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 8.2 hereof, the Company shall give notice thereof to the
Holders of each Outstanding Note affected, in the manner provided for in Section 13.5 hereof,
setting forth in general terms the substance of such supplemental indenture.

ARTICLE IX.

COVENANTS

     Section 9.1 Payment of Principal, Premium, if any, and Interest.

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     The Company covenants and agrees for the benefit of the Holders that it will duly and
punctually pay the principal of (and premium, if any, on) and interest on the Notes in accordance
with the terms of the Notes and this Indenture.

     Section 9.2 Maintenance of Office or Agency.

     The Company shall maintain an office or agency where Notes may be presented or surrendered for
payment, where Notes may be surrendered for registration of transfer or exchange and where notices
and demands to or upon the Company in respect of the Notes, the Subsidiary Guarantees and this
Indenture may be served. The New York office of the Trustee shall be such office or agency of the
Company, unless the Company shall designate and maintain some other office or agency for one or
more of such purposes. 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 at the aforementioned office
of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind any such designation. Further, if at any time there shall be no such office or agency in
The City of New York where the Notes may be presented or surrendered for payment, the Company shall
forthwith designate and maintain such an office or agency in The City of New York, in order that
the Notes shall at all times be payable in The City of New York. 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 9.3 Money for Security Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, it shall, on or before 10:00
a.m., Eastern time, on each due date of the principal of (and premium, if any, on) or interest on
any of the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal (and premium, if any) or interest so becoming due until such sum
shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for the Notes, it will, on or before
10:00 a.m., Eastern time, on each due date of the principal of (and premium, if any, on), or
interest on, any Notes, deposit with a Paying Agent immediately available funds in a sum sufficient
to pay the principal (and premium, if any) or interest so becoming due, such funds to be held in
trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless
such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of such action or
any failure so to act.

     The Company shall cause each Paying Agent (other than the Trustee) to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will:

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     (a) hold all sums held by it for the payment of the principal of (and premium, if any, on) or
interest on Notes in trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided;

     (b) give the Trustee notice of any default by the Company (or any other obligor upon the
Notes) in the making of any payment of principal (and premium, if any) or interest; and

     (c) at any time during the continuance of any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums. The Trustee and each Paying Agent
shall promptly pay to the Company, upon Company Request, any money held by them (other than
pursuant to Article XI) at any time in excess of amounts required to pay principal, premium, if
any, or interest on the Notes.

     Subject to applicable escheat and abandoned property laws, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal
of (and premium, if any, on) or interest on any Notes and remaining unclaimed for two years after
such principal (and premium, if any) or interest has become due and payable shall be paid to the
Company on Company Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Notes shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall thereupon cease.

     Section 9.4 Corporate Existence.

     Except as expressly permitted by Article VII hereof, Section 9.17 hereof or other provisions
of this Indenture, the Company shall do or cause to be done all things necessary to preserve and
keep in full force and effect the corporate existence, rights (charter and statutory) and
franchises of the Company and each Restricted Subsidiary; provided, however, that the Company shall
not be required to preserve any such existence of its Restricted Subsidiaries, rights or
franchises, if the Board of Directors of the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and its Restricted
Subsidiaries, taken as a whole, and that the loss thereof is not disadvantageous in any material
respect to the Holders.

     Section 9.5 Statement by Officers as to Default.

     (a) The Company shall deliver to the Trustee, within 100 days after the end of each fiscal
year of the Company, an Officers’ Certificate stating that a review of the activities of the
Company and its Restricted Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the Company has

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kept, observed, performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of such Officer’s
knowledge the Company has kept, observed, performed and fulfilled each and every condition and
covenant contained in this Indenture and no Default or Event of Default has occurred and is
continuing (or, if a Default or Event of Default shall have occurred to either such Officer’s
knowledge, describing all such Defaults or Events of Default of which such Officer may have
knowledge and what action the Company is taking or proposes to take with respect thereto). Such
Officers’ Certificate shall comply with TIA Section 314(a)(4). For purposes of this Section
9.5(a), such compliance shall be determined without regard to any period of grace or requirement of
notice under this Indenture.

     (b) The Company shall, so long as any of the Notes is outstanding, deliver to the Trustee,
upon any of its Officers becoming aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the Company proposes to
take with respect thereto, within 10 days of its occurrence.

     Section 9.6
[Reserved.]

     Section 9.7 [Reserved.]

     Section 9.8
Payment of Taxes; Maintenance of Properties; Insurance.

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

     The Company shall cause all material Properties owned by the Company or any Restricted
Subsidiary and used or held for use in the conduct of its business or the business of any
Restricted Subsidiary to be maintained and kept in good condition, repair and working order
(ordinary wear and tear excepted), all as in the judgment of the Company or such Restricted
Subsidiary may be necessary so that its business may be properly and advantageously conducted at
all times; provided, however, that nothing in this Section 9.8 shall prevent the Company or any
Restricted Subsidiary from discontinuing the maintenance of any of such Properties if such
discontinuance is, in the judgment of the Company or such Restricted Subsidiary, as the case may
be, desirable in the conduct of the business of the Company or such Restricted Subsidiary and not
disadvantageous in any material respect to the Holders. Notwithstanding the foregoing, nothing
contained in this Section 9.8 shall limit or impair in any way the right of the Company and its
Restricted Subsidiaries to sell, divest and otherwise to engage in transactions that are otherwise
permitted by this Indenture.

     The Company shall at all times keep all of its, and cause its Restricted Subsidiaries to keep
their, Properties which are of an insurable nature insured with insurers, believed by the

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Company
to be responsible, against loss or damage to the extent that property of similar character and in a
similar location is usually so insured by corporations similarly situated and owning like
Properties.

     The Company or any Restricted Subsidiary may adopt such other plan or method of protection, in
lieu of or supplemental to insurance with insurers, whether by the establishment of an insurance
fund or reserve to be held and applied to make good losses from casualties, or otherwise,
conforming to the systems of self-insurance maintained by corporations similarly situated and in a
similar location and owning like Properties, as may be determined by the Board of Directors of the
Company or such Restricted Subsidiary.

     Section 9.9 Reports.

     (a) Whether or not the Company is subject to the reporting requirements of Section 13 or
Section 15(d) of the Exchange Act, to the extent not prohibited by the Exchange Act, the Company
will file with the Commission, and make available to the Trustee and the Holders of Notes without
cost to any Holder, the annual reports and the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may by rules and regulations prescribe)
that are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
corporation within the time periods specified therein with respect to an accelerated filer. In the
event that the Company is not permitted to file such reports, documents and information with the
Commission pursuant to the Exchange Act, the Company will nevertheless make available such Exchange
Act information to the Trustee and the Holders of the notes without cost to any holder as if the
Company were subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act
within the time periods specified therein with respect to a non-accelerated filer.

     (b) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then,
to the extent material, the quarterly and annual financial information required by Section 9.9(a)
will include a reasonably detailed presentation, either on the face of the financial statements or
in the footnotes thereto, and in Management’s Discussion and Analysis of Financial Condition and
Results of Operations, of the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of operations of the
Unrestricted Subsidiaries of the Company.

     (c) The Company shall file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional information, documents
and reports with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations.

     (d) The availability of the foregoing information or reports on the SEC’s website or the
Company’s website will be deemed to satisfy the foregoing delivery requirements.

     (e) Delivery of reports, information and documents to the Trustee pursuant to this Section 9.9
shall be 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 the Company’s compliance with any of the covenants

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contained in the Indenture
(as to which the Trustee will be entitled to conclusively rely upon an Officer’s Certificate).

     Section 9.10 Limitation on Restricted Payments.

     (a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, take the following actions:

     (i) declare or pay any dividend on, or make any distribution to holders of, any shares
of Capital Stock of the Company or any Restricted Subsidiary (other than dividends or
distributions payable solely in shares of Qualified Capital Stock of the Company or in
options, warrants or other rights to purchase Qualified Capital Stock of the Company);

     (ii) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any Affiliate thereof (other than any Wholly Owned Restricted Subsidiary of the
Company) or any options, warrants or other rights to acquire such Capital Stock (other than
the purchase, redemption, acquisition or retirement of any Disqualified Capital Stock of the
Company solely in shares of Qualified Capital Stock of the Company);

     (iii) make any principal payment on or repurchase, redeem, defease or otherwise acquire
or retire for value, prior to any scheduled principal payment, scheduled sinking fund
payment or maturity, any Subordinated Indebtedness (excluding any intercompany Indebtedness
between or among the Company and any of its Restricted Subsidiaries), except in any case out
of the proceeds of Permitted Refinancing Indebtedness, or

     (iv) make any Restricted Investment;

(such payments or other actions described in clauses (i) through (iv) above being collectively
referred to as “Restricted Payments”), unless at the time of and after giving effect to the
proposed Restricted Payment:

     (1) no Default or Event of Default shall have occurred and be continuing;

     (2) the Company could incur $1.00 of additional Indebtedness in accordance with Section
9.12(a) hereof; and

     (3) the aggregate amount of all Restricted Payments declared or made after January 1,
2004 shall not exceed the sum (without duplication) of the following:

     (A) 50% of the Consolidated Net Income of the Company accrued on a cumulative
basis during the period beginning on January 1, 2004 and ending on
the last day of the Company’s last fiscal quarter ending prior to the date of
such proposed Restricted Payment (or, if such Consolidated Net Income shall be a
loss, minus 100% of such loss); plus

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     (B) the aggregate Net Cash Proceeds, or the Fair Market Value of Property other
than cash, received after January 1, 2004 by the Company from the issuance or sale
(other than to any of its Restricted Subsidiaries) of shares of Qualified Capital
Stock of the Company or any options, warrants or rights to purchase such shares of
Qualified Capital Stock of the Company; plus

     (C) the aggregate Net Cash Proceeds, or the Fair Market Value of Property other
than cash, received after January 1, 2004 by the Company (other than from any of its
Restricted Subsidiaries) upon the exercise of any options, warrants or rights to
purchase shares of Qualified Capital Stock of the Company; plus

     (D) the aggregate Net Cash Proceeds received after January 1, 2004 by the
Company from the issuance or sale (other than to any of its Restricted Subsidiaries)
of Indebtedness or shares of Disqualified Capital Stock that have been converted
into or exchanged for Qualified Capital Stock of the Company, together with the
aggregate cash received by the Company at the time of such conversion or exchange;
plus

     (E) to the extent not otherwise included in Consolidated Net Income, the net
reduction in Investments in Unrestricted Subsidiaries resulting from dividends,
repayments of loans or advances, or other transfers of assets, in each case to the
Company or a Restricted Subsidiary after January 1, 2004 from any Unrestricted
Subsidiary or from the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary (valued in each case as provided in the definition of “Investment”), not
to exceed in the case of any Unrestricted Subsidiary the total amount of Investments
(other than Permitted Investments) in such Unrestricted Subsidiary made by the
Company and its Restricted Subsidiaries in such Unrestricted Subsidiary after
January 1, 2004.

     (b) Notwithstanding paragraph (a) above, the Company and its Restricted Subsidiaries may take
the following actions so long as (in the case of clauses (3), (4), (5) and (7) below) no Default or
Event of Default shall have occurred and be continuing:

     (1) the payment of any dividend on any Capital Stock of the Company within 60 days
after the date of declaration thereof, if at such declaration date such declaration complied
with the provisions of paragraph (a) above (and such payment shall be deemed to have been
paid on such date of declaration for purposes of any calculation required by the provisions
of paragraph (a) above);

     (2) the payment of any dividend payable from a Restricted Subsidiary to the Company or
any other Restricted Subsidiary of the Company;

     (3) the repurchase, redemption or other acquisition or retirement of any shares of any
class of Capital Stock of the Company or any Restricted Subsidiary, in exchange for, or out
of the aggregate Net Cash Proceeds of, a substantially concurrent issue and sale (other than
to a Restricted Subsidiary) of shares of Qualified Capital Stock of the Company;

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     (4) the repurchase, redemption, repayment, defeasance or other acquisition or
retirement for value of any Subordinated Indebtedness in exchange for, or out of the
aggregate Net Cash Proceeds from, a substantially concurrent issue and sale (other than to a
Restricted Subsidiary) of shares of Qualified Capital Stock of the Company;

     (5) the purchase, redemption, repayment, defeasance or other acquisition or retirement
for value of Subordinated Indebtedness (other than Disqualified Capital Stock) in exchange
for, or out of the aggregate net cash proceeds of, a substantially concurrent incurrence
(other than to a Restricted Subsidiary) of Subordinated Indebtedness of the Company so long
as (a) the principal amount of such new Indebtedness does not exceed the principal amount
(or, if such Subordinated Indebtedness being refinanced provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of acceleration thereof,
such lesser amount as of the date of determination) of the Subordinated Indebtedness being
so purchased, redeemed, repaid, defeased, acquired or retired, plus the amount of any
premium required to be paid in connection with such refinancing pursuant to the terms of the
Indebtedness refinanced or the amount of any premium reasonably determined by the Company as
necessary to accomplish such refinancing, plus the amount of expenses of the Company
incurred in connection with such refinancing, (b) such new Indebtedness is subordinated to
the Notes at least to the same extent as such Subordinated Indebtedness so purchased,
redeemed, repaid, defeased, acquired or retired, and (c) such new Indebtedness has an
Average Life to Stated Maturity that is longer than the Average Life to Stated Maturity of
the Notes and such new Indebtedness has a Stated Maturity for its final scheduled principal
payment that is at least 91 days later than the Stated Maturity for the final scheduled
principal payment of the Notes;

     (6) loans made to officers, directors or employees of the Company or any Restricted
Subsidiary approved by the Board of Directors of the Company in an aggregate amount not to
exceed $1,000,000 outstanding at any one time, the proceeds of which are used solely (a) to
purchase common stock of the Company in connection with a restricted stock or employee stock
purchase plan, or to exercise stock options received pursuant to an employee or director
stock option plan or other incentive plan, in a principal amount not to exceed the exercise
price of such stock options, or (b) to refinance loans, together with accrued interest
thereon, made pursuant to item (a) of this clause (6); and

     (7) other Restricted Payments in an aggregate amount not to exceed $10,000,000.

     The actions described in clauses (1), (3), (4) and (6) of this paragraph (b) shall be
Restricted Payments that shall be permitted to be made in accordance with this paragraph (b) but
shall reduce the amount that would otherwise be available for Restricted Payments under clause
(3) of paragraph (a) (provided that any dividend paid pursuant to clause (1) of this paragraph (b)
shall reduce the amount that would otherwise be available under clause (3) of paragraph (a) when
declared, but not also when subsequently paid pursuant to such clause (1)), and the actions
described in clauses (2), (5) and (7) of this paragraph (b) shall be permitted to be taken in
accordance with this paragraph and shall not reduce the amount that would otherwise be available
for Restricted Payments under clause (3) of paragraph (a).

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     (c) The amount of all Restricted Payments (other than cash) will be the Fair Market Value on
the date of the Restricted Payment of the 

asset(s) or securities proposed to be transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment.

     (d) In computing Consolidated Net Income under paragraph (a) above, (1) the Company shall use
audited financial statements for the portions of the relevant period for which audited financial
statements are available on the date of determination and unaudited financial statements and other
current financial data based on the books and records of the Company for the remaining portion of
such period and (2) the Company shall be permitted to rely in good faith on the financial
statements and other financial data derived from the books and records of the Company that are
available on the date of determination. If the Company makes a Restricted Payment which, at the
time of the making of such Restricted Payment would in the good faith determination of the Company
be permitted under the requirements of this Indenture, such Restricted Payment shall be deemed to
have been made in compliance with this Indenture notwithstanding any subsequent adjustments made in
good faith to the Company’s financial statements affecting Consolidated Net Income of the Company
for any period.

     Section 9.11 [Reserved.]

     Section 9.12
Limitation on Indebtedness and Disqualified Capital Stock.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to, create,
incur, assume, guarantee or in any manner become directly or indirectly liable for the payment of
(collectively, “incur”) any Indebtedness (including any Acquired Indebtedness), and the Company
shall not, and shall not permit any of its Restricted Subsidiaries to, issue any Disqualified
Capital Stock (except for the issuance by the Company of Disqualified Capital Stock (a) which is
redeemable at the Company’s option in cash or Qualified Capital Stock and (b) the dividends on
which are payable at the Company’s option in cash or Qualified Capital Stock); provided however,
that the Company and its Restricted Subsidiaries that are Subsidiary Guarantors may incur
Indebtedness or issue shares of Disqualified Capital Stock if (i) at the time of such event and
after giving effect thereto on a pro forma basis the Consolidated Fixed Charge Coverage Ratio for
the four full quarters immediately preceding such event, taken as one period, would have been equal
to or greater than 2.25 to 1.0 and (ii) no Default or Event of Default shall have occurred and be
continuing at the time such additional Indebtedness is incurred or such Disqualified Capital Stock
is issued or would occur as a consequence of the incurrence of the additional Indebtedness or the
issuance of the Disqualified Capital Stock.

     (b) Notwithstanding the prohibitions of Section 9.12(a), the Company and its Restricted
Subsidiaries may incur any of the following items of Indebtedness (collectively, “Permitted
Indebtedness”):

     (1) Priority Credit Facility Debt in an aggregate amount at any one time outstanding
not to exceed the greater of (a) the Borrowing Base under the Bank Credit Agreement at such
time less the sum of all repayments of principal of Priority Credit Facility Debt made
pursuant to Section 9.17 hereof and (b) 25% of Adjusted Consolidated Net Tangible Assets;
provided, however, that Indebtedness and Disqualified Capital Stock of Restricted
Subsidiaries that are not Subsidiary Guarantors

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shall not at any time constitute more than
50% of all Priority Credit Facility Debt otherwise permitted under this clause (1);

     (2) Indebtedness under the Notes (excluding any Additional Notes);

     (3) Indebtedness outstanding or in effect on the Issue Date (and not repaid or defeased
with the proceeds of the offering of the Notes);

     (4) obligations pursuant to Interest Rate Protection Obligations, but only to the
extent such obligations do not exceed 105% of the aggregate principal amount of the
Indebtedness covered by such Interest Rate Protection Obligations; obligations under
currency exchange contracts entered into in the ordinary course of business; hedging
arrangements entered into in the ordinary course of business for the purpose of protecting
production, purchases and resales against fluctuations in oil or natural gas prices; and any
guarantee of any of the foregoing;

     (5) the Subsidiary Guarantees (and any assumption of the obligations guaranteed
thereby);

     (6) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided,
however, that:

     (a) if the Company is the obligor on such Indebtedness and a Subsidiary
Guarantor is not the obligee, such Indebtedness must be expressly subordinated to
the prior payment in full in cash of all Obligations with respect to the Notes, or
if a Subsidiary Guarantor is the obligor on such Indebtedness and neither the
Company nor another Subsidiary Guarantor is the obligee, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all Obligations with
respect to the Subsidiary Guarantee of such Subsidiary Guarantor; and

     (b) (i) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary of the Company and (ii) any sale or other transfer of any such
Indebtedness to a Person that is neither the Company nor a Restricted Subsidiary of
the Company will be deemed, in each case, to constitute an
incurrence of such Indebtedness by the Company or such Restricted Subsidiary,
as the case may be, that was not permitted by this clause (6);

     (7) Permitted Refinancing Indebtedness and any guarantee thereof;

     (8) Non-Recourse Indebtedness;

     (9) in kind obligations relating to net oil or gas balancing positions arising in the
ordinary course of business;

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     (10) Indebtedness in respect of bid, performance or surety bonds issued for the account
of the Company or any Restricted Subsidiary in the ordinary course of business, including
guaranties and letters of credit supporting such bid, performance or surety obligations (in
each case other than for an obligation for money borrowed); and

     (11) any additional Indebtedness in an aggregate principal amount not in excess of
$75,000,000 at any one time outstanding and any guarantee thereof.

     (c) For purposes of determining compliance with this Section 9.12, in the event that an item
of Indebtedness meets the criteria of one or more of the categories of Permitted Indebtedness
described in paragraphs (b)(1) through (b)(11) above or is entitled to be incurred pursuant to
Section 9.12(a), the Company may, in its sole discretion, classify such item of Indebtedness in any
manner that complies with this covenant and such item of Indebtedness will be treated as having
been incurred pursuant to only one of such clauses of the definition of Permitted Indebtedness or
the proviso of the foregoing sentence and an item of Indebtedness may be divided and classified in
more than one of the types of Indebtedness permitted hereunder; provided that all Indebtedness
outstanding on the Issue Date under the Credit Agreement shall be deemed incurred under paragraph
(b)(1) above and not under paragraph (b)(3) above.

     (d) The accrual of interest, the accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms,
and the payment of dividends on Disqualified Stock in the form of additional shares of the same
class of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance
of Disqualified Stock for purposes of this Section 9.12. The amount of any Indebtedness outstanding
as of any date shall be (i) the accreted value thereof in the case of any Indebtedness issued with
original issue discount and (ii) the principal amount or liquidation preference thereof, together
with any interest thereon that is more than 30 days past due, in the case of any other
Indebtedness.

     (e) For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was incurred, in the case of term Indebtedness, or first committed, in
the case of revolving credit Indebtedness; provided that if such Indebtedness is incurred to
refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause
the applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated
restriction shall be deemed not to have been exceeded
so long as the principal amount of such refinancing Indebtedness does not exceed the principal
amount of such Indebtedness being refinanced (plus all accrued interest on the Indebtedness being
refinanced and the amount of all expenses and premiums incurred in connection therewith).

     (f) The amount of any guarantee by the Company or any Restricted Subsidiary of any
Indebtedness of the Company or one or more Restricted Subsidiaries shall not be deemed to be
outstanding or incurred for purposes of this Section 9.12 in addition to the amount of Indebtedness
which it guarantees.

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     (g) For purposes of this Section 9.12, Indebtedness of any Person that becomes a Restricted
Subsidiary by merger, consolidation or other acquisition shall be deemed to have been incurred by
the Company and the Restricted Subsidiary at the time such Person becomes a Restricted Subsidiary.

     (h) Notwithstanding any other provision of this Section 9.12, the maximum amount of
Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this Section 9.12
shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of
currencies. The principal amount of any Indebtedness incurred to refinance other Indebtedness, if
incurred in a different currency from the Indebtedness being refinanced, shall be calculated based
on the currency exchange rate applicable to the currencies in which such Permitted Refinancing
Indebtedness is denominated that is in effect on the date of such refinancing.

     Section 9.13 Additional Subsidiary Guarantors.

     (a) If any Restricted Subsidiary that is not already a Subsidiary Guarantor has outstanding or
guarantees any other Indebtedness of the Company or a Subsidiary Guarantor, then in either case
that Subsidiary will become a Subsidiary Guarantor by executing a supplemental indenture and
delivering it to the Trustee within 20 Business Days of the date on which it incurred or guaranteed
such Indebtedness, as the case may be; provided, however, that the foregoing shall not apply to
Subsidiaries of the Company that have properly been designated as Unrestricted Subsidiaries in
accordance with the Indenture for so long as they continue to constitute Unrestricted Subsidiaries.

     (b) Notwithstanding the foregoing and the other provisions of this Indenture, any Subsidiary
Guarantee incurred by a Restricted Subsidiary pursuant to this Section 9.13 shall provide by its
terms that it shall be automatically and unconditionally released and discharged upon the terms and
conditions set forth in Section 12.3 hereof.

     Section 9.14 Limitation on Issuances and Sales of Preferred Stock of Restricted
Subsidiaries.

     The Company (a) shall not permit any Restricted Subsidiary to issue or sell any Preferred
Stock to any Person other than to the Company or one of its Wholly Owned Restricted Subsidiaries
and (b) shall not permit any Person other than the Company or one of its Wholly Owned Restricted
Subsidiaries to own any Preferred Stock of any other Restricted Subsidiary except, in each case,
for (i) the Preferred Stock of a Restricted Subsidiary owned by a Person at
the time such Restricted Subsidiary became a Restricted Subsidiary or (ii) a sale of Preferred
Stock in connection with the sale of all of the Capital Stock of a Restricted Subsidiary owned by
the Company or its Subsidiaries effected in accordance with Section 9.17 hereof.

     Section 9.15 Limitation on Liens.

     The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume, affirm or suffer to exist or become effective any Lien of any
kind, except for Permitted Liens, upon any of their respective Properties, whether now owned or
acquired after the Issue Date, or any income or profits therefrom, or assign or convey any right to

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receive income thereon, unless (a) in the case of any Lien securing Subordinated Indebtedness, the
Notes are secured by a lien on such Property or proceeds that is senior in priority to such Lien
and (b) in the case of any other Lien, the Notes are directly secured equally and ratably with the
obligation or liability secured by such Lien.

     Section 9.16 Purchase of Notes Upon Change of Control.

     (a) Upon the occurrence of a Change of Control, the Company shall be obligated to make an
offer to purchase (a “Change of Control Offer”) all of the then Outstanding Notes, in whole or in
part (and if in part, in denominations of $2,000 or integral multiples of $1,000 in excess
thereof), from the Holders of such Notes, at a purchase price (the “Change of Control Purchase
Price”) equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid
interest, if any, to the Change of Control Purchase Date (subject to the right of Holders of record
on the relevant Regular Record Date to receive interest due on an Interest Payment Date that is on
or prior to the Change of Control Purchase Date), in accordance with the procedures set forth in
paragraphs (b), (c) and (d) of this Section. The Company shall, subject to the provisions
described below, be required to purchase all Notes properly tendered into the Change of Control
Offer and not withdrawn. The Company will not be required to make a Change of Control Offer upon a
Change of Control if another Person makes the Change of Control Offer at the same purchase price,
at the same times and otherwise in substantial compliance with the requirements applicable to a
Change of Control Offer to be made by the Company and purchases all Notes validly tendered and not
withdrawn under such Change of Control Offer.

     (b) The Change of Control Offer is required to remain open for at least 20 Business Days and
until the close of business on the fifth Business Day prior to the Change of Control Purchase Date.

     (c) Not later than the 30th day following the occurrence of any Change of Control, the Company
shall give to the Trustee in the manner provided in Section 13.4 and each Holder of the Notes in
the manner provided in Section 13.5, a notice (the “Change of Control Notice”) governing the terms
of the Change of Control Offer and stating:

     (1) that a Change in Control has occurred and that such Holder has the right to require
the Company to repurchase such Holder’s Notes, or portion thereof, at the Change of Control
Purchase Price;

     (2) any information regarding such Change of Control required to be furnished pursuant
to Rule 13e-1 under the Exchange Act and any other securities laws and regulations
thereunder;

     (3) a purchase date (the “Change of Control Purchase Date”), which shall be on a
Business Day and no earlier than 30 days nor later than 60 days from the date the Change of
Control occurred;

     (4) that any Note, or portion thereof, not tendered or accepted for payment will
continue to accrue interest:

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     (5) that unless the Company defaults in depositing money with the Paying Agent in
accordance with the last paragraph of clause (d) of this Section 9.16, or payment is
otherwise prevented, any Note, or portion thereof, accepted for payment pursuant to the
Change of Control Offer shall cease to accrue interest after the Change of Control Purchase
Date; and

     (6) the instructions a Holder must follow in order to have his Notes repurchased in
accordance with paragraph (d) of this Section.

If any of the Notes subject to the Change of Control Offer is in the form of a Global Note, then
the Company shall modify the Change of Control Notice to the extent necessary to accord with the
procedures of the depository applicable thereto.

     (d) Holders electing to have Notes purchased will be required to surrender such Notes to the
Paying Agent at the address specified in the Change of Control Notice at least five Business Days
prior to the Change of Control Purchase Date. Holders will be entitled to withdraw their election
if the Paying Agent receives, not later than three Business Days prior to the Change of Control
Purchase Date, a telegram, telex, facsimile transmission or letter setting forth the name of the
Holder and principal amount of the Notes delivered for purchase by the Holder as to which his
election is to be withdrawn and a statement that such Holder is withdrawing his election to have
such Notes purchased. Holders whose Notes are purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered.

     On the Change of Control Purchase Date, the Company shall (i) accept for payment Notes or
portions thereof validly tendered pursuant to a Change of Control Offer, (ii) deposit with the
Paying Agent money sufficient to pay the purchase price of all Notes or portions thereof so
tendered, and (iii) deliver or cause to be delivered to the Trustee the Notes so accepted. The
Paying Agent shall promptly mail or deliver to Holders of the Notes so tendered payment in an
amount equal to the purchase price for the Notes, and the Company shall execute and the Trustee
shall authenticate and mail or make available for delivery to such Holders a new Note equal in
principal amount to any unpurchased portion of the Note which any such Holder did not surrender for
purchase. The Company shall announce the results of a Change of Control Offer on or as soon as
practicable after the Change of Control Purchase Date. For purposes of this Section 9.16, the
Trustee will act as the Paying Agent.

     (e) If Holders of not less than 90% in aggregate principal amount of the Outstanding Notes
validly tender and do not withdraw such notes in a Change of Control Offer and the Company, or any
third party making a Change of Control Offer in lieu of the Company as described above, purchases
all of the Notes validly tendered and not withdrawn by such Holders, the Company will have the
right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days
following such purchase pursuant to the Change of Control Offer described above, to redeem all
Notes that remain outstanding following such purchase at a redemption price in cash equal to the
applicable Change of Control Purchase Price plus, to the extent not included in the Change of
Control Purchase Price, accrued and unpaid interest, if any, to the date of redemption.

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     (e) The Company shall comply with Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws and regulations are applicable, in the
event that a Change of Control occurs and the Company is required to purchase Notes as described in
this Section 9.16.

     Section 9.17 Limitation on Asset Sales.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate any Asset Sale unless (i) the Company or such Restricted Subsidiary, as the case may be,
receives consideration at the time of such Asset Sale at least equal to the Fair Market Value of
the Property subject to such Asset Sale and (ii) all of the consideration paid to the Company or
such Restricted Subsidiary in connection with such Asset Sale is in the form of cash, Cash
Equivalents, Liquid Securities, Exchanged Properties or the assumption by the purchaser of
liabilities of the Company (other than liabilities of the Company that are by their terms
subordinated to the Notes) or liabilities of any Subsidiary Guarantor that made such Asset Sale
(other than liabilities of a Subsidiary Guarantor that are by their terms subordinated to such
Subsidiary Guarantor’s Subsidiary Guarantee), in each case as a result of which the Company and its
remaining Restricted Subsidiaries are no longer liable for such liabilities (“Permitted
Consideration”); provided, however, that the Company and its Restricted Subsidiaries shall be
permitted to receive Property other than Permitted Consideration, so long as the aggregate Fair
Market Value of all such Property other than Permitted Consideration received from Asset Sales
since the 2009 Notes Issue Date and held by the Company or any Restricted Subsidiary at any one
time shall not exceed 10% of Adjusted Consolidated Net Tangible Assets. The Net Available Cash
from Asset Sales by the Company or a Restricted Subsidiary may be applied by the Company or such
Restricted Subsidiary, to the extent the Company or such Restricted Subsidiary elects (or is
required by the terms of any Senior Indebtedness of the Company or a Restricted Subsidiary), to (i)
prepay, repay, redeem or purchase Senior Indebtedness of the Company or a Restricted Subsidiary; or
(ii) reinvest in Additional Assets (including by means of an Investment in Additional Assets by a
Restricted Subsidiary with Net Available Cash received by the Company or another Restricted
Subsidiary).

     (b) Any Net Available Cash from an Asset Sale not applied in accordance with the preceding
paragraph within 365 days from the date of such Asset Sale shall constitute “Excess Proceeds.”
When the aggregate amount of Excess Proceeds exceeds $10,000,000, the Company shall be required to
make an offer (the “Prepayment Offer”) to all Holders of Notes and all Holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth herein with respect to offers to purchase or redeem with the proceeds of sales
of assets to purchase the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Prepayment Offer will be
equal to 100% of principal amount plus accrued and unpaid interest, if any, to the Purchase Date
(subject to the right of Holders of record on the relevant Regular Record Date to receive interest
due on an Interest Payment Date that is on or prior to the Purchase Date), and will be payable in
cash. If the aggregate principal amount of Notes tendered by Holders thereof exceeds the amount of
available Excess Proceeds allocated for repurchases of Notes pursuant to the Prepayment Offer for
Notes, then such Excess Proceeds will be allocated pro rata according to the principal amount of
the Notes tendered and the Trustee will select the Notes to be purchased in accordance with this
Indenture. To the extent that any portion of the

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amount of Excess Proceeds remains after
compliance with the second sentence of this paragraph and provided that all Holders of Notes have
been given the opportunity to tender their Notes for purchase as described in the following
paragraph in accordance with this Indenture, the Company and its Restricted Subsidiaries may use
such remaining amount for purposes permitted by this Indenture and the amount of Excess Proceeds
shall be reset to zero.

(c) (i) Within 30 days after the 365th day following the date of an Asset Sale, the Company
shall, if it is obligated to make an offer to purchase the Notes pursuant to the preceding
paragraph, send a written Prepayment Offer notice, by first-class mail, to the Trustee and
the Holders of the Notes (the “Prepayment Offer Notice”), accompanied by such information
regarding the Company and its Subsidiaries as the Company believes shall enable such Holders
of the Notes to make an informed decision with respect to the Prepayment Offer (which at a
minimum shall include (A) the most recently filed Annual Report on Form 10-K (including
audited consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q of the Company and any Current Report on Form 8-K of the
Company filed subsequent to such Quarterly Report, other than Current Reports describing
Asset Sales otherwise described in the offering materials, or corresponding successor
reports (or, during any time that the Company is not subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act, corresponding reports prepared pursuant to
Section 9.9), (B) a description of material developments in the Company’s business
subsequent to the date of the latest of such reports and (C) if material, appropriate pro
forma financial information). The Prepayment Offer Notice shall state, among other things,
(1) that the Company is offering to purchase Notes pursuant to the provisions of this
Indenture, (2) that any Note (or any portion thereof) accepted for payment (and duly paid on
the Purchase Date) pursuant to the Prepayment Offer shall cease to accrue interest on the
Purchase Date, (3) that any Notes (or portions thereof) not properly tendered shall continue
to accrue interest, (4) the purchase price and purchase date, which shall be, subject to any
contrary requirements of applicable law, no less than 30 days nor more than 60 days after
the date the Prepayment Offer Notice is mailed (the “Purchase Date”), (5) the aggregate
principal amount of Notes to be purchased, (6) a description of the procedure which Holders
of Notes must follow in order to tender their Notes and the procedures that Holders of Notes
must follow in order to withdraw an election to tender their Notes for payment and (7) all
other instructions and materials necessary to enable Holders to tender Notes pursuant to the
Prepayment Offer.

     (ii) Not later than the date upon which written notice of a Prepayment Offer is
delivered to the Trustee as provided above, the Company shall deliver to the Trustee an
Officers’ Certificate as to (1) the amount of the Prepayment Offer (the “Offer Amount”), (2)
the allocation of the Net Available Cash from the Asset Sales pursuant to which such
Prepayment Offer is being made and (3) the compliance of such allocation with the provisions
of Section 9.17(a). On such date, the Company shall also irrevocably deposit with the
Trustee or with the Paying Agent (or, if the Company is the Paying Agent, shall segregate
and hold in trust) in cash an amount equal to the Offer Amount to be held for payment in
accordance with the provisions of this Section. Upon the expiration of the period for which
the Prepayment Offer remains open (the “Offer Period”), the Company shall deliver to the
Trustee for cancellation the Notes or portions thereof which have been

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properly tendered to
and are to be accepted by the Company. The Trustee or the Paying Agent shall, on the
Purchase Date, mail or deliver payment to each tendering Holder in the amount of the
purchase price. In the event that the aggregate purchase price of the Notes delivered by
the Company to the Trustee is less than the Offer Amount, the Trustee or the Paying Agent
shall deliver the excess to the Company immediately after the expiration of the Offer Period
for application in accordance with this Section.

     (iii) Holders electing to have a Note purchased shall be required to surrender the
Note, with an appropriate form duly completed, to the Company or its agent at the address
specified in the notice at least three Business Days prior to the Purchase Date. Holders
shall be entitled to withdraw their election if the Trustee or the Company receives not
later than one Business Day prior to the Purchase Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal amount of the
Note which was delivered for purchase by the Holder and a statement that such Holder is
withdrawing his election to have such Note purchased. If at the expiration of the Offer
Period the aggregate principal amount of Notes surrendered by Holders exceeds the Offer
Amount, the Company shall select the Notes to be purchased on a pro rata basis (with such
adjustments as may be deemed appropriate by the Company so that only Notes in denominations
of $2,000, or integral multiples of $1,000 in excess thereof, shall be purchased). Holders
whose Notes are purchased only in part shall be issued new Notes equal in principal amount
to the unpurchased portion of the Notes surrendered.

     (iv) At the time the Company delivers Notes to the Trustee which are to be accepted for
purchase, the Company shall also deliver an Officers’ Certificate stating that such Notes
are to be accepted by the Company pursuant to and in accordance with the terms of this
Section 9.17. A Note shall be deemed to have been accepted for purchase at the time the
Trustee or the Paying Agent mails or delivers payment therefor to the surrendering Holder.

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

     Section 9.18 Limitation on Transactions with Affiliates.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or suffer to exist any transaction or series of related
transactions (including, without limitation, the sale, purchase, exchange or lease of Property or
the rendering of any services) with, or for the benefit of, any Affiliate of the Company (other
than the Company or a Wholly Owned Restricted Subsidiary) (each, an “Affiliate Transaction”),
unless:

     (1) such transaction or series of related transactions is on terms that are no less
favorable to the Company or such Restricted Subsidiary, as the case may be, than

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would be
available in a comparable transaction in arm’s-length dealings with an unrelated third
party; and

     (2) the Company delivers to the Trustee:

     (a) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $10,000,000 but no
greater than $25,000,000, an Officers’ Certificate certifying that such Affiliate
Transaction or series of Affiliate Transactions complies with this Section 9.18; and

     (b) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25,000,000, an
Officers’ Certificate certifying that such Affiliate Transaction or series of
Affiliate Transactions complies with this Section 9.18 and that such Affiliate
Transaction or series of Affiliate Transactions has been approved by a majority of
the Disinterested Directors of Comstock.

     (b) The following items will not be deemed to be Affiliate Transactions and, therefore, will
not be subject to the provisions of Section 9.18(a):

     (1) loans or advances to officers, directors and employees of the Company or any
Restricted Subsidiary made in the ordinary course of business in an aggregate amount not to
exceed $1,000,000 outstanding at any one time;

     (2) indemnities of officers, directors, employees and other agents of the Company or
any Restricted Subsidiary permitted by corporate charter or other organizational document,
bylaw or statutory provisions;

     (3) the payment of reasonable and customary fees to directors of the Company or any of
its Restricted Subsidiaries who are not employees of the Company or any Affiliate,

     (4) the Company’s employee compensation and other benefit arrangements;

     (5) transactions exclusively between or among the Company and any of the Restricted
Subsidiaries or exclusively between or among such Restricted Subsidiaries, provided such
transactions are not otherwise prohibited by this Indenture; and

     (6) any Restricted Payment permitted to be paid pursuant Section 9.10.

     Section 9.19 Limitation on Dividends and Other Payment Restrictions Affecting Restricted
Subsidiaries.

     The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create or suffer to exist or allow to become effective any consensual encumbrance or
restriction of any kind on the ability of any Restricted Subsidiary: (a) to pay dividends, in cash
or otherwise, or make any other distributions on or in respect of its Capital Stock, or make
payments on any Indebtedness owed, to the Company or any other Restricted Subsidiary, (b) to

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make
loans or advances to the Company or any other Restricted Subsidiary or (c) to transfer any of its
Property to the Company or any other Restricted Subsidiary (any such restrictions being
collectively referred to herein as a “Payment Restriction”). However, the preceding restrictions
will not apply to encumbrances or restrictions existing under or by reason of:

     (1) customary provisions restricting subletting or assignment of any lease governing a
leasehold interest of the Company or any Restricted Subsidiary, or customary restrictions in
licenses relating to the Property covered thereby and entered into in the ordinary course of
business;

     (2) any instrument governing Indebtedness of a Person acquired by the Company or any
Restricted Subsidiary at the time of such acquisition, which encumbrance or restriction is not
applicable to any other Person, other than the Person, or the Property of the Person, so acquired,
provided that such Indebtedness was not incurred in anticipation of such acquisition;

     (3) any instrument governing Indebtedness or Disqualified Capital Stock of a Restricted
Subsidiary that is not a Subsidiary Guarantor, provided that (a) such Indebtedness or Disqualified
Capital Stock is permitted under Section 9.12 and (b) the terms and conditions of any Payment
Restrictions thereunder are not materially more restrictive than the Payment Restrictions contained
in the Bank Credit Agreement and the Indenture as in effect on the Issue Date;

     (4) the Bank Credit Agreement as in effect on the Issue Date or any agreement that amends,
modifies, supplements, restates, extends, renews, refinances or replaces the Bank Credit Agreement,
provided that the terms and conditions of any Payment Restrictions thereunder are not materially
more restrictive than the Payment Restrictions contained in the Bank Credit Agreement as in effect
on the Issue Date;

     (5) this Indenture, the Notes and the Subsidiary Guarantees; or

     (6) the indenture governing the Company’s existing 67/8% Senior Notes
due 2012, 83/8% Senior Notes due 2017 and any subsidiary guarantees thereof,
in each case as in effect on the Issue Date.

     Section 9.20 Limitation on Sale and Leaseback Transactions.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to, enter into
any Sale/Leaseback Transaction unless (1) the Company or such Restricted Subsidiary, as
the case may be, would be able to incur Indebtedness in an amount equal to the Attributable
Indebtedness with respect to such Sale/Leaseback Transaction or (2) the Company or such Restricted
Subsidiary receives proceeds from such Sale/Leaseback Transaction at least equal to the Fair Market
Value thereof and such proceeds are applied in the same manner and to the same extent as Net
Available Cash and Excess Proceeds from an Asset Sale.

     Section 9.21 Covenant Suspension.

     Following any day (a “Suspension Date”) that (a) the Notes have a rating equal to or higher
than BBB- (or the equivalent) by S&P and a rating equal to or higher than Baa3 (or the

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equivalent)
by Moody’s (“Investment Grade Ratings”), (b) follows a date on which the Notes do not have
Investment Grade Ratings, and (c) no Default or Event of Default has occurred and is continuing
under this Indenture, the Company and its Restricted Subsidiaries shall not be subject to the
covenants described in Sections 7.1(c), 9.10, 9.12, 9.14, 9.17, 9.18 and 9.19 (collectively, the
“Suspended Covenants”). In the event that the Company and its Restricted Subsidiaries are not
subject to the Suspended Covenants for any period of time as a result of the preceding sentence,
and on any subsequent date the Notes fail to have Investment Grade Ratings, or a Default or Event
of Default occurs and is continuing, then immediately after such date (a “Reversion Date”), the
Suspended Covenants will again be in effect with respect to future events, unless and until a
subsequent Suspension Date occurs. The period between a Suspension Date and a Reversion Date is
referred to in this Indenture as a “Suspension Period.” Notwithstanding that the Suspended
Covenants may be reinstated, no Default or Event of Default will be deemed to have occurred as a
result of a failure to comply with the Suspended Covenants during any Suspension Period.
Calculations made after the Reversion Date of the amount available to be made as Restricted
Payments under Section 9.10 will be made as though the covenants described under Section 9.10 had
been in effect since the Issue Date and throughout the Suspension Period. During any Suspension
Period, the Board of Directors of the Company may not designate any of the Company’s Subsidiaries
as Unrestricted Subsidiaries pursuant to this Indenture.

ARTICLE X.

REDEMPTION OF NOTES

     Section 10.1 Notice to Trustee.

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

     The Company shall give each notice to the Trustee provided for in this Section at least 60
days before the Redemption Date unless the Trustee consents to a shorter period. Such notice shall
be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect
that such redemption will comply with the conditions herein. Any election to redeem Notes shall be
revocable until the Company gives a notice of redemption pursuant to Section 10.2 to the Holders of
Notes to be redeemed.

     Section 10.2 Selection by Trustee of Notes to Be Redeemed.

     If less than all the Notes are to be redeemed, the particular Notes to be redeemed shall be
selected not less than 30 days nor more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Notes not previously called for redemption, pro rata, by lot or by any other
method as the Trustee shall deem fair and appropriate (or in the case of notes in global form, the
Trustee will select Notes for redemption based on DTC’s method that most nearly approximates a pro
rata selection) and which may provide for the selection for redemption of portions of the principal
of Notes; provided, however, that Notes and portions of Notes selected for redemption shall be in
amounts of $2,000 or integral multiples of $1,000 in excess of $2,000.

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     The Trustee shall promptly notify the Company in writing of the Notes selected for
redemption and, in the case of any Notes 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 Notes shall relate, in the case of any Note redeemed or to be redeemed
only in part, to the portion of the principal amount of such Note which has been or is to be
redeemed.

     Section 10.3 Notice of Redemption.

     Notice of redemption shall be given in the manner provided for in Section 13.5 hereof not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Notes to be redeemed.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) if less than all Outstanding Notes are to be redeemed, the identification (and, in the
case of a partial redemption, the principal amounts) of the particular Notes to be redeemed;

     (d) that on the Redemption Date the Redemption Price (together with accrued interest, if any,
to the Redemption Date payable as provided in Section 10.5 hereof) will become due and payable upon
each such Note, or the portion thereof, to be redeemed, and that, unless the Company shall default
in the payment of the Redemption Price and any applicable accrued interest, interest thereon will
cease to accrue on and after said date; and

     (e) the place or places where such Notes are to be surrendered for payment of the Redemption
Price.

     Notice of redemption of Notes to be redeemed at the election of the Company shall be given by
the Company or, at the Company’s request, by the Trustee in the name and at the expense of the
Company. Failure to give such notice by mailing to any Holder of Notes or any defect therein shall
not affect the validity of any proceedings for the redemption of other Notes.

     Section 10.4 Deposit of Redemption Price.

     On or before 10:00 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 9.3 hereof) an amount of money sufficient to pay
the Redemption Price of, and accrued and unpaid interest on, all the Notes which are to be redeemed
on such Redemption Date.

     Section 10.5 Notes Payable on Redemption Date.

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     Notice of redemption having been given as aforesaid, the Notes so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein specified (together with
accrued and unpaid interest, if any, to the Redemption Date), and from and after such date (unless
the Company shall default in the payment of the Redemption Price and accrued and unpaid interest)
such Notes shall cease to bear interest. Upon surrender of any such Note for redemption in
accordance with said notice, such Note shall be paid by the Company at the Redemption Price,
together with accrued and unpaid interest, if any, to the Redemption Date.

     If any Note called for redemption shall not be so paid upon surrender thereof for redemption,
the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at
the rate borne by the Notes.

     Section 10.6 Notes Redeemed in Part.

     Any Note which is to be redeemed only in part shall be surrendered at the office or agency of
the Company maintained for such purpose pursuant to Section 9.2 hereof (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
deliver to the Holder of such Note without service charge, a new Note or Notes, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal amount of the Note so surrendered.

ARTICLE XI.

DEFEASANCE AND COVENANT DEFEASANCE

     Section 11.1 Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may, at its option by Board Resolution, at any time, with respect to the Notes,
elect to have either Section 11.2 or Section 11.3 hereof be applied to all Outstanding Notes upon
compliance with the conditions set forth below in this Article XI.

     Section 11.2 Defeasance and Discharge.

     Upon the Company’s exercise under Section 11.1 hereof of the option applicable to this Section
11.2, the Company and the Subsidiary Guarantors shall be deemed to have been discharged from their
respective obligations with respect to all Outstanding Notes on the date the conditions set forth
in Section 11.4 hereof are satisfied (hereinafter, “legal defeasance”). For this purpose, such
legal defeasance means that the Company and the Subsidiary Guarantors shall be deemed (i) to have
paid and discharged their respective obligations under the Outstanding Notes; provided, however,
that the Notes shall continue to be deemed to be “Outstanding” for purposes of Section 11.5 hereof
and the other Sections of this Indenture referred to in clauses (a) and (b) below, and (ii) to have
satisfied all their other obligations with respect to such Notes and this Indenture (and the
Trustee, at the expense and direction of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of Outstanding Notes to

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receive, solely from the trust fund described in Section 11.4 hereof and as more fully set
forth in such Section, payments in respect of the principal of (and premium if any, on) and
interest on such Notes when such payments are due (or at such time as the Notes would be subject to
redemption at the option of the Company in accordance with this Indenture), (b) the respective
obligations of the Company and the Subsidiary Guarantors under Sections 3.3, 3.4, 3.5, 3.6, 3.7,
3.8, 3.9, 5.8, 5.14, 9.2, 12.1 (to the extent it relates to the foregoing Sections and this Article
XI), 12.4 and 12.5 hereof and the Appendix, (c) the rights, powers, trusts, duties and immunities
of the Trustee hereunder, and (d) the obligations of the Company and the Subsidiary Guarantors
under this Article XI. Subject to compliance with this Article XI, the Company may exercise its
option under this Section 11.2 notwithstanding the prior exercise of its option under Section 11.3
hereof with respect to the Notes.

     Section 11.3 Covenant Defeasance.

     Upon the Company’s exercise under Section 11.1 hereof of the option applicable to this Section
11.3, the Company and each Subsidiary Guarantor shall be released from their respective obligations
under any covenant contained in Section 9.5 hereof, in Sections 9.8 through 9.20 hereof and in
clauses (c) and (e) of Section 7.1 hereof with respect to the Outstanding Notes on and after the
date the conditions set forth below are satisfied (hereinafter, “covenant defeasance”), and the
Notes shall thereafter be deemed not to be “Outstanding” for the purposes of any direction, waiver,
consent or declaration or Act of Holders (and the consequences of any thereof) in connection with
such covenants, but shall continue to be deemed “Outstanding” for all other purposes hereunder.
For this purpose, such covenant defeasance means that, with respect to the Outstanding Notes, the
Company and each Subsidiary Guarantor may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under Section 5.1(c),
5.1(d) or 5.1(e) hereof, but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby.

     Section 11.4 Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to application of either Section 11.2 or Section 11.3
hereof to the Outstanding Notes:

     (a) The Company or any Subsidiary Guarantor shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of Section 6.7 hereof
who shall agree to comply with the provisions of this Article XI applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Notes, (a) cash in United States
dollars in an amount, or (b) U.S. Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later
than one day before the due date of any payment, money in an amount, or (c) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and
which shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, the principal of (and premium, if any, on) and interest on the Outstanding Notes on

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the Stated Maturity thereof (or Redemption Date, if applicable), provided that the Trustee shall
have been irrevocably instructed in writing by the Company to apply such money or the proceeds of
such U.S. Government Obligations to said payments with respect to the Notes. Before such a
deposit, the Company may give to the Trustee, in accordance with Section 10.1 hereof, a notice of
its election to redeem all of the Outstanding Notes at a future date in accordance with Article X
hereof, which notice shall be irrevocable. Such irrevocable redemption notice, if given, shall be
given effect in applying the foregoing. For this purpose, “U.S. Government Obligations” means
securities that are (x) direct obligations of the United States of America for the timely payment
of which its full faith and credit is pledged or (y) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of America the timely
payment of which is unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such U.S. Government Obligation or
a specific payment of principal of or interest on any such U.S. Government Obligation held by such
custodian for the account of the holder of such depository receipt, provided that (except as
required by law) such custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian in respect of the
U.S. Government Obligation or the specific payment of principal of or interest on the U.S.
Government Obligation evidenced by such depository receipt.

     (b) No Default or Event of Default with respect to the Notes shall have occurred and be
continuing on the date of such deposit or, insofar as Sections 5.1(i) and 5.1(j) are concerned, at
any time during the period ending on the 91st day after the date of such deposit.

     (c) Such legal defeasance or covenant defeasance shall not cause the Trustee to have a
conflicting interest under this Indenture or the Trust Indenture Act with respect to any securities
of the Company or any Subsidiary Guarantor.

     (d) Such legal defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, any other material agreement or instrument to which the Company or
any Subsidiary Guarantor is a party or by which it is bound, as evidenced to the Trustee in an
Officers’ Certificate delivered to the Trustee concurrently with such deposit.

     (e) In the case of an election under Section 11.2 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture there
has been a change in the applicable federal income tax laws, in either case providing that the
Holders of the Outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such legal defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such legal
defeasance had not occurred (it being understood that (x) such Opinion of Counsel shall also state
that such ruling or applicable law is consistent with the conclusions reached in such Opinion of
Counsel and (y) the Trustee shall be under no obligation to investigate the basis or correctness of
such ruling).

     (f) In the case of an election under Section 11.3 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Holders of the Outstanding

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Notes will not
recognize income, gain or loss for federal income tax purposes as a result of such covenant
defeasance and will be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such covenant defeasance had not occurred.

     (g) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, which, taken together, state that all conditions precedent provided for relating to either
the legal defeasance under Section 11.2 hereof or the covenant defeasance under Section 11.3 (as
the case may be) have been complied with.

     Section 11.5 Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 9.3 hereof, all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee; collectively for purposes of this Section 11.5, the “Trustee”) pursuant to
Section 11.4 hereof in respect of the Outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in
respect of principal (and premium, if any) and interest, but such money need not be segregated from
other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against all taxes, fees or other charges
imposed on or assessed against the U.S. Governmental Obligations deposited pursuant to Section 11.4
hereof or the principal and interest received in respect thereof other than any such tax, fee or
other charge which by law is for the account of the Holders of the Outstanding Notes.

     Anything in this Article XI to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon Company Request any money or U.S. Government Obligations held
by it as provided in Section 11.4 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be deposited to effect
an equivalent legal defeasance or covenant defeasance, as applicable, in accordance with this
Article.

     Section 11.6 Reinstatement.

     If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
11.5 hereof by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s and the Subsidiary
Guarantors’ obligations under this Indenture and the Notes shall be revived and reinstated as
though no deposit had occurred pursuant to Section 11.2 or 11.3 hereof, as the case may be, until
such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 11.5 hereof; provided, however, that if the Company or any Subsidiary
Guarantor makes any payment of principal of (or premium, if any, on) or interest on any Note
following the reinstatement of its obligations, the Company or such Subsidiary Guarantor shall be

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subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

ARTICLE XII.

SUBSIDIARY GUARANTEES

     Section 12.1 Unconditional Guarantee.

     Each Subsidiary Guarantor hereby unconditionally, jointly and severally, guarantees (each such
guarantee being referred to herein as this “Subsidiary Guarantee,” with all such guarantees being
referred to herein as the “Subsidiary Guarantees”) to each Holder of Notes authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns, the full and prompt
performance of the Company’s obligations under the Indenture and the Notes and that:

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

     (b) in case of any extension of time of payment or renewal of any Notes or of any such other
obligations, the 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;

subject, however, in the case of clauses (a) and (b) above, to the limitations set forth in Section
12.4 hereof.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Subsidiary Guarantors will be jointly and severally obligated to pay the same
immediately. Each Subsidiary Guarantor hereby agrees that its obligations hereunder shall, to the
extent permitted by law, be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes 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 Subsidiary Guarantor hereby waives, to the extent permitted by law, diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever, and covenants that its Subsidiary Guarantee will not be
discharged except by complete performance of the obligations contained in the Notes, the Indenture
and in this Subsidiary Guarantee. If any Holder or the Trustee is required by any court or
otherwise to return to the Company, any Subsidiary Guarantor, or any
custodian, trustee, liquidator or other similar official acting in relation to the Company or
any Subsidiary Guarantor, any amount paid by the Company or any Subsidiary Guarantor to the Trustee
or such Holder, this Subsidiary Guarantee, to the extent theretofore discharged, shall be

83

 

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

     Section 12.2 Subsidiary Guarantors May Consolidate, etc., on Certain Terms.

     (a) Except as set forth in Article VII hereof, nothing contained in this Indenture or in any
of the Notes shall prevent any consolidation or merger of a Subsidiary Guarantor with or into the
Company or another Subsidiary Guarantor or shall prevent any sale, conveyance or other disposition
of all or substantially all the Properties of a Subsidiary Guarantor to the Company or another
Subsidiary Guarantor.

     (b) Except as set forth in Article VII hereof, nothing contained in this Indenture or in any
of the Notes shall prevent any consolidation or merger of a Subsidiary Guarantor with or into a
Person other than the Company or another Subsidiary Guarantor (whether or not Affiliated with such
Subsidiary Guarantor), or successive consolidations or mergers in which a Subsidiary Guarantor or
its successor or successors shall be a party or parties, or shall prevent any sale, conveyance or
other disposition of all or substantially all the Properties of a Subsidiary Guarantor to a Person
other than the Company or another Subsidiary Guarantor (whether or not Affiliated with such
Subsidiary Guarantor) authorized to acquire and operate the same; provided, however, that (i)
immediately after such transaction, and giving effect thereto, no Default or Event of Default shall
have occurred as a result of such transaction and be continuing, (ii) such transaction shall not
violate any of the covenants of Sections 9.1 through 9.20 hereof, and (iii) upon any such
consolidation, merger, sale, conveyance or other disposition, such Subsidiary Guarantor’s
Subsidiary Guarantee set forth in this Article XII, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by such
Subsidiary Guarantor, shall be expressly assumed, by supplemental indenture satisfactory in form to
the Trustee, executed and delivered to the Trustee, by such Person formed by such consolidation or
into which such Subsidiary Guarantor shall have merged (if other than such Subsidiary Guarantor),
or by the Person that shall have acquired such Property (except to the extent the following Section
12.3 would result in the release of such Subsidiary Guarantee, in which case such surviving Person
or transferee of such Property shall not have to execute any such supplemental indenture and shall
not have to assume such Subsidiary Guarantor’s Subsidiary Guarantee). In the case of any such
consolidation, merger, sale, conveyance or other disposition and upon the assumption by the
successor Person, by supplemental indenture executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the due and
punctual performance and observance of all of the covenants and conditions of this Indenture
to be performed by the applicable Subsidiary Guarantor, such successor Person shall succeed to and

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be substituted for such Subsidiary Guarantor with the same effect as if it had been named herein as
the initial Subsidiary Guarantor.

     Section 12.3 Release of Subsidiary Guarantors.

     Upon the sale or disposition (by merger or otherwise) of a Subsidiary Guarantor (or all or
substantially all of its Properties) to a Person other than the Company or another Subsidiary
Guarantor and pursuant to a transaction that is otherwise in compliance with the terms of this
Indenture, including but not limited to the provisions of Section 12.2 hereof or pursuant to
Article VII hereof, such Subsidiary Guarantor shall be deemed released from its Subsidiary
Guarantee and all related obligations under this Indenture; provided, however, 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, other Indebtedness of the Company or any other Restricted Subsidiary shall also be released
upon such sale or other disposition. The Trustee shall deliver an appropriate instrument
evidencing such release upon receipt of a Company Request accompanied by an Officers’ Certificate
and an Opinion of Counsel certifying that such sale or other disposition was made by the Company in
accordance with the provisions of this Indenture. In addition, in the event that any Subsidiary
Guarantor ceases to guarantee payment of, or in any other manner to remain liable (whether directly
or indirectly) with respect to, any and all other Indebtedness of the Company or any other
Restricted Subsidiary of the Company, including, without limitation, Indebtedness under the Bank
Credit Agreement, such Subsidiary Guarantor shall also be released from its Subsidiary Guarantee
and the related obligations under this Indenture for so long as it remains not liable with respect
to all such other Indebtedness. The Trustee shall deliver an appropriate instrument evidencing
such release upon receipt of a Company Request accompanied by an Officers’ Certificate and an
Opinion of Counsel certifying that such Subsidiary Guarantor has ceased to guarantee or otherwise
be liable with respect to such other Indebtedness of the Company and the other Restricted
Subsidiaries. Each Subsidiary Guarantor that is designated as an Unrestricted Subsidiary in
accordance with the provisions of this Indenture shall be released from its Subsidiary Guarantee
and all related obligations under this Indenture for so long as it remains an Unrestricted
Subsidiary. The Trustee shall deliver an appropriate instrument evidencing such release upon its
receipt of the Board Resolution designating such Unrestricted Subsidiary. Any Subsidiary Guarantor
not released in accordance with this Section 12.3 shall remain liable for the full amount of
principal of (and premium, if any, on) and interest on the Notes as provided in this Article XII.

     Section 12.4 Limitation of Subsidiary Guarantors’ Liability.

     Each Subsidiary Guarantor, and by its acceptance hereof each Holder, hereby confirm that it is
the intention of all such parties that the guarantee by such Subsidiary Guarantor pursuant to its
Subsidiary Guarantee not constitute a fraudulent transfer or conveyance for purposes of the Federal
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law. To effectuate the foregoing intention, the Holders and each
Subsidiary Guarantor hereby irrevocably agree that the obligations of such Subsidiary Guarantor
under its Subsidiary Guarantee shall be limited to the
maximum amount as will, after giving effect to all other contingent and fixed liabilities of
such Subsidiary Guarantor and after giving effect to any collections from or payments made by or on
behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary

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Guarantor under its Subsidiary Guarantee or pursuant to Section 12.5 hereof, result in the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting such a
fraudulent conveyance or fraudulent transfer. This Section 12.4 is for the benefit of the
creditors of each Subsidiary Guarantor.

     Section 12.5 Contribution.

     In order to provide for just and equitable contribution among the Subsidiary Guarantors, the
Subsidiary Guarantors agree, inter se, that in the event any payment or distribution is made by any
Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee, such Funding Guarantor
shall be entitled to a contribution from each other Subsidiary Guarantor (if any) in a pro rata
amount based on the Adjusted Net Assets of each Subsidiary Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging
the Company’s obligations with respect to the Notes or any other Subsidiary Guarantor’s obligations
with respect to its Subsidiary Guarantee.

     Section 12.6 Severability.

     In case any provision of this Subsidiary Guarantee shall be invalid, illegal or unenforceable,
that portion of such provision that is not invalid, illegal or unenforceable shall remain in
effect, and the validity, legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby.

ARTICLE XIII.

MISCELLANEOUS

     Section 13.1 Compliance Certificates and Opinions.

     Upon any application or request by the Company or any Subsidiary Guarantor to the Trustee to
take any action under any provision of this Supplemental Indenture, the Company or such Subsidiary
Guarantor, as the case may be, shall furnish to the Trustee such certificates and opinions as may
be required under the Trust Indenture Act or this Supplemental Indenture. Each such certificate and
each such legal opinion shall be in the form of an Officers’ Certificate or an Opinion of Counsel,
as applicable, and shall comply with the requirements of this Supplemental Indenture.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Supplemental Indenture shall include:

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

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

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

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

     The certificates and opinions provided pursuant to this Section 13.1 and the statements
required by this Section 13.1 shall be satisfactory to the Trustee and comply in all respects with
TIA Sections 314(c) and (e).

     Section 13.2 Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in
the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are erroneous. Any such
Opinion of Counsel may be based, insofar as it relates to factual matters, upon an officers’
certificate, unless such counsel knows, or in the exercise of reasonable care should know, that the
certificate with respect to such matters is erroneous.

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

     Section 13.3 Acts of Holders.

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

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a

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

     (c) The ownership, principal amount and serial numbers of Notes held by any Person, and the
date of holding the same, shall be proved by the Note Register.

     (d) If the Company shall solicit from the Holders of Notes any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to
a Board Resolution, fix in advance a record date for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so. Notwithstanding TIA Section 316(c), such record date
shall be the record date specified in or pursuant to such Board Resolution, which shall be a date
not earlier than the date 30 days prior to the first solicitation of Holders generally in
connection therewith and not later than the date such solicitation is completed. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record at the close of
business on such record date shall be deemed to be Holders for the purposes of determining whether
Holders of the requisite proportion of Outstanding Notes have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that
purpose the Outstanding Notes shall be computed as of such record date, provided that no such
authorization, agreement or consent by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Supplemental Indenture not
later than eleven months after the record date.

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

     Section 13.4 Notices, etc. to Trustee, Company and Subsidiary Guarantors.

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

     (1) the Trustee by any Holder, the Company or any Subsidiary Guarantor shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing (in the
English language) and delivered in person or mailed by certified or registered mail (return
receipt requested) to the Trustee at its Corporate Trust Office; or

     (2) the Company or any Subsidiary Guarantor by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing (in the English language) and delivered in person or mailed by

88

 

certified or registered mail (return receipt requested) to the Company or such Subsidiary
Guarantor, as applicable, addressed to it at the Company’s offices located at 5300 Town and
Country Blvd., Suite 500, Frisco, Texas, 75034, Attention: Chief Financial Officer, or at
any other address otherwise furnished in writing to the Trustee by the Company.

     Section 13.5 Notice to Holders; Waiver.

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

     In case by reason of the suspension of or irregularities in regular mail service or by reason
of any other cause, it shall be impracticable to mail notice of any event to Holders when such
notice is required to be given pursuant to any provision of this Supplemental Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice for every purpose hereunder.

     The Trustee may rely upon and comply with instructions or directions sent via unsecured
facsimile or email transmission and the Trustee shall not be liable for any loss, liability or
expense of any kind incurred by the Company or the Holders due to the Trustee’s reliance upon and
compliance with instructions or directions given by unsecured facsimile or email transmission;
provided, however, that such losses have not arisen from the negligence or willful misconduct of
the Trustee, it being understood that the failure of the Trustee to verify or confirm that the
person providing the instructions or directions, is, in fact, an authorized person does not
constitute negligence or willful misconduct.

     Section 13.6 Effect of Headings and Table of Contents.

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

     Section 13.7 Successors and Assigns.

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

89

 

     Section 13.8 Severability.

     In case any provision in this Supplemental Indenture or in the Notes or the Subsidiary
Guarantees 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 a Holder shall
have no claim therefor against any party hereto.

     Section 13.9 Benefits of Supplemental Indenture.

     Nothing in this Supplemental Indenture or in the Notes, express or implied, shall give to any
Person (other than the parties hereto, any Paying Agent, any Registrar and their successors
hereunder, the Holders and, to the extent set forth in Section 12.4 hereof, creditors of Subsidiary
Guarantors) any benefit or any legal or equitable right, remedy or claim under this Supplemental
Indenture.

     Section 13.10 Governing Law; Trust Indenture Act Controls.

     (a) THIS SUPPLEMENTAL INDENTURE, THE SUBSIDIARY GUARANTEES AND THE NOTES SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING
EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. THE COMPANY AND EACH SUBSIDIARY GUARANTOR
IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE
COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE SUBSIDIARY GUARANTEES, AND THE
COMPANY AND EACH SUBSIDIARY GUARANTOR IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED BY ANY SUCH COURT.

     (b) This Supplemental Indenture is subject to the provisions of the Trust Indenture Act that
are required to be part of this Indenture and shall, to the extent applicable, be governed by such
provisions. If and to the extent that any provision of this Supplemental Indenture limits,
qualifies or conflicts with the duties imposed by operation of Section 318(c) of the Trust
Indenture Act, or conflicts with any provision (an “incorporated provision”) required by or deemed
to be included in this Indenture by operation of such Trust Indenture Act section, such imposed
duties or incorporated provision shall control.

     Section 13.11 Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, or Stated Maturity or Maturity
of the Notes shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Notes or the Subsidiary Guarantee) payment of interest or principal (and
premium, if any) need not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the Interest Payment Date, Redemption Date or at the
Stated Maturity or Maturity; provided, however, that no interest shall

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accrue for the period from and after such Interest Payment Date, Redemption Date, Stated
Maturity or Maturity, as the case may be.

     Section 13.12 No Personal Liability of Directors, Officers, Employees and
Stockholders.

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

     Section 13.13 Holder Communications.

     Holders may communicate pursuant to Section 312(b) of the TIA with other Holders with respect
to their rights under this Indenture or the Notes. Every Holder of Notes, by receiving and holding
the same, agrees with the Company, the Subsidiary Guarantors, the Registrar and the Trustee that
none of the Company, the Subsidiary Guarantors, the Registrar or the Trustee, or any agent of any
of them, shall be held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders in accordance with TIA Section 312, regardless of the source from
which such information was derived, that each of such Persons shall have the protection of TIA
Section 312(c) and that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under TIA Section 312(b).

     Section 13.14 Duplicate Originals.

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

     Section 13.15 No Adverse Interpretation of Other Agreements.

     This Supplemental Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or any of its Subsidiaries. Any such indenture, loan or debt agreement may
not be used to interpret this Supplemental Indenture.

     Section 13.16 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

     Section 13.17 Waiver of Jury Trial.

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

[Remainder of Page Intentionally Left Blank; Signature Pages Follow.]

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

	 	 	 	 	 
	 	ISSUER:

COMSTOCK RESOURCES, INC.

 	 

	 
	 	 	 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

	 
	 	 	 	 
	 	SUBSIDIARY GUARANTORS:

COMSTOCK OIL & GAS, LP

 	 
	 	By:  	Comstock Oil & Gas GP, LLC,
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                Comstock Resources, Inc. as sole member
 	 
	 	 	 
	 	By:  	                /s/ ROLAND O. BURNS
 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

	 
	 	 	 	 
	 	COMSTOCK OIL & GAS LOUISIANA, LLC

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

	 
	 	 	 	 
	 	COMSTOCK OIL & GAS GP, LLC

 	 
	 	By:  	Comstock Resources, Inc. as sole member
 	 
	 	 	 
	 	By:  	            /s/ ROLAND O. BURNS
 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

[Signature
Page to Comstock Resources, Inc. Third Supplemental Indenture dated as of March 14, 2011]

 

 

	 	 	 	 	 
	 	COMSTOCK OIL & GAS INVESTMENTS, LLC

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	Name: 	 	 	 
	 	Title: 	 	 	 
	 
	 	 	 	 
	 	COMSTOCK OIL & GAS HOLDINGS, INC.

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	Name: 	 	 	 
	 	Title: 	 	 	 
	 

[Signature Page to Comstock Resources, Inc. Third
Supplemental Indenture dated as of March 14, 2011]

 

 

	 	 	 	 	 
	 	TRUSTEE:

THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

 	 

	 
	 	 	 	 
	 	By:  	/s/ JULIE HOFFMAN-RAMOS
 	 
	 	Name: 	 	JULIE HOFFMAN-RAMOS	 
	 	Title: 	 	SENIOR ASSOCIATE	 
	 

[Signature
Page to Comstock Resources, Inc. Third Supplemental Indenture dated as of March 14, 2011]

 

 

APPENDIX A

[FORM OF FACE OF NOTE]

[Global Notes Legend]

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.

 

 

[FORM OF FACE OF NOTE]

COMSTOCK RESOURCES, INC.

73/4% Senior Note due 2019

	 	 	 	 	 
	No.                     
	 		$                    	 
	 
	CUSIP No.	                      

     Comstock Resources, Inc., a Nevada corporation, promises to pay to _____________, or
registered assigns, the principal sum of _______________ Dollars on April 1, 2019.

     Interest Payment Dates: April 1 and October 1, beginning on October 1, 2011.

     Record Dates: March 15 and September 15.

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

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

	 	 	 	 	 
	 	Dated:__________, _____

COMSTOCK RESOURCES, INC.

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

Form of
Face Security, Page 1

 

 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF

     AUTHENTICATION

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

as Trustee, certifies

          that this is one of the Notes

          referred to in the Indenture.

 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 
	 

Form of Face Security, Page 2

 

 

[FORM OF REVERSE SIDE OF NOTE]

73/4
% Senior Note due 2019

1. Interest.

     Comstock Resources, Inc., a Nevada corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at the rate per annum shown above. The
Company will pay interest semiannually on April 1 and October 1 of each year. Interest on the
Notes will accrue from the most recent date to which interest has been paid or, if no interest has
been paid, from the date of original issuance thereof. Interest will be computed on the basis of a
360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the
rate borne by the Notes plus 1% per annum, and it shall pay interest on overdue installments of
interest at the same rate to the extent lawful.

2. Method of Payment.

     The Company will pay interest on the Notes (except defaulted interest) to the Persons who are
registered holders of Notes at the close of business on the March 15 or September 15 next preceding
the interest payment date even if Notes are canceled after the record date and on or before the
interest payment date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United States of America
that at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Notes represented by a Global Note (including principal, premium and interest) will
be made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company. The Company will make all payments in respect of a certificated Note (including
principal, premium and interest), by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on the Notes may also be made, in the case of a Holder of
at least $500,000 aggregate principal amount of Notes, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects payment by wire
transfer by giving written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date for payment (or such
other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar.

     Initially, The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will act as Paying
Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company may act as Paying Agent, Registrar or co-registrar.

4. Indenture.

     The Company issued the Notes under an Indenture dated as of October 9, 2009 between the
Company, the Subsidiary Guarantors and the Trustee (the “Original Indenture”), as

Form of Reverse Side of Security, Page 1

 

 

supplemented by a Third Supplemental Indenture dated as of even date therewith (the
“Supplemental Indenture”, and the Original Indenture as supplemented thereby, the “Indenture”).
The terms of the Notes include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in
effect on the date of the Indenture (the “TIA”). Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Notes are subject to all such
terms, and the Holders are referred to the Indenture and the TIA for a statement of those terms.

     The Notes are general unsecured obligations of the Company with no limit as to the aggregate
principal amount at any one time outstanding (subject to Section 9.12 of the Indenture). The Notes
issued on the Issue Date and any Additional Notes are treated as a single class of securities for
all purposes of the Indenture. The Indenture imposes certain limitations on the ability of the
Company and its Restricted Subsidiaries to, among other things, make certain Investments and other
Restricted Payments, pay dividends and other distributions, incur Indebtedness, enter into
consensual restrictions upon the payment of certain dividends and distributions by such Restricted
Subsidiaries, issue or sell shares of certain capital stock of such Restricted Subsidiaries, enter
into or permit certain transactions with Affiliates, create or incur Liens and make Asset Sales.
The Indenture also imposes limitations on the ability of the Company or any Subsidiary Guarantor to
consolidate or merge with or into any other Person or convey, transfer or lease all or
substantially all of the Property of the Company or any Subsidiary Guarantor.

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

5. Optional Redemption.

     The Notes are subject to redemption, at the option of the Company, in whole or in part, at any
time on or after April 1, 2015 at the following Redemption Prices (expressed as percentages of
principal amount) set forth below if redeemed during the 12-month period beginning April 1 of the
years indicated below:

	 	 	 	 	 
	Year	 	Redemption Price
	2015
	 	 	103.875	%
	2016
	 	 	101.938	%
	2017 and thereafter
	 	 	100.000	%

together in the case of any such redemption with accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an Interest Payment Date that is on or prior to the Redemption Date), all as
provided in the Indenture.

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     Notwithstanding the foregoing, prior to April 1, 2014, the Company may redeem, at any time or
from time to time, up to 35% of the aggregate principal amount of Notes issued on the Issue Date,
at a redemption price of 107.750% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant
record date to receive interest due on an Interest Payment Date that is on or prior to the
Redemption Date), with the Net Cash Proceeds of one or more Public Equity Offerings, provided that
at least 65% of the aggregate principal amount of Notes issued on the Issue Date remains
outstanding immediately after such redemption (excluding Notes held by the Company and its
Subsidiaries) and that such redemption occurs within 120 days following the closing of any such
Public Equity Offering.

6. Sinking Fund.

     The Notes are not subject to any sinking fund.

7. Notice of Redemption.

     Notice of redemption will be sent at least 30 days but not more than 60 days before the
redemption date to each Holder of Notes to be redeemed at his or her registered address. Notes in
denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000 in
excess of $2,000. If money sufficient to pay the redemption price of and accrued interest on all
Notes (or portions thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are satisfied, on and after
such date interest ceases to accrue on such Notes (or such portions thereof) called for redemption.

8. Repurchase of Notes at the Option of Holders upon Change of Control.

     Upon the occurrence of a Change of Control, any Holder of Notes will have the right, subject
to certain conditions specified in the Indenture, to cause the Company to repurchase all or any
part of the Notes of such Holder at a purchase price equal to 101% of the principal amount of the
Notes to be repurchased plus accrued and unpaid interest, if any, to the date of purchase as
provided in, and subject to the terms of, the Indenture.

9. Denominations; Transfer; Exchange.

     The Notes are in registered form without coupons in denominations of $2,000 and whole
multiples of $1,000 in excess of $2,000. A Holder may transfer or exchange Notes in accordance
with the Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay
any taxes required by law or permitted by the Indenture.

10. Persons Deemed Owners.

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

Form of Reverse Side of Security, Page 3

 

 

11. Unclaimed Money.

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

12. Discharge and Defeasance.

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

13. Amendment, Waiver.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the Subsidiary Guarantors and the
rights of the Holders under the Indenture at any time by the Company, the Subsidiary Guarantors and
the Trustee with the consent of the Holders of a majority in aggregate principal amount of the
Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders of
specified percentages in aggregate principal amount of the Notes at the time Outstanding, on behalf
of the Holders of all the Notes, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by or on behalf of the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note. Without the consent of any Holder, the Company, the Subsidiary
Guarantors and the Trustee may amend or supplement the Indenture or the Notes to cure any
ambiguity, defect or inconsistency, to qualify or maintain the qualification of the Indenture under
the TIA, to add or release any Subsidiary Guarantor pursuant to the Indenture and to make certain
other specified changes and other changes that do not adversely affect the interests of any Holder.

14. Defaults and Remedies.

     As set forth in the Indenture, an Event of Default is generally (i) failure to pay principal
upon maturity, redemption or otherwise (including pursuant to a Change of Control Offer or a
Prepayment Offer); (ii) default for 30 days in payment of interest on any of the Notes; (iii)
default in the performance of agreements relating to mergers, consolidations and sales of all or
substantially all assets or the failure to make or consummate a Change of Control Offer or a
Prepayment Offer; (iv) failure for 90 days after notice to comply with Section 9.9 of the
Indenture; (v) failure for 60 days after notice to comply with any other covenants in the
Indenture, any Subsidiary Guarantee or the Notes; (vi) certain payment defaults under, and the
acceleration prior to the maturity of, certain Indebtedness of the Company or any Restricted
Subsidiary in an aggregate principal amount in excess of $50,000,000; (vi) the failure of any
Subsidiary Guarantee to be in full force and effect (except as permitted by the Indenture);

Form of Reverse Side of Security, Page 4

 

 

(vii) certain final judgments or orders against the Company or any Restricted Subsidiary in an
aggregate amount of more than $50,000,000 (net of any amounts covered by insurance with a reputable
and creditworthy insurance company that has not disclaimed liability) which remain unsatisfied and
either become subject to commencement of enforcement proceedings or remain unstayed for a period of
60 days; and (viii) certain events of bankruptcy, insolvency or reorganization of the Company or
any Restricted Subsidiary. If any Event of Default occurs and is continuing, the Trustee or the
holders of at least 25% in aggregate principal amount of the Outstanding Notes may declare the
principal amount of all the Notes to be due and payable immediately, except that (i) in the case of
an Event of Default arising from certain events of bankruptcy, insolvency or reorganization of the
Company or any Restricted Subsidiary, the principal amount of the Notes will become due and payable
immediately without further action or notice, and (ii) in the case of an Event of Default which
relates to certain payment defaults or the acceleration with respect to certain Indebtedness, any
such Event of Default and any consequential acceleration of the Notes will be automatically
rescinded if any such Indebtedness is repaid or if the default relating to such Indebtedness is
cured or waived, and if the holders thereof have accelerated such Indebtedness, such holders have
rescinded their declaration of acceleration. No Holder may pursue any remedy under the Indenture
unless the Trustee shall have failed to act after notice from such Holder of an Event of Default
and written request by Holders of at least 25% in aggregate principal amount of the Outstanding
Notes to institute proceedings in respect of such Event of Default, and the offer to the Trustee of
indemnity reasonably satisfactory to it; however, such provision does not affect the right to sue
for enforcement of any overdue payment on a Note by the Holder thereof. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the Outstanding Notes may
direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders
notice of any continuing default (except default in payment of principal, premium or interest) if
it determines in good faith that withholding the notice is in the interest of the Holders. The
Company is required to file annual reports with the Trustee as to the absence or existence of
defaults.

15. Trustee Dealings with the Company.

     Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes 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.

16. No Personal Liability of Directors, Officers, Employees and Stockholders.

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

Form of Reverse Side of Security, Page 5

 

 

17. Authentication.

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

18. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

19. Governing Law.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

20. 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 Notes and has directed the
Trustee to use CUSIP numbers in notices of redemption as a convenience to the Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

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

Form of Reverse Side of Security, Page 6

 

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note 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 Note on the books of the
Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date: 	Your Name:

(Print exactly as your name appears on the face of this Note)

 	 
	 
	 	Your Signature:

(Sign exactly as your name appears on the face of this Note)

 	 
	 
	 	 	Signature Guarantee:

Signature must be guaranteed by a participant in a recognized

signature guaranty medallion program or other signature acceptable
to Trustee

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

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

	 	 	 	 	 	 	 	 	 

	

Date of 

Exchange

	 	
Amount of decrease
in 
Principal Amount
of this 

Global Note
	 	

Amount of increase

in Principal Amount

of this Global Note
	 	
Principal amount of

this Global Note

following such

decrease or increase
	 	Signature of
authorized

signatory of
Trustee or 

Note
Custodian

 

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 9.16 or
9.17 of the Indenture, check the box below:

     o 
Section 9.16            o  Section 9.17

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 9.16 or 9.17 of the Indenture, state the amount: $                    

	 	 	 	 	 
	Date:                     	Your signature:

(Sign exactly as your name appears on the other side of the Note)

 
	 
	 	Signature guarantee:

Signature must be guaranteed by a participant in a recognized
signature guaranty medallion program or other signature guarantor
acceptable to the trustee.

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