Document:

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                                                                     Exhibit 4.2
                                                                  EXECUTION COPY

                             FOREST OIL CORPORATION

                            8% Senior Notes due 2008

                         ------------------------------

                                    INDENTURE

                            Dated as of June 21, 2001

                         -------------------------------

                       State Street Bank and Trust Company

                                     Trustee

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                                TABLE OF CONTENTS

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                                                                                                                PAGE
<S>                                                                                                             <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..............................................................1

         SECTION 1.01.   DEFINITIONS..............................................................................1
         SECTION 1.02.   OTHER DEFINITIONS.......................................................................23
         SECTION 1.03.   INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.......................................24
         SECTION 1.04.   RULES OF CONSTRUCTION...................................................................25

ARTICLE II THE SECURITIES........................................................................................25

         SECTION 2.01.   FORM, DATING AND TERMS..................................................................25
         SECTION 2.02.   EXECUTION AND AUTHENTICATION............................................................32
         SECTION 2.03.   REGISTRAR AND PAYING AGENT..............................................................34
         SECTION 2.04.   PAYING AGENT TO HOLD MONEY IN TRUST.....................................................35
         SECTION 2.05.   SECURITYHOLDER LISTS....................................................................35
         SECTION 2.06.   TRANSFER AND EXCHANGE...................................................................35
         SECTION 2.07.   FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS TO INSTITUTIONAL
                           ACCREDITED INVESTORS..................................................................38
         SECTION 2.08.   FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO
                           REGULATION S..........................................................................41
         SECTION 2.09.   REPLACEMENT SECURITIES..................................................................42
         SECTION 2.10.   OUTSTANDING SECURITIES..................................................................43
         SECTION 2.11.   TEMPORARY SECURITIES....................................................................43
         SECTION 2.12.   CANCELLATION............................................................................43
         SECTION 2.13.   DEFAULTED INTEREST......................................................................44
         SECTION 2.14.   COMPUTATION OF INTEREST.................................................................44
         SECTION 2.15.   CUSIP NUMBERS...........................................................................44

ARTICLE III REDEMPTION...........................................................................................44

         SECTION 3.01.   NOTICES TO TRUSTEE......................................................................44
         SECTION 3.02.   SELECTION OF SECURITIES TO BE REDEEMED..................................................44
         SECTION 3.03.   NOTICE OF REDEMPTION....................................................................45
         SECTION 3.04.   EFFECT OF NOTICE OF REDEMPTION..........................................................45
         SECTION 3.05.   DEPOSIT OF REDEMPTION PRICE.............................................................46
         SECTION 3.06.   SECURITIES REDEEMED IN PART.............................................................46

ARTICLE IV COVENANTS.............................................................................................46

         SECTION 4.01.   PAYMENT OF SECURITIES...................................................................46
         SECTION 4.02.   SEC REPORTS.............................................................................46
         SECTION 4.03.   LIMITATION ON INDEBTEDNESS..............................................................46

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         SECTION 4.04.   LIMITATION ON RESTRICTED PAYMENTS.......................................................47
         SECTION 4.05.   LIMITATION ON RESTRICTIONS ON DISTRIBUTIONS FROM RESTRICTED SUBSIDIARIES................49
         SECTION 4.06.   LIMITATION ON ASSET SALES...............................................................50
         SECTION 4.07.   LIMITATION ON TRANSACTIONS WITH AFFILIATES..............................................53
         SECTION 4.08.   LIMITATION ON THE ISSUANCE AND SALE OF CAPITAL STOCK OF RESTRICTED SUBSIDIARIES.........54
         SECTION 4.09.   CHANGE OF CONTROL.......................................................................54
         SECTION 4.10.   LIMITATION ON LIENS.....................................................................56
         SECTION 4.11.   COMPLIANCE CERTIFICATE..................................................................56
         SECTION 4.12.   FURTHER INSTRUMENTS AND ACTS............................................................56
         SECTION 4.13.   FUTURE SUBSIDIARY GUARANTORS............................................................56
         SECTION 4.14.   RESTRICTED AND UNRESTRICTED SUBSIDIARIES................................................56
         SECTION 4.15.   TERMINATION OF CERTAIN COVENANTS........................................................57
         SECTION 4.16.   REGISTRATION DEFAULT....................................................................57

ARTICLE V SUCCESSOR COMPANY......................................................................................58

         SECTION 5.01.   WHEN COMPANY MAY MERGE OR TRANSFER ASSETS...............................................58

ARTICLE VI DEFAULTS AND REMEDIES.................................................................................59

         SECTION 6.01.   EVENTS OF DEFAULT.......................................................................59
         SECTION 6.02.   ACCELERATION............................................................................61
         SECTION 6.03.   OTHER REMEDIES..........................................................................61
         SECTION 6.04.   WAIVER OF PAST DEFAULTS.................................................................61
         SECTION 6.05.   CONTROL BY MAJORITY.....................................................................62
         SECTION 6.06.   LIMITATION ON SUITS.....................................................................62
         SECTION 6.07.   RIGHTS OF HOLDERS TO RECEIVE PAYMENT....................................................62
         SECTION 6.08.   COLLECTION SUIT BY TRUSTEE..............................................................62
         SECTION 6.09.   TRUSTEE MAY FILE PROOFS OF CLAIM........................................................63
         SECTION 6.10.   PRIORITIES..............................................................................63
         SECTION 6.11.   UNDERTAKING FOR COSTS...................................................................63
         SECTION 6.12.   WAIVER OF STAY OR EXTENSION LAWS........................................................63

ARTICLE VII TRUSTEE..............................................................................................64

         SECTION 7.01.   DUTIES OF TRUSTEE.......................................................................64
         SECTION 7.02.   RIGHTS OF TRUSTEE.......................................................................65
         SECTION 7.03.   INDIVIDUAL RIGHTS OF TRUSTEE............................................................65
         SECTION 7.04.   TRUSTEE'S DISCLAIMER....................................................................65
         SECTION 7.05.   NOTICE OF DEFAULTS......................................................................65
         SECTION 7.06.   REPORTS BY TRUSTEE TO HOLDERS...........................................................66
         SECTION 7.07.   COMPENSATION AND INDEMNITY..............................................................66
         SECTION 7.08.   REPLACEMENT OF TRUSTEE..................................................................66
         SECTION 7.09.   SUCCESSOR TRUSTEE BY MERGER.............................................................67
         SECTION 7.10.   ELIGIBILITY; DISQUALIFICATION...........................................................68

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         SECTION 7.11.   PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.......................................68

ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE..................................................................68

         SECTION 8.01.   DISCHARGE OF LIABILITY ON SECURITIES; DEFEASANCE........................................68
         SECTION 8.02.   CONDITIONS TO DEFEASANCE................................................................69
         SECTION 8.03.   APPLICATION OF TRUST MONEY..............................................................70
         SECTION 8.04.   REPAYMENT TO THE COMPANY................................................................70
         SECTION 8.05.   INDEMNITY FOR GOVERNMENT OBLIGATIONS....................................................70
         SECTION 8.06.   REINSTATEMENT...........................................................................70

ARTICLE IX AMENDMENTS............................................................................................71

         SECTION 9.01.   WITHOUT CONSENT OF HOLDERS..............................................................71
         SECTION 9.02.   WITH CONSENT OF HOLDERS.................................................................71
         SECTION 9.03.   COMPLIANCE WITH TRUST INDENTURE ACT.....................................................72
         SECTION 9.04.   REVOCATION AND EFFECT OF CONSENTS AND WAIVERS...........................................72
         SECTION 9.05.   NOTATION ON OR EXCHANGE OF SECURITIES...................................................73
         SECTION 9.06.   TRUSTEE TO SIGN AMENDMENTS..............................................................73
         SECTION 9.07.   PAYMENT FOR CONSENT.....................................................................73

ARTICLE X SUBSIDIARY GUARANTEES..................................................................................73

         SECTION 10.01.   SUBSIDIARY GUARANTEE...................................................................73
         SECTION 10.02.   CONTRIBUTION...........................................................................75
         SECTION 10.03.   SUCCESSORS AND ASSIGNS.................................................................75
         SECTION 10.04.   NO WAIVER..............................................................................75
         SECTION 10.05.   MODIFICATION...........................................................................76
         SECTION 10.06.   EXECUTION OF SUPPLEMENTAL INDENTURE FOR FUTURE SUBSIDIARY GUARANTORS...................76

ARTICLE XI MISCELLANEOUS.........................................................................................76

         SECTION 11.01.   TRUST INDENTURE ACT CONTROLS...........................................................76
         SECTION 11.02.   NOTICES................................................................................76
         SECTION 11.03.   COMMUNICATION BY HOLDERS WITH OTHER HOLDERS............................................77
         SECTION 11.04.   CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.....................................77
         SECTION 11.05.   STATEMENTS REQUIRED IN CERTIFICATE OR OPINION..........................................78
         SECTION 11.06.   WHEN SECURITIES DISREGARDED............................................................78
         SECTION 11.07.   RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR...........................................78
         SECTION 11.08.   LEGAL HOLIDAYS.........................................................................78
         SECTION 11.09.   GOVERNING LAW..........................................................................78
         SECTION 11.10.   NO RECOURSE AGAINST OTHERS.............................................................78
         SECTION 11.11.   SUCCESSORS.............................................................................79
         SECTION 11.12.   MULTIPLE ORIGINALS.....................................................................79
         SECTION 11.13.   TABLE OF CONTENTS; HEADINGS............................................................79

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         SECTION 11.14.   CONSENT TO JURISDICTION AND SERVICE....................................................79

EXHIBITS

EXHIBIT A           FORM OF INITIAL SECURITY AND ADDITIONAL SECURITY
EXHIBIT B           FORM OF EXCHANGE SECURITY
EXHIBIT C           FORM OF SUPPLEMENTAL INDENTURE

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                             CROSS-REFERENCE TABLE

<Table>
<Caption>

  TIA                                                            Indenture
Section                                                           Section
-------                                                          ---------
<S>                                                              <C>
310(a)(1)                                                        7.10
(a)(2)                                                           7.10
(a)(3)                                                           N.A.
(a)(4)                                                           N.A.
(b)                                                              7.08; 8.10
(c)                                                              N.A.
311(a)                                                           7.11
(b)                                                              7.11
(c)                                                              N.A.
312(a)                                                           2.06
(b)                                                              11.03
(c)                                                              11.03
313(a)                                                           7.06
(b)(1)                                                           N.A.
(b)(2)                                                           7.06
(c)                                                              11.02
(d)                                                              7.06
314(a)                                                           4.02; 4.11
                                                                 11.02
(b)                                                              N.A.
(c)(1)                                                           11.04
(c)(2)                                                           11.04
(c)(3)                                                           N.A.
(d)                                                              N.A.
(e)                                                              11.05
(f)                                                              4.11
315(a)                                                           7.01
(b)                                                              7.05; 11.02
(c)                                                              7.01
(d)                                                              7.01
(e)                                                              6.11
316(a)
(last sentence)                                                  11.06
(a)(1)(A)                                                        6.05
(a)(1)(B)                                                        6.04
(a)(2)(A)                                                        N.A.
(b)                                                              6.07
317(a)(1)                                                        6.08
(a)(2)                                                           6.09
(b)                                                              2.05

</Table>

                          N.A. means Not Applicable.

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

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                  INDENTURE dated as of June 21, 2001, between FOREST OIL
CORPORATION, a New York corporation (the "COMPANY") and State Street Bank and
Trust Company, as Trustee (the "TRUSTEE").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of (i) the
Company's 8% Senior Securities due 2008 (the "Initial Securities"), and (ii) if
and when issued, additional 8% Senior Notes Due 2008 in unlimited principal
amount that may be offered subsequent to the Issue Date (the "Additional
Securities"), to be issued, from time to time, in one or more series as provided
in this Indenture and (iii) if and when issued in exchange for Initial
Securities or any Additional Securities as provided in the Exchange and
Registration Rights Agreement or a similar agreement relating to Initial
Securities, the Company's 8% Senior Notes due 2008 (the "Exchange Securities")
and (iv) if and when issued as provided in the Exchange and Registration Rights
Agreement, the Private Exchange Securities (as defined in the Exchange and
Registration Rights Agreement).

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  SECTION 1.01. DEFINITIONS.

                  "ADDITIONAL ASSETS" means (a) any Property (other than cash,
Permitted Short-Term Investments or securities) used in the Oil and Gas Business
or any business ancillary thereto, (b) Investments in any other Person engaged
in the Oil and Gas Business or any business ancillary thereto (including the
acquisition from third parties of Capital Stock of such Person) as a result of
which such other Person becomes a Restricted Subsidiary in compliance with
Section 4.15, (c) the acquisition from third parties of Capital Stock of a
Restricted Subsidiary or (d) Permitted Business Investments.

                  "ADDITIONAL SECURITIES" has the meaning ascribed to it in the
second introductory paragraph of this Indenture.

                  "ADJUSTED CONSOLIDATED NET TANGIBLE ASSETS" means (without
duplication), as of the date of determination, the remainder of: (a) the sum of
(i) discounted future net revenues from proved oil and gas reserves of the
Company and its Restricted Subsidiaries calculated in accordance with Commission
guidelines before any provincial, territorial, state, Federal or foreign income
taxes, as estimated by the Company in a reserve report prepared as of the end of
the Company's most recently completed fiscal year for which audited financial
statements are available, as increased by, as of the date of determination, the
estimated discounted future net revenues from (A) estimated proved oil and gas
reserves acquired since such year-end, which reserves were not reflected in such
year-end reserve report, and (B) estimated oil and gas reserves attributable to
upward revisions of estimates of proved oil and gas reserves since such year-end
due to exploration, development or exploitation activities, in each case
calculated in accordance with Commission guidelines (utilizing the prices
utilized in such year-end reserve report), and decreased by, as of the date of
determination, the estimated discounted future net revenues from (C) estimated
proved oil and gas reserves produced or disposed of since such year-end and (D)
estimated oil and gas reserves attributable to downward

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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 (A) through (D), such increases and
decreases shall be as estimated by the Company's petroleum engineers, (ii) the
capitalized costs that are attributable to oil and gas properties of the Company
and its Restricted Subsidiaries to which no proved oil and gas reserves are
attributable, based on the Company's books and records as of a date no earlier
than the date of the Company's latest available annual or quarterly financial
statements, (iii) the Net Working Capital on a date no earlier than the date of
the Company's latest annual or quarterly financial statements and (iv) the
greater of (A) the net book value on a date no earlier than the date of the
Company's latest annual or quarterly financial statements and (B) the Fair
Market Value, as estimated by the Company, of other tangible assets (including,
without duplication, Investments in unconsolidated Restricted Subsidiaries) of
the Company and its Restricted Subsidiaries, as of the date no earlier than the
date of the Company's latest audited financial statements, minus (b) the sum of
(i) minority interests, (ii) any net gas balancing liabilities of the Company
and its Restricted Subsidiaries reflected in the Company's latest audited
financial statements, (iii) to the extent included in (a)(i) above, the
discounted future net revenues, calculated in accordance with Commission
guidelines (utilizing the prices utilized in the Company's year-end reserve
report), attributable to reserves which are required to be delivered to third
parties to fully satisfy the obligations of the Company and its Restricted
Subsidiaries with respect to Volumetric Production Payments (determined, if
applicable, using the schedules specified with respect thereto) and (iv) 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 (a)(i)
above, would be necessary to fully satisfy the payment obligations of the
Company and its Restricted Subsidiaries with respect to Dollar-Denominated
Production Payments (determined, if applicable, using the schedules specified
with respect thereto). If the Company changes its method of accounting from the
full cost method to the successful efforts method or a similar method of
accounting, "Adjusted Consolidated Net Tangible Assets" will continue to be
calculated as if the Company were still using the full cost method of
accounting.

                  "AFFILIATE" of any specified Person means any other Person (a)
which directly or indirectly through one or more intermediaries controls, or is
controlled by, or is under common control with, such specified Person or (b)
which beneficially owns or holds directly or indirectly 10% or more of any class
of the Voting Stock of such specified Person or of any Subsidiary of such
specified Person. For the purposes of this definition, "control," when used with
respect to any specified Person, means the power to direct the management and
policies of such Person directly or indirectly, whether through the ownership of
Voting Stock, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "ASSET SALE" means, with respect to any Person, any transfer,
conveyance, sale, lease or other disposition (collectively, "dispositions," and
including dispositions pursuant to any consolidation or merger) by such Person
in any single transaction or series of transactions of (a) shares of Capital
Stock or other ownership interests of another Person (including Capital

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Stock of Restricted Subsidiaries and Unrestricted Subsidiaries) or (b) any other
Property of such Person; PROVIDED, HOWEVER, that the term "Asset Sale" shall not
include: (i) the disposition of Permitted Short-Term Investments, inventory,
accounts receivable, surplus or obsolete equipment or other Property (excluding
the disposition of oil and gas in place and other interests in real property
unless made in connection with a Permitted Business Investment) in the ordinary
course of business; (ii) the abandonment, assignment, lease, sublease or
farm-out of oil and gas properties, or the forfeiture or other disposition of
such properties pursuant to standard form operating agreements, in each case in
the ordinary course of business in a manner that is customary in the Oil and Gas
Business; (iii) the disposition of Property received in settlement of debts
owing to such Person as a result of foreclosure, perfection or enforcement of
any Lien or debt, which debts were owing to such Person in the ordinary course
of its business; (iv) any disposition that constitutes a Restricted Payment made
in compliance with Section 4.04; (v) when used with respect to the Company, any
disposition of all or substantially all of the Property of such Person permitted
pursuant to Article V; (vi) the disposition of any Property by such Person to
the Company or a Wholly Owned Subsidiary; (vii) the disposition of any asset
with a Fair Market Value of less than $2,000,000; or (viii) any Production
Payments and Reserve Sales; PROVIDED that any such Production Payments and
Reserve Sales, other than incentive compensation programs on terms that are
reasonably customary in the Oil and Gas Business for geologists, geophysicists
and other providers of technical services to the Company or a Restricted
Subsidiary, shall have been created, Incurred, issued, assumed or Guaranteed in
connection with the financing of, and within 60 days after the acquisition of,
the Property that is subject thereto.

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

                  "BANK CREDIT FACILITIES" means, with respect to any Person,
one or more debt facilities or commercial paper facilities with banks or other
institutional lenders (including pursuant to the Credit Agreement dated as of
October 10, 2000, as amended on May 24, 2001, among the Company, the Lenders
named therein, Bank of America N.A., as U.S. syndication agent, Citibank N.A.,
as U.S. documentation agent and The Chase Manhattan Bank, as global
administrative agent, and the Credit Agreement dated as of October 10, 2000, as
amended on May 24, 2001, among Canadian Forest Oil Ltd., each other subsidiary
of Canadian Forest Oil Ltd. that becomes a borrower, the Lenders named therein,
The Chase Manhattan Bank of Canada, as Canadian administrative agent, Bank of
Montreal, as Canadian syndication agent, and The Chase Manhattan Bank, as global
administrative agent) providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such lenders
or to special purpose entities formed to borrow from such lenders against such
receivables) or trade letters of credit, together with any extensions,
revisions, restatements, refinancings or replacements thereof by a lender or
syndicate of lenders; PROVIDED, HOWEVER, that any Indebtedness which otherwise
would come within this definition shall not constitute Indebtedness under Bank
Credit Facilities to the extent that the Company shall have determined

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at the time of Incurrence that such Indebtedness was Incurred pursuant to
another provision of Section 4.03.

                  "BOARD OF DIRECTORS" means the Board of Directors of the
Company or any committee thereof duly authorized to act on behalf of such Board.

                  "BUSINESS DAY" means each day which is not a Legal Holiday.

                  "CANADIAN SUBSIDIARY" means a Subsidiary organized under the
laws of Canada or any province thereof.

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

                  "CAPITAL STOCK" in any Person means any and all shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person and any rights (other than debt securities
convertible into an equity interest), warrants or options to subscribe for or to
acquire an equity interest in such Person; PROVIDED, HOWEVER, that "Capital
Stock" shall not include Redeemable Stock.

                  "CHANGE OF CONTROL" means the occurrence of any of the
following events:

                  (a) any "person" or "group" (within the meaning of Sections
         13(d)(3) and 14(d)(2) of the Exchange Act or any successor provision to
         either of the foregoing, including any group acting for the purpose of
         acquiring, holding or disposing of securities within the meaning of
         Rule 13d-5(b)(1) under the Exchange Act), becomes the "beneficial
         owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
         except that a Person will be deemed to have "beneficial ownership" of
         all shares that any such Person has the right to acquire, whether such
         right is exercisable immediately or only after the passage of time) of
         more than 50% of the total voting power of all classes of the Voting
         Stock of the Company or currently exercisable warrants or options to
         acquire such Voting Stock;

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

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

                  (d) 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 reclassified into or exchanged for cash,
         securities or other property, other than any such transaction where the

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         outstanding Voting Stock of the Company is reclassified into or
         exchanged for Voting Stock of the surviving corporation that is Capital
         Stock and 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 corporation immediately
         after such transaction in substantially the same proportion as before
         the transaction (for purposes of this clause (d), the holders of the
         Voting Stock immediately prior to such transaction shall be deemed to
         beneficially own any Voting Stock of a specified corporation held by a
         parent corporation, if the holders of the Voting Stock immediately
         prior to such transaction are the beneficial owners (as defined in
         clause 1 above), directly or indirectly, of more than 50% of the voting
         power of the Voting Stock of such parent corporation); or

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

                  "CODE" means the Internal Revenue Code of 1986, as amended.

                  "COMPANY" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

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

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

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

                  "CONSOLIDATED NET INCOME" of any Person means, for any period,
the aggregate net income (or net loss, as the case may be) of such Person and
its Restricted Subsidiaries for such period on a consolidated basis, determined
in accordance with GAAP; PROVIDED that there shall be excluded therefrom,
without duplication, (a) items classified as extraordinary gains or losses net
of taxes (less all fees and expenses relating thereto); (b) any gain or loss net
of taxes (less all fees and expenses relating thereto), realized on the sale or
other disposition of Property, including the Capital Stock of any other Person
(but in no event shall this clause (b) apply to any gains or losses on the sale
in the ordinary course of business of oil, gas or other hydrocarbons produced or
manufactured); (c) the net income of any Restricted Subsidiary of such specified
person to the extent the transfer to that Person of that income is restricted by
contract or otherwise, except for any cash dividends or cash distributions
actually paid by such Restricted Subsidiary to such Person during such period;
(d) the net income (or

                                       6
<Page>

loss) of any other Person in which such Person or any of its Restricted
Subsidiaries has an interest (which interest does not cause the net income of
such other Person to be consolidated with the net income of such Person in
accordance with GAAP or is an interest in a consolidated Unrestricted
Subsidiary), except to the extent of the amount of cash dividends or other cash
distributions actually paid to such Person or its consolidated Restricted
Subsidiaries by such other Person during such period; (e) for the purposes of
Section 4.04 only, the net income of any Person acquired by such Person or any
of its Restricted Subsidiaries in a pooling-of-interests transaction for any
period prior to the date of such acquisition; (f) any gain or loss, net of
taxes, realized on the termination of any employee pension benefit plan; (g)
any adjustments of a deferred tax liability or asset pursuant to Statement of
Financial Accounting Standards No. 109 which result from changes in enacted tax
laws or rates; (h) the cumulative effect of a change in accounting principles;
(i) any write-downs of non-current assets; PROVIDED that any ceiling limitation
write-downs under Commission guidelines shall be treated as capitalized costs,
as if such write-downs had not occurred; (j) any non-cash compensation expense
realized for grants of performance shares, stock options or stock awards to
officers, directors and employees of such Person or any of its Restricted
Subsidiaries; (k) any non-cash gains or losses related to Exchange Rate
Contracts and Oil and Gas Hedging Contracts, net of taxes; (l) any non-cash
gains or losses related to foreign currency exchange, net of taxes; and (m) any
expenses relating to the Forcenergy Merger, net of taxes.

                  "CONSOLIDATED NET WORTH" of any Person means the stockholders'
equity of such Person and its Restricted Subsidiaries, as determined on a
consolidated basis in accordance with GAAP, less (to the extent included in
stockholders' equity) amounts attributable to Redeemable Stock of such Person or
its Restricted Subsidiaries.

                  "CORPORATE TRUST OFFICE" means an office of the Trustee at
which any particular time its corporate trust business shall be administered,
which office is, as of the date of the Indenture, located at 225 Asylum Street,
Hartford, CT 06103.

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

                  "DEFINITIVE SECURITIES" means certificated Securities.

                  "DOLLAR-DENOMINATED PRODUCTION PAYMENTS" means production
payment obligations recorded as liabilities in accordance with GAAP, together
with all undertakings and obligations in connection therewith.

                  "DOMESTIC RESTRICTED SUBSIDIARY" means a Restricted Subsidiary
organized under the laws of the United States of America, any State thereof or
the District of Columbia.

                  "DOMESTIC SUBSIDIARY" means a Subsidiary organized under the
laws of the United States of America, any State thereof or the District of
Columbia.

                  "DTC" means The Depository Trust Company, its nominees and
their respective successors and assigns, or such other depository institution
hereinafter appointed by the Company.

                                       7
<Page>

                  "EBITDA" means, with respect to any Person for any period, an
amount equal to the Consolidated Net Income of such Person for such period, plus
(a) the sum of, to the extent reflected in the consolidated income statement of
such Person and its Restricted Subsidiaries for such period from which
Consolidated Net Income is determined and deducted in the determination of such
Consolidated Net Income, without duplication, (i) income tax expense (but
excluding income tax expense relating to sales or other dispositions of
Property, including the Capital Stock of any other Person, the gains from which
are excluded in the determination of such Consolidated Net Income), (ii)
Consolidated Interest Expense, (iii) depreciation and depletion expense, (iv)
amortization expense and (v) exploration expense (if applicable), and (vi) any
other non-cash charges; less (b) the sum of, to the extent reflected in the
consolidated income statement of such Person and its Restricted Subsidiaries for
such period from which Consolidated Net Income is determined and added in the
determination of such Consolidated Net Income, without duplication, income tax
recovery (excluding, however, income tax recovery relating to sales or other
dispositions of Property, including the Capital Stock of any other Person, the
losses from which are excluded in the determination of such Consolidated Net
Income).

                  "EQUITY OFFERING" means (a) a bona fide underwritten sale to
the public of common stock of the Company pursuant to a registration statement
(other than a Form S-8 or any other form relating to securities issuable under
any employee benefit plan of the Company) that is declared effective by the
Commission or (b) a bona fide sale of common stock for cash to The Anschutz
Corporation, in either case following the Issue Date.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "EXCHANGE AND REGISTRATION RIGHTS AGREEMENT" means the
Exchange and Registration Rights Agreement dated the Issue Date among J. P.
Morgan Securities Inc., Salomon Smith Barney Inc., BMO Nesbitt Burns Corp., TD
Securities (USA) Inc. and the Company.

                  "EXCHANGE SECURITIES" has the meaning ascribed to it in the
second introductory paragraph of this Indenture.

                  "EXCHANGED PROPERTIES" means properties 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.

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

                  "FAIR MARKET VALUE" means, with respect to any assets to be
transferred pursuant to any Asset Sale or Sale and Leaseback Transaction or any
non-cash consideration or property transferred or received by any Person, the
fair market value of such consideration or

                                       8
<Page>

other property as determined by (a) any officer of the Company if such fair
market value is less than $25,000,000 and (b) the Board of Directors of the
Company as evidenced by a certified resolution delivered to the Trustee if such
fair market value is equal to or in excess of $25,000,000.

                  "FORCENERGY MERGER" means the transactions contemplated by the
Agreement and Plan of Merger, dated as of July 10, 2000, among the Company,
Forest Acquisition I Corporation, a Delaware corporation and Forcenergy Inc., a
Delaware corporation.

                  "GAAP" means United States generally accepted accounting
principles as in effect on the date of this Indenture, unless stated otherwise.

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

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

                  "HOLDER" or "SECURITYHOLDER" means the Person in whose name a
Security is registered on the Securities Register.

                                       9
<Page>

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

                  "INDEBTEDNESS" means at any time (without duplication), with
respect to any Person, whether recourse is to all or a portion of the assets of
such Person, and whether or not contingent, (a) any obligation of such Person
for borrowed money, (b) any obligation of such Person evidenced by bonds,
debentures, notes, Guarantees or other similar instruments, including any such
obligations Incurred in connection with the acquisition of Property, assets or
businesses, (c) any reimbursement obligation of such Person with respect to
letters of credit, bankers' acceptances or similar facilities issued for the
account of such Person, (d) any obligation of such Person issued or assumed as
the deferred purchase price of Property or services (other than Trade Accounts
Payable), (e) any Capital Lease Obligation of such Person, (f) the maximum fixed
redemption or repurchase price of Redeemable Stock of such Person at the time of
determination, (g) any payment obligation of such Person under Exchange Rate
Contracts, Interest Rate Protection Agreements, Oil and Gas Hedging Contracts or
under any similar agreements or instruments, (h) any obligation to pay rent or
other payment amounts of such Person with respect to any Sale and Leaseback
Transaction to which such Person is a party and (i) any obligation of the type
referred to in clauses (a) through (h) of this paragraph of another Person and
all dividends of another Person the payment of which, in either case, such
Person has Guaranteed or is responsible or liable, directly or indirectly, as
obligor, Guarantor or otherwise; PROVIDED, HOWEVER, that Indebtedness shall not
include Production Payments and Reserve Sales. For purposes of this definition,
the maximum fixed repurchase price of any Redeemable Stock that does not have a
fixed repurchase price shall be calculated in accordance with the terms of such
Redeemable Stock as if such Redeemable Stock were repurchased on any date on
which Indebtedness shall be required to be determined pursuant to this
Indenture; PROVIDED, HOWEVER, that if such Redeemable Stock is not then
permitted to be repurchased, the repurchase price shall be the book value of
such Redeemable Stock. The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and the maximum liability at such date in respect of any
contingent obligations described above.

                  "INDENTURE" means this Indenture as amended or supplemented
from time to time.

                                      10
<Page>

                  "INITIAL SECURITIES" has the meaning ascribed to it in the
second introductory paragraph of this Indenture.

                  "INTEREST RATE PROTECTION AGREEMENT" means, with respect to
any Person, any interest rate swap agreement, forward rate agreement, interest
rate cap or collar agreement or other financial agreement or arrangement entered
into by such Person in the ordinary course of its business for the purpose of
limiting or managing interest rate risks to which such Person is subject.

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

                  "INVESTMENT GRADE RATING" means BBB- or above, in the case of
S&P (or its equivalent under any successor rating categories of S&P), Baa3 or
above, in the case of Moody's (or its equivalent under any successor rating
categories of Moody's) and the equivalent in respect of the rating categories of
any Rating Agencies substituted for S&P or Moody's.

                  "ISSUE DATE" means the date on which the Initial Securities
were issued under this Indenture.

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

                  "LIQUID SECURITIES" means securities (a) of an issuer that is
not an Affiliate of the Company, (b) that are publicly traded on the New York
Stock Exchange, the American Stock Exchange, the Toronto Stock Exchange or the
Nasdaq National Market and (c) as to which the Company or the Restricted
Subsidiary holding such securities 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 (a), (b) and (c) above shall be treated as
Liquid Securities from the date of receipt thereof until and only until the
earlier of (i) the date on which such securities are sold or exchanged for cash
or Permitted Short Term Investments and (ii) 180 days following the date of
receipt of such securities. If such securities are not sold or exchanged for
cash or Permitted Short-Term

                                       11
<Page>

Investments within 180 days of receipt thereof, for purposes of determining
whether the transaction pursuant to which the Company or a Restricted Subsidiary
received the securities was in compliance with Section 4.06, such securities
shall be deemed not to have been Liquid Securities at any time.

                  "MOODY'S" means Moody's Investor Service, Inc.

                  "NET AVAILABLE CASH" from an Asset Sale means cash proceeds
received therefrom (including (a) 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 (b) the Fair Market Value of Liquid Securities
and Permitted Short-Term Investments, and excluding (i) any other consideration
received in the form of assumption by the acquiring Person of Indebtedness or
other obligations relating to the Property that is the subject of such Asset
Sale and (ii) except to the extent subsequently converted to cash, Liquid
Securities or Permitted Short-Term Investments within 240 days after such Asset
Sale, consideration constituting Exchanged Properties or consideration other
than as identified in the immediately preceding clauses (a) and (b)), in each
case net of (A) all legal, title and recording expenses, commissions and other
fees and expenses incurred, and all federal, state, foreign and local taxes
required to be paid or accrued as a liability under GAAP as a consequence of
such Asset Sale, (B) all payments made on any Indebtedness (but specifically
excluding Indebtedness of the Company and its Restricted Subsidiaries assumed in
connection with or in anticipation of such Asset Sale) which is secured by any
assets subject to such Asset Sale, in accordance with the terms of any Lien upon
such assets, or which must by its terms, or in order to obtain a necessary
consent to such Asset Sale or by applicable law, be repaid out of the proceeds
from such Asset Sale; PROVIDED that such payments are made in a manner that
results in the permanent reduction in the balance of such Indebtedness and, if
applicable, a permanent reduction in any outstanding commitment for future
incurrences of Indebtedness thereunder, (C) all distributions and other payments
required to be made to minority interest holders in Subsidiaries or joint
ventures as a result of such Asset Sale and (D) the deduction of appropriate
amounts to be provided by the seller as a reserve, in accordance with GAAP,
against any liabilities associated with the assets disposed of in such Asset
Sale and retained by the Company or any Restricted Subsidiary after such Asset
Sale; PROVIDED, HOWEVER, that if any consideration for an Asset Sale (which
would otherwise constitute Net Available Cash) is required to be held in escrow
pending determination of whether a purchase price adjustment will be made, such
consideration (or any portion thereof) shall become Net Available Cash only at
such time as it is released to the Company or any Restricted Subsidiary from
escrow.

                  "NET WORKING CAPITAL" means (a) all current assets of the
Company and its Restricted Subsidiaries, less (b) all current liabilities of the
Company and its Restricted Subsidiaries, except current liabilities included in
Indebtedness, in each case as set forth in consolidated financial statements of
the Company prepared in accordance with GAAP.

                  "NON-RECOURSE PURCHASE MONEY INDEBTEDNESS" means Indebtedness
(other than Capital Lease Obligations) of the Company or any Restricted
Subsidiary Incurred in connection with the acquisition by the Company or such
Restricted Subsidiary in the ordinary course of business of fixed assets used in
the Oil and Gas Business (including office buildings and other real property
used by the Company or such Restricted

                                       12
<Page>

Subsidiary in conducting its operations) with respect to which (a) the holders
of such Indebtedness agree that they will look solely to the fixed assets so
acquired which secure such Indebtedness, and neither the Company nor any
Restricted Subsidiary (i) is directly or indirectly liable for such Indebtedness
or (ii) provides credit support, including any undertaking, Guarantee, agreement
or instrument that would constitute Indebtedness (other than the grant of a Lien
on such acquired fixed assets), and (b) no default or event of default with
respect to such Indebtedness would cause, or permit (after notice or passage of
time or otherwise), any holder of any other Indebtedness of the Company or a
Restricted Subsidiary to declare a default or event of default on such other
Indebtedness or cause the payment, repurchase, redemption, defeasance or other
acquisition or retirement for value thereof to be accelerated or payable prior
to any scheduled principal payment, scheduled sinking fund payment or maturity.

                  "NOTE REGISTER" means the register of Securities, maintained
by the Trustee, pursuant to SECTION 2.03.

                  "OFFICER" means the Chairman, the President, the Chief
Executive Officer, the Chief Financial Officer, the Chief Accounting Officer or
the Treasurer or the Secretary of the Company.

                  "OFFICERS' CERTIFICATE" means a certificate signed by two
Officers at least one of whom shall be the Chief Executive Officer, Chief
Financial Officer, Chief Accounting Officer or the Treasurer of the Company.

                  "OIL AND GAS BUSINESS" means the business of exploiting,
exploring for, developing, acquiring, operating, producing, processing,
gathering, marketing, storing, selling, hedging, treating, swapping, refining
and transporting hydrocarbons and other related energy businesses.

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

                  "OIL AND GAS LIENS" means (a) Liens on any specific property
or any interest therein, construction thereon or improvement thereto to secure
all or any part of the costs incurred for surveying, exploration, drilling,
extraction, development, operation, production, construction, alteration, repair
or improvement of, in, under or on such property and the plugging and
abandonment of wells located thereon (it being understood that, in the case of
oil and gas producing properties, or any interest therein, costs incurred for
"development" shall include costs incurred for all facilities relating to such
properties or to projects, ventures or other arrangements of which such
properties form a part or which relate to such properties or interests); (b)
Liens on an oil or gas producing property to secure obligations Incurred or
guarantees of obligations Incurred in connection with or necessarily incidental
to commitments for the purchase or sale of, or the transportation or
distribution of, the products derived from such property; (c) Liens arising
under partnership agreements, oil and gas leases, overriding royalty agreements,
net profits

                                       13
<Page>

agreements, production payment agreements, royalty trust agreements, incentive
compensation programs on terms that are reasonably customary in the Oil and Gas
Business for geologists, geophysicists and other providers of technical services
to the Company or a Restricted Subsidiary, master limited partnership
agreements, farm-out agreements, farm-in agreements, division orders, contracts
for the sale, purchase, exchange, transportation, gathering or processing of
oil, gas or other hydrocarbons, unitizations and pooling designations,
declarations, orders and agreements, development agreements, operating
agreements, production sales contracts, area of mutual interest agreements, gas
balancing or deferred production agreements, injection, repressuring and
recycling agreements, salt water or other disposal agreements, seismic or
geophysical permits or agreements, and other agreements which are customary in
the Oil and Gas Business; PROVIDED, HOWEVER, in all instances that such Liens
are limited to the assets that are the subject of the relevant agreement,
program, order or contract; (d) Liens arising in connection with Production
Payments and Reserve Sales; and (e) Liens on pipelines or pipeline facilities
that arise by operation of law.

                  "OPINION OF COUNSEL" means a written opinion from legal
counsel who is acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company.

                  "PARI PASSU INDEBTEDNESS" means any Indebtedness of the
Company or a Subsidiary Guarantor that is PARI PASSU in right of payment to the
Securities or a Subsidiary Guarantee, as applicable.

                  "PARI PASSU OFFER" means an offer by the Company or a
Subsidiary Guarantor to purchase all or a portion of Pari Passu Indebtedness to
the extent required by the indenture or other agreement or instrument pursuant
to which such Pari Passu Indebtedness was issued.

                  "PERMITTED BUSINESS INVESTMENTS" means Investments and
expenditures made in the ordinary course of, and of a nature that is or shall
have become customary in, the Oil and Gas Business as a means of actively
engaging therein through agreements, transactions, interests or arrangements
which permit one to share risks or costs, comply with regulatory requirements
regarding local ownership or satisfy other objectives customarily achieved
through the conduct of Oil and Gas Business jointly with third parties,
including (a) ownership interests in oil and gas properties or gathering,
transportation, processing, storage or related systems and (b) Investments and
expenditures in the form of or pursuant to operating agreements, processing
agreements, farm-in agreements, farm-out agreements, development agreements,
area of mutual interest agreements, unitization agreements, pooling
arrangements, joint bidding agreements, service contracts, joint venture
agreements, partnership agreements (whether general or limited), and other
similar agreements (including for limited liability companies) with third
parties, excluding however, Investments in corporations other than Restricted
Subsidiaries.

                  "PERMITTED HEDGING AGREEMENTS" means (a) Exchange Rate
Contracts and Oil and Gas Hedging Contracts and (b) Interest Rate Protection
Agreements but only to the extent that the stated aggregate notional amount
thereunder does not exceed 100% of the aggregate principal amount of the
Indebtedness of the Company or a Restricted Subsidiary

                                       14
<Page>

covered by such Interest Rate Protection Agreements at the time such agreements
were entered into.

                  "PERMITTED INDEBTEDNESS" means any and all of the following:
(i) Indebtedness arising under this Indenture with respect to the Initial
Securities and any Subsidiary Guarantees relating thereto; (ii) Indebtedness
under Bank Credit Facilities; PROVIDED that the aggregate principal amount of
all Indebtedness under Bank Credit Facilities, together with all Indebtedness
Incurred pursuant to clause (x) of this paragraph in respect of Indebtedness
previously Incurred under Bank Credit Facilities, at any one time outstanding
does not exceed the greater of (a) $600,000,000, which amount shall be
permanently reduced by the amount of Net Available Cash from Asset Sales used to
permanently repay Indebtedness under Bank Credit Facilities and not subsequently
reinvested in Additional Assets or used to permanently reduce other Indebtedness
to the extent permitted pursuant to Section 4.06 and (b) an amount equal to the
sum of (1) $150,000,000 and (2) 25% of Adjusted Consolidated Net Tangible Assets
determined as of the date of the Incurrence of such Indebtedness; (iii)
Indebtedness to the Company or any Restricted Subsidiary by any of its
Restricted Subsidiaries or Indebtedness of the Company to any of its Restricted
Subsidiaries (but only so long as such Indebtedness is held by the Company or a
Restricted Subsidiary); (iv) Indebtedness in respect of bid, performance,
reimbursement or surety obligations issued by or for the account of the Company
or any Restricted Subsidiary in the ordinary course of business, including
Guarantees and letters of credit functioning as or supporting such bid,
performance, reimbursement or surety obligations (in each case other than for an
obligation for money borrowed); (v) Indebtedness under Permitted Hedging
Agreements; (vi) in-kind obligations relating to oil or gas balancing positions
arising in the ordinary course of business; (vii) Indebtedness outstanding on
the Issue Date not otherwise permitted in clauses (i) through (vi) above; (viii)
Non-recourse Purchase Money Indebtedness; (ix) Indebtedness not otherwise
permitted to be Incurred pursuant to this paragraph (excluding any Indebtedness
Incurred pursuant to clause (a) of the immediately preceding paragraph);
PROVIDED that the aggregate principal amount of all Indebtedness Incurred
pursuant to this clause (ix), together with all Indebtedness Incurred pursuant
to clause (x) of this paragraph in respect of Indebtedness previously Incurred
pursuant to this clause (ix), at any one time outstanding does not exceed
$75,000,000; (x) Indebtedness Incurred in exchange for, or the proceeds of which
are used to refinance, (a) Indebtedness referred to in clauses (i), (ii), (vii),
(viii) and (ix) of this paragraph (including Indebtedness previously Incurred
pursuant to this clause (x)) and (b) Indebtedness Incurred pursuant to clause
(a) of the immediately preceding paragraph; PROVIDED that, in the case of each
of the foregoing clauses (a) and (b), such Indebtedness is Permitted Refinancing
Indebtedness and; (xi) Indebtedness consisting of obligations in respect of
purchase price adjustments, indemnities or Guarantees of the same or similar
matters in connection with the acquisition or disposition of Property. For
purposes of determining compliance with Section 4.03: in the event that an item
of Indebtedness (including Indebtedness Incurred by the Company to banks or
other lenders) could be Incurred pursuant to more than one of the clauses in
this paragraph, the Company, in its sole discretion, will classify such item of
Indebtedness and only be required to include the amount and type of such
Indebtedness in (and to have Incurred such Indebtedness pursuant to) one of the
clauses in this paragraph; and an item of Indebtedness (including Indebtedness
Incurred by the Company to banks or other lenders) may for this purpose be
divided into more than one of the types of Indebtedness described in this
paragraph.

                                       15
<Page>

                  "PERMITTED INVESTMENTS" means any and all of the following:
(a) Permitted Short-Term Investments; (b) Investments in property, plant and
equipment used in the ordinary course of business and Permitted Business
Investments; (c) Investments by any Restricted Subsidiary in the Company; (d)
Investments by the Company or any Restricted Subsidiary in any Restricted
Subsidiary; (e) Investments by the Company or any Restricted Subsidiary in (i)
any Person that will, upon the making of such Investment, become a Restricted
Subsidiary or (ii) any Person if as a result of such Investment such Person is
merged or consolidated with or into, or transfers or conveys all or
substantially all its Property to, the Company or a Restricted Subsidiary; (f)
Investments in the form of securities received from Asset Sales; PROVIDED that
such Asset Sales are made in compliance with Section 4.06; (g) Investments in
negotiable instruments held for collection; lease, utility and other similar
deposits; and stock, obligations or other securities received in settlement of
debts (including under any bankruptcy or other similar proceeding) owing to the
Company or any of its Restricted Subsidiaries as a result of foreclosure,
perfection or enforcement of any Liens or Indebtedness, in each of the foregoing
cases in the ordinary course of business of the Company or such Restricted
Subsidiary; (h) relocation allowances for, and advances and loans to, officers,
directors and employees of the Company or any of its Restricted Subsidiaries;
PROVIDED such items do not exceed in the aggregate $10,000,000 at any one time
outstanding; (i) Investments intended to promote the Company's strategic
objectives in the Oil and Gas Business in an aggregate amount not to exceed 10%
of the Adjusted Consolidated Net Tangible Assets (determined as of the date of
the making of any such Investment) at any one time outstanding (which
Investments shall be deemed to be no longer outstanding only upon the return of
capital thereof); (j) Investments made for the purpose of acquiring gas
marketing contracts in an aggregate amount not to exceed $25,000,000 at any one
time outstanding; (k) Investments made pursuant to Permitted Hedging Agreements
of the Company and the Restricted Subsidiaries; and (l) Investments pursuant to
any agreement or obligation of the Company or any of its Restricted Subsidiaries
as in effect on the Issue Date (other than Investments described in clauses (a)
through (k) above).

                  "PERMITTED LIENS" means any and all of the following: (a)
Liens existing as of the Issue Date; PROVIDED, HOWEVER, that in the event all
the conditions described under Section 4.15 shall have been satisfied and the
Company and its Restricted Subsidiaries shall no longer be subject to the
provisions of this Indenture terminated in accordance with such provision, liens
securing Indebtedness under the Bank Credit Facilities shall no longer be deemed
to be Permitted Liens by reason of this clause (a); (b) Liens securing the
Initial Securities, any Subsidiary Guarantees and other obligations arising
under this Indenture; (c) any Lien existing on any Property of a Person at the
time such Person is merged or consolidated with or into the Company or a
Restricted Subsidiary or becomes a Restricted Subsidiary (and not incurred in
anticipation of or in connection with such transaction); PROVIDED that such
Liens are not extended to other Property of the Company or its Restricted
Subsidiaries; (d) any Lien existing on any Property at the time of the
acquisition thereof (and not incurred in anticipation of or in connection with
such transaction); PROVIDED that such Liens are not extended to other Property
of the Company or its Restricted Subsidiaries; (e) any Lien incurred in the
ordinary course of business incidental to the conduct of the business of the
Company or the Restricted Subsidiaries or the ownership of their Property
(including (i) easements, rights of way and similar encumbrances, (ii) rights or
title of lessors under leases (other than Capital Lease Obligations),
(iii) rights of collecting banks having rights of setoff, revocation, refund or
chargeback with respect to money or instruments of the Company or the Restricted
Subsidiaries

                                       16
<Page>

on deposit with or in the possession of such banks, (iv) Liens imposed by law,
including Liens under workers' compensation or similar legislation and
mechanics', carriers', warehousemen's, materialmen's, suppliers' and vendors'
Liens, (v) Liens incurred to secure performance of obligations with respect to
statutory or regulatory requirements, performance or return-of-money bonds,
surety bonds or other obligations of a like nature and incurred in a manner
consistent with industry practice and (vi) Oil and Gas Liens, in each case which
are not incurred in connection with the borrowing of money, the obtaining of
advances or credit or the payment of the deferred purchase price of Property
(other than Trade Accounts Payable); (f) Liens for taxes, assessments and
governmental charges not yet due or the validity of which are being contested in
good faith by appropriate proceedings, promptly instituted and diligently
conducted, and for which adequate reserves have been established to the extent
required by GAAP as in effect at such time; (g) Liens incurred to secure appeal
bonds and judgment and attachment Liens, in each case in connection with
litigation or legal proceedings that are being contested in good faith by
appropriate proceedings so long as reserves have been established to the extent
required by GAAP as in effect at such time and so long as such Liens do not
encumber assets by an aggregate amount (together with the amount of any unstayed
judgments against the Company or any Restricted Subsidiary but excluding any
such Liens to the extent securing insured or indemnified judgments or orders) in
excess of $25,000,000; (h) Liens securing Permitted Hedging Agreements of the
Company and its Restricted Subsidiaries; (i) Liens securing purchase money
Indebtedness or Capital Lease Obligations; PROVIDED that such Liens attach only
to the Property acquired with the proceeds of such purchase money Indebtedness
or the Property which is the subject of such Capital Lease Obligations; (j)
Liens securing Non-recourse Purchase Money Indebtedness granted in connection
with the acquisition by the Company or any Restricted Subsidiary in the ordinary
course of business of fixed assets used in the Oil and Gas Business (including
office buildings and other real property used by the Company or such Restricted
Subsidiary in conducting its operations); PROVIDED that (i) such Liens attach
only to the fixed assets acquired with the proceeds of such Non-recourse
Purchase Money Indebtedness and (b) such Non-recourse Purchase Money
Indebtedness is not in excess of the purchase price of such fixed assets; (k)
Liens resulting from the deposit of funds or evidences of Indebtedness in trust
for the purpose of decreasing or legally defeasing Indebtedness of the Company
or any Restricted Subsidiary so long as such deposit of funds is permitted under
Section 4.04; (l) Liens resulting from a pledge of Capital Stock of a Person
that is not a Restricted Subsidiary to secure obligations of such Person and any
refinancings thereof; (m) Liens to secure any permitted extension, renewal,
refinancing, refunding or exchange (or successive extensions, renewals,
refinancings, refundings or exchanges) in whole or in part, of or for any
Indebtedness secured by Liens referred to in clauses (a), (b), (c), (d), (i) and
(j) above; PROVIDED, HOWEVER, that (i) such new Lien shall be limited to all or
part of the same Property (including future improvements thereon and accessions
thereto) subject to the original Lien and (ii) the Indebtedness secured by such
Lien at such time is not increased to any amount greater than the sum of (A) the
outstanding principal amount or, if greater, the committed amount of the
Indebtedness secured by such original Lien immediately prior to such extension,
renewal, refinancing, refunding or exchange and (B) an amount necessary to pay
any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement; (n) Liens in favor of the Company
or a Restricted Subsidiary; and (o) Liens not otherwise permitted by clauses (a)
through (n) above incurred in the ordinary course of business of the Company and
its Restricted Subsidiaries and encumbering Property having an aggregate

                                       17
<Page>

Fair Market Value not in excess of $10,000,000 at any one time. Notwithstanding
anything in this paragraph to the contrary, the term "Permitted Liens" shall not
include Liens resulting from the creation, incurrence, issuance, assumption or
Guarantee of any Production Payments and Reserve Sales other than (i) any such
Liens existing as of the Issue Date, (ii) Production Payments and Reserve Sales
in connection with the acquisition of any Property after the Issue Date;
PROVIDED that any such Lien created in connection therewith is created,
incurred, issued, assumed or Guaranteed in connection with the financing of,
and within 60 days after the acquisition of, such Property (iii) Production
Payments and Reserve Sales, other than those described in clauses (i) and (ii)
of this sentence, to the extent such Production Payments and Reserve Sales
constitute Asset Sales made pursuant to and in compliance with Section 4.06 and
(iv) incentive compensation programs for geologists, geophysicists and other
providers of technical services to the Company and any Restricted Subsidiary;
PROVIDED, HOWEVER, that, in the case of the immediately foregoing clauses (i),
(ii), (iii) and (iv), any Lien created in connection with any such Production
Payments and Reserve Sales shall be limited to the Property that is the subject
of such Production Payments and Reserve Sales.

                  "PERMITTED REFINANCING INDEBTEDNESS" means Indebtedness ("new
Indebtedness") Incurred in exchange for, or proceeds of which are used to
refinance, other Indebtedness ("old Indebtedness"); PROVIDED, HOWEVER, that (a)
such new Indebtedness is in an aggregate principal amount not in excess of the
sum of (i) the aggregate principal amount then outstanding of the old
Indebtedness (or, if such old Indebtedness provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration thereof, such lesser amount as of the date of determination), and
(ii) an amount necessary to pay any fees and expenses, including premiums,
related to such exchange or refinancing, (b) such new Indebtedness has a Stated
Maturity no earlier than the Stated Maturity of the old Indebtedness, (c) such
new Indebtedness has an Average Life at the time such new Indebtedness is
Incurred that is equal to or greater than the Average Life of the old
Indebtedness at such time, (d) such new Indebtedness is subordinated in right of
payment to the Securities (or, if applicable, the relevant Subsidiary Guarantee)
to at least the same extent, if any, as the old Indebtedness, (e) if such old
Indebtedness is Non-recourse Purchase Money Indebtedness or Indebtedness that
refinanced Non-recourse Purchase Money Indebtedness, such new Indebtedness
satisfies clauses (a) and (b) of the definition of "Non-recourse Purchase Money
Indebtedness" and (f) such new Indebtedness is not incurred by a Restricted
Subsidiary which thereafter will not be a Subsidiary Guarantor to refinance old
Indebtedness of the Company or a Subsidiary Guarantor.

                  "PERMITTED SHORT-TERM INVESTMENTS" means (a) Investments in
Government Obligations maturing within one year of the date of acquisition
thereof; (b) Investments in demand accounts, time deposit accounts, certificates
of deposit, bankers' acceptances and money market deposits maturing within one
year of the date of acquisition thereof issued by a bank or trust company which
is organized under the laws of the United States of America or any State thereof
or the District of Columbia or Canada or any Province thereof that is a member
of the Federal Reserve System or comparable Canadian system and has capital,
surplus and undivided profits aggregating in excess of $500,000,000 and whose
long-term Indebtedness is rated "A" (or such similar equivalent rating), or
higher, according to Moody's or Dominion Bond Rating Service Limited or Canadian
Bond Rating Service, Inc.; (c) Investments in deposits available for withdrawal
on demand with any commercial bank that is organized under the laws of any
country in which the Company or any Restricted Subsidiary maintains an

                                       18
<Page>

office or is engaged in the Oil and Gas Business; PROVIDED that (i) all such
deposits have been made in such accounts in the ordinary course of business and
(ii) such deposits do not at any one time exceed $20,000,000 in the aggregate,
(d) repurchase and reverse repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clause (a)
entered into with a bank meeting the qualifications described in clause (b), (e)
Investments in commercial paper or notes, maturing not more than one year after
the date of acquisition, issued by a corporation (other than an Affiliate of the
Company) organized and in existence under the laws of the United States of
America or any State thereof or the District of Columbia, or Canada or any
Province thereof, with a short-term rating at the time as of which any
Investment therein is made of "P-1" (or higher) according to Moody's or "A-1"
(or higher) according to S&P or "R-1" (or higher) by Dominion Bond Rating
Service Limited or Canadian Bond Rating Service, Inc. (in the case of a Canadian
issuer) or a long-term rating at the time as of which any Investment therein is
made of "A3" (or higher) according to Moody's or "A-" (or higher) according to
S&P or such similar equivalent rating (or higher) by Dominion Bond Rating
Service Limited or Canadian Bond Rating Service, Inc. (in the case of a Canadian
issuer), (f) Investments in any money market mutual fund having assets in excess
of $250,000,000 all of which consist of other obligations of the types described
in clauses (a), (b), (d) and (e) hereof and (g) Investments in asset-backed
securities maturing within one year of the date of acquisition thereof with a
long-term rating at the time as of which any Investment therein is made of "A3"
(or higher) according to Moody's or "A-1" (or higher) according to S&P or such
similar equivalent rating (or higher) by Dominion Bond Rating Service Limited or
Canadian Bond Rating Service, Inc. (in the case of a Canadian issuer).

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

                  "PREFERRED STOCK" of any Person means Capital Stock of such
Person of any class or classes (however designated) that ranks prior, as to the
payment of dividends or as to the distribution of assets upon any voluntary or
involuntary liquidation, dissolution or winding up of such Person, to shares of
Capital Stock of any other class of such Person; PROVIDED, HOWEVER, that
"Preferred Stock" shall not include Redeemable Stock.

                  "PRINCIPAL" of any Indebtedness (including the Securities)
means the principal amount of such Indebtedness plus any premium on such
Indebtedness.

                  "PRIVATE EXCHANGE SECURITIES" shall have the meaning set forth
in the Exchange and Registration Rights Agreement or a similar agreement
relating to Additional Securities.

                  "PRODUCTION PAYMENTS AND RESERVE SALES" means the grant or
transfer by the Company or a Restricted Subsidiary to any Person of a royalty,
overriding royalty, net profits interest, production payment (whether volumetric
or dollar denominated), partnership or other interest in oil and gas properties,
reserves or the right to receive all or a portion of the production or the
proceeds from the sale of production attributable to such properties where the
holder of such interest has recourse solely to such production or proceeds of
production, subject to the obligation of the grantor or transferor to operate
and maintain, or cause

                                       19
<Page>

the subject interests to be operated and maintained, in a reasonably prudent
manner or other customary standard or subject to the obligation of the grantor
or transferor to indemnify for environmental, title or other matters customary
in the Oil and Gas Business, including any such grants or transfers pursuant to
incentive compensation programs on terms that are reasonably customary in the
Oil and Gas Business for geologists, geophysicists or other providers of
technical services to the Company or a Restricted Subsidiary.

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

                  "QIB" means any "qualified institutional buyer" (as defined in
Rule 144A under the Securities Act).

                  "RATING AGENCIES" means (a) S&P and Moody's or (b) if S&P or
Moody's or both of them are not making ratings of the Securities publicly
available, a nationally recognized U.S. rating agency or agencies, as the case
may be, selected by the Company, which will be substituted for S&P or Moody's or
both, as the case may be.

                  "REDEEMABLE STOCK" of any Person means any equity security of
such Person that by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or otherwise (including on the
happening of an event), is or could become required to be redeemed for cash or
other Property or is or could become redeemable for cash or other Property at
the option of the holder thereof, in whole or in part, on or prior to the first
anniversary of the Stated Maturity of the Securities; or is or could become
exchangeable at the option of the holder thereof for Indebtedness at any time in
whole or in part, on or prior to the first anniversary of the Stated Maturity of
the Securities; PROVIDED, HOWEVER, that Redeemable Stock shall not include any
security by virtue of the fact that it may be exchanged or converted at the
option of the holder for Capital Stock of the Company having no preference as to
dividends or liquidation over any other Capital Stock of the Company.

                   "RESTRICTED PAYMENT" means (a) a dividend or other
distribution declared or paid on the Capital Stock or Redeemable Stock of the
Company or to the Company's shareholders (other than dividends, distributions or
payments made solely in Capital Stock of the Company or in options, warrants or
other rights to purchase or acquire Capital Stock), or declared and paid to any
Person other than the Company or any of its Restricted Subsidiaries (and, if
such Restricted Subsidiary is not a Wholly Owned Subsidiary, to the other
shareholders of such Restricted Subsidiary on a pro rata basis) on the Capital
Stock or Redeemable Stock of any Restricted Subsidiary, (b) a payment made by
the Company or any of its Restricted Subsidiaries (other than to the Company or
any Restricted Subsidiary) to purchase, redeem, acquire or retire any Capital
Stock or Redeemable Stock, or any options, warrants or other rights to acquire
Capital Stock or Redeemable Stock, of the Company or of a Restricted Subsidiary,
(c) a payment made by the Company or any of its Restricted Subsidiaries to
redeem, repurchase, legally defease or otherwise acquire or retire for value
(including pursuant to mandatory repurchase covenants), prior to any scheduled
maturity, scheduled sinking fund or scheduled mandatory redemption, any
Subordinated Indebtedness, PROVIDED that this clause (c) shall not

                                       20
<Page>

include any such payment with respect to (i) any such Subordinated Indebtedness
to the extent of Excess Proceeds remaining after compliance with Section 4.06
and to the extent required by the indenture or other agreement or instrument
pursuant to which such Subordinated Indebtedness was issued or (ii) the
purchase, repurchase or other acquisition of any such Subordinated Indebtedness
purchased in anticipation of satisfying a scheduled maturity, scheduled sinking
fund or scheduled mandatory redemption, in each case due within one year of the
date of acquisition, or (d) an Investment (other than a Permitted Investment) by
the Company or a Restricted Subsidiary in any Person.

                  "RESTRICTED PERIOD" means the 40 consecutive days beginning on
and including the later of (A) the day on which the Initial Securities are
offered to persons other than distributors (as defined in Regulation S under the
Securities Act) and (B) the Issue Date.

                  "RESTRICTED SECURITIES LEGEND" means the Private Placement
Legend set forth in clause (A) of Section 2.01(c) or the Regulation S Legend set
forth in clause (B) of Section 2.01(c), as applicable.

                  "RESTRICTED SUBSIDIARY" means any Subsidiary of the Company
that has not been designated an Unrestricted Subsidiary pursuant to Section
4.15.

                  "S&P" means Standard & Poor's Ratings Service, a division of
The McGraw-Hill Companies, Inc., and its successors.

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

                  "SEC" means the Securities and Exchange Commission.

                  "SECURITIES" means the collective reference to the Initial
Securities, Additional Securities, Exchange Securities and Private Exchange
Securities.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

                  "SECURITIES CUSTODIAN" means the custodian with respect to the
Global Security (as appointed by DTC), or any successor Person thereto and shall
initially be the Trustee.

                  "SENIOR INDEBTEDNESS OF THE COMPANY" means the obligations of
the Company with respect to Indebtedness of the Company, whether outstanding on
the date hereof or thereafter created, Incurred or assumed, and any renewal,
refunding, refinancing, replacement or extension thereof, unless, in the case of
any particular Indebtedness, the instrument creating or evidencing the same or
pursuant to which the same is outstanding expressly provides that such
Indebtedness shall not be senior in right of payment to the Securities;
PROVIDED, HOWEVER, that Senior Indebtedness of the Company shall not include (a)
Indebtedness of the Company to a

                                       21
<Page>

Subsidiary of the Company, (b) amounts owed for goods, materials or services
purchased in the ordinary course of business, (c) Indebtedness Incurred in
violation of this Indenture, (d) amounts payable or any other Indebtedness to
employees of the Company or any Subsidiary of the Company, (e) any liability for
federal, state, local or other taxes owed or owing by the Company, (f) any
Indebtedness of the Company that, when Incurred and without regard to any
election under Section 1111(b) of the United States Bankruptcy Code, was without
recourse to the Company, (g) Subordinated Indebtedness of the Company, (h)
Indebtedness of the Company that is represented by Redeemable Stock and (i)
in-kind obligations relating to net oil and gas balancing positions.

                  "SENIOR INDEBTEDNESS OF ANY SUBSIDIARY GUARANTOR" has a
correlative meaning; PROVIDED that clause (a) above shall be deemed to refer to
Indebtedness of any Subsidiary Guarantor to the Company or any Subsidiary of the
Company.

                  "SIGNIFICANT SUBSIDIARY" means, at any date of determination,
any Restricted Subsidiary that would be a "Significant Subsidiary" of the
Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the
Commission.

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

                  "SUBORDINATED INDEBTEDNESS" means Indebtedness of the Company
or a Subsidiary Guarantor that is subordinated or junior in right of payment to
the Securities or the relevant Subsidiary Guarantee, as applicable, pursuant to
a written agreement to that effect.

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

                  "SUBSIDIARY GUARANTOR" means, unless released from its
Subsidiary Guarantee as permitted by this Indenture, any Restricted Subsidiary
that becomes a Guarantor of the Securities in compliance with the provisions of
this Indenture and executes a supplemental indenture agreeing to be bound by the
terms of this Indenture, until a successor replaces such Restricted Subsidiary
pursuant to the applicable provisions hereof and, thereafter, means the
successor.

                  "SUBSIDIARY GUARANTEE" means an unconditional, unsecured
senior Guarantee of Securities given by any Restricted Subsidiary pursuant to
the terms of this Indenture.

                                       22
<Page>

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

                  "TRADE ACCOUNTS PAYABLE" means accounts payable or other
obligations of the Company or any Restricted Subsidiary to trade creditors
created or assumed by the Company or such Restricted Subsidiary in the ordinary
course of business in connection with the obtaining of goods or services.

                  "TRUSTEE" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

                  "TRUST OFFICER" means any officer in the Corporate Trust
Division of the Trustee or any other officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

                  "UNIFORM COMMERCIAL CODE" means the New York Uniform
Commercial Code as in effect from time to time.

                  "UNRESTRICTED SUBSIDIARY" means (a) and each Subsidiary of the
Company that the Company has designated pursuant to Section 4.15 as an
Unrestricted Subsidiary; and (b) any Subsidiary of an Unrestricted Subsidiary.

                  "VOLUMETRIC PRODUCTION PAYMENTS" means production payment
obligations recorded as deferred revenue in accordance with GAAP, together with
all undertakings and obligations in connection therewith.

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

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

                  SECTION 1.02. OTHER DEFINITIONS.

<Table>
<Caption>
                                      Term                             Defined in Section
                                      ----                             ------------------
<S>                                                                    <C>
         "Authenticating Agent"                                               2.02
         "Bankruptcy Law"                                                     6.01
         "Change of Control Offer"                                            4.09
         "Change of Control Payment"                                          4.09
         "Change of Control Payment Date"                                     4.09
         "Claiming Guarantor"                                                 10.02

                                       23
<Page>

         "Company Order"                                                      2.02
         "Contributing Party"                                                 10.02
         "covenant defeasance option"                                         8.01(b)
         "Custodian"                                                          6.01
         "Event of Default"                                                   6.01
         "Excess Proceeds"                                                    4.06
         "Exchange Global Note"                                               2.01(a)
         "Global Securities"                                                  2.01(a)
         "IAI"                                                                2.01(a)
         "Institutional Accredited Investor Global Note"                      2.01(a)
         "Global Security"                                                    2.01(a)
         "legal defeasance option"                                            8.01(b)
         "Legal Holiday"                                                      11.08
         "Obligations"                                                        10.01
         "Offer Amount"                                                       4.06
         "Offer Period"                                                       4.06
         "pay its Subsidiary Guarantee"                                       12.03
         "pay the Securities"                                                 10.03
         "Paying Agent"                                                       2.03
         "Permitted Consideration"                                            4.06
         "Prepayment Offer"                                                   4.06
         "Prepayment Offer Notice"                                            4.06
         "Private Placement Legend"                                           2.01(c)
         Purchase Date                                                        4.06
         "Registrar"                                                          2.04
         "Registration Default"                                               Exhibit A
         "Regulation S"                                                       2.01(a)
         "Regulation S Global Note"                                           2.01(a)
         "Regulation S Legend"                                                2.01(c)
         "Resale Restriction Termination Date"                                2.06
         "Rule 144A"                                                          2.01(a)
         "Rule 144A Global Note"                                              2.01(a)
         "Successor Company"                                                  5.01
</Table>

                  SECTION 1.03. INCORPORATION BY REFERENCE OF TRUST INDENTURE
ACT.

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

                  "Commission" means the SEC.

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Securityholder.

                                       24
<Page>

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Trustee.

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

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

                  SECTION 1.04. RULES OF CONSTRUCTION. Unless the context
otherwise requires:

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

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

                  (c) "or" is not exclusive;

                  (d) "including" means including without limitation;

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

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

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

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

                                   ARTICLE II

                                 THE SECURITIES

                  SECTION 2.01. FORM, DATING AND TERMS. (a) The Initial
Securities and the Additional Securities shall be in substantially the form set
forth in EXHIBIT A hereto, which is hereby incorporated by reference and made a
part of this Indenture, and the Exchange Securities shall be in substantially
the form set forth in EXHIBIT B hereto, which is hereby incorporated by
reference and made a part of this Indenture. The Initial Securities will be
resold initially only to (A) QIBs in reliance on Rule 144A under the Securities
Act ("RULE 144A") and (B) Persons other than U.S. Persons (as defined in
Regulation S under the Securities Act ("REGULATION S")) in

                                       25
<Page>

reliance on Regulation S. Such Initial Securities may thereafter be transferred
to among others, QIBs, purchasers in reliance on Regulation S and "institutional
accredited investors" (as defined in Rules 501(a)(1), (2), (3) and (7) under the
Securities Act) who are not QIBs ("IAIs") in accordance with the procedure
described herein.

                  Initial Securities and Additional Securities offered and sold
to QIBs in the United States of America in reliance on Rule 144A will be issued
initially in the form of a permanent global Security, without interest coupons,
made a part of this Indenture, including appropriate legends as set forth in
SECTION 2.01(c) (a "RULE 144A GLOBAL NOTE"), deposited with the Trustee, as
custodian for DTC, duly executed by the Company and authenticated by the Trustee
as hereinafter provided. A Rule 144A Global Note may be represented by more than
one certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal amount
of a Rule 144A Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

                  Initial Securities and Additional Securities offered, sold and
resold outside the United States of America to Persons other than U.S. Persons
in reliance on Regulation S will be issued initially in the form of a permanent
global Security, including appropriate legends as set forth in 2.01(c) below (a
"REGULATION S GLOBAL NOTE") deposited with the Trustee, as custodian for DTC,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided. A Regulation S Global Note may be represented by more than one
certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal amount
of a Regulation S Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

                  Initial Securities or Additional Securities resold after an
initial resale thereof to QIBs in reliance on Rule 144A or an initial resale
thereof in reliance on Regulation S to IAIs in the United States of America in
accordance with the procedure described herein will be initially issued in the
form of a permanent global Security (an "INSTITUTIONAL ACCREDITED INVESTOR
GLOBAL NOTE") deposited with the Trustee, as custodian for DTC, duly executed by
the Company and authenticated by the Trustee as hereinafter provided. An
Institutional Accredited Investor Global Note may be represented by more that
one certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal amount
of an Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for DTC or its nominee, as hereinafter provided.

                  Exchange Securities exchanged for interests in a Rule 144A
Global Note, a Regulation S Global Note or an Institutional Accredited Investor
Global Note will be issued initially in the form of a permanent global Security,
deposited with the Trustee as hereinafter provided, including the appropriate
legend set forth in SECTION 2.01(c) (an "EXCHANGE GLOBAL NOTE"). An Exchange
Global Note may be represented by more than one certificate, if so required by
DTC's rules regarding the maximum principal amount to be represented by a single
certificate.

                                       26
<Page>

                  The Rule 144A Global Notes, the Regulation S Global Notes, the
Institutional Investor Global Notes and the Exchange Global Notes are sometimes
collectively herein referred to as the "GLOBAL SECURITIES."

                  Except as described in the succeeding two sentences, the
principal of (and premium, if any) and interest on the Securities shall be
payable at the office or agency of the Company maintained for such purpose in
The City of New York, or at such other office or agency of the Company as may be
maintained for such purpose pursuant to SECTION 2.03; provided, however, that,
at the option of the Company, each installment of interest may be paid by (i)
check mailed to addresses of the Persons entitled thereto as such addresses
shall appear on the Note Register or (ii) wire transfer to an account located in
the United States maintained by the payee. Payments in respect of Securities
represented by a Global Security (including principal, premium and interest)
will be made by wire transfer of immediately available funds to the accounts
specified by DTC. Payments in respect of Securities represented by DEFINITIVE
SECURITIES (including principal, premium, if any, and interest) held by a Holder
of at least $1,000,000 aggregate principal amount of Securities represented by
DEFINITIVE SECURITIES will be made 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 15 days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion).

                  The Private Exchange Securities shall be in the form of
Exhibit A. The Securities may have notations, legends or endorsements required
by law, stock exchange rule, agreements to which the Company is subject, if any,
or usage, in addition to those set forth on Exhibits A and B and in Section
2.01(c) PROVIDED that any such notation, legend or endorsement is in a form
reasonably acceptable to the Company. The Company and the Trustee shall approve
the forms of the Securities and any notation, endorsement or legend on them.
Each Security shall be dated the date of its authentication. The terms of the
Securities set forth in Exhibit A and Exhibit B are part of the terms of this
Indenture and, to the extent applicable, the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to be bound by such
terms.

                 (a) DENOMINATIONS. The Securities shall be issuable only in
fully registered form, without coupons, and only in denominations of $1,000 and
any integral multiple thereof.

                 (b) RESTRICTIVE LEGENDS. The following legends shall appear on
the face of all Global Notes and Definitive Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions of this
Indenture:

                           (i) Each Rule 144A Global Note and Institutional
         Accredited Investor Global Note shall bear the following legend (the
         "PRIVATE PLACEMENT LEGEND") on the face thereof:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
         STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
         PARTICIPATION

                                       27
<Page>

         HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
         ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
         UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
         REGISTRATION.

         THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
         BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
         SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR
         TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") THAT IS TWO
         YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
         DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER
         OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE
         ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
         EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES
         ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT,
         TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
         AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS
         OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
         WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
         RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE
         UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
         ACT, PROVIDED THAT PRIOR TO SUCH TRANSFER, THE TRANSFEROR FURNISHES TO
         THE COMPANY AND THE TRUSTEE A CERTIFICATE CONTAINING CERTAIN
         REPRESENTATIONS RELATING TO THE PROPOSED TRANSFER BEING EFFECTED
         PURSUANT TO AND IN ACCORDANCE WITH REGULATION S (THE FORM OF WHICH
         CERTIFICATE CAN BE OBTAINED FROM THE TRUSTEE), (E) TO AN INSTITUTIONAL
         "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
         (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED
         INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
         OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
         PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000 OF SECURITIES FOR
         INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN
         CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT AND
         THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE COMPANY AND THE TRUSTEE
         A CERTIFICATE CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
         RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF
         WHICH CERTIFICATE CAN BE OBTAINED FROM THE TRUSTEE), OR (F) PURSUANT TO
         ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT, SUBJECT

                                       28
<Page>

         TO THE ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE
         OR TRANSFER PURSUANT TO CLAUSES (D), (E) AND (F) TO REQUIRE THE
         DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
         INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED
         UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
         DATE."

                           (ii) Each Regulation S Global Note shall bear the
         following legend (the "REGULATION S LEGEND") on the face thereof:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
         OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR
         BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
         BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS NOT A
         U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND
         IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE
         WITH REGULATION S UNDER THE SECURITIES ACT ("REGULATION S"), (2) BY ITS
         ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
         SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE")
         THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
         THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS
         THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY
         (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
         BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
         THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
         SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
         INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT
         THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
         INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
         MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT
         OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S,
         PROVIDED THAT PRIOR TO SUCH TRANSFER, THE TRANSFEROR FURNISHES TO THE
         COMPANY AND THE TRUSTEE A CERTIFICATE CONTAINING CERTAIN
         REPRESENTATIONS RELATING TO THE PROPOSED TRANSFER BEING EFFECTED
         PURSUANT TO AND IN ACCORDANCE WITH REGULATION S (THE FORM OF WHICH
         CERTIFICATE CAN BE OBTAINED FROM THE TRUSTEE), (E) TO AN INSTITUTIONAL
         ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
         (7) UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN

                                       29
<Page>

         ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
         INVESTOR, IN EACH CASE IN A TRANSACTION INVOLVING A MINIMUM PRINCIPAL
         AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
         WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
         IN VIOLATION OF THE SECURITIES ACT, AND THAT, PRIOR TO SUCH TRANSFER,
         FURNISHES TO THE COMPANY AND THE TRUSTEE A CERTIFICATE CONTAINING
         CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON
         TRANSFER OF THIS SECURITY (THE FORM OF WHICH CERTIFICATE CAN BE
         OBTAINED FROM THE TRUSTEE), OR (F) PURSUANT TO ANY OTHER AVAILABLE
         EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
         SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH
         OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE
         THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
         INFORMATION SATISFACTORY TO EACH OF THEM AND IN THE CASE OF THE
         FOREGOING CLAUSE (E), A CERTIFICATE OF TRANSFER IN THE FORM APPEARING
         ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
         TRANSFEROR TO THE COMPANY AND THE TRUSTEE. THIS LEGEND WILL BE REMOVED
         AFTER 40 CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A)
         THE DAY ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN
         DISTRIBUTORS (AS DEFINED IN REGULATION S) AND (B) THE DATE OF THE
         CLOSING OF THE ORIGINAL OFFERING. AS USED HEREIN, THE TERMS "OFFSHORE
         TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN
         TO THEM BY REGULATION S UNDER THE SECURITIES ACT."

                           (iii) The Global Securities, shall bear the following
legend on the face thereof:

         "UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
         OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW
         YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
         TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED
         IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
         AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
         OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
         OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
         OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                       30
<Page>

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

                  (d) BOOK-ENTRY PROVISIONS.

                           (i) This Section 2.01(d) shall apply only to Global
         Securities deposited with the Trustee, as custodian for DTC.

                           (ii) Each Global Security initially shall (x) be
         registered in the name of DTC for such Global Security or the nominee
         of DTC, (y) be delivered to the Trustee as custodian for DTC and (z)
         bear legends as set forth in Section 2.01(c).

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

                           (iv) In connection with any transfer of a portion of
         the beneficial interest in a Global Security pursuant to subsection (e)
         of this Section to beneficial owners who are required to hold
         Definitive Securities, the Securities Custodian shall reflect on its
         books and records the date and a decrease in the principal amount of
         such Global Security in an amount equal to the principal amount of the
         beneficial interest in the Global Security to be transferred, and the
         Company shall execute, and the Trustee shall authenticate and deliver,
         one or more Definitive Securities of like tenor and amount.

                           (v) In connection with the transfer of an entire
         Global Security to beneficial owners pursuant to subsection (e) of this
         Section, such Global Security shall be deemed to be surrendered to the
         Trustee for cancellation, and the Company shall execute, and the
         Trustee shall authenticate and deliver, to each beneficial owner
         identified by DTC in exchange for its beneficial interest in such
         Global Security, an equal aggregate principal amount of Definitive
         Securities of authorized denominations.

                           (vi) The registered Holder of a Global Security may
         grant proxies and otherwise authorize any person, including Agent
         Members and persons that may hold interests through Agent Members, to
         take any action which a Holder is entitled to take under this Indenture
         or the Securities.

                                       31
<Page>

                  (e) DEFINITIVE SECURITIES.

                           (i) Except as provided below, owners of beneficial
         interests in Global Securities will not be entitled to receive
         Definitive Securities. If required to do so pursuant to any applicable
         law or regulation, beneficial owners may obtain Definitive Securities
         in exchange for their beneficial interests in a Global Security upon
         written request in accordance with DTC's and the Registrar's
         procedures. In addition, Definitive Securities shall be transferred to
         all beneficial owners in exchange for their beneficial interests in a
         Global Security if (a) DTC notifies the Company that it is unwilling or
         unable to continue as depositary for such Global Security or DTC ceases
         to be a clearing agency registered under the Exchange Act, at a time
         when DTC is required to be so registered in order to act as depositary,
         and in each case a successor depositary is not appointed by the Company
         within 90 days of such notice or, (b) the Company executes and delivers
         to the Trustee and Registrar an Officers' Certificate stating that such
         Global Security shall be so exchangeable.

                           (ii) Any Definitive Security delivered in exchange
         for an interest in a Global Security pursuant to SECTION 2.01(d)(iv) OR
         (V) shall, except as otherwise provided by SECTION 2.06(c), bear the
         applicable legend regarding transfer restrictions applicable to the
         Definitive Security set forth in SECTION 2.01(c).

                           (iii) In connection with the exchange of a portion of
         a Definitive Security for a beneficial interest in a Global Security,
         the Trustee shall cancel such Definitive Security, and the Company
         shall execute, and the Trustee shall authenticate and deliver, to the
         transferring Holder a new Definitive Security representing the
         principal amount not so transferred.

                  Any Definitive Security delivered in exchange for an interest
in a Global Security pursuant to Section 2.1(d)(iv) or (v) shall, except as
otherwise provided by Section 2.06(c), bear the applicable legend regarding
transfer restrictions applicable to the Definitive Security set forth in Section
2.01(c).

                  In connection with the exchange of a portion of a Definitive
Security for a beneficial interest in a Global Security, the Trustee shall
cancel such Definitive Security, and the Company shall execute, and the Trustee
shall authenticate and deliver, to the transferring Holder a new Definitive
Security representing the principal amount not so transferred.

                  SECTION 2.02. EXECUTION AND AUTHENTICATION . One Officer shall
sign the Securities for the Company by manual or facsimile signature. If an
Officer whose signature is on a Security no longer holds that office at the time
the Trustee authenticates the Security, the Security shall be valid
nevertheless, after giving effect to any exchange of Initial Securities or
Additional Securities for Exchange Securities.

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

                                      32
<Page>

                  At any time and from time to time after the execution and
delivery of this Indenture, the Trustee shall authenticate and make available
for delivery: (1) Initial Securities for original issue on the Issue Date in an
aggregate principal amount of $200.0 million, (2) if and when issued, the
Additional Securities, (3) Exchange Securities for issue only in a Registered
Exchange Offer pursuant to the Exchange and Registration Rights Agreement, and
only in exchange for Initial Securities or Additional Securities of an equal
principal amount, (4) Private Exchange Securities issued pursuant to the
Exchange and Registration Rights Agreement, and only in exchange for Initial
Securities or Additional Securities of an equal principal amount, and in each
case upon a written order of the Company signed by two Officers or by an Officer
and either an Assistant Treasurer or an Assistant Secretary of the Company (the
"COMPANY ORDER"). Such Company Order shall specify the amount of the Securities
to be authenticated and the date on which the original issue of Securities is to
be authenticated and whether the Securities are to be Initial Securities,
Additional Securities, Exchange Securities or Private Exchange Securities. The
Trustee shall authenticate and make available for delivery Initial Securities on
the Issue Date in an amount limited to $200.0 million aggregate principal amount
and, subsequent to the Issue Date, such additional principal amount of
Additional Securities as may be authorized from time to time by resolution
adopted by the Company's Board of Directors, except for Securities authenticated
and delivered upon registration or transfer of, or in exchange for, or in lieu
of, other Securities pursuant to SECTION 2.06, SECTION 2.09, SECTION 2.11,
SECTION 3.06, SECTION 9.05 and except for Exchange Securities. All Securities
issued on the Issue Date and all Additional Securities shall be of the same
series and shall be identical in all respects other than issue dates, the date
from which interest accrues and any changes relating thereto.

                  With respect to any Additional Securities, there shall be
established in or pursuant to a resolution of the Board of Directors of the
Company, prior to the issuance of such Additional Securities:

                  (a) the aggregate principal amount of such Additional
         Securities which may be authenticated and delivered under this
         Indenture;

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

                  (c) if applicable, that such Additional Securities shall be
         issuable in whole or in part in the form of one or more Global
         Securities and, in such case, the respective depositories for such
         Global Securities, the form of any legend or legends which shall be
         borne by any such Global Security in addition to or in lieu of that set
         forth in this Article II; and

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

                  If any of the terms of any Additional Securities are
established by action taken pursuant to a resolution of the Board of Directors
of the Company, a copy of an appropriate record of such action shall be
certified by the Secretary or any Assistant Secretary of the

                                      33
<Page>

Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate setting forth the terms of the Additional Securities.

                  Notwithstanding anything to the contrary contained in this
Indenture, the Holders of all Securities issued under this Indenture shall vote
and consent together on all matters as one class and the Holders of any Initial
Securities, Additional Securities, or Exchange Securities will not have the
right to vote or consent as a separate class on any matter.

                  The Trustee may appoint an agent (the "AUTHENTICATING AGENT")
reasonably acceptable to the Company to authenticate the Securities. Unless
limited by the terms of such appointment, any such Authenticating Agent may
authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by the
Authenticating Agent.

                  In case the Company or any Subsidiary Guarantor, pursuant to
ARTICLE V, shall be consolidated or merged with or into any other Person or
shall convey, transfer, lease or otherwise dispose of its properties and assets
substantially as an entirety to any Person, and the successor Person resulting
from such consolidation, or surviving such merger, or into which the Company or
any Subsidiary Guarantor shall have been merged, or the Person which shall have
received a conveyance, transfer, lease or other disposition as aforesaid, shall
have executed an indenture supplemental hereto with the Trustee pursuant to
ARTICLE V, any of the Securities authenticated or delivered prior to such
consolidation, merger, conveyance, transfer, lease or other disposition may,
from time to time, at the request of the successor Person, be exchanged for
other Securities executed in the name of the successor Person with such changes
in phraseology and form as may be appropriate, but otherwise in substance of
like tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver Securities as specified in such order for the purpose
of such exchange. If Securities shall at any time be authenticated and delivered
in any new name of a successor Person pursuant to this SECTION 2.02 in exchange
or substitution for or upon registration of transfer of any Securities, such
successor Person, at the option of the Holders but without expense to them,
shall provide for the exchange of all Securities at the time outstanding for
Securities authenticated and delivered in such new name.

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture. The Trustee or the Company, with notice to
the Trustee, may appoint an authenticating agent reasonably acceptable to the
Company to authenticate the Securities. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

                  SECTION 2.03. REGISTRAR AND PAYING AGENT . The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Company shall
cause each of the Registrar and the Paying

                                       34
<Page>

Agent to maintain an office or agency in the Borough of Manhattan, The City of
New York. The Registrar shall keep a register of the Securities and of their
transfer and exchange (the "Note Register"). The Company may have one or more
co-registrars and one or more additional paying agents. The term "Paying Agent"
includes any additional paying agent.

                  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 each such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefore pursuant to Section 7.07. The
Company or any of its Restricted Subsidiaries may act as Paying Agent,
Registrar, co-registrar or transfer agent.

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

                  SECTION 2.04. PAYING AGENT TO HOLD MONEY IN TRUST. By at
least 10:00 a.m. (New York City time) on the date on which any principal of or
interest on any Security is due and payable, the Company shall deposit with the
Paying Agent a sum sufficient to pay such principal or interest when due. The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that such Paying Agent shall hold in trust for the benefit of Security
holders or the Trustee all money held by such Paying Agent for the payment of
principal of or interest on the Securities and shall notify the Trustee in
writing of any default by the Company or any Subsidiary Guarantor in making any
such payment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent (other than the
Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Securities.

                  SECTION 2.05. SECURITYHOLDER LISTS. The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Securityholders. If the Trustee is
not the Registrar, or to the extent otherwise required under the TIA, the
Company shall furnish to the Trustee, in writing at least five Business Days
before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders.

                  SECTION 2.06. TRANSFER AND EXCHANGE . (a) The following
provisions shall apply with respect to any proposed transfer of a beneficial
interest in a Rule 144A Global Note or an Institutional Accredited Investor
Global Note or any Definitive Security issued in exchange therefor prior to the
date which is two years after the later of the date of its original issue and
the last date on which the Company or any affiliate of the Company was the owner
of such Securities (or any predecessor thereto) (the "RESALE RESTRICTION
TERMINATION DATE"):

                                       35
<Page>

                           (i) a transfer thereof to a QIB shall be made upon
         the representation of the transferee in the form as set forth on the
         reverse of the Security, that it is purchasing for its own account or
         an account with respect to which it exercises sole investment
         discretion and that it and any such account is a "qualified
         institutional buyer" within the meaning of Rule 144A, and is aware that
         the sale to it is being made in reliance on Rule 144A and acknowledges
         that it has received such information regarding the Company as the
         undersigned has requested pursuant to Rule 144A or has determined not
         to request such information and that it is aware that the transferor is
         relying upon its foregoing representations in order to claim the
         exemption from registration provided by Rule 144A;

                           (ii) a transfer thereof to an IAI shall be made upon
         receipt by the Trustee or its agent of a certificate substantially in
         the form set forth in Section 2.07 from the proposed transferee and, if
         requested by the Company or the Trustee, the delivery of an opinion of
         counsel, certification and/or other information satisfactory to each of
         them; and

                           (iii) a transfer thereof to a Non-U.S. Person shall
         be made upon receipt by the Trustee or its agent of a certificate
         substantially in the form set forth in Section 2.08 from the proposed
         transferee and, if requested by the Company or the Trustee, the
         delivery of an opinion of counsel, certification and/or other
         information satisfactory to each of them.

                  (b) The following provisions shall apply with respect to any
proposed transfer of a beneficial interest in a Regulation S Global Note or any
Definitive Securities issued in exchange therefor prior to the expiration of the
Restricted Period:

                           (i) a transfer thereof to a QIB shall be made upon
                  the representation of the transferee, in the form of
                  assignment on the reverse of the Securities, that it is
                  purchasing the Security for its own account or an account with
                  respect to which it exercises sole investment discretion and
                  that it and any such account is a "qualified institutional
                  buyer" within the meaning of Rule 144A, and is aware that the
                  sale to it is being made in reliance on Rule 144A and
                  acknowledges that it has received such information regarding
                  the Company as the undersigned has requested pursuant to Rule
                  144A or has determined not to request such information and
                  that it is aware that the transferor is relying upon its
                  foregoing representations in order to claim the exemption from
                  registration provided by Rule 144A;

                           (ii) a transfer thereof to an IAI shall be made upon
                  receipt by the Trustee or its agent of a certificate
                  substantially in the form set forth in SECTION 2.07 from the
                  proposed transferee and, if requested by the Company or the
                  Trustee, the delivery of an opinion of counsel, certification
                  and/or other information satisfactory to each of them; and

                           (iii) a transfer thereof to a Non-U.S. Person shall
                  be made upon receipt by the Trustee or its agent of a
                  certificate substantially in the form set forth in

                                       36
<Page>

                  SECTION 2.08 hereof from the proposed transferee and, if
                  requested by the Company or the Trustee, delivery of an
                  opinion of counsel, certification and/or other information
                  satisfactory to each of them.

                  After the expiration of the Restricted Period, beneficial
interests in the Regulation S Global Note or Definitive Securities issued in
exchange therefor may be transferred without requiring certification set forth
in SECTION 2.07, SECTION 2.08 or any additional certification.

                  (c) RESTRICTED SECURITIES LEGEND. Upon the transfer, exchange
or replacement of Securities not bearing a Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear a Restricted Securities
Legend. Upon the transfer, exchange or replacement of Securities bearing a
Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless such Securities are Exchange
Securities issued in a Registered Exchange Offer or are otherwise sold under an
effective registration statement under the Securities Act or there is delivered
to the Registrar an opinion of counsel to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act.

                  (d) The Registrar shall retain copies of all letters, notices
and other written communications received pursuant to Section 2.01 or this
Section 2.06. The Company shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable prior written notice to the Registrar.

                  (e) OBLIGATIONS WITH RESPECT TO TRANSFERS AND EXCHANGES OF
SECURITIES.

                           (i) To permit registrations of transfers and
         exchanges, the Company shall, subject to the other terms and conditions
         of this ARTICLE II, execute and the Trustee shall authenticate
         Definitive Securities and Global Securities at the Registrar's or
         co-registrar's request.

                           (ii) No service charge shall be made to a Holder for
         any registration of transfer or exchange, but the Company may require
         payment of a sum sufficient to cover any transfer tax, assessments, or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes, assessments or similar governmental charges
         payable upon exchange or transfer pursuant to Sections 4.06, 4.09 or
         9.05).

                           (iii) The Registrar or co-registrar shall not be
         required to register the transfer of or exchange of any Security for a
         period beginning (1) 15 days before the mailing of a notice of an offer
         to repurchase or redeem Securities and ending at the close of business
         on the day of such mailing or (2) 15 days before an interest payment
         date and ending on such interest payment date.

                           (iv) Prior to the due presentation for registration
         of transfer of any Security, the Company, the Trustee, the Paying
         Agent, the Registrar or any co-registrar may deem and treat the person
         in whose name a Security is registered as the absolute owner of such
         Security for the purpose of receiving payment of principal of and
         interest on such Security and for all other purposes whatsoever,
         whether or not such Security is

                                          37
<Page>

         overdue, and none of the Company, the Trustee, the Paying Agent, the
         Registrar or any co-registrar shall be affected by notice to the
         contrary.

                           (v) Any Definitive Security delivered in exchange for
         an interest in a Global Security pursuant to SECTION 2.01(d) shall,
         except as otherwise provided by SECTION 2.06(c), bear the applicable
         legend regarding transfer restrictions applicable to the Definitive
         Security set forth in SECTION 2.01(c).

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

                  (f)  NO OBLIGATION OF THE TRUSTEE.

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

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

                  SECTION 2.07.   FORM OF CERTIFICATE TO BE DELIVERED IN
CONNECTION WITH TRANSFERS TO INSTITUTIONAL ACCREDITED INVESTORS.

[Date]

Forest Oil Corporation
c/o State Street Bank and Trust Company
Goodwin Square

                                        38
<Page>

225 Asylum Street; 23rd Floor
Hartford, CT 06103
Attention of Corporate Trust Department

Ladies and Gentlemen::

                  This certificate is delivered to request a transfer of
$_________ principal amount of the 8% Senior Notes due 2008 (the "Securities")
of Forest Oil Corporation (the "Company").

                  Upon transfer, the Securities would be registered in the name
of the new beneficial owner as follows:

         Name: ___________________________________
         Address: ________________________________
         Taxpayer ID Number: _____________________
         The undersigned represents and warrants to you that:

                  1. We are an institutional "accredited investor" (as defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended
(the "Securities Act")) purchasing for our own account or for the account of
such an institutional "accredited investor" at least $250,000 principal amount
of the Securities, and we are acquiring the Securities not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act. We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risk of our investment in
the Securities and we invest in or purchase securities similar to the Securities
in the normal course of our business. We and any accounts for which we are
acting are each able to bear the economic risk of our or its investment.

                  2. We understand that the Securities have not been registered
under the Securities Act and, unless so registered, may not be sold except as
permitted in the following sentence. We agree on our own behalf and on behalf of
any investor account for which we are purchasing Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after the
later of the date of original issue and the last date on which the Company or
any affiliate of the Company was the owner of such Securities (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company, (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act, to a person we reasonably
believe is a qualified institutional buyer under Rule 144A (a "QIB") that
purchases for its own account or for the account of a QIB and to whom notice is
given that the transfer is being made in reliance on Rule 144A, (d) pursuant to
offers and sales that occur outside the United States within the meaning of
Regulation S under the Securities Act, (e) to an institutional "accredited
investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is purchasing for its own account or for the account of such
an institutional "accredited investor," in each case in a minimum principal
amount of Securities of $250,000 or (f) pursuant to any other available
exemption from the registration requirements of the Securities Act, subject in
each of the foregoing cases to any requirement of law that the disposition of
our property or the property of such investor account or accounts be at all
times within our or their control and in compliance with any applicable state
securities laws. The foregoing restrictions on resale will

                                     39
<Page>

not apply subsequent to the Resale Restriction Termination Date. If any resale
or other transfer of the Securities is proposed to be made pursuant to clause
(e) above prior to the Resale Restriction Termination Date, the transferor
shall deliver a letter from the transferee substantially in the form of this
letter to the Company and the Trustee, which shall provide, among other things,
that the transferee is an institutional "accredited investor" (within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it
is acquiring such Securities for investment purposes and not for distribution in
violation of the Securities Act. Each purchaser acknowledges that the Company
and the Trustee reserve the right prior to any offer, sale or other transfer
prior to the Resale Termination Date of the Securities pursuant to clauses (d),
(e) or (f) above to require the delivery of an opinion of counsel,
certifications and/or other information satisfactory to the Company and the
Trustee.

                                           TRANSFEREE:______________________

                                           BY:_____________________________

                                      40
<Page>

                  SECTION 2.08. FORM OF CERTIFICATE TO BE DELIVERED IN
CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S.

                                                                          [Date]

Forest Oil Corporation
c/o State Street Bank and Trust Company
Goodwin Square
225 Asylum Street; 23rd Floor
Hartford, CT 06103
Attention of Corporate Trust Department

                  Re:      Forest Oil Corporation
                           8% SENIOR NOTES DUE 2008 (THE "SECURITIES")

Ladies and Gentlemen:

                  In connection with our proposed sale of $________ aggregate
principal amount of the Securities, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the United States
Securities Act of 1933, as amended (the "Securities Act"), and, accordingly, we
represent that:

                           (a) the offer of the Securities was not made to a
                  person in the United States;

                           (b) either (i) at the time the buy order was
                  originated, the transferee was outside the United States or we
                  and any person acting on our behalf reasonably believed that
                  the transferee was outside the United States or (ii) the
                  transaction was executed in, on or through the facilities of a
                  designated off-shore securities market and neither we nor any
                  person acting on our behalf knows that the transaction has
                  been pre-arranged with a buyer in the United States;

                           (c) no directed selling efforts have been made in the
                  United States in contravention of the requirements of
                  Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and

                           (d) the transaction is not part of a plan or scheme
                  to evade the registration requirements of the Securities Act.

                  In addition, if the sale is made during a restricted period
and the provisions of Rule 903(c)(3) or Rule 904(c)(1) of Regulation S are
applicable thereto, we confirm that such sale has been made in accordance with
the applicable provisions of Rule 903(c)(3) or Rule 904(c)(1), as the case may
be.

                  You and the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

                                      41
<Page>

                                                     Very truly yours,

                                                     [Name of Transferor]

                                                     By:
                                                        ------------------------

                                                     ---------------------------
                                                     Authorized Signature

                  SECTION 2.09. REPLACEMENT SECURITIES. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee. If required by the Trustee or
the Company, such Holder shall furnish an indemnity bond sufficient in the
judgment of the Company and the Trustee to protect the Company, the Trustee, the
Paying Agent, the Registrar and any co-registrar from any loss which any of them
may suffer if a Security is replaced, and, in the absence of notice to the
Company, any Subsidiary Guarantor or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and upon Company
Order the Trustee shall authenticate and make available for delivery, in
exchange for any such mutilated Security or in lieu of any such destroyed, lost
or stolen Security, a new Security of like tenor and principal amount, bearing a
number not contemporaneously outstanding.

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

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

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

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

                                      42
<Page>

                  Every replacement Security is an additional obligation of the
Company.

                  SECTION 2.10. OUTSTANDING SECURITIES. Securities
outstanding at any time are all Securities authenticated by the Trustee except
for those canceled by it, those delivered to it for cancellation and those
described in this Section as not outstanding. A Security ceases to be
outstanding in the event the Company or a Subsidiary of the Company holds the
Security, provided, however, that (i) for purposes of determining which are
outstanding for consent or voting purposes hereunder, Securities shall cease to
be outstanding in the event the Company or an Affiliate of the Company holds the
Security and (ii) in determining whether the Trustee shall be protected in
making a determination whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for
quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification
hereunder, or relying upon any such quorum, consent or vote, only Securities
which a Trust Officer of the Trustee actually knows to be held by the Company or
an Affiliate of the Company shall not be considered outstanding.

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

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

                  SECTION 2.11. TEMPORARY SECURITIES. Until Definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of Definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate Definitive Securities.
After the preparation of Definitive Securities, the temporary Securities shall
be exchangeable for Definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company for that purpose
and such exchange shall be without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute,
and the Trustee shall authenticate and make available for delivery in exchange
therefor, one or more Definitive Securities representing an equal principal
amount of Securities. Until so exchanged, the Holder of temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as a
holder of Definitive Securities.

                  SECTION 2.12. CANCELLATION. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment.

                                      43
<Page>

The Trustee and no one else shall cancel all Securities surrendered for
registration of transfer, exchange, payment or cancellation and dispose of such
Securities in accordance with its internal policies including delivery of a
Certificate of Destruction describing such Securities. The Company may not issue
new Securities to replace Securities it has paid or delivered to the Trustee for
cancellation for any reason other than in connection with a transfer or
exchange.

                  SECTION 2.13. DEFAULTED INTEREST. If the Company defaults in a
payment of interest on the Securities, the Company shall pay defaulted interest
(plus interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

                  SECTION 2.14. COMPUTATION OF INTEREST. Interest on the
Securities shall be computed on the basis of a 360-day year of twelve 30-day
months.

                  SECTION 2.15. CUSIP NUMBERS. The Company in issuing the
Securities may use "CUSIP" numbers (if then generally in use) and, if so, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; PROVIDED, HOWEVER, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company shall promptly notify the Trustee of any
change in the CUSIP numbers.

                                   ARTICLE III

                                   REDEMPTION

                  SECTION 3.01. NOTICES TO TRUSTEE. If the Company elects to
redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date, the principal amount of Securities to
be redeemed and the paragraph of the Securities pursuant to which such
redemption is being made. In connection with such redemption, the Company shall
deliver to the Trustee an Officers' Certificate setting forth the redemption
price on all Securities to be redeemed, and the Trustee shall rely solely upon,
and shall be fully protected in relying upon such Officers' Certificate, in all
matters concerning the redemption price.

                  The Company shall give each notice to the Trustee provided for
in this Section at least 45 days before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an Officers'
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein.

                  SECTION 3.02. SELECTION OF SECURITIES TO BE REDEEMED. If less
than all the Securities are to be redeemed at any time, selection of Securities
for redemption will

                                      44
<Page>

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

                  SECTION 3.03. NOTICE OF REDEMPTION. At least 30 days but not
more than 60 days before a date for redemption of Securities, the Company shall
mail a notice of redemption by first-class mail to each Holder of Securities to
be redeemed.

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

                  (a) the redemption date;

                  (b) the redemption price;

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

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

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

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

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

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

                  SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION. Once notice of
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date that is on or prior
to the date of

                                      45
<Page>

redemption). Failure to give notice or any defect in the notice to any Holder
shall not affect the validity of the notice to any other Holder.

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

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

                                   ARTICLE IV

                                    COVENANTS

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

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

                  SECTION 4.02. SEC REPORTS. Notwithstanding that the Company
may not be required to remain subject to the reporting requirements of Section
13 or 15(d) of the Exchange Act, the Company shall file with the SEC and provide
the Trustee and Holders of Securities with the annual reports and the
information, documents and other reports which are specified in Sections 13 and
15(d) of the Exchange Act, and, with respect to the annual consolidated
financial statements only, a report thereon by the Company's independent
auditors; PROVIDED, HOWEVER, that the Company shall not be so obligated to file
such information, documents and reports with the SEC if the SEC does not permit
such filings. The Company shall comply with the other provisions of Section
314(a) of the Trust Indenture Act.

                  SECTION 4.03. LIMITATION ON INDEBTEDNESS. The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, Incur any Indebtedness unless, after giving pro forma effect to the
Incurrence of such Indebtedness and the receipt and application of the proceeds
thereof, no Default or Event of Default would occur as a

                                      46
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consequence of, or be continuing following, such Incurrence and application and
either (a) the Consolidated Interest Coverage Ratio would exceed 2.5 to 1.0 or
(b) such Indebtedness is Permitted Indebtedness.

                  SECTION 4.04. LIMITATION ON RESTRICTED PAYMENTS. (a) The
Company will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, make any Restricted Payment if, at the time of and after giving
effect to the proposed Restricted Payment, (i) any Default or Event of Default
would have occurred and be continuing, (ii) the Company could not Incur at least
$1.00 of additional Indebtedness pursuant to clause (a) of Section 4.03 or (iii)
the aggregate amount expended or declared for all Restricted Payments from
September 30, 2000 would exceed the sum (without duplication) of the following:

                  (A) 50% of the aggregate Consolidated Net Income of the
         Company accrued on a cumulative basis commencing on the last day of the
         fiscal quarter immediately preceding September 30, 2000, and ending on
         the last day of the fiscal quarter ending on or immediately preceding
         the date of such proposed Restricted Payment (or, if such aggregate
         Consolidated Net Income shall be a loss, minus 100% of such loss), plus

                  (B) the aggregate net cash proceeds, or the Fair Market Value
         of Property other than cash, received by the Company on or after
         September 30, 2000 from the issuance or sale (other than to a
         Subsidiary of the Company) of Capital Stock of the Company or any
         options, warrants or rights to purchase Capital Stock of the Company,
         plus

                  (C) the aggregate net cash proceeds, or the Fair Market Value
         of Property other than cash, received by the Company as capital
         contributions to the Company (other than from a Subsidiary of the
         Company) on or after September 30, 2000, plus

                  (D) the aggregate net cash proceeds received by the Company
         from the issuance or sale (other than to any Subsidiary of the Company)
         on or after September 30, 2000 of convertible Indebtedness that has
         been converted into or exchanged for Capital Stock of the Company,
         together with the aggregate cash received by the Company at the time of
         such conversion or exchange or received by the Company from any such
         conversion or exchange of convertible Indebtedness issued or sold
         (other than to any Subsidiary of the Company) prior to September 30,
         2000, plus

                  (E) to the extent not otherwise included in the Company's
         Consolidated Net Income, an amount equal to the net reduction in
         Investments made by the Company and its Restricted Subsidiaries
         subsequent to September 30, 2000 in any Person resulting from (1)
         payments of interest on debt, dividends, repayments of loans or
         advances or other transfers or distributions of Property, in each case
         to the Company or any Restricted Subsidiary from any Person other than
         the Company or a Restricted Subsidiary, and in an amount not to exceed
         the book value of such Investments previously made in such Person that
         were treated as Restricted Payments, or (2) the designation of any
         Unrestricted Subsidiary as a Restricted Subsidiary, and in an amount
         not to exceed the lesser of (x) the book value of all Investments
         previously made in such Unrestricted Subsidiary that were treated as
         Restricted Payments and (y) the Fair Market Value of such Unrestricted
         Subsidiary, plus

                                      47
<Page>

                  (F) $25,000,000.

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

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

                           (ii) the repurchase, redemption or other acquisition
         or retirement for value of any Capital Stock of the Company or any of
         its Subsidiaries held by any current or former officers, directors or
         employees of the Company or any of its Subsidiaries pursuant to the
         terms of agreements (including employment agreements) or plans approved
         by the Company's Board of Directors, including any such repurchase,
         redemption, acquisition or retirement of shares of such Capital Stock
         that is deemed to occur upon the exercise of stock options or similar
         rights if such shares represent all or a portion of the exercise price
         or are surrendered in connection with satisfying United States or
         Canadian Federal income tax obligations; PROVIDED, HOWEVER, that the
         aggregate amount of such repurchases, redemptions, acquisitions and
         retirements shall not exceed the sum of (A) $10,000,000 in any 12-month
         period and (B) the aggregate net proceeds, if any, received by the
         Company during such 12-month period from any issuance of such Capital
         Stock pursuant to such agreements or plans;

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

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

                           (v) the making of any principal payment on or the
         repurchase, redemption, legal defeasance or other acquisition or
         retirement for value of Subordinated Indebtedness in exchange for, or
         out of the aggregate net cash proceeds of, a substantially concurrent
         Incurrence (other than a sale to a Subsidiary of the Company) of
         Subordinated Indebtedness so long as such new Indebtedness is Permitted
         Refinancing Indebtedness and

                                      48
<Page>

         (A) has an Average Life that is longer than the Average Life of the
         Securities and (B) has a Stated Maturity for its final scheduled
         principal payment that is more than one year after the Stated Maturity
         of the final scheduled principal payment of the Securities;

                           (vi) the making of any principal payment on or the
         repurchase, redemption, legal defeasance or other acquisition or
         retirement for value, prior to any scheduled principal payment,
         scheduled sinking fund payment or maturity, of any Subordinated
         Indebtedness that is either (A) existing on the Issue Date or (B)
         issued after the Issue Date in exchange for, or for aggregate net cash
         proceeds used to repurchase, redeem, legally defease or otherwise
         acquire or retire for value, Subordinated Indebtedness existing on the
         Issue Date; PROVIDED, HOWEVER, that the aggregate principal amount of
         such Subordinated Indebtedness issued after the Issue Date shall not
         exceed the aggregate principal amount of the Subordinated Indebtedness
         existing on the Issue Date so exchanged, repurchased, redeemed, legally
         defeased or otherwise acquired or retired for value; and

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

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

                  SECTION 4.05. LIMITATION ON RESTRICTIONS ON DISTRIBUTIONS FROM
RESTRICTED SUBSIDIARIES. The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
permit to exist or become effective any consensual encumbrance or restriction on
the legal right of any Restricted Subsidiary to (i) pay dividends, in cash or
otherwise, or make any other distributions on or in respect of its Capital Stock
or Redeemable Stock, or pay any Indebtedness or other obligation owed, to the
Company or any other Restricted Subsidiary, (ii) make loans or advances to the
Company or any other Restricted Subsidiary or (iii) transfer any of its Property
to the Company or any other Restricted Subsidiary. Such limitation will not
apply (a) with respect to clauses (i), (ii) and (iii), to encumbrances and
restrictions (1) in Bank Credit Facilities and other agreements and instruments,
in each case as in effect on the Issue Date, (2) relating to Indebtedness of a
Restricted Subsidiary and existing at the time it became a Restricted Subsidiary
if such encumbrance or restriction was not created in anticipation of or in
connection with the transactions pursuant to which such Restricted Subsidiary
became a Restricted Subsidiary or (3) which result from the renewal,
refinancing, extension or amendment of an agreement that is the

                                      49
<Page>

subject of clause (a) (1) or (2) above or clause (b) (1) or (2) below; PROVIDED
that such encumbrance or restriction is not materially less favorable to the
Holders of Securities than those under or pursuant to the agreement so renewed,
refinanced, extended or amended, and (b) with respect to clause (iii) only, to
(1) any restriction on the sale, transfer or other disposition of Property
relating to Indebtedness that is permitted to be Incurred and secured under
Sections 4.03 and 4.10, (2) any encumbrance or restriction applicable to
Property at the time it is acquired by the Company or a Restricted Subsidiary,
so long as such encumbrance or restriction relates solely to the Property so
acquired and was not created in anticipation of or in connection with such
acquisition, (3) customary provisions restricting subletting or assignment of
leases and customary provisions in other agreements that restrict assignment of
such agreements or rights thereunder and (4) customary restrictions contained in
asset sale agreements limiting the transfer of such assets pending the closing
of such sale.

                  SECTION 4.06. LIMITATION ON ASSET SALES. (a) The Company will
not, and will not permit any Restricted Subsidiary to, consummate any Asset Sale
unless (i) the Company or such Restricted Subsidiary, as the case may be,
receives consideration at the time of such Asset Sale at least equal to the Fair
Market Value of the Property subject to such Asset Sale and (ii) all of the
consideration paid to the Company or such Restricted Subsidiary in connection
with such Asset Sale is in the form of cash, cash equivalents, Liquid
Securities, Exchanged Properties or the assumption by the purchaser of
liabilities of the Company (other than liabilities of the Company that are by
their terms subordinated to the Securities) or liabilities of any Restricted
Subsidiary that made such Asset Sale (other than liabilities of any 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 and held
by the Company and the Restricted Subsidiaries at any one time shall not exceed
10.0% of Adjusted Consolidated Net Tangible Assets.

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

                  (a) 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 will constitute "Excess Proceeds". When the aggregate amount of
Excess Proceeds exceeds $50,000,000, an offer to

                                      50
<Page>

purchase Securities having an aggregate principal amount equal to the aggregate
amount of Excess Proceeds (the "PREPAYMENT OFFER") must be made by the Company
at a purchase price equal to 100% of the principal amount of such Securities
plus accrued and unpaid interest, if any, to the Purchase Date (as defined) in
accordance with the procedures (including prorating in the event of
oversubscription) set forth in this Indenture, but, if the terms of any Pari
Passu Indebtedness require that a Pari Passu Offer be made contemporaneously
with the Prepayment Offer, then the Excess Proceeds shall be prorated between
the Prepayment Offer and such Pari Passu Offer in accordance with the aggregate
outstanding principal amounts of the Securities and such Pari Passu
Indebtedness, and the aggregate principal amount of Securities for which the
Prepayment Offer is made shall be reduced accordingly. If the aggregate
principal amount of Securities tendered by Holders thereof exceeds the amount of
available Excess Proceeds, then such Excess Proceeds will be allocated pro rata
according to the principal amount of the Securities tendered and the Trustee
will select the Securities to be purchased in accordance with this Indenture. To
the extent that any portion of the amount of Excess Proceeds remains after
compliance with the second sentence of this paragraph and PROVIDED that all
Holders of Securities have been given the opportunity to tender their Securities
for purchase as described in the following paragraph in accordance with this
Indenture, the Company and its Restricted Subsidiaries may use such remaining
amount for purposes permitted by this Indenture and the amount of Excess
Proceeds will be reset to zero.

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

                                       51
<Page>

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

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

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

                  (d) The Company shall comply, to the extent applicable, with
the requirements of Rule 14e-1 under the Exchange Act and any other securities
laws or regulations thereunder to the extent such laws and regulations are
applicable in connection with the purchase of Securities as described above. To
the extent that the provisions of any securities laws or regulations conflict
with the provisions relating to the Prepayment Offer, the Company shall comply
with the

                                       52

<Page>

applicable securities laws and regulations and shall not be deemed to have
breached its obligations described above by virtue thereof.

                  SECTION 4.07. LIMITATION ON TRANSACTIONS WITH AFFILIATES. The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, conduct any business or enter into any transaction or
series of transactions (including the sale, transfer, disposition, purchase,
exchange or lease of Property, the making of any Investment, the giving of any
Guarantee or the rendering of any service) with or for the benefit of any
Affiliate of the Company (other than the Company or a Restricted Subsidiary),
unless (i) such transaction or series of transactions is on terms no less
favorable to the Company or such Restricted Subsidiary than those that could be
obtained in a comparable arm's-length transaction with a Person that is not an
Affiliate of the Company or such Restricted Subsidiary, and (ii) with respect to
a transaction or series of transactions involving aggregate payments by or to
the Company or such Restricted Subsidiary having a Fair Market Value equal to or
in excess of (a) $5,000,000 but less than $10,000,000, an Officer of the Company
certifies that such transaction or series of transactions complies with clause
(i) of this paragraph, as evidenced by an Officer's Certificate delivered to the
Trustee, (b) $10,000,000 but less than $50,000,000, the Board of Directors of
the Company (including a majority of the disinterested members of such Board of
Directors) approves such transaction or series of transactions and certifies
that such transaction or series of transactions complies with clause (i) of this
paragraph, as evidenced by a certified resolution delivered to the Trustee or
(c) $50,000,000, (1) the Company receives from an independent, nationally
recognized investment banking firm or appraisal firm, in either case
specializing or having a specialty in the type and subject matter of the
transaction (or series of transactions) at issue, a written opinion that such
transaction (or series of transactions) is fair, from a financial point of view,
to the Company or such Restricted Subsidiary and (2) the Board of Directors of
the Company (including a majority of the disinterested members of such Board of
Directors) approves such transaction or series of transactions and certifies
that such transaction or series of transactions complies with clause (i) of this
paragraph, as evidenced by a certified resolution delivered to the Trustee.

                  The limitations of the preceding paragraph do not apply to (i)
the payment of reasonable and customary regular fees to directors of the Company
or any of its Restricted Subsidiaries who are not employees of the Company or
any of its Restricted Subsidiaries, (ii) indemnities of officers and directors
of the Company or any Subsidiary consistent with such Person's charter, bylaws
and applicable statutory provisions, (iii) any issuance of securities, or other
payments, awards or grants in cash, securities or otherwise pursuant to, or the
funding of, employment arrangements, stock options and stock ownership plans
approved by the Board of Directors of the Company, (iv) loans made (a) to
officers, directors or employees of the Company or any Restricted Subsidiary
approved by the Board of Directors (or by a duly authorized officer) of the
Company, the proceeds of which are used solely to purchase common stock of the
Company in connection with a restricted stock or employee stock purchase plan,
or to exercise stock options received pursuant to an employee or director stock
option plan or other incentive plan, in a principal amount not to exceed the
exercise price of such stock options, or (b) to refinance loans, together with
accrued interest thereon, made pursuant to this clause (iv), (v) advances and
loans to officers, directors and employees of the Company or any Subsidiary;
PROVIDED such loans and advances (excluding loans or advances made pursuant to
the preceding clause (iv)) do not exceed $10,000,000 at any one time
outstanding, (vi) any

                                       53
<Page>

Restricted Payment permitted to be paid pursuant to Section 4.04, (vii) any
transaction or series of transactions between the Company and one or more
Restricted Subsidiaries or between two or more Restricted Subsidiaries in the
ordinary course of business; PROVIDED that no more than 10% of the total voting
power of the Voting Stock of any such Restricted Subsidiary is owned by an
Affiliate of the Company (other than a Restricted Subsidiary) or (viii) any
transaction or series of transactions pursuant to any agreement or obligation of
the Company or any of its Restricted Subsidiaries in effect on the Issue Date.

                  SECTION 4.08. LIMITATION ON THE ISSUANCE AND SALE OF CAPITAL
STOCK OF RESTRICTED SUBSIDIARIES. The Company will not (a) permit any Restricted
Subsidiary to issue any Capital Stock or Redeemable Stock other than to the
Company or one of its Wholly Owned Subsidiaries or (b) permit any Person other
than the Company or a Wholly Owned Subsidiary to own any Capital Stock or
Redeemable Stock of any other Restricted Subsidiary (other than directors'
qualifying shares), except, in each case, for (i) the sale of the Capital Stock
or Redeemable Stock of a Restricted Subsidiary owned by the Company or any other
Restricted Subsidiary effected in accordance with Section 4.06; (ii) the
issuance of Capital Stock or Redeemable Stock by a Restricted Subsidiary to a
Person other than the Company or a Restricted Subsidiary and (iii) the Capital
Stock or Redeemable Stock of a Restricted Subsidiary owned by a Person at the
time such Restricted Subsidiary became a Restricted Subsidiary or acquired by
such Person in connection with the formation of the Restricted Subsidiary, or
transfers thereof; PROVIDED that any sale or issuance of Capital Stock of a
Restricted Subsidiary shall be deemed to be an Asset Sale to the extent the
percentage of the total outstanding Voting Stock of such Restricted Subsidiary
owned directly and indirectly by the Company is reduced as a result of such sale
or issuance; PROVIDED FURTHER that if a Person whose Capital Stock was issued or
sold in a transaction described in this paragraph is, as a result of such
transaction, no longer a Restricted Subsidiary, then the Fair Market Value of
Capital Stock of such Person retained by the Company and the other Restricted
Subsidiaries shall be treated as an Investment for purposes of Section 4.04. In
the event of the consummation of a sale of all the Capital Stock of a Restricted
Subsidiary pursuant to the foregoing clause (i) and the execution and delivery
of a supplemental indenture in form satisfactory to the Trustee, any such
Restricted Subsidiary that is also a Subsidiary Guarantor shall be released from
all its obligations under its Subsidiary Guarantee.

                  SECTION 4.09. CHANGE OF CONTROL. (a) Upon the occurrence of a
Change of Control, each Holder of Securities shall have the right to require the
Company to repurchase all or any part (equal to $1,000 in principal amount or an
integral multiple thereof) of such Holder's Securities pursuant to the offer
described below (the "CHANGE OF CONTROL OFFER") at a purchase price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid interest,
if any, to the date of purchase, subject to the right of holders of record on
the relevant record date to receive interest due on the relevant interest
payment date (the "CHANGE OF CONTROL PAYMENT").

                  (b) Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder stating, among other things: (i) that
a Change of Control has occurred and a Change of Control Offer is being made
pursuant to this Indenture and that all Securities (or portions thereof)
properly tendered will be accepted for payment; (ii) the purchase price and the
purchase date, which shall be, subject to any contrary requirements of
applicable law, no fewer

                                       54
<Page>

than 30 days nor more than 60 days from the date the Company mails such notice
(the "CHANGE OF CONTROL PAYMENT DATE"); (iii) that any Security (or portion
thereof) accepted for payment (and duly paid on the Change of Control Payment
Date) pursuant to the Change of Control Offer shall cease to accrue interest on
the Change of Control Payment Date; (iv) that any Securities (or portions
thereof) not properly tendered will continue to accrue interest; (v) a
description of the transaction or transactions constituting the Change of
Control; (vi) the procedures that Holders of Securities must follow in order to
tender their Securities (or portions thereof) for payment and the procedures
that Holders of Securities must follow in order to withdraw an election to
tender Securities (or portions thereof) for payment; and (vii) all other
instructions and materials necessary to enable Holders to tender Securities
pursuant to the Change of Control Offer. Prior to the mailing of the notice to
Holders of Securities described above, but in any event within 30 days following
any Change of Control, the Company covenants to (A) repay or cause to be repaid
in full all Indebtedness of the Company and any Subsidiary Guarantor that would
prohibit the repurchase of the Securities pursuant to such Change of Control
Offer or (B) obtain any requisite consents under instruments governing any such
Indebtedness of the Company and any Subsidiary Guarantor to permit the
repurchase of the Securities. The Company shall first comply with the covenant
in the preceding sentence before it shall repurchase Securities pursuant to this
covenant.

                  (c) Holders electing to have a Security purchased shall be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the Change of Control Payment 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 Change of Control Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Security which was delivered for purchase by the Holder
and a statement that such Holder is withdrawing his election to have such
Security purchased.

                  (d) On or prior to the Change of Control Payment Date, the
Company shall irrevocably deposit with the Trustee or with the Paying Agent (or,
if the Company or any Wholly Owned Subsidiary is acting as the Paying Agent,
segregate and hold in trust) in cash an amount equal to the Change of Control
Payment payable to the Holders entitled thereto, to be held for payment in
accordance with the provisions of this Section.

                  (e) On the Change of Control Payment Date, the Company shall
deliver to the Trustee the Securities or portions thereof which have been
properly tendered to and are to be accepted by the Company for payment. The
Trustee or Paying Agent, as applicable, shall, on or promptly after the Change
of Control Payment Date, mail or deliver payment to each tendering Holder of the
Change of Control Payment. In the event that the aggregate Change of Control
Payment delivered by the Company to the Trustee is less than the amount
deposited with the Trustee, the Trustee shall deliver the excess to the Company
immediately after the Change of Control Payment Date.

                  (f) The Company shall not be required to make a Change of
Control Offer upon a Change of Control if a third party (including the Company
or another Subsidiary of the Company) makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
in this Indenture applicable to a Change of Control

                                       55
<Page>

Offer made by the Company and purchases all Securities validly tendered and not
withdrawn under such Change of Control Offer.

                  (g) The Company will comply, to the extent applicable, with
the requirements of 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 connection with the purchase of Securities in connection with a
Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with the provisions relating to the Change of Control
Offer, the Company the Company will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations
described above by virtue thereof.

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

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

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

                  SECTION 4.13. FUTURE SUBSIDIARY GUARANTORS. The Company shall
cause each Domestic Restricted Subsidiary having an aggregate of $25,000,000 or
more of Indebtedness and Preferred Stock outstanding at any time to promptly
execute and deliver to the Trustee a Subsidiary Guarantee. In addition, any
Restricted Subsidiary that Guarantees Indebtedness of the Company will be
required to execute and deliver to the Trustee a Subsidiary Guarantee.

                  SECTION 4.14. RESTRICTED AND UNRESTRICTED SUBSIDIARIES. Unless
defined or designated as an Unrestricted Subsidiary, any Person that becomes a
Domestic Subsidiary or a Canadian Subsidiary of the Company or any of its
Restricted Subsidiaries shall be classified as a Restricted Subsidiary subject
to the provisions of the next paragraph. The Company may designate a Subsidiary
(including a newly formed or newly acquired Subsidiary) of the Company or any of
its Restricted Subsidiaries as an Unrestricted Subsidiary if (a) such Subsidiary
does not at such time own any Capital Stock or Indebtedness of, or own or hold
any

                                       56
<Page>

Lien on any Property of, the Company or any other Restricted Subsidiary, (b)
such Subsidiary does not at such time have any Indebtedness or other obligations
which, if in default, would result (with the passage of time or notice or
otherwise) in a default on any Indebtedness of the Company or any Restricted
Subsidiary and (c)(i) such designation is effective immediately upon such
Subsidiary becoming a Subsidiary of the Company or of a Restricted Subsidiary,
(ii) the Subsidiary to be so designated has total assets of $1,000 or less or
(iii) if such Subsidiary has assets greater than $1,000, then such redesignation
as an Unrestricted Subsidiary is deemed to constitute a Restricted Payment in an
amount equal to the Fair Market Value of the Company's direct and indirect
ownership interest in such Subsidiary and such Restricted Payment would be
permitted to be made at the time of such designation under Section 4.04. Except
as provided in the second sentence of this paragraph, no Restricted Subsidiary
may be redesignated as an Unrestricted Subsidiary. The designation of an
Unrestricted Subsidiary or removal of such designation shall be made by the
Board of Directors of the Company or a committee thereof pursuant to a certified
resolution delivered to the Trustee and shall be effective as of the date
specified in the applicable certified resolution, which shall not be prior to
the date such certified resolution is delivered to the Trustee.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, take any action or enter into any transaction or
series of transactions that would result in a Person becoming a Restricted
Subsidiary (whether through an acquisition or otherwise) unless, after giving
effect to such action, transaction or series of transactions, on a pro forma
basis, (i) the Company could Incur at least $1.00 of additional Indebtedness
pursuant to clause (a) of Section 4.03 and (ii) no Default or Event of Default
would occur or be continuing.

                  SECTION 4.15. TERMINATION OF CERTAIN COVENANTS. In the event
that any time (a) the rating assigned to the Securities by either S&P or Moody's
is at least an Investment Grade Rating, (b) the obligations under the Bank
Credit Facilities cease to be secured and (c) no Default or Event of Default
shall have occurred and be continuing, the Company and its Restricted
Subsidiaries shall have no further obligation to comply with the covenants set
forth in Section 4.03 (Limitation On Indebtedness), Section 4.04 (Limitation On
Restricted Payments), Section 4.08 (Limitation On Issuance And Sale of Capital
Stock of Restricted Subsidiaries), Section 4.06 (Limitation On Asset Sales),
Section 4.05 (Limitation on Restrictions On Distributions From Restricted
Subsidiaries) and Section 4.13 (Future Subsidiary Guarantors). In addition, if
the conditions set forth in clauses (a), (b) and (c) of the preceding sentence
are satisfied, the Company will no longer be obligated to comply with the
financial tests set forth in clauses (f) and (g) of Section 5.01.

                  SECTION 4.16. REGISTRATION DEFAULT. If a Registration Default
occurs, the Company shall deliver to the Trustee a certificate to that effect
stating (i) the amount of additional interest to be paid to each Holder of
Transfer Restricted Securities, and (ii) the date on which such additional
interest is payable. Unless and until a Trust Officer receives such a
certificate at its Corporate Trust Office, the Trustee shall assume without
inquiry that no such additional interest is payable. If the Company has paid
such additional interest directly to the Holders entitled to such interest, the
Company shall deliver to the Trustee a certificate setting forth the particulars
of such payment.

                                       57
<Page>

                                    ARTICLE V

                                SUCCESSOR COMPANY

                  SECTION 5.01. WHEN COMPANY MAY MERGE OR TRANSFER ASSETS. The
Company shall not consolidate with or merge with or into any Person, or convey,
transfer or lease, in one transaction or a series of transactions, all or
substantially all the Property of the Company and its Restricted Subsidiaries,
taken as a whole, unless:

                  (a) the resulting, surviving or transferee person (the
         "SUCCESSOR COMPANY") shall be a Person organized or existing under the
         laws of (i) the United States of America, any State thereof or the
         District of Columbia or (ii) Canada or any province thereof;

                  (b) a supplemental indenture is executed and delivered to the
         Trustee, in form satisfactory to the Trustee, by the Successor Company
         expressly assuming, if the Successor Company is not the Company, the
         obligations of the Company to pay the principal of and interest on the
         Securities and to perform all the covenants of the Company under this
         Indenture in which case the Successor Company shall be considered the
         issuer of the Securities;

                  (c) each Subsidiary Guarantor shall execute and deliver to the
         Trustee a supplemental indenture, in form satisfactory to the Trustee,
         confirming the obligation of such Subsidiary Guarantor to pay the
         principal of and interest on the Securities pursuant to such Subsidiary
         Guarantor's Subsidiary Guarantee;

                  (d) in the case of a conveyance, transfer or lease of all or
         substantially all the Property of the Company and its Restricted
         Subsidiaries, taken as a whole, such Property shall have been so
         conveyed, transferred or leased as an entirety or virtually as an
         entirety to one Person;

                  (e) immediately after giving effect to such transaction (and
         treating, for purposes of this clause (e) and clauses (f) and (g)
         below, any Indebtedness which becomes or is anticipated to become an
         obligation of the Successor Company or any Restricted Subsidiary as a
         result of such transaction as having been Incurred by such Successor
         Company or such Restricted Subsidiary at the time of such transaction),
         no Default or Event of Default shall have occurred and be continuing;

                  (f) other than with respect to the consolidation of the
         Company with or merger of the Company with or into, or the conveyance,
         transfer or lease of all or substantially all the Property of the
         Company and its Restricted Subsidiaries, taken as a whole, to a Wholly
         Owned Subsidiary, immediately after giving effect to such transaction,
         the Successor Company would be able to Incur an additional $1.00 of
         Indebtedness pursuant to clause (a) of Section 4.03;

                  (g) other than with respect to the consolidation of the
         Company with or merger of the Company with or into, or the conveyance,
         transfer or lease of all or substantially all

                                       58
<Page>

         the Property of the Company and its Restricted Subsidiaries, taken as a
         whole, to a Wholly Owned Subsidiary, immediately after giving effect to
         such transaction, the Successor Company shall have Consolidated Net
         Worth in an amount that is not less than the Consolidated Net Worth of
         the Company immediately prior to such transaction; and

                  (h) the Company shall have delivered to the Trustee an
         Officer's Certificate, stating that such consolidation, merger or
         transfer and such supplemental indenture (if any) comply with this
         Indenture.

                  The Successor Company shall be the successor to the Company
and shall succeed to, and be substituted for, and may exercise every right and
power of the Company under this Indenture, and, except in the case of the lease
of all or substantially all the Property of the Company and its Restricted
Subsidiaries, taken as a whole, the Company shall be released from its
obligations under this Indenture.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

                  SECTION 6.01. EVENTS OF DEFAULT. The following events shall be
"Events of Default":

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

                  (b) the Company defaults in the payment of the principal (and
         premium, if any) of any Security when the same becomes due and payable
         at its Stated Maturity, upon optional redemption, upon required
         repurchase, upon declaration or otherwise;

                  (c)  the Company fails to comply with Article V;

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

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

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

                           (i)      commences a voluntary case;

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<Page>

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

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

                           (iv)     makes a general assignment for the benefit
                                    of its creditors or files a proposal or
                                    other scheme of arrangement involving the
                                    rescheduling or composition of its
                                    indebtedness; or

                           (v)      files a petition in bankruptcy or an answer
                                    or consent seeking reorganization or relief
                                    or consents to the filing of such petition
                                    in bankruptcy or the appointment of or
                                    taking possession by a Custodian;

or takes any comparable action under any foreign laws relating to insolvency;

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

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

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

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

                           (iv)     any similar relief is granted under any
                                    foreign laws;

         and in each such case the order or decree remains unstayed and in
effect for 60 days;

                  (h) one or more final judgments or orders by a court of
         competent jurisdiction are entered against the Company or any
         Restricted Subsidiary in an uninsured or unindemnified aggregate amount
         outstanding at any time in excess of $10,000,000 and such judgments or
         orders are not discharged, waived, stayed, satisfied or bonded for a
         period of 60 consecutive days;

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

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

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<Page>

                  The term "BANKRUPTCY LAW" means Title 11, UNITED STATES CODE,
or any similar Federal or state law for the relief of debtors, or the Bankruptcy
and Insolvency Act (Canada), the Companies' Creditors Arrangements Act (Canada)
or any similar federal or provincial law in Canada for the relief of debtors.
The term "CUSTODIAN" means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

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

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

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

                  SECTION 6.03. OTHER REMEDIES. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture. The Trustee
may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Securityholder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver of
or acquiescence in the Event of Default. No remedy is exclusive of any other
remedy. All available remedies are cumulative.

                  SECTION 6.04. WAIVER OF PAST DEFAULTS. The Holders of a
majority in aggregate principal amount of the Securities by notice to the
Trustee may waive an existing Default and its consequences except (a) a Default
in the payment of the principal of or interest on a Security or (b) a Default in
respect of a provision that under Section 9.02 cannot be amended without the
consent of each Securityholder affected. When a Default is waived, it is deemed

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cured, but no such waiver shall extend to any subsequent or other Default or
impair any consequent right.

                  SECTION 6.05. CONTROL BY MAJORITY. The Holders of a majority
in aggregate principal amount of the Securities may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee with respect to the
Securities. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or, subject to Section 7.01, that the
Trustee determines is unduly prejudicial to the rights of other Securityholders
or would involve the Trustee in personal liability; PROVIDED, HOWEVER, that the
Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall be entitled to reasonable indemnity against all losses and
expenses caused by taking or not taking such action.

                  SECTION 6.06. LIMITATION ON SUITS. A Securityholder may not
pursue any remedy with respect to this Indenture or the Securities unless:

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

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

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

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

                  SECTION 6.07. RIGHTS OF HOLDERS TO RECEIVE PAYMENT.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed in this Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

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

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<Page>

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

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

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

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

                  THIRD: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section. At least 15 days before
such record date, the Company shall mail to each Securityholder and the Trustee
a notice that states the record date, the payment date and amount to be paid.

                  SECTION 6.11. UNDERTAKING FOR COSTS. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in aggregate principal amount of the Securities.

                  SECTION 6.12. WAIVER OF STAY OR EXTENSION LAWS. The Company
(to the extent it may lawfully do so) shall not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and shall not hinder, delay or impede
the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

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                                   ARTICLE VII

                                     TRUSTEE

                  SECTION 7.01. DUTIES OF TRUSTEE. (a) If an Event of Default
has occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person's own affairs.

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

                           (i) the Trustee undertakes to perform such duties and
         only such duties as are specifically set forth in this Indenture and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                           (ii) in the absence of bad faith on its part, the
         Trustee may conclusively rely, as to the truth of the statements and
         the correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

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

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

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

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

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

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

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

                  (g) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that

                                       64
<Page>

repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it.

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

                  SECTION 7.02. RIGHTS OF TRUSTEE. (a) The Trustee may rely on
any document believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
require the Company to deliver an Officers' Certificate or an Opinion of
Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on the Officers' Certificate or Opinion of
Counsel.

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

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; PROVIDED, HOWEVER, that the Trustee's conduct does not
constitute willful misconduct or negligence.

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

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

                  SECTION 7.04. TRUSTEE'S DISCLAIMER. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the
Trustee's certificate of authentication.

                  SECTION 7.05. NOTICE OF DEFAULTS. If a Default occurs and is
continuing and if it is known to a Trust Officer, the Trustee shall mail to each
Securityholder notice of the Default within 30 days after it is known to a Trust
Officer or written notice of it is received by a Trust Officer. Except in the
case of a Default in payment of principal of or interest on any Security, the
Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of

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Securityholders. Where notice of the occurrence of any Default is given by the
Trustee under this Section and the Default is thereafter cured, the Trustee,
within 30 days after the curing of the Default is known to a Trust Officer,
shall mail to all Securityholders notice that the Default is no longer
continuing.

                  SECTION 7.06. REPORTS BY TRUSTEE TO HOLDERS. As promptly as
practicable after each May 15 beginning with May 15, 2002, and in any event
prior to July 15 in each year, the Trustee shall mail to each Securityholder a
brief report dated as of May 15 each year that complies with TIA Section 313(a).
The Trustee also shall comply with TIA Section 313(b).

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

                  SECTION 7.07. COMPENSATION AND INDEMNITY. The Company shall
pay to the Trustee from time to time reasonable compensation for its services.
The Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Company shall indemnify the Trustee against any and all loss,
liability or expense (including attorneys' fees) incurred by it in connection
with the acceptance and administration of this trust and the performance of its
duties hereunder. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify the Company
shall not relieve the Company of its obligations hereunder. The Company shall
defend the claim and the Trustee may have separate counsel and the Company shall
pay the fees and expenses of such counsel. The Company need not reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Trustee through the Trustee's own willful misconduct, negligence or bad faith.
The Company need not pay for any settlement made by the Trustee without the
Company's consent, such consent not to be unreasonably withheld.

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

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

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

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

                  (2)   the Trustee is adjudged bankrupt or insolvent;

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

        or

                  (4)   the Trustee otherwise becomes incapable of acting.

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

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.

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

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

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

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

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

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so

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

                  SECTION 7.10. ELIGIBILITY; DISQUALIFICATION. The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with
TIA Section 310(b); 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. If at any time the Trustee shall cease to be
eligible in accordance with this Section, it shall resign promptly in the manner
and with the effect specified in this Article VII.

                  SECTION 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST
COMPANY. The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). A Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

                                  ARTICLE VIII

                       DISCHARGE OF INDENTURE; DEFEASANCE

                  SECTION 8.01. DISCHARGE OF LIABILITY ON SECURITIES;
DEFEASANCE. (a) When (i) the Company delivers to the Trustee all outstanding
Securities (other than Securities replaced pursuant to Section 2.09) for
cancellation or (ii) all outstanding Securities have become due and payable,
whether at maturity or as a result of the mailing of a notice of redemption
pursuant to Article III and the Company irrevocably deposits with the Trustee
funds sufficient to pay at maturity or upon redemption all outstanding
Securities, including interest thereon to maturity or such redemption date
(other than Securities replaced pursuant to Section 2.09), and if in either case
the Company pays all other sums payable hereunder, then this Indenture shall,
subject to Section 8.01(c), cease to be of further effect. The Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel and at
the cost and expense of the Company, as the case may be.

                  (b) Subject to Sections 8.01(c) and 8.02, the Company at any
time may terminate (i) all its obligations under the Securities and this
Indenture ("LEGAL DEFEASANCE OPTION") or (ii) its obligations under Sections
4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.13 and 4.14, the
operation of Sections 6.01(d) (to the extent relating to such other Sections),
6.01(e), 6.01(f), 6.01(g), 6.01(h), 6.01(i) and 6.01(j), the obligations under
Sections 5.01(f), 5.01(g) and the related operation of Section 6.01(c)
("COVENANT DEFEASANCE OPTION"). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option.

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                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default. If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Sections 6.01(c)
and 6.01(d) (with respect to the provisions of Articles IV and V referred to in
the immediately preceding paragraph) and Sections 6.01(e), 6.01(f), 6.01(g),
6.01(h) and 6.01(i). If the Company exercises its legal defeasance option or its
covenant defeasance option, each Subsidiary Guarantor, if any, shall be released
from all its obligations under its Subsidiary Guarantee.

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

                  (c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 7.07, 7.08,
8.05 and 8.06 shall survive until the Securities have been paid in full.
Thereafter, the Company's obligations in Sections 7.07 and 8.05 shall survive.

                  SECTION 8.02. CONDITIONS TO DEFEASANCE. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

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

                  (b) the Company delivers to the Trustee a certificate from a
         nationally recognized firm of independent accountants expressing their
         opinion that the payments of principal and interest when due and
         without reinvestment on the deposited U.S. Government Obligations plus
         any deposited money without investment will provide cash at such times
         and in such amounts as will be sufficient to pay principal and interest
         when due on all the Securities to maturity or redemption, as the case
         may be;

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

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

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

                  (f) in the case of the legal defeasance option, the Company
         shall have delivered to the Trustee an Opinion of Counsel in the United
         States stating that (A) the Company has received from, or there has
         been published by, the Internal Revenue Service a ruling, or (B) since
         the date of this Indenture there has been a change in the applicable
         United States Federal income tax law, in either case to the effect
         that, and based thereon such

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<Page>

         Opinion of Counsel shall confirm that, the Securityholders will not
         recognize income, gain or loss for United States Federal income tax
         purposes as a result of such defeasance and will be subject to United
         States Federal income tax on the same amounts, in the same manner and
         at the same times as would have been the case if such defeasance had
         not occurred;

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

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

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

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

                  SECTION 8.04. REPAYMENT TO THE COMPANY. The Trustee and the
Paying Agent shall promptly turn over to the Company upon request any excess
money or securities held by them at any time. Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal or
interest that remains unclaimed for two years, and, thereafter, Securityholders
entitled to the money must look to the Company for payment as general creditors.

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

                  SECTION 8.06. REINSTATEMENT. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article VIII; PROVIDED, HOWEVER, that, if
the Company has made any

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payment of interest on or principal of any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

                                   ARTICLE IX

                                   AMENDMENTS

                  SECTION 9.01. WITHOUT CONSENT OF HOLDERS. The Company and the
Trustee may amend this Indenture or the Securities without notice to or consent
of any Securityholder:

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

                  (b) to comply with Article V;

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

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

                  (e) 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;

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

                  (g) to make any change that does not adversely affect the
         rights of any Securityholder in any material respect.

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

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

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

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

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

                  (d) reduce the premium payable upon the redemption or
         repurchase of any Security in accordance with Article III or Section
         4.06 or 4.09;

                  (e) at any time after a Change of Control or an Asset Sale has
         occurred, change the time at which the Change of Control Offer or
         Prepayment Offer relating thereto must be made or at which the
         Securities must be repurchased pursuant to such Change of Control Offer
         or Prepayment Offer;

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

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

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

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

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

                  (k) cause the Company or any Subsidiary Guarantor to be
         required to make any deduction or withholding from payments made under
         or with respect to the Securities or any Subsidiary Guarantee.

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

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

                  SECTION 9.03. COMPLIANCE WITH TRUST INDENTURE ACT. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.04. REVOCATION AND EFFECT OF CONSENTS AND WAIVERS. A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder's
Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an
amendment

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or waiver becomes effective, it shall bind every Securityholder. An amendment or
waiver becomes effective upon the execution of such amendment or waiver by the
Trustee.

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

                  SECTION 9.05. NOTATION ON OR EXCHANGE OF SECURITIES. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall issue and the Trustee shall authenticate a
new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

                  SECTION 9.06. TRUSTEE TO SIGN AMENDMENTS. The Trustee shall
sign any amendment authorized pursuant to this Article IX if such amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Officers' Certificate and an Opinion of Counsel of
the Company stating that such amendment is authorized or permitted by this
Indenture.

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

                                    ARTICLE X

                              SUBSIDIARY GUARANTEES

                  SECTION 10.01. SUBSIDIARY GUARANTEE. Each Subsidiary Guarantor
hereby unconditionally guarantees, jointly and severally, to each Holder and to
the Trustee and its successors and assigns, (a) the full and punctual payment of
principal of and interest on the Securities when due, whether at maturity, by
acceleration, by redemption or otherwise, and all other monetary obligations of
the Company under this Indenture and the Securities and (b) the full and
punctual performance within applicable grace periods of all other obligations of
the Company under this Indenture and the Securities (all the foregoing being
hereinafter collectively

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called the "Obligations"). Each Subsidiary Guarantor further agrees that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Subsidiary Guarantor and that such Subsidiary Guarantor
will remain bound under this Article X notwithstanding any extension or renewal
of any Obligation.

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

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

                  Except as expressly set forth in Sections 8.01(b), 10.03 and
10.07, the obligations of each Subsidiary Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Subsidiary Guarantor herein
shall not be discharged or impaired or otherwise affected by the failure of any
Holder or the Trustee to assert any claim or demand or to enforce any remedy
under this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the obligations, or by any other act or thing
or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of such Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law
or equity.

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

                  In furtherance of the foregoing and not in limitation of any
other right which any Holder or the Trustee has at law or in equity against any
Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay
the principal of or interest on any Obligation when and

                                      74
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as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Obligation, each
Subsidiary Guarantor hereby promises to and will, upon receipt of written demand
by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or
the Trustee an amount equal to the sum of (A) the unpaid amount of such
Obligations, (B) accrued and unpaid interest on such Obligations (but only to
the extent not prohibited by law) and (C) all other monetary Obligations of the
Company to the Holders and the Trustee.

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

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

                  SECTION 10.02. CONTRIBUTION. Each of the Company and any
Subsidiary Guarantor (each a "CONTRIBUTING PARTY") agrees that, in the event a
payment shall be made by any Subsidiary Guarantor under its Subsidiary Guarantee
(the "CLAIMING GUARANTOR"), each Contributing Party shall indemnify the Claiming
Guarantor in an amount equal to the amount of such payment multiplied by a
fraction, the numerator of which shall be the net worth of the Contributing
Party on the date hereof and the denominator of which shall be the aggregate net
worth of the Company and all the Subsidiary Guarantors on the date hereof (or,
in the case of any Subsidiary Guarantor becoming a party hereto pursuant to
Section 9.01, the date of the amendment hereto executed and delivered by such
Subsidiary Guarantor).

                  SECTION 10.03. SUCCESSORS AND ASSIGNS. This Article X shall be
binding upon the Company and each Subsidiary Guarantor and each of their
respective successors and assigns and shall enure to the benefit of the
successors and assigns of the Trustee and the Holders and, in the event of any
transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges conferred upon that party in this Indenture and in the Securities
shall automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of this Indenture.

                  SECTION 10.04. NO WAIVER. Neither a failure nor a delay on the
part of either the Trustee or the Holders in exercising any right, power or
privilege under this Article X shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of any
right, power or privilege. The rights, remedies and benefits of the Trustee and
the Holders herein expressly specified are cumulative and not exclusive of any
other

                                      75
<Page>

rights, remedies or benefits which either may have under this Article X at law,
in equity, by statute or otherwise.

                  SECTION 10.05. MODIFICATION. No modification, amendment or
waiver of any provision of this Article X, nor the consent to any departure by
the Company or any Subsidiary Guarantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Trustee, and
then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given. No notice to or demand on the Company or any
Subsidiary Guarantor in any case shall entitle the Company or such Subsidiary
Guarantor to any other or further notice or demand in the same, similar or other
circumstances.

                  SECTION 10.06. EXECUTION OF SUPPLEMENTAL INDENTURE FOR FUTURE
SUBSIDIARY GUARANTORS. Each Subsidiary which is required to become a Subsidiary
Guarantor pursuant to Section 4.13 shall promptly execute and deliver to the
Trustee a supplemental indenture in the form of Exhibit C hereto pursuant to
which such Subsidiary shall become a Subsidiary Guarantor under this Article X
and shall guarantee the Obligations. Concurrently with the execution and
delivery of such supplemental indenture, the Company shall deliver to the
Trustee an Opinion of Counsel to the effect that such supplemental indenture has
been duly authorized, executed and delivered by such Subsidiary and that,
subject to the application of bankruptcy, insolvency, moratorium, fraudulent
conveyance or transfer and other similar laws relating to creditors' rights
generally and to the principles of equity, whether considered in a proceeding at
law or in equity, the Subsidiary Guarantee of such Subsidiary Guarantor is a
legal, valid and binding obligation of such Subsidiary Guarantor, enforceable
against such Subsidiary Guarantor in accordance with its terms.

                                   ARTICLE XI

                                  MISCELLANEOUS

                  SECTION 11.01. TRUST INDENTURE ACT CONTROLS. If any provision
of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

                  SECTION 11.02. NOTICES. Any notice or communication shall be
in writing and delivered in person or mailed by first-class mail or sent by
facsimile (with a hard copy delivered in person or by mail promptly thereafter)
and addressed as follows:

                                      76
<Page>

         if to the Company or any Subsidiary Guarantor:

               Forest Oil Corporation
               1600 Broadway
               Suite 2200
               Denver, CO 80202-4722
               Telecopy No: (303) 812-1510
               Attention of Newton W. Wilson, III

         if to the Trustee:

               State Street Bank and
               Trust Company
               Goodwin Square
               225 Asylum Street; 23rd Floor
               Hartford, CT 06103
               Attention of Corporate Trust Department

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

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

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

                  SECTION 11.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).

                  SECTION 11.04. CERTIFICATE AND OPINION AS TO CONDITIONS
PRECEDENT. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

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

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

                                      77
<Page>

                  SECTION 11.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

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

                  (b) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

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

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

                  SECTION 11.06. WHEN SECURITIES DISREGARDED. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities outstanding at the
time shall be considered in any such determination.

                  SECTION 11.07. RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR.
The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar, the Paying Agent and any co-registrar may make
reasonable rules for their functions.

                  SECTION 11.08. LEGAL HOLIDAYS. A "Legal Holiday" is a
Saturday, a Sunday or a day on which banking institutions are not required to be
open in the State of New York or the city in which the Trustee's office which
administers the Indenture is located. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. If a regular record
date is a Legal Holiday, the record date shall not be affected.

                  SECTION 11.09. GOVERNING LAW. THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

                  SECTION 11.10. NO RECOURSE AGAINST OTHERS. A director,
officer, employee or stockholder, as such, of the Company or any Subsidiary
Guarantor shall not have any liability for any obligations of the Company under
the Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a

                                      78
<Page>

Security, each Securityholder shall waive and release all such liability. The
waiver and release shall be part of the consideration for the issue of the
Securities.

                  SECTION 11.11. SUCCESSORS. All agreements of the Company in
this Indenture and the Securities shall bind their successors. All agreements of
the Trustee in this Indenture shall bind its successors.

                  SECTION 11.12. MULTIPLE ORIGINALS. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 11.13. TABLE OF CONTENTS; HEADINGS. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

                  SECTION 11.14. CONSENT TO JURISDICTION AND SERVICE. The
Company irrevocably submits to the jurisdiction of any United States federal or
state court located in the Borough of Manhattan in The City of New York, New
York over any suit, action or proceeding arising out of or relating to this
Indenture or any Security. The Company irrevocably waives, to the fullest extent
permitted by law, any objection which it may have to the laying of the venue of
any such suit, action or proceeding brought in such a court and any claim that
any suit, action or proceeding brought in such a court has been brought in an
inconvenient forum. The Company agrees that final judgment in any such suit,
action or proceeding brought in such a court shall be conclusive and binding
upon the Company and may be enforced in any courts to the jurisdiction of which
the Company is subject by a suit upon such judgment, PROVIDED that service of
process is effected upon the Company in the manner specified in Section 11.14(b)
hereof or as otherwise permitted by law.

                  (a) As long as any of the Securities remain outstanding, the
Company will at all times have an authorized agent in the Borough of Manhattan,
The City of New York, New York upon whom process may be served in any legal
action or proceeding arising out of or relating to this Indenture or any
Security. Service of process upon such agent shall be deemed in every respect
effective service of process upon the Company in any such legal action or
proceeding. The Company hereby irrevocably appoints CT Corporation System, whose
address is, as of the date hereof, 1633 Broadway, New York, New York 10019, as
its agent for such purpose and covenants and agrees that service of process in
any such legal action or proceeding may be made upon it at the office of such
agent at said address (or at such other address in the Borough of Manhattan, The
City of New York, New York as the Company may designate by written notice to the
Trustee).

                  (b) The Company hereby consents to process being served in any
suit, action or proceeding of the nature referred to in Section 11.14(a) and
Section 11.14(b) hereof by service upon such agent. The Company irrevocably
waives, to the fullest extent permitted by law, all claim of error by reason of
any such service and agrees that such service (i) shall be deemed in every
respect effective service of process upon the Company in any such suit, action
or

                                      79
<Page>

proceeding and (ii) shall, to the fullest extent permitted by law, be taken and
held to be valid personal service.

                  (c) Nothing in this Section shall affect the right of the
Trustee or any Holder to serve process in any manner permitted by law or limit
the right of the Trustee to bring proceedings against the Company in the courts
of any jurisdiction or jurisdictions.

                                      80
<Page>

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

                                 FOREST OIL CORPORATION

                                 By:_____________________________
                                    Name:
                                    Title:

                                 STATE STREET BANK AND TRUST COMPANY, as Trustee

                                 By:______________________________
                                    Name:
                                    Title:

                                       81

<Page>

                                                                       EXHIBIT A

           [FORM OF FACE OF INITIAL SECURITY AND ADDITIONAL SECURITY]

                    [Applicable Restricted Securities Legend]
                       [Depository Legend, if applicable]

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

                                                 CUSIP NO. ____________
                                                   ISIN: ____________

                             8% Senior Note due 2008

                  FOREST OIL CORPORATION, a New York corporation, promises to
pay to Cede & Co., or registered assigns, the principal sum of [ ] Dollars, as
revised by the Schedule of Increases and Decreases in Global Security attached
hereto, on June 15, 2008.

Interest Payment Dates:  June 15 and December 15.

Record Dates: June 1 and December 1.

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

Dated: [         ], 2001

                                                  FOREST OIL CORPORATION

                                                  By:  _________________________
                                                       Name:
                                                       Title:

CORPORATE SEAL

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

STATE STREET BANK AND
TRUST COMPANY,
as Trustee, certifies
that this is one of the Securities
referred to in the Indenture.

By:  ______________________
     Authorized Signatory

SEAL

                                      A-1

<Page>

       [FORM OF REVERSE SIDE OF INITIAL SECURITY AND ADDITIONAL SECURITY]

                             8% Senior Note Due 2008

1. INTEREST
                  Forest Oil Corporation, a New York 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 Security at the rate per annum shown above. The Company
will pay interest semiannually on June 15 and December 15 of each year beginning
on December 15, 2001. Interest on the Securities will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from June __, 2001. 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 Securities plus 1% per annum, and it shall pay interest on
overdue installments of interest at the same rate to the extent lawful.

                  If (i) the Exchange Offer Registration Statement is not filed
with the Commission on or prior to 90 days after the Issue Date or the Shelf
Registration Statement is not filed with the Commission on or before the Shelf
Filing Date, (ii) the Exchange Offer Registration Statement is not declared
effective within 150 days after the Issue Date or the Shelf Registration
Statement is not declared effective within 60 days of the Shelf Filing Date,
(iii) the Exchange Offer is not consummated on or prior to 180 days after the
Issue Date, or (iv) the Shelf Registration Statement is filed and declared
effective within 60 days after the Shelf Filing Date but shall thereafter cease
to be effective (at any time that the Company is obligated to maintain the
effectiveness thereof) without being succeeded within 30 days by an additional
Registration Statement filed and declared effective (each such event referred to
in clauses (i) through (iv), a "REGISTRATION DEFAULT"), the Company will be
obligated to pay additional interest to each Holder of Transfer Restricted
Securities, during the period of one or more such Registration Defaults, in an
amount equal to $ 0.192 per week per $1,000 principal amount of Transfer
Restricted Securities held by such Holder until (i) the applicable Registration
Statement is filed, (ii) the Exchange Offer Registration Statement is declared
effective and the Exchange Offer is consummated, (iii) the Shelf Registration
Statement is declared effective or (iv) the Shelf Registration Statement again
becomes effective, as the case may be. Following the cure of all Registration
Defaults, the accrual of additional interest will cease. Capitalized terms used
in this paragraph, but not otherwise defined herein shall have the meanings
ascribed to such terms in the Exchange and Registration Rights Agreement, [dated
as of June 21, 2001 (the "Registration Rights Agreement"), among the Company,
J.P. Morgan Securities Inc., Salomon Smith Barney Inc., BMO Nesbitt Burns Corp.
and TD Securities (USA) Inc. and the other Initial Purchasers named therein. The
Holder of this Security is entitled to the benefits of the Registration Rights
Agreement].[for Additional Securities, replace with relevant description of
Registration Rights Agreement]

2. METHOD OF PAYMENT

                                      A-2

<Page>

                  The Company will pay interest on the Securities (except
defaulted interest) to the Persons who are registered holders of Securities at
the close of business on the June 1 or December 1 next preceding the interest
payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying
Agent to collect principal payments. The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of Securities
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the holders thereof or,
if no U.S. dollar account maintained by the payee with a bank in the United
States is designated by any holder to the Trustee or the Paying Agent at least
30 days prior to the relevant due date for payment (or such other date as the
Trustee may accept in its discretion), by mailing a check to the registered
address of such holder. The Company will pay principal, premium, if any, and
interest on the Securities and the Securities will be transferable at the office
or agency designated by the Company within the City and State of New York. In
addition, in the event the Securities do not remain in book-entry form, the
Company may pay interest, at its option, by check mailed to the registered
holders of the Securities at their registered addresses as set forth in the
Security Register. No service charge will be made for any transfer or exchange
of Securities, but the Company or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be payable in
connection therewith.

3. PAYING AGENT AND REGISTRAR

                  Initially, State Street Bank and Trust Company (the "Trustee")
will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of
its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

4. INDENTURE

                  The Company issued the Securities under an Indenture dated as
of June 21, 2001 (the "Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Terms defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

                  The Securities are general unsecured obligations of the
Company including (a) $200,000,000 aggregate principal amount of Securities
being offered on the Issue Date (subject to SECTION 2.09 of the Indenture) and
(b) any Additional Securities. The Initial Securities, Additional Securities,
and Exchange Securities will be treated as a single class of securities under
the Indenture. This Security is one of the [Initial] [Additional] Securities
referred to in the Indenture. The Indenture will contain certain covenants that,
among other things, will limit (i) the incurrence of additional indebtedness by
the Company and its Restricted Subsidiaries (as defined), (ii) the payment of
dividends and other restricted payments by the Company and its Restricted
Subsidiaries, (iii) the creation of restrictions on distributions from
Restricted Subsidiaries, (iv) asset sales, (v) transactions with affiliates,
(vi) sales or issuances of

                                      A-3
<Page>

Restricted Subsidiary capital stock, (vii) the incurrence of liens and (viii)
mergers and consolidations. All such limitations and prohibitions, however, are
subject to a number of important qualifications and exceptions.

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

5. OPTIONAL REDEMPTION

                  The Securities will be redeemable, at the option of the
Company, at any time in whole, or from time to time in part, upon not less than
30 and not more than 60 days' prior notice mailed to each Holder of Securities
to be so redeemed at such Holder's registered address, at a redemption price
equal to the greater of

     -   100% of the principal amount of the Securities to be redeemed; and

     -   the sum of the present values of the remaining scheduled payments
         thereon consisting of principal and interest, exclusive of interest
         accrued to the date of redemption, at the rate in effect on the date of
         calculation of the redemption price, discounted to the date of
         redemption on a semiannual basis (assuming a 360-day year consisting of
         twelve 30-day months) at the applicable Treasury Yield (as defined
         below), plus 50 basis points;

plus, in either case, accrued interest to the date of redemption.

                  For purposes of determining the optional redemption price, the
following definitions are applicable:

                  "Comparable Treasury Issue" means the United States Treasury
security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Securities to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities.

                  "Comparable Treasury Price" means, with respect to any
redemption date,

     (a)      the bid price for the Comparable Treasury Issue (expressed as a
              percentage of its principal amount) at 4:00 p.m. on the third
              business day preceding that redemption date, as set forth on
              "Telerate Page 500" (or such other page as may replace Telerate
              Page 500); or

     (b)      if Telerate Page 500 (or any successor page) is not displayed or
              does not contain bid prices for the Comparable Treasury Issue at
              that time (i) the average of the Reference Treasury Dealer
              Quotations obtained by the Company for that redemption date, after
              excluding the highest and lowest of all Reference Treasury Dealer
              Quotations obtained, or (ii) if the Company obtains fewer than
              four such Reference Treasury

                                      A-4
<Page>

              Dealer Quotations, the average of all Reference Treasury Dealer
              Quotations obtained by the Company.

                  "Independent Investment Banker" means J.P. Morgan Securities
Inc. (and its successors) or, if such firm is unwilling or unable to select the
applicable Comparable Treasury Issue, an independent investment banking
institution of national standing appointed by the Company.

                  "Reference Treasury Dealer" means (i) J.P. Morgan Securities
Inc., and its successors, unless it ceases to be a primary U.S. government
securities dealer in New York City (a "Primary Treasury Dealer"), in which case
the Company shall substitute therefor another Primary Treasury Dealer and (ii)
any other Primary Treasury Dealer selected by the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any Redemption Date, an average, as
determined by the Company, of the bid and asked prices for the Comparable
Treasury Issue for the Securities, expressed in each case as a percentage of its
principal amount, quoted in writing to the Company by such Reference Treasury
Dealer at 5:00 p.m., New York City time, on the third business day preceding
such Redemption Date.

                  "Treasury Yield" means, with respect to any Redemption Date,
the rate per annum equal to the semiannual equivalent yield to maturity,
computed as of the third business day immediately preceding the Redemption Date,
of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue, expressed as a percentage of its principal amount, equal to the
applicable Comparable Treasury Price for such Redemption Date.

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities are listed or, if the Securities are not so listed, then by lot,
provided that (i) Securities and portions thereof that the Trustee selects shall
be in amounts of $1,000 or an integral multiple of $1,000 and (ii) no such
partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000. If any Security is to be redeemed in
part only, the notice of redemption relating to such Security shall state the
portion of the principal amount thereof to be redeemed. A new Security in
principal amount equal to the unredeemed portion thereof will be issued in the
name of the Holder thereof upon cancellation of the original Security. On and
after the redemption date, interest will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with
the Trustee or with a Paying Agent (or, if applicable, segregated and held in
trust) money sufficient to pay the redemption price of, and accrued interest on,
all the Securities which are to be redeemed on such date.

                  The calculation of the optional redemption price shall be made
by the Company in accordance with this Section 5. Upon such determination, the
Company shall deliver to the Trustee, at its Corporate Trust Office, an
Officers' Certificate setting forth the optional redemption price on all
Securities to be redeemed, and the Trustee shall rely solely upon, and shall be
fully protected in relying upon, such Officers' Certificate, in all matters
concerning the optional redemption price.

                                      A-5
<Page>

6. PUT PROVISIONS

                  Upon a Change of Control, any Holder of Securities will have
the right to cause the Company to repurchase all or any part of the Securities
of such Holder at a repurchase price equal to 101% of the principal amount of
the Securities to be repurchased plus accrued and unpaid interest, if any, to
the date of repurchase (subject to the right of holders of record on the
relevant record date to receive interest due on the related interest payment
date) as provided in, and subject to the terms of, the Indenture.

7. DENOMINATIONS; TRANSFER; EXCHANGE

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

8. PERSONS DEEMED OWNERS

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

9. 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 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.

10. DISCHARGE AND DEFEASANCE

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

11. AMENDMENT, WAIVER

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (ii) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal

                                      A-6
<Page>

amount outstanding of the Securities. Subject to certain exceptions set forth in
the Indenture, without the consent of any Securityholder, the Company and the
Trustee may amend the Indenture or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article V of the Indenture,
or to provide for uncertificated Securities in addition to or in place of
certificated Securities, or to add guarantees with respect to the Securities or
to secure the Securities, or to add additional covenants or surrender rights and
powers conferred on the Company, or to comply with any request of the SEC in
connection with qualifying the Indenture under the Act, or to make any change
that does not adversely affect the rights of any Securityholder.

12. DEFAULTS AND REMEDIES

                  The Securities shall be subject to the Events of Default set
forth in Article VI of the Indenture.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or
power.

13. TRUSTEE DEALINGS WITH THE COMPANY

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

14. NO RECOURSE AGAINST OTHERS

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

15. AUTHENTICATION

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

16. ABBREVIATIONS

                                      A-7
<Page>

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

17. CUSIP NUMBERS

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

18. GOVERNING LAW.

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  THE COMPANY WILL FURNISH TO ANY SECURITYHOLDER UPON WRITTEN
REQUEST AND WITHOUT CHARGE TO THE SECURITYHOLDER A COPY OF THE INDENTURE WHICH
HAS IN IT THE TEXT OF THIS SECURITY IN LARGER TYPE. REQUESTS MAY BE MADE TO:

                  ATTENTION OF:  Forest Oil Corporation
                                 1600 Broadway, Suite 2200
                                 Denver, CO 80202-4722

                                      A-8
<Page>

                                ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

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

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

________________________________________________________________________________

Date: __________________               Your signature: _________________________

Signature Guarantee: ___________________________________________________________
                                    (Signature must be guaranteed)

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

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

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

CHECK ONE BOX BELOW:

1 / /    acquired for the undersigned's own account, without transfer; or

2 / /    transferred to the Company; or

3 / /    transferred pursuant to and in compliance with Rule 144A under the
         Securities Act of 1933, as amended (the "Securities Act"); or

4 / /    transferred pursuant to an effective registration statement under the
         Securities Act; or

5 / /    transferred pursuant to and in compliance with Regulation S under the

                                      A-10

<Page>

         Securities Act; or

6 / /    transferred to an institutional "accredited investor" (as defined in
         Rule 501(a)(1), (2), (3) or (7) under the Securities Act), that has
         furnished to the Trustee a signed letter containing certain
         representations and agreements (the form of which letter appears as
         Section 2.07 of the Indenture); or

7 / /    transferred pursuant to another available exemption from the
         registration requirements of the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Securities evidenced by this certificate in the name of any person other
than the registered Holder thereof; PROVIDED, HOWEVER, that if box (5), (6) or
(7) is checked, the Trustee or the Company may require, prior to registering any
such transfer of the Securities, in their sole discretion, such legal opinions,
certifications and other information as the Trustee or the Company may
reasonably request to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, such as the exemption provided by
Rule 144 under such Act.

                                                ------------------------------
                                                Signature

Signature Guarantee:

--------------------------------                ------------------------------
(Signature must be guaranteed)                  Signature

------------------------------------------------------------------------------

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

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

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

----------------------------
Dated:

                                   A-11
<Page>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]
              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<Table>
<Caption>

                                                                                               Signature of
                                                                                               authorized
                 Amount of decrease in    Amount of increase in    Principal Amount of this    signatory of
Date of          Principal Amount of      Principal Amount of      Global Security following   Trustee or
Exchange         this Global Security     this Global Security     such decrease or increase   Securities Custodian
--------         ---------------------    ---------------------    -------------------------   --------------------
<S>              <C>                      <C>                      <C>                         <C>

</Table>

                                      A-12
<Page>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to SECTION 4.06 or 4.09 of the Indenture, check either box:

                                            / /      / /
                                            4.06     4.09

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to SECTION 4.06 or 4.09 of the Indenture,
state the amount in principal amount (must be integral multiple of $1,000): $

Date:                  Your Signature
      ----------------                ----------------------------------------
                                      (Sign exactly as your name appears on the
                                      other side of the Security)

Signature Guarantee:
                     ---------------------------------------------------------
                                        (Signature must be guaranteed)

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

                                 A-13
<Page>

                                                                       EXHIBIT B

                       [FORM OF FACE OF EXCHANGE SECURITY]

                       [Depository Legend, if applicable]

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

                                                      CUSIP NO. ____________
                                                              ISIN: ____________

                            8% Senior Notes due 2008

                  FOREST OIL CORPORATION, a New York corporation, promises to
pay to [__________], or registered assigns, the principal sum of
[_______________] Dollars, as revised by the Schedule of Increases and Decreases
in Global Security attached hereto, on June 15, 2008.

                  Interest Payment Dates:  June 15 and December 15
                  Record Dates:  June 1 and December 1

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

Dated:  ____, 20__
                                          FOREST OIL CORPORATION

                                          By:___________________________________
                                               Name:
                                               Title:
CORPORATE SEAL
TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

STATE STREET BANK AND TRUST COMPANY
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

By:______________________________________
    Authorized Signatory

    SEAL

                                         B-1
<Page>

                   [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

                             8% Senior Note Due 2008

1.   INTEREST
                  Forest Oil Corporation, a New York 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 Security at the rate per annum shown above. The Company
will pay interest semiannually on June 15 and December 15 of each year beginning
on December 15, 2001. Interest on the Securities will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from June __, 2001. 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 Securities 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 Securities (except
defaulted interest) to the Persons who are registered holders of Securities at
the close of business on the June 1 or December 1 next preceding the interest
payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying
Agent to collect principal payments. The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of Securities
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the holders thereof or,
if no U.S. dollar account maintained by the payee with a bank in the United
States is designated by any holder to the Trustee or the Paying Agent at least
30 days prior to the relevant due date for payment (or such other date as the
Trustee may accept in its discretion), by mailing a check to the registered
address of such holder. The Company will pay principal, premium, if any, and
interest on the Securities and the Securities will be transferable at the office
or agency designated by the Company within the City and State of New York. In
addition, in the event the Securities do not remain in book-entry form, the
Company may pay interest, at its option, by check mailed to the registered
holders of the Securities at their registered addresses as set forth in the
Security Register. No service charge will be made for any transfer or exchange
of Securities, but the Company or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be payable in
connection therewith.

3.   PAYING AGENT AND REGISTRAR

                  Initially, State Street Bank and Trust Company (the "Trustee")
will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of
its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

                                    B-2
<Page>

4.   INDENTURE

                  The Company issued the Securities under an Indenture dated as
of June 21, 2001 (the "Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Terms defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

                  The Securities are general unsecured obligations of the
Company including (a) $200,000,000 aggregate principal amount of Securities
being offered on the Issue Date (subject to SECTION 2.09 of the Indenture) and
(b) any Additional Securities. The Initial Securities, Additional Securities,
and Exchange Securities will be treated as a single class of securities under
the Indenture. This Security is one of the Exchange Securities referred to in
the Indenture. The Indenture will contain certain covenants that, among other
things, will limit (i) the incurrence of additional indebtedness by the Company
and its Restricted Subsidiaries (as defined), (ii) the payment of dividends and
other restricted payments by the Company and its Restricted Subsidiaries, (iii)
the creation of restrictions on distributions from Restricted Subsidiaries, (iv)
asset sales, (v) transactions with affiliates, (vi) sales or issuances of
Restricted Subsidiary capital stock, (vii) the incurrence of liens and (viii)
mergers and consolidations. All such limitations and prohibitions, however, are
subject to a number of important qualifications and exceptions.

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

5.   OPTIONAL REDEMPTION

                  The Securities will be redeemable, at the option of the
Company, at any time in whole, or from time to time in part, upon not less than
30 and not more than 60 days' prior notice mailed to each Holder of Securities
to be so redeemed at such Holder's registered address, at a redemption price
equal to the greater of

     -   100% of the principal amount of the Securities to be redeemed; and

     -   the sum of the present values of the remaining scheduled payments
         thereon consisting of principal and interest, exclusive of interest
         accrued to the date of redemption, at the rate in effect on the date of
         calculation of the redemption price, discounted to the date of
         redemption on a semiannual basis (assuming a 360-day year consisting of
         twelve 30-day months) at the applicable Treasury Yield (as defined
         below), plus 50 basis points;

plus, in either case, accrued interest to the date of redemption.

                                    B-3
<Page>

                  For purposes of determining the optional redemption price, the
following definitions are applicable:

                  "Comparable Treasury Issue" means the United States Treasury
security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Securities to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities.

                  "Comparable Treasury Price" means, with respect to any
redemption date,

     (c)      the bid price for the Comparable Treasury Issue (expressed as a
              percentage of its principal amount) at 4:00 p.m. on the third
              business day preceding that redemption date, as set forth on
              "Telerate Page 500" (or such other page as may replace Telerate
              Page 500); or

     (d)      if Telerate Page 500 (or any successor page) is not displayed or
              does not contain bid prices for the Comparable Treasury Issue at
              that time (i) the average of the Reference Treasury Dealer
              Quotations obtained by the Company for that redemption date, after
              excluding the highest and lowest of all Reference Treasury Dealer
              Quotations obtained, or (ii) if the Company obtains fewer than
              four such Reference Treasury Dealer Quotations, the average of all
              Reference Treasury Dealer Quotations obtained by the Company.

                  "Independent Investment Banker" means J.P. Morgan Securities
Inc. (and its successors) or, if such firm is unwilling or unable to select the
applicable Comparable Treasury Issue, an independent investment banking
institution of national standing appointed by the Company.

                  "Reference Treasury Dealer" means (i) J.P. Morgan Securities
Inc., and its successors, unless it ceases to be a primary U.S. government
securities dealer in New York City (a "Primary Treasury Dealer"), in which case
the Company shall substitute therefor another Primary Treasury Dealer and (ii)
any other Primary Treasury Dealer selected by the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any Redemption Date, an average, as
determined by the Company, of the bid and asked prices for the Comparable
Treasury Issue for the Securities, expressed in each case as a percentage of its
principal amount, quoted in writing to the Company by such Reference Treasury
Dealer at 5:00 p.m., New York City time, on the third business day preceding
such Redemption Date.

                  "Treasury Yield" means, with respect to any Redemption Date,
the rate per annum equal to the semiannual equivalent yield to maturity,
computed as of the third business day immediately preceding the Redemption Date,
of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue, expressed as a percentage of its principal amount, equal to the
applicable Comparable Treasury Price for such Redemption Date.

                                 B-4
<Page>

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities are listed or, if the Securities are not so listed, then by lot,
provided that (i) Securities and portions thereof that the Trustee selects shall
be in amounts of $1,000 or an integral multiple of $1,000 and (ii) no such
partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000. If any Security is to be redeemed in
part only, the notice of redemption relating to such Security shall state the
portion of the principal amount thereof to be redeemed. A new Security in
principal amount equal to the unredeemed portion thereof will be issued in the
name of the Holder thereof upon cancellation of the original Security. On and
after the redemption date, interest will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with
the Trustee or with a Paying Agent (or, if applicable, segregated and held in
trust) money sufficient to pay the redemption price of, and accrued interest on,
all the Securities which are to be redeemed on such date.

                  The calculation of the optional redemption price shall be made
by the Company in accordance with this Section 5. Upon such determination, the
Company shall deliver to the Trustee, at its Corporate Trust Office, an
Officers' Certificate setting forth the optional redemption price on all
Securities to be redeemed, and the Trustee shall rely solely upon, and shall be
fully protected in relying upon, such Officers' Certificate, in all matters
concerning the optional redemption price.

6.   PUT PROVISIONS

                  Upon a Change of Control, any Holder of Securities will have
the right to cause the Company to repurchase all or any part of the Securities
of such Holder at a repurchase price equal to 101% of the principal amount of
the Securities to be repurchased plus accrued and unpaid interest, if any, to
the date of repurchase (subject to the right of holders of record on the
relevant record date to receive interest due on the related interest payment
date) as provided in, and subject to the terms of, the Indenture.

7.   DENOMINATIONS; TRANSFER; EXCHANGE

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

8.   PERSONS DEEMED OWNERS

                                   B-5
<Page>

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

9.   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 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.

10.  DISCHARGE AND DEFEASANCE

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

11.  AMENDMENT, WAIVER

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (ii) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities. Subject to certain exceptions set forth in the Indenture,
without the consent of any Securityholder, the Company and the Trustee may amend
the Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article V of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities,
or to add guarantees with respect to the Securities or to secure the Securities,
or to add additional covenants or surrender rights and powers conferred on the
Company, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not adversely
affect the rights of any Securityholder.

12.  DEFAULTS AND REMEDIES

                  The Securities shall be subject to the Events of Default set
forth in Article VI of the Indenture.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or
power.

13.  TRUSTEE DEALINGS WITH THE COMPANY

                                   B-6
<Page>

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

14.  NO RECOURSE AGAINST OTHERS

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

15.  AUTHENTICATION

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

16.  ABBREVIATIONS

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

17.  CUSIP NUMBERS

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

18.  GOVERNING LAW.

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  THE COMPANY WILL FURNISH TO ANY SECURITYHOLDER UPON WRITTEN
REQUEST AND WITHOUT CHARGE TO THE SECURITYHOLDER A COPY OF THE INDENTURE WHICH
HAS IN IT THE TEXT OF THIS SECURITY IN LARGER TYPE. REQUESTS MAY BE MADE TO:

                                   B-7
<Page>

                  ATTENTION OF:    Forest Oil Corporation
                                   1600 Broadway, Suite 2200
                                   Denver, CO 80202-4722

                                      B-8
<Page>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

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

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

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

________________________________________________________________________________

Date:_______________________________     Your signature:________________________

Signature Guarantee:____________________________________________________________
                                  (Signature must be guaranteed)

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

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

<Page>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]
              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<Table>
<Caption>
                                                                                            Signature of
                                                                                            authorized
              Amount of decrease in    Amount of increase in    Principal Amount of this    signatory of
Date of       Principal Amount of      Principal Amount of      Global Security following   Trustee or
Exchange      this Global Security     this Global Security     such decrease or increase   Securities Custodian
--------      ---------------------    ---------------------    -------------------------   --------------------
<S> <C>
</Table>

                                        B-10
<Page>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to SECTION 4.06 or 4.09 of the Indenture, check either box:

                                        / /      / /
                                        4.06     4.09

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to SECTION 4.06 or 4.09 of the Indenture,
state the amount in principal amount (must be integral multiple of $1,000): $

Date: ________________   Your Signature _______________________________________
          (Sign exactly as your name appears on the  other side of the Security)

Signature Guarantee: ___________________________________________________________
                                  (Signature must be guaranteed)

   THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
   (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
        MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
                          PURSUANT TO S.E.C. RULE 17Ad

                                      B-11
<Page>

                                                                       EXHIBIT C

                         FORM OF SUPPLEMENTAL INDENTURE

                  SUPPLEMENTAL INDENTURE (this "Supplemental Indenture") dated
as of ____________________, among [SUBSIDIARY GUARANTOR] (the "New Subsidiary
Guarantor"), a subsidiary of Forest Oil Corporation (or its successor), a New
York corporation (the "Company"), FOREST OIL CORPORATION, on behalf of itself
and the Subsidiary Guarantors (the "Existing Subsidiary Guarantors") under the
Indenture referred to below, and STATE STREET BANK AND TRUST COMPANY, as trustee
under the indenture referred to below (the "Trustee").

                              W I T N E S S E T H :

                  WHEREAS the Company has heretofore executed and delivered to
the Trustee an Indenture (the "Indenture") dated as of June 21, 2001, providing
for the issuance of 8% Senior Notes due 2008 (the "Securities").

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

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

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

                  1. AGREEMENT TO GUARANTEE. The New Subsidiary Guarantor hereby
agrees, jointly and severally with all other Subsidiary Guarantors, to
unconditionally guarantee the Company's obligations under the Securities on the
terms and to be bound by all other applicable provisions of the Indenture.

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

                  3. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
BUT WITHOUT GIVING EFFECT TO

                                      C-1
<Page>

APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                  4. TRUSTEE MAKES NO REPRESENTATION. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture.

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

                  6. EFFECT OF HEADINGS. The Section headings herein are for
convenience only and shall not effect the construction thereof.

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

                                [NEW SUBSIDIARY GUARANTOR],

                                By ________________________________
                                     Name:
                                     Title:

                                FOREST OIL CORPORATION,

                                By _________________________________
                                     Name:
                                     Title:

                                STATE STREET BANK AND TRUST COMPANY, as Trustee,

                                By _________________________________
                                     Name:
                                     Title:

                                     C-2<Page>

                                                                     Exhibit 4.3

                             FOREST OIL CORPORATION

                                  $200,000,000

                            8% Senior Notes due 2008

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                                                                   June 21, 2001

J.P.            MORGAN                  SECURITIES                          INC.
SALOMON            SMITH                    BARNEY                          INC.
BMO             NESBITT                    BURNS                           CORP.
TD SECURITIES (USA) INC.
c/o J.P. Morgan Securities Inc.
270 Park Avenue, 4th floor
New York, New York  10017

Ladies and Gentlemen:

                  Forest Oil Corporation, a New York corporation (the
"COMPANY"), proposes to issue and sell to J.P. Morgan Securities Inc.
("JPMORGAN"), Salomon Smith Barney Inc., BMO Nesbitt Burns Corp. and TD
Securities (USA) Inc. (collectively, the "Initial Purchasers") upon the terms
and subject to the conditions set forth in a purchase agreement dated June 12,
2001 (the "PURCHASE AGREEMENT"), $200,000,000 aggregate principal amount of its
8% Senior Notes due 2008 (the "SECURITIES"). Capitalized terms used but not
defined herein shall have the meanings given to such terms in the Purchase
Agreement.

                  As an inducement to the Initial Purchasers to enter into the
Purchase Agreement and in satisfaction of a condition to the obligations of the
Initial Purchasers thereunder, the Company agrees with the Initial Purchasers,
for the benefit of the holders (including the Initial Purchasers) of the
Securities, the Exchange Securities (as defined herein) and the Private Exchange
Securities (as defined herein) (collectively, the "HOLDERS"), as follows:

                  1. REGISTERED EXCHANGE OFFER. The Company shall (i) prepare
and, not later than 90 days following the date of original issuance of the
Securities (the "ISSUE DATE"), file with the Commission a registration statement
(the "EXCHANGE OFFER REGISTRATION STATEMENT") on an appropriate form under the
Securities Act with respect to a proposed offer to the Holders of the Securities
(the "EXCHANGE OFFER") to issue and deliver to such Holders, in exchange for the
Securities, a like aggregate principal amount of debt securities of the Company
(the "EXCHANGE SECURITIES") that are identical in all material respects to the
Securities, except that the transfer restrictions relating to U.S. securities
laws shall be eliminated and the Exchange Securities will not contain provisions
regarding the payment of additional interest or be subject to further

<Page>

registration rights, (ii) use its commercially reasonable efforts to cause the
Exchange Offer Registration Statement to become effective under the Securities
Act no later than 150 days after the Issue Date and the Exchange Offer to be
consummated no later than 180 days after the Issue Date and (iii) keep the
Exchange Offer Registration Statement effective for not less than 20 business
days (or longer, if required by applicable law) after the date on which notice
of the Exchange Offer is mailed to the Holders (such period being called the
"EXCHANGE OFFER REGISTRATION PERIOD"). The Exchange Securities will be issued
under the Indenture or an indenture (the "EXCHANGE SECURITIES INDENTURE")
between the Company and the Trustee or such other bank or trust company that is
reasonably satisfactory to the Initial Purchasers, as trustee (the "EXCHANGE
SECURITIES TRUSTEE"), such indenture to be identical in all material respects to
the Indenture, except that the transfer restrictions relating to U.S. securities
laws shall be eliminated and the Exchange Securities will not contain provisions
regarding the payment of additional interest or be subject to further
registration rights.

                  Upon the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Exchange Offer, it being the
objective of such Exchange Offer to enable each Holder electing to exchange
Securities for Exchange Securities (assuming that such Holder (a) is not an
affiliate of the Company or an Exchanging Dealer (as defined herein) not
complying with the requirements of the next sentence, (b) is not an Initial
Purchaser holding Securities that have, or that are reasonably likely to have,
the status of an unsold allotment in an initial distribution, (c) acquires the
Exchange Securities in the ordinary course of such Holder's business and (d) has
no arrangements or understandings with any person to participate in the
distribution of the Exchange Securities) and to trade such Exchange Securities
from and after their receipt without any limitations or restrictions under the
Securities Act and without material restrictions under the securities laws of
the several states of the United States. The Company, the Initial Purchasers and
each Exchanging Dealer acknowledge that, pursuant to current interpretations by
the Commission's staff of Section 5 of the Securities Act, each Holder that is a
broker-dealer electing to exchange Securities, acquired for its own account as a
result of market-making activities or other trading activities, for Exchange
Securities (an "EXCHANGING DEALER"), is required to deliver a prospectus
containing substantially the information set forth in Annex A hereto on the
cover, in Annex B hereto in the "Exchange Offer Procedures" section and the
"Purpose of the Exchange Offer" section and in Annex C hereto in the "Plan of
Distribution" section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the Exchange
Offer.

                  If, prior to the consummation of the Exchange Offer, any
Holder holds any Securities acquired by it that have, or that are reasonably
likely to be determined to have, the status of an unsold allotment in an initial
distribution, or any Holder is not entitled to participate in the Exchange
Offer, the Company shall, upon the request of any such Holder, simultaneously
with the delivery of the Exchange Securities in the Exchange Offer, issue and
deliver to any such Holder, in exchange for the Securities held by such Holder
(the "PRIVATE EXCHANGE"), a like aggregate principal amount of debt securities
of the Company (the "PRIVATE EXCHANGE SECURITIES") that are identical in all
material respects to the Exchange Securities, except for the transfer
restrictions relating to U.S. securities laws shall be eliminated and such
Private Exchange Securities will not contain provisions regarding the payment of
additional interest or

                                       -2-
<Page>

be subject to further registration rights. The Private Exchange Securities will
be issued under the same indenture as the Exchange Securities, and the Company
shall use its reasonable best efforts to cause the Private Exchange Securities
to bear the same CUSIP number as the Exchange Securities.

                  In connection with the Exchange Offer, the Company shall:

                  (a)      mail to each Holder a copy of the prospectus forming
         part of the Exchange Offer Registration Statement, together with an
         appropriate letter of transmittal and related documents;

                  (b)      keep the Exchange Offer open for not less than 20
         business days (or longer, if required by applicable law) after the date
         on which notice of the Exchange Offer is mailed to the Holders;

                  (c)      utilize the services of a depositary for the Exchange
         Offer with an address in the Borough of Manhattan, The City of New
         York;

                  (d)      permit Holders to withdraw tendered Securities at any
         time prior to the close of business, New York City time, on the last
         business day on which the Exchange Offer shall remain open; and

                  (e)      otherwise comply in all respects with all laws that
         are applicable to the Exchange Offer.

                  As soon as practicable after the close of the Exchange Offer
and any Private Exchange, as the case may be, the Company shall:

                  (a)      accept for exchange all Securities validly tendered
         and not validly withdrawn pursuant to the Exchange Offer and the
         Private Exchange;

                  (b)      deliver to the Trustee for cancellation all
         Securities so accepted for exchange; and

                  (c)      cause the Trustee or the Exchange Securities Trustee,
         as the case may be, promptly to authenticate and deliver to each
         Holder, Exchange Securities or Private Exchange Securities, as the case
         may be, equal in principal amount to the Securities of such Holder so
         accepted for exchange.

                  The Company shall use its commercially reasonable efforts to
keep the Exchange Offer Registration Statement effective and to amend and
supplement the prospectus contained therein in order to permit such prospectus
to be used by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; PROVIDED that (i) in
the case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer, such period shall be the lesser of 180 days
and the date on which all

                                       -3-
<Page>

Exchanging Dealers have sold all Exchange Securities held by them and (ii) the
Company shall make such prospectus and any amendment or supplement thereto
available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of not less than 180 days after the
consummation of the Exchange Offer.

                  The Indenture or the Exchange Securities Indenture, as the
case may be, shall provide that the Securities, the Exchange Securities and the
Private Exchange Securities shall vote and consent together on all matters as
one class and that none of the Securities, the Exchange Securities or the
Private Exchange Securities will have the right to vote or consent as a separate
class on any matter.

                  Interest on each Exchange Security and Private Exchange
Security issued pursuant to the Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Securities surrendered in exchange therefor or, if no interest has been paid on
the Securities, from the Issue Date.

                  Each Holder participating in the Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Exchange Offer (i) any Exchange Securities received by such Holder will be
acquired in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the distribution
of the Securities or the Exchange Securities within the meaning of the
Securities Act and (iii) such Holder is not an affiliate of the Company or, if
it is such an affiliate, such Holder will comply with the registration and
prospectus delivery requirements of the Securities Act to the extent applicable.

                  Notwithstanding any other provisions hereof, the Company will
ensure that (i) any Exchange Offer Registration Statement and any amendment
thereto and any prospectus forming part thereof and any supplement thereto
complies in all material respects with the Securities Act and the rules and
regulations of the Commission thereunder, (ii) any Exchange Offer Registration
Statement and any amendment thereto does not, when it becomes effective, contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
and (iii) any prospectus forming part of any Exchange Offer Registration
Statement, and any supplement to such prospectus, does not, as of the
consummation of the Exchange Offer, include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

                  2. SHELF REGISTRATION. If (i) because of any change in law or
applicable interpretations thereof by the Commission's staff the Company is not
permitted to effect the Exchange Offer as contemplated by Section 1 hereof, or
(ii) for any other reason the Exchange Offer is not consummated within 180 days
after the Issue Date, or (iii) any Initial Purchaser so requests with respect to
Securities or Private Exchange Securities not eligible to be exchanged for
Exchange Securities in the Exchange Offer and held by it following the
consummation of the Exchange Offer, or (iv) any applicable law or
interpretations do not permit any Holder to participate in the Exchange Offer,
or (v) any Holder that participates in the Exchange Offer does

                                       -4-
<Page>

not receive freely transferable Exchange Securities in exchange for tendered
Securities, or (vi) the Company so elects, then the following provisions shall
apply:

                  (a)      The Company shall use its commercially reasonable
efforts to file as promptly as practicable (but in no event more than the later
of 45 days after so required or requested pursuant to this Section 2 or 90 days
after the Issue Date) with the Commission (the "SHELF FILING DATE"), and
thereafter shall use its commercially reasonable efforts to cause to be declared
effective, a shelf registration statement on an appropriate form under the
Securities Act relating to the offer and sale of the Transfer Restricted
Securities (as defined below) by the Holders thereof from time to time in
accordance with the methods of distribution set forth in such registration
statement (hereafter, a "SHELF REGISTRATION STATEMENT" and, together with any
Exchange Offer Registration Statement, a "REGISTRATION STATEMENT").

                  (b)      The Company shall use its commercially reasonable
efforts to keep the Shelf Registration Statement continuously effective in order
to permit the prospectus forming part thereof to be used by Holders of Transfer
Restricted Securities for a period ending on the earlier of (i) two years from
the Issue Date or such shorter period that will terminate when all the Transfer
Restricted Securities covered by the Shelf Registration Statement have been sold
pursuant thereto and (ii) the date on which the Securities become eligible for
resale without volume restrictions pursuant to Rule 144 under the Securities Act
(in any such case, such period being called the "SHELF REGISTRATION PERIOD").
The Company shall be deemed not to have used its commercially reasonable efforts
to keep the Shelf Registration Statement effective during the requisite period
if it voluntarily takes any action that would result in Holders of Transfer
Restricted Securities covered thereby not being able to offer and sell such
Transfer Restricted Securities during that period, unless such action is
required by applicable law. Notwithstanding anything to the contrary herein, if
at any time the Company determines, in its reasonable good faith judgment, upon
advice of counsel, that the continued effectiveness and usability of such Shelf
Registration Statement would (i) require the disclosure of material information,
which the Company has a BONA FIDE business reason for preserving as
confidential, or (ii) materially interfere with any financing, acquisition,
corporate reorganization or other material transaction involving the Company or
any of its Affiliates (as defined in the rules and regulations adopted under the
Exchange Act) (a "Disadvantageous Condition"), the Company may suspend sales of
Transfer Restricted Securities until such Disadvantageous Condition no longer
exists (notice of which the Company shall promptly deliver to the Holders of
Transfer Restricted Securities); PROVIDED, HOWEVER, that the failure to keep the
Registration Statement effective and usable for offers and sales of Transfer
Restricted Securities for such reasons shall last no longer than 30 days in the
aggregate in any 12-month period (whereafter additional interest pursuant to
Section 3 shall accrue and be payable). Any such period during which the Company
fails to keep the Shelf Registration Statement effective and usable for offers
and sales of Transfer Restricted Securities is referred to as a "Suspension
Period." A Suspension Period shall commence on and include the date that the
Company gives written notice to each Holder of Transfer Restricted Securities
that the Shelf Registration Statement is no longer effective or the prospectus
included therein is no longer usable for offers and sales of Transfer Restricted
Securities and shall end on the earlier to occur of (i) date when each seller of
Transfer Restricted Securities covered by such Shelf Registration Statement
either receives the copies of a supplemented or amended prospectus

                                       -5-
<Page>

or is advised in writing by the Company that use of the prospectus included in
the Shelf Registration Statement may be resumed and (ii) the expiration of the
30 days in any 12-month period during which one or more Suspension Periods has
been in effect.

                  (c)      Notwithstanding any other provisions hereof, the
Company will ensure that (i) any Shelf Registration Statement and any amendment
thereto and any prospectus forming part thereof and any supplement thereto
complies in all material respects with the Securities Act and the rules and
regulations of the Commission thereunder, (ii) any Shelf Registration Statement
and any amendment thereto (in either case, other than with respect to
information included therein in reliance upon or in conformity with written
information furnished to the Company by or on behalf of any Holder specifically
for use therein (the "HOLDERS' INFORMATION")) does not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) any prospectus forming part of any Shelf Registration Statement, and any
supplement to such prospectus (in either case, other than with respect to
Holders' Information), does not include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

                  (d)      In the absence of the events described in clauses (i)
through (vi) of the first paragraph of this Section 2, the Company shall not be
permitted to discharge its obligations hereunder by means of the filing of a
Shelf Registration Statement.

                  3. ADDITIONAL INTEREST. (a) The parties hereto agree that the
Holders of Transfer Restricted Securities will suffer damages if the Company
fails to fulfill its obligations under Section 1 or Section 2, as applicable,
and that it would not be feasible to ascertain the extent of such damages.
Accordingly, if (i) the Exchange Offer Registration Statement is not filed with
the Commission on or prior to 90 days after the Issue Date or the Shelf
Registration Statement is not filed with the Commission on or before the Shelf
Filing Date, (ii) the Exchange Offer Registration Statement is not declared
effective within 150 days after the Issue Date or the Shelf Registration
Statement is not declared effective within 60 days of the Shelf Filing Date,
(iii) the Exchange Offer is not consummated on or prior to 180 days after the
Issue Date, or (iv) the Shelf Registration Statement is filed and declared
effective within 60 days after the Shelf Filing Date but shall thereafter cease
to be effective (at any time that the Company is obligated to maintain the
effectiveness thereof) without being succeeded within 30 days by an additional
Registration Statement filed and declared effective (each such event referred to
in clauses (i) through (iv), a "REGISTRATION DEFAULT"), the Company will be
obligated to pay additional interest to each Holder of Transfer Restricted
Securities, during the period of one or more such Registration Defaults, in an
amount equal to $ 0.192 per week per $1,000 principal amount of Transfer
Restricted Securities held by such Holder until (i) the applicable Registration
Statement is filed, (ii) the Exchange Offer Registration Statement is declared
effective and the Exchange Offer is consummated, (iii) the Shelf Registration
Statement is declared effective or (iv) the Shelf Registration Statement again
becomes effective, as the case may be. Upon the cure of all Registration
Defaults, the accrual of additional interest will cease. As used herein, the
term "TRANSFER RESTRICTED SECURITIES" means each Security or Private Exchange
Security until the earliest to occur of: (i) the date on which such Security has
been exchanged for a freely

                                       -6-
<Page>

transferable Exchange Security in the Exchange Offer, (ii) the date on which
such Security or Private Exchange Security has been effectively registered under
the Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iii) the date on which such Security or Private Exchange Security
is distributed to the public pursuant to Rule 144 under the Securities Act or is
saleable pursuant to Rule 144(k) under the Securities Act. Notwithstanding
anything to the contrary in this Section 3(a), the Company shall not be required
to pay additional interest to a Holder of Transfer Restricted Securities if such
Holder failed to comply with its obligations to make the representations set
forth in the second to last paragraph of Section 1 or failed to provide the
information required to be provided by it, if any, pursuant to Section 4(n).

                  (b)      The Company shall notify the Trustee and the Paying
Agent under the Indenture immediately upon the happening of each and every
Registration Default. The Company shall pay the additional interest due on the
Transfer Restricted Securities by depositing with the Paying Agent (which may
not be the Company for these purposes), in trust, for the benefit of the Holders
thereof, prior to 10:00 a.m., New York City time, on the next interest payment
date specified by the Indenture and the Securities, sums sufficient to pay the
additional interest then due. The additional interest due shall be payable on
each interest payment date specified by the Indenture and the Securities to the
record holder entitled to receive the interest payment to be made on such date.
Each obligation to pay additional interest shall be deemed to accrue from and
including the date of the applicable Registration Default.

                  (c)      The parties hereto agree that the additional interest
provided for in this Section 3 constitute a reasonable estimate of and are
intended to constitute the sole damages that will be suffered by Holders of
Transfer Restricted Securities by reason of any Registration Default.

                  4. REGISTRATION PROCEDURES. In connection with any
Registration Statement, the following provisions shall apply:

                  (a)      The Company shall (i) furnish to each Initial
Purchaser, prior to the filing thereof with the Commission, a copy of the
Registration Statement and each amendment thereof and each supplement, if any,
to the prospectus included therein and shall use its commercially reasonable
efforts to reflect in each such document, when so filed with the Commission,
such comments as any Initial Purchaser may reasonably propose; (ii) include the
information set forth in Annex A hereto on the cover, in Annex B hereto in the
"Exchange Offer Procedures" section and the "Purpose of the Exchange Offer"
section and in Annex C hereto in the "Plan of Distribution" section of the
prospectus forming a part of the Exchange Offer Registration Statement, and
include the information set forth in Annex D hereto in the Letter of Transmittal
delivered pursuant to the Exchange Offer; and (iii) if requested by any Initial
Purchaser, include the information required by Items 507 or 508 of Regulation
S-K, as applicable, in the prospectus forming a part of the Exchange Offer
Registration Statement.

                  (b)      The Company shall advise each Initial Purchaser and
each Exchanging Dealer and the Holders (if applicable) and, if requested by any
such person, confirm such advice

                                       -7-
<Page>

in writing (which advice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made):

                  (i)      when any Registration Statement and any amendment
         thereto has been filed with the Commission and when such Registration
         Statement or any post-effective amendment thereto has become effective;

                  (ii)     of any request by the Commission for amendments or
         supplements to any Registration Statement or the prospectus included
         therein or for additional information;

                  (iii)    of the issuance by the Commission of any stop order
         suspending the effectiveness of any Registration Statement or the
         initiation of any proceedings for that purpose;

                  (iv)     of the receipt by the Company of any notification
         with respect to the suspension of the qualification of the Securities,
         the Exchange Securities or the Private Exchange Securities for sale in
         any jurisdiction or the initiation or threatening of any proceeding for
         such purpose; and

                  (v)      of the happening of any event that requires the
         making of any changes in any Registration Statement or the prospectus
         included therein in order that the statements therein are not
         misleading and do not omit to state a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading.

                  (c)      The Company will make every commercially reasonable
effort to obtain the withdrawal at the earliest possible time of any order
suspending the effectiveness of any Registration Statement.

                  (d)      The Company will furnish to each Holder of Transfer
Restricted Securities included within the coverage of any Shelf Registration
Statement, without charge, at least one conformed copy of such Shelf
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules and, if any such Holder so requests in
writing, all exhibits thereto (including those, if any, incorporated by
reference).

                  (e)      The Company will, during the Shelf Registration
Period, promptly deliver to each Holder of Transfer Restricted Securities
included within the coverage of any Shelf Registration Statement, without
charge, as many copies of the prospectus (including each preliminary prospectus)
included in such Shelf Registration Statement and any amendment or supplement
thereto as such Holder may reasonably request; and the Company consents to the
use of such prospectus or any amendment or supplement thereto by each of the
selling Holders of Transfer Restricted Securities in connection with the offer
and sale of the Transfer Restricted Securities covered by such prospectus or any
amendment or supplement thereto.

                  (f)      The Company will furnish to each Initial Purchaser
and each Exchanging Dealer, and to any other Holder who so requests, without
charge, at least one conformed copy of the Exchange Offer Registration Statement
and any post-effective amendment thereto, including

                                       -8-
<Page>

financial statements and schedules and, if any Initial Purchaser or Exchanging
Dealer or any such Holder so requests in writing, all exhibits thereto
(including those, if any, incorporated by reference).

                  (g)      The Company will, during the Exchange Offer
Registration Period or the Shelf Registration Period, as applicable, promptly
deliver to each Initial Purchaser, each Exchanging Dealer and such other persons
that are required to deliver a prospectus following the Exchange Offer, without
charge, as many copies of the final prospectus included in the Exchange Offer
Registration Statement or the Shelf Registration Statement and any amendment or
supplement thereto as such Initial Purchaser, Exchanging Dealer or other persons
may reasonably request; and the Company consents to the use of such prospectus
or any amendment or supplement thereto by any such Initial Purchaser, Exchanging
Dealer or other persons, as applicable, as aforesaid.

                  (h)      Prior to the effective date of any Registration
Statement, the Company will use its commercially reasonable efforts to register
or qualify, or cooperate with the Holders of Securities, Exchange Securities or
Private Exchange Securities included therein and their respective counsel in
connection with the registration or qualification of, such Securities, Exchange
Securities or Private Exchange Securities for offer and sale under the
securities or blue sky laws of such jurisdictions as any such Holder reasonably
requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities,
Exchange Securities or Private Exchange Securities covered by such Registration
Statement; PROVIDED that the Company will not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified or to take
any action which would subject it to general service of process or to taxation
in any such jurisdiction where it is not then so subject.

                  (i)      The Company will cooperate with the Holders of
Securities, Exchange Securities or Private Exchange Securities to facilitate the
timely preparation and delivery of certificates representing Securities,
Exchange Securities or Private Exchange Securities to be sold pursuant to any
Registration Statement free of any restrictive legends and in such denominations
and registered in such names as the Holders thereof may request in writing prior
to sales of Securities, Exchange Securities or Private Exchange Securities
pursuant to such Registration Statement.

                  (j)      If any event contemplated by Section 4(b)(ii) through
(v) occurs during the period for which the Company is required to maintain an
effective Registration Statement, the Company will promptly prepare and file
with the Commission a post-effective amendment to the Registration Statement or
a supplement to the related prospectus or file any other required document so
that, as thereafter delivered to purchasers of the Securities, Exchange
Securities or Private Exchange Securities from a Holder, the prospectus will not
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

                  (k)      Not later than the effective date of the applicable
Registration Statement, the Company will provide a CUSIP number for the Exchange
Securities and the Private

                                       -9-
<Page>

Exchange Securities, as the case may be, and provide the applicable trustee with
printed certificates for the Exchange Securities or the Private Exchange
Securities, as the case may be, in a form eligible for deposit with The
Depository Trust Company.

                  (l)      The Company will comply with all applicable rules and
regulations of the Commission and will make generally available to its security
holders as soon as practicable after the effective date of the applicable
Registration Statement an earning statement satisfying the provisions of Section
11(a) of the Securities Act.

                  (m)      The Company will cause the Indenture or the Exchange
Securities Indenture, as the case may be, to be qualified under the Trust
Indenture Act as required by applicable law in a timely manner.

                  (n)      The Company may require each Holder of Transfer
Restricted Securities to be registered pursuant to any Shelf Registration
Statement to furnish to the Company such information concerning the Holder and
the distribution of such Transfer Restricted Securities as the Company may from
time to time reasonably require for inclusion in such Shelf Registration
Statement, and the Company may exclude from such registration the Transfer
Restricted Securities of any Holder that fails to furnish such information
within a reasonable time after receiving such request.

                  (o)      In the case of a Shelf Registration Statement, each
Holder of Transfer Restricted Securities to be registered pursuant thereto
agrees by acquisition of such Transfer Restricted Securities that, upon receipt
of any notice from the Company of any Suspension Period or pursuant to Section
4(b)(ii) through (v), such Holder will discontinue disposition of such Transfer
Restricted Securities until such Holder's receipt of copies of the supplemental
or amended prospectus contemplated by Section 4(j) or until advised in writing
(the "ADVICE") by the Company that the use of the applicable prospectus may be
resumed. If the Company shall give any notice of any Suspension Period or under
Section 4(b)(ii) through (v) during the period that the Company is required to
maintain an effective Registration Statement (the "EFFECTIVENESS PERIOD"), such
Effectiveness Period shall be extended by the number of days during such period
from and including the date of the giving of such notice to and including the
date when each seller of Transfer Restricted Securities covered by such
Registration Statement shall have received (x) the copies of the supplemental or
amended prospectus contemplated by Section 4(j) (if an amended or supplemental
prospectus is required) or (y) the Advice (if no amended or supplemental
prospectus is required).

                  (p)      In the case of a Shelf Registration Statement, the
Company shall enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) and take all such other action, if
any, as Holders of a majority in aggregate principal amount of the Securities,
Exchange Securities and Private Exchange Securities being sold or the managing
underwriters (if any) shall reasonably request in order to facilitate any
disposition of Securities, Exchange Securities or Private Exchange Securities
pursuant to such Shelf Registration Statement.

                                       -10-
<Page>

                  (q)      In the case of a Shelf Registration Statement, the
Company shall (i) make reasonably available for inspection by a representative
of, and Special Counsel (as defined below) acting for, Holders of a majority in
aggregate principal amount of the Securities, Exchange Securities and Private
Exchange Securities being sold and any underwriter participating in any
disposition of Securities, Exchange Securities or Private Exchange Securities
pursuant to such Shelf Registration Statement, all relevant financial and other
records, pertinent corporate documents and properties of the Company and its
subsidiaries and (ii) use its commercially reasonable efforts to have its
officers, directors, employees, accountants and counsel supply all relevant
information reasonably requested by such representative, Special Counsel or any
such underwriter (an "INSPECTOR") in connection with such Shelf Registration
Statement; PROVIDED that such representative, Special Counsel and underwriter
shall, if requested by the Company, enter into a customary confidentiality
agreement in connection therewith.

                  (r)      In the case of a Shelf Registration Statement, the
Company shall, if requested by Holders of a majority in aggregate principal
amount of the Securities, Exchange Securities and Private Exchange Securities
being sold, their Special Counsel or the managing underwriters (if any) in
connection with such Shelf Registration Statement, use its commercially
reasonable efforts to cause (i) its counsel to deliver an opinion relating to
the Shelf Registration Statement and the Securities, Exchange Securities or
Private Exchange Securities, as applicable, in customary form, (ii) its officers
to execute and deliver all customary documents and certificates requested by
Holders of a majority in aggregate principal amount of the Securities, Exchange
Securities and Private Exchange Securities being sold, their Special Counsel or
the managing underwriters (if any) and (iii) its independent public accountants
to provide a comfort letter or letters in customary form, subject to receipt of
appropriate documentation as contemplated, and only if permitted, by Statement
of Auditing Standards No. 72.

                  5. REGISTRATION EXPENSES. The Company will bear all expenses
incurred in connection with the performance of its obligations under Sections 1,
2, 3 and 4 and the Company will reimburse the Initial Purchasers and the Holders
for the reasonable fees and disbursements of one firm of attorneys (in addition
to any local counsel) chosen by the Holders of a majority in aggregate principal
amount of the Securities, the Exchange Securities and the Private Exchange
Securities to be sold pursuant to each Registration Statement (the "SPECIAL
COUNSEL") acting for the Initial Purchasers or Holders in connection therewith.

                  6. INDEMNIFICATION. (a) In the event of a Shelf Registration
Statement or in connection with any prospectus delivery pursuant to an Exchange
Offer Registration Statement by an Initial Purchaser or Exchanging Dealer, as
applicable, the Company shall indemnify and hold harmless each Holder
(including, without limitation, any such Initial Purchaser or Exchanging
Dealer), its affiliates, their respective officers, directors, employees,
representatives and agents, and each person, if any, who controls such Holder
within the meaning of the Securities Act or the Exchange Act (collectively
referred to for purposes of this Section 6 and Section 7 as a Holder) from and
against any loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of Securities, Exchange
Securities or Private Exchange Securities), to which that Holder may become
subject, whether commenced or threatened, under

                                    -11-
<Page>

the Securities Act, the Exchange Act, any other federal or state statutory law
or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such Registration
Statement or any prospectus forming part thereof or in any amendment or
supplement thereto or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and shall reimburse each Holder promptly upon demand for
any legal or other expenses reasonably incurred by that Holder in connection
with investigating or defending or preparing to defend against or appearing as a
third party witness in connection with any such loss, claim, damage, liability
or action as such expenses are incurred; PROVIDED, HOWEVER, that the Company
shall not be liable in any such case to the extent that any such loss, claim,
damage, liability or action arises out of, or is based upon, an untrue statement
or alleged untrue statement in or omission or alleged omission from any of such
documents in reliance upon and in conformity with any Holders' Information; and
PROVIDED, FURTHER, that with respect to any such untrue statement in or omission
from any related preliminary prospectus, the indemnity agreement contained in
this Section 6(a) shall not inure to the benefit of any Holder from whom the
person asserting any such loss, claim, damage, liability or action received
Securities, Exchange Securities or Private Exchange Securities to the extent
that such loss, claim, damage, liability or action of or with respect to such
Holder results from the fact that both (A) a copy of the final prospectus and
any amendment or supplement thereto was not sent or given to such person at or
prior to the written confirmation of the sale of such Securities, Exchange
Securities or Private Exchange Securities to such person and (B) the untrue
statement in or omission from the related preliminary prospectus was corrected
in the final prospectus or any amendment or supplement thereto unless, in either
case, such failure to deliver the final prospectus or any amendment or
supplement thereto was a result of non-compliance by the Company with Section
4(d), 4(e), 4(f) or 4(g).

                  (b)      In the event of a Shelf Registration Statement, each
Holder shall indemnify and hold harmless the Company and its affiliates, their
respective officers, directors, employees, representatives and agents, and each
person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act (collectively referred to for purposes of this Section
6(b) and Section 7 as the Company), from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which the
Company may become subject, whether commenced or threatened, under the
Securities Act, the Exchange Act, any other federal or state statutory law or
regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such Registration
Statement or any prospectus forming part thereof or in any amendment or
supplement thereto or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with any Holders' Information furnished to
the Company by such Holder, and shall reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection with
investigating or defending or preparing to defend against or appearing as a
third party witness in

                                    -12-
<Page>

connection with any such loss, claim, damage, liability or action as such
expenses are incurred; PROVIDED, HOWEVER, that no such Holder shall be liable
for any indemnity claims hereunder in excess of the amount of net proceeds
received by such Holder from the sale of Securities, Exchange Securities or
Private Exchange Securities pursuant to such Shelf Registration Statement.

                  (c)      Promptly after receipt by an indemnified party under
this Section 6 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party pursuant to Section 6(a) or 6(b), notify the indemnifying
party in writing of the claim or the commencement of that action; PROVIDED,
HOWEVER, that the failure to notify the indemnifying party shall not relieve it
from any liability which it may have under this Section 6 except to the extent
that it has been materially prejudiced (through the forfeiture of substantive
rights or defenses) by such failure; and PROVIDED, FURTHER, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have to an indemnified party otherwise than under this Section 6. If any
such claim or action shall be brought against an indemnified party, and it shall
notify the indemnifying party thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel selected by the indemnifying party and reasonably satisfactory to the
indemnified party. After notice from the indemnifying party to the indemnified
party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this
Section 6 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than the
reasonable costs of investigation; PROVIDED, HOWEVER, that an indemnified party
shall have the right to employ its own counsel in any such action, but the fees,
expenses and other charges of such counsel for the indemnified party will be at
the expense of such indemnified party unless (1) the employment of counsel by
the indemnified party has been authorized in writing by the indemnifying party,
(2) the actual or potential defendant in, or target of, any such action includes
both the indemnified party and the indemnifying party and the indemnified party
has reasonably concluded (based upon advice of counsel to the indemnified party)
that there may be legal defenses available to it or other indemnified parties
that are different from or in addition to those available to the indemnifying
party, (3) a conflict or potential conflict exists (based upon advice of counsel
to the indemnified party) between the indemnified party and the indemnifying
party (in which case the indemnifying party will not have the right to direct
the defense of such action on behalf of the indemnified party) or (4) the
indemnifying party has not in fact employed counsel reasonably satisfactory to
the indemnified party to assume the defense of such action within a reasonable
time after receiving notice of the commencement of the action, in each of which
cases the reasonable fees, disbursements and other charges of counsel will be at
the expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm of attorneys (in
addition to any local counsel) at any one time for all such indemnified party or
parties. Each indemnified party, as a condition of the indemnity agreements
contained in Sections 6(a) and 6(b), shall use all reasonable efforts to
cooperate with the indemnifying party in the defense of any such action or
claim. No indemnifying party shall be

                                    -13-
<Page>

liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld), but if settled with
its written consent or if there be a final judgment (including any judgment in
any appeal) for the plaintiff in any such action, the indemnifying party agrees
to indemnify and hold harmless any indemnified party in accordance with the
terms hereof from and against any loss or liability by reason of such settlement
or judgment. No indemnifying party shall, without the prior written consent of
the indemnified party (which consent shall not be unreasonably withheld), effect
any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

                  7. CONTRIBUTION. If the indemnification provided for in
Section 6 is unavailable or insufficient to hold harmless an indemnified party
under Section 6(a) or 6(b), then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party as a result of such loss, claim, damage or liability, or
action in respect thereof, (i) in such proportion as shall be appropriate to
reflect the relative benefits received by the Company from the offering and sale
of the Securities, on the one hand, and a Holder with respect to the sale by
such Holder of Securities, Exchange Securities or Private Exchange Securities,
on the other, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company, on the one hand, and such Holder, on the other, with
respect to the statements or omissions that resulted in such loss, claim, damage
or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on the
one hand, and a Holder, on the other, with respect to such offering and such
sale shall be deemed to be in the same proportion as the total net proceeds from
the offering of the Securities (before deducting expenses) received by or on
behalf of the Company, on the one hand, and the total discounts and commissions
received by such Holder with respect to the Securities, Exchange Securities or
Private Exchange Securities, on the other, bear to the total gross proceeds from
the sale of Securities, Exchange Securities or Private Exchange Securities. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to the Company or information
supplied by the Company, on the one hand, or to any Holders' Information
supplied by such Holder, on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission. The parties hereto agree that it would not be
just and equitable if contributions pursuant to this Section 7 were to be
determined by PRO RATA allocation or by any other method of allocation that does
not take into account the equitable considerations referred to herein. The
amount paid or payable by an indemnified party as a result of the loss, claim,
damage or liability, or action in respect thereof, referred to above in this
Section 7 shall be deemed to include, for purposes of this Section 7, any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending or preparing to defend any such action or claim.
Notwithstanding the provisions of this Section 7, an indemnifying party that is
a Holder of Securities, Exchange Securities or Private Exchange Securities shall
not be required to

                                    -14-
<Page>

contribute any amount in excess of the amount by which the total price at which
the Securities, Exchange Securities or Private Exchange Securities sold by such
indemnifying party to any purchaser exceeds the amount of any damages which such
indemnifying party has otherwise paid or become liable to pay by reason of any
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

                  8. RULES 144 AND 144A. The Company shall use its commercially
reasonable efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the written request
of any Holder of Transfer Restricted Securities, make publicly available other
information so long as necessary to permit sales of such Holder's securities
pursuant to Rules 144 and 144A. The Company covenants that it will take such
further action as any Holder of Transfer Restricted Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Transfer Restricted Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rules 144 and 144A
(including, without limitation, the requirements of Rule 144A(d)(4)). Upon the
written request of any Holder of Transfer Restricted Securities, the Company
shall deliver to such Holder a written statement as to whether it has complied
with such requirements. Notwithstanding the foregoing, nothing in this Section 8
shall be deemed to require the Company to register any of its securities
pursuant to the Exchange Act.

                  9. UNDERWRITTEN REGISTRATIONS. If any of the Transfer
Restricted Securities covered by any Shelf Registration Statement are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering will be selected by the
Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities included in such offering, subject to the consent of the Company
(which shall not be unreasonably withheld or delayed), and such Holders shall be
responsible for all underwriting commissions and discounts in connection
therewith.

                  No person may participate in any underwritten registration
hereunder unless such person (i) agrees to sell such person's Transfer
Restricted Securities on the basis reasonably provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

                  10. MISCELLANEOUS. (a) AMENDMENTS AND WAIVERS. The provisions
of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
Company has obtained the written consent of Holders of a majority in aggregate
principal amount of the Securities, the Exchange Securities and the Private
Exchange Securities, taken as a single class. Notwithstanding the foregoing, a
waiver or consent to depart from the provisions hereof with respect to a matter
that relates exclusively to the rights of Holders whose Securities, Exchange

                                    -15-
<Page>

Securities or Private Exchange Securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of a majority in aggregate
principal amount of the Securities, the Exchange Securities and the Private
Exchange Securities being sold by such Holders pursuant to such Registration
Statement.

                  (b)      NOTICES. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail, telecopier or air courier guaranteeing next-day delivery:

                  (1) if to a Holder, at the most current address given by such
         Holder to the Company in accordance with the provisions of this Section
         10(b), which address initially is, with respect to each Holder, the
         address of such Holder maintained by the Registrar under the Indenture,
         with a copy in like manner to J.P. Morgan Securities Inc. and Salomon
         Smith Barney Inc.;

                  (2) if to an Initial Purchaser, initially at its address set
         forth in the Purchase Agreement; and

                  (3) if to the Company, initially at the address of the Company
         set forth in the Purchase Agreement.

                  All such notices and communications shall be deemed to have
been duly given: when delivered by hand, if personally delivered; one business
day after being delivered to a next-day air courier; five business days after
being deposited in the mail; and when receipt is acknowledged by the recipient's
telecopier machine, if sent by telecopier.

                  (c)      SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns.

                  (d)      COUNTERPARTS. This Agreement may be executed in any
number of counterparts (which may be delivered in original form or by
telecopier) and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  (e)      DEFINITION OF TERMS. For purposes of this Agreement,
(a) the term "business day" means any day on which the New York Stock Exchange,
Inc. is open for trading, (b) the term "subsidiary" has the meaning set forth in
Rule 405 under the Securities Act and (c) except where otherwise expressly
provided, the term "affiliate" has the meaning set forth in Rule 405 under the
Securities Act.

                  (f)      HEADINGS. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (g)      GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

                                    -16-
<Page>

                  (h)      REMEDIES. In the event of a breach by the Company or
by any Holder of any of their respective obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law, including recovery of damages (other than
the recovery of damages for a breach by the Company of its obligations under
Sections 1 or 2 hereof for which additional interest has been paid pursuant to
Section 3 hereof), will be entitled to specific performance of its rights under
this Agreement. The Company and each Holder agree that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of any of the provisions of this Agreement and hereby further agree that, in the
event of any action for specific performance in respect of such breach, it shall
waive the defense that a remedy at law would be adequate.

                  (i)      NO INCONSISTENT AGREEMENTS. The Company represents,
warrants and agrees that (i) it has not entered into, shall not, on or after the
date of this Agreement, enter into any agreement that is inconsistent with the
rights granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof, (ii) it has not previously entered into any agreement which
remains in effect granting any registration rights with respect to any of its
debt securities to any person and (iii) without limiting the generality of the
foregoing, without the written consent of the Holders of a majority in aggregate
principal amount of the then outstanding Transfer Restricted Securities, it
shall not grant to any person the right to request the Company to register any
debt securities of the Company under the Securities Act unless the rights so
granted are not in conflict or inconsistent with the provisions of this
Agreement.

                  (j)      NO PIGGYBACK ON REGISTRATIONS. Neither the Company
nor any of its security holders (other than the Holders of Transfer Restricted
Securities in such capacity) shall have the right to include any securities of
the Company in any Shelf Registration or Exchange Offer other than Transfer
Restricted Securities.

                  (k)      SEVERABILITY. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law. If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their reasonable best efforts
to find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

                                    -17-
<Page>

                  Please confirm that the foregoing correctly sets forth the
agreement among the Company and the Initial Purchasers.

                                        Very truly yours,

                                        FOREST OIL CORPORATION

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

Accepted:

J.P. MORGAN SECURITIES INC.

By
   ---------------------------------
     Authorized Signatory

SALOMON SMITH BARNEY INC.

By
   ---------------------------------
     Authorized Signatory

BMO NESBITT BURNS CORP.

By
   ---------------------------------
     Authorized Signatory

TD SECURITIES (USA) INC.

By
   ---------------------------------
     Authorized Signatory

         [Signature page to Exchange and Registration Rights Agreement]

                                    -18-
<Page>

                                                                         ANNEX A

                  Each broker-dealer that receives Exchange Securities for its
own account pursuant to the Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Securities. The
Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act. This Prospectus, as it
may be amended or supplemented from time to time, may be used by a broker-dealer
in connection with resales of Exchange Securities received in exchange for
Securities where such Securities were acquired by such broker-dealer as a result
of market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein), it
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution."

                                    -19-
<Page>

                                                                         ANNEX B

                  Each broker-dealer that receives Exchange Securities for its
own account in exchange for Securities, where such Securities were acquired by
such broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. See "Plan of Distribution".

                                    -20-
<Page>

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

                  Each broker-dealer that receives Exchange Securities for its
own account pursuant to the Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Securities. This
prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date, it will make this
prospectus, as amended or supplemented, available to any broker-dealer for use
in connection with any such resale. In addition, until _______________, 200_,
all dealers effecting transactions in the Exchange Securities may be required to
deliver a prospectus.

                  The Company will not receive any proceeds from any sale of
Exchange Securities by broker-dealers. Exchange Securities received by
broker-dealers for their own account pursuant to the Exchange Offer may be sold
from time to time in one or more transactions in the over-the-counter market, in
negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices
prevailing at the time of resale, at prices related to such prevailing market
prices or at negotiated prices. Any such resale may be made directly to
purchasers or to or through brokers or dealers who may receive compensation in
the form of commissions or concessions from any such broker-dealer or the
purchasers of any such Exchange Securities. Any broker-dealer that resells
Exchange Securities that were received by it for its own account pursuant to the
Exchange Offer and any broker or dealer that participates in a distribution of
such Exchange Securities may be deemed to be an "underwriter" within the meaning
of the Securities Act and any profit on any such resale of Exchange Securities
and any commission or concessions received by any such persons may be deemed to
be underwriting compensation under the Securities Act. The Letter of Transmittal
states that, by acknowledging that it will deliver and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                  For a period of 180 days after the Expiration Date the Company
will promptly send additional copies of this prospectus and any amendment or
supplement to this prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any
broker-dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

                                    -21-
<Page>

                                                                         ANNEX D

         / /      CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
                  ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
                  AMENDMENTS OR SUPPLEMENTS THERETO.

                  Name:
                  Address:

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Securities that were acquired as
a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                    -22-

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